Monetary Resistance 2.

0 By Asif Ameer

September 3rd, 2011

There really wasnt time left for version 1.0 so Ill start up straight to the point. Pakistan and its public is in heaps of trouble. I watch Pakistan News and see general population complaining of all the problems we face. Public gets the microphone for 1 minute and they waste the chance by telling us what the problems are. How about mentioning the solutions? This is what I am going to do here - What should I do? These points are derived from conclusions of my previous article on Pakistans Monetary and Fiscal policies. (http://tinyurl.com/pakgoldstandard) 1. Withdraw all your cash from your Banks checking and savings accounts Doing so, you are depriving Banks to expand their money supply and leech off from your economic system. There is a practice in the Banking Industry called Fractional Reserve Lending. When money is deposited into a commercial bank, it is completely legal for the bank to lend out 15~30 times the deposited amount on interest. If a new bank is chartered with an initial amount of Rs 1crore, that money can be counted as deposit and now the bank can lend out Rs 15 crore, creating Rs 14crore out of thin air, collecting over 8% on the lent Rs 15crore which would be Rs 1.2Crore. Mind it, the initial investment of the bank was 1crore. The bank isnt making 8% on the lent money, its making 120% per year on its initial investment. Not only is it immoral, but this action is a direct dilution of the currency in circulation. This is currency-counterfeiting made legal. 2. Convert all your Cash/Bonds in Gold and Silver. Governments derive the power to rule over people through the money it prints and circulate. This right is given by the people to its Government to use their wealth and direct it accordingly. Wealth is not Rs or $s but the real wealth are the goods and services people need. Buying food or going to the doctor are the real wealth. Its important to understand this abstract idea. One cannot feed himself pieces of paper even if there is a picture of Quaid-e-Azam on it. Imagine if every grocery store refuses to accept Rupees in exchange for the grocery they sell. What would be the worth of your PK Rupee notes? Best examples are Weimar Republic after WW1 and Bolivia in recent years. This is called Hyperinflation. Your 1 crore may buy you 1 dozen eggs today but 1 egg tomorrow. Imagine if you were holding Gold or Silver. My goal here is not be to your fund manager but to show you how to take the monetary powers back into the hands of the public from the Central Government. 3. Do your daily transactions in Gold and silver coins. Buy and sell your goods and services in Gold and Silver. Remember, start with yourself. If you have an employee, ask them if they would like to be paid in equal amount of gold/silver (at that days rate). You do not have to run a company to have employees. A tuition teacher, your house-maid, your watchman, they are your employees. Offer them their wages in metals. Convince your employer/Customer to pay you in gold/silver. But if you are getting paid in gold/silver, its only fair to pay your employees accordingly. If you work for the Federal or Provincial Government, convert your wages into metal right away. If this practice is adopted by the masses, you will notice Rupees accelerated devaluation. This phenomenon was practiced in the Weimar Republic after World War I. Only difference is, they used American Cigarettes and Whiskey instead of Gold as there wasnt any gold left in their country. So do not wait for the Cigarettes, because Whiskey will never come! Distribute this article to whoever you know. Put it on Facebook, tweet it to every Pakistani you know. Translate it in Urdu and tweet that copy to Zardari. A Jaali Degree doesnt mean he cant read Urdu. UPDATE: I was recently informed someone has started Dinar and Dirham site for Pakistan http://EGold.pk and for tech-savy folks there is an open-source vitual money call BITCOIN.

Asif Ameer is a concerned ex-pat Pakistani. He trades Equities, bonds, and derivatives in the Capital Markets. He can be reached via Twitter: #AsifAmeer_AP