Posts Tagged ‘dinar’

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ISIS stunt to mint own coins will backfire

December 1, 2014

ISIS announced its intentions during sermons in northern Iraq this month to begin minting its own gold dinars and silver dirhams in keeping with the traditions of Muhammad and the old caliphate. Shortly afterward, one ISIS member conceded that the proposal is a stunt. But the hoax is yet another indication of the desire of jihadists, Islamists, and caliphate revivalists to flush paper fiat currencies, which they regard as infidel currencies, down the toilet, and replace them with the metal coins of antiquity.

A return to gold and silver are broadly supported by prominent Muslims including former Malaysian prime minister Mahathir Mohamad and Islamic lecturer Imran N. Hosein despite the inefficiencies of using gold as a medium of exchange and the frightening volatility of the global gold prices.

Currency expert Axel Merk told CNN that even if ISIS were able to build a monetary system with gold, the terrorist organization would eventually run out of money and begin lowering the content of gold in their coins to stay solvent like past gold-based economies.

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Slick ad tells Muslim youth to use gold coins

May 11, 2012

A new commercial uses images of Muslim young ladies buying food at a halal cafeteria with silver coins.  Viewers are urged to use the silver dirham coins and gold dinars in order to “revive the Sunnah”:

The Islamic world is replete with examples of the move toward silver and gold coins, and this is just the latest.  Indonesia recently introduced a standardized dinar and dirham system to run alongside their paper currency as an option for Indonesians.

Gold advocates and Muslim financiers make repeated claims of gold and silver having “intrinsic value.”  Pardon me, but can you eat gold and silver?  Can you drink it?  Will it keep you warm in winter and dry in the rain?  No—only the things you can buy with gold and silver can do that for you.  And guess what?  You can buy the same things with paper currency.

In this sense, “fiat” currency isn’t much different from “fiat” metal.  But metals are susceptible to fluctuations in the global market (like oil) and could potentially be a less stable system upon which to base a national monetary system.

Turning back the financial clocks to the dinar and dirham may make some Western nostalgists, goldbugs, and paranoiacs envious or concerned that the Islamic world is taking what they feel is a more sensible approach to money.

But there is nothing to be envious about.  Returning to gold and silver will not help the economies of the Islamic world.  If anything, it will make them even less efficient and less competitive in today’s currency-based financial world.

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Paper money “utterly haram”

September 18, 2011

Islamic “philosopher” Imran N. Hosein isn’t done talking about the evil of Western paper money.  During a live audio linkup from Trinidad to South Africa during Ramadan last year, Hosein lectured a Capetown mosque on the wickedness of “bogus and fraudulent and utterly haram paper currencies.”

Hosein argues that Western nations are “playing God” by creating money.  In order to protect the ummah (Muslim community) from this “storm” of infidel currency and shirk (Arabic for idolatry), Allah has metaphorically put the ummah to sleep in a cave.  Hosein concludes that, one day, the ummah will awake to a world that uses only gold dinars and silver dirhams.

Here’s a four-minute excerpt about the money.  Take a listen:

The full, bloated 72-minute lecture (covering everything from Muslim dress codes, last year’s floods in Pakistan, and the sinking of some island in Dubai) is here for those with enough patience to listen to this bizarre yet colorful Islamist nutjob.

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War on Qaddafi based on fear of gold standard

August 11, 2011

Umm… okay… right…

Well, the theory that Europe and the United States have gone on the offensive against Muamar Qaddafi makes “sense” only if you have the same world view as one of the sources for this theory, Louis Farrakhan.

The weird leader of the Nation of Islam recently had this exchange on a program called “Spectrum Today”:

‘How’s America’s wealth today? How is she doing financially? What is the deficit? Some say it’s about US$56 trillion counting Social Security and Medicare.

‘That’s a big number. She’s printing money, but there’s nothing backing it,’ said Farrakhan.

In the book, ‘The Fall of America,’ Elijah Muhammad wrote, ‘The English pound and the American dollar have been the power and beckoning light of these two great powers.

‘But when the world went off the gold and silver standard, the financial doom of England and America was sealed.’

Muhammad added: ‘The fall of America is now visible and understandable. Long has Allah been gradually removing the power of the great and mighty America while few have noticed it. This has been done by degrees, and they do not perceive it.’

This article from the Southern Times lays out the theory that Qaddafi possesses a lot of gold, and intended to create a Muslim and pan-African currency backed by gold that would change the global balance of financial power.  The fear of that possibility is what has prompted the U.S. and Europe to declare that “Qaddafi must go.”  The West would be shaking in its boots, the author argues, if oil-exporting countries began selling their oil for gold dinars rather than U.S. dollars.

The only reason this bizarre fantasy deserves any ink on this blog is because it highlights the fixation that Muslim authorities have for re-imposing the gold standard on an unwilling world.  Their belief is based, not on a solid understanding of economics or trade, but upon the idea that the Profiteer Muhammad used only coins of gold and silver in the Seventh Century, and so should we.  They also despise paper currency that is backed only by the faith and credit of an infidel government.

The gold bugs are getting buggier.

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Rare Muslim opposes gold…for wrong reason

February 3, 2011

I began reading this article with great excitement, and thought, “Finally, a Muslim economist is talking sense instead of frothing at the mouth about the ‘evils’ of paper currencies.”  It seemed so good at first that I figured a fatwa would be issued against him within the next 24 hours.

Until I read his real reason for opposing a return to the gold standard:  “He said gold supply was dominated by non-Islamic countries.”

There you have it.  It’s not about what’s best for the global economy, for stabilizing prices, or what the best medium of exchange truly is.  It all boils down to what gives Islam the upper hand.  Thanks, Professor.  From the Malaysian National News Agency, Bernama.com on Jan. 17:

KUALA LUMPUR—Islamic countries should continue to use paper currency instead of gold dinar as history has shown that the return to the coinage system could increase interest rates and inflation would be difficult to control.

Professor of Comparative Economic History at International Centre for Education in Islamic Finance (INCEIF), Dr Murat Cizakca, said money should serve as a medium of exchange, not as a commodity.

“We need to continue with paper currency, and the central banks controlling paper currency should have full autonomy,” he said.

Cizakca said this at a public lecture entitled, “Islamic Gold Dinar:  Myths and Reality” organized by the Association of Chartered Islamic Finance Professionals and INCEIF here Monday.

He said gold supply was dominated by non-Islamic countries.

“The gold dinar will be exposed to speculation as the gold price also have its ups and downs.

“Thus, Islamic countries should continue to use paper currency and increase trade between each other, and eventually in the future agree to a common paper currency,” he said…

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New gold fund unpopular; coin demand high

November 3, 2009

Dubai fund managers are surprised that Muslims would rather buy gold coins than a gold fund.  I’m not.

DUBAI, Oct 28 (Reuters) – The Gulf region’s first gold exchange traded commodity (ETC), a new investment vehicle launched earlier this year, is seeing only modest growth due to regional unfamiliarity with the product.

Grant Collins, senior managing director of the Dubai Commodity Asset Management, said the security was also hampered by a trend for bullion investment in the Middle East to come from individuals rather than institutions or funds.

Collins told the Reuters Middle East Investment Summit that the group may not have realised just how much people preferred to have the the gold rather than a gold-backed product.

For fun, google “Islamic gold.” You’ll find roaring sales pitches for gold coins that would put G. Gordon Liddy to shame.  Why the push to sell Muslims gold?  Old-fashioned gold-buggery plays its part, but these Islamic legal arguments have played a role:  Read the rest of this entry ?