how about this ?

[bracek]

http://www.youtube.com/watch?v=QWuwhk_qKL8

[evoorhees]

What I don't understand is, if Libya wanted to create a "gold dinar" currency and then use that to accept as payment for its oil... why wouldn't it just accept straight gold bullion in the first place?

If a gold dinar is gold, then why not just use Kruggerands? You don't need to make a new currency out of gold if you wish to use gold as currency, right?

What am I missing?

[NghtRppr]

What I don't understand is, if Libya wanted to create a "gold dinar" currency and then use that to accept as payment for its oil... why wouldn't it just accept straight gold bullion in the first place?

If a gold dinar is gold, then why not just use Kruggerands? You don't need to make a new currency out of gold if you wish to use gold as currency, right?

What am I missing?

I think it has something to do with Islamic law requiring pure gold whereas Krugerrands aren't.

[kloinko1n]

Trading oil for gold would mean that soon the oil producing countries would possess all the gold.
Pumping oil and printing dollars (or euro's, as Saddam Hussein found out to be not such a good idea) and exchanging them for each other seems to be a better idea.

[myrkul]

Trading oil for gold would mean that soon the oil producing countries would possess all the gold.
Pumping oil and printing dollars (or euro's, as Saddam Hussein found out to be not such a good idea) and exchanging them for each other seems to be a better idea.

Right, because those oil producing countries never import anything.

[NghtRppr]

Right, because those oil producing countries never import anything.

Nah, they just want to hoard gold, which for some reason would hurt us.

[Sannyasi]

who cares- give it all to them- then they have nothing but rocks