ISIS plans to mint its own currency to escape the ‘tyrant’s financial system’ based on ‘satanic usury’ | National Post
Notice they're using a multiple metal standard.
Notice they're using a multiple metal standard.
ISIS plans to mint its own currency to escape the ‘tyrant’s financial system’ based on ‘satanic usury’ | National Post
Notice they're using a multiple metal standard.
Well they want to be a country so it makes sense that they would be doing this at some point.
Why? Are metals inherently more valuable than, say, food? Or apropos of much of the Middle East, water?But you gotta give them credit. It's a solid metals standard. You can't counterfeit that unless you can transmute a cheaper metal into another and we don't have the technology for that yet and even once we do, what will be the economic cost of doing so? Would it even be worth it?
It sounds like they're planning on putting a pretty solid currency in place.
Now of course they policies are so terrible on every other front that they will still see their demise, but this currency scheme of theirs is actually a good one worth emulating.
Why? Are metals inherently more valuable than, say, food? Or apropos of much of the Middle East, water?
And metal currency can be watered down by mining more of it.It I had a choice between being paid in metal, paper currency, or food, I'd rather metal. Paper currency can be watered down with printing more of it.
You don't have much experience with iron or silver, do you?Food can rot. Metal? Neither. It lasts and its availability cannot be increased so easily.
And metal currency can be watered down by mining more of it.
You don't have much experience with iron or silver, do you?
The point is, why would you tie your monetary system to something as arbitrary as gold? (Just eliminating the pretence that we're talking about something else, y'know?)
despite seeking to distance itself from the international economy, the new currency’s underpinnings may make ISIS’ economy even more heavily dependent on global fluctuations than most, specifically on precious metal and commodity prices,” according to the FT. “The highest-denominated 5 dinar coin is set to contain 21.25 grams of 21 carat gold, worth about $694, while its lowest-denominated 10 flous coin would contain 10 grams of copper and be worth about 7 cents. The proposed silver dirham coins would range in value from 45 cents to $4.50 at current rates.”
sooooooooooooo what happens when people horde it?
Shortly after the Spaniards opened up the New World, there was so much gold coming back to Spain that farmers didn't bother to farm, because everybody had SO MUCH GOLD!Mining it is a lot more expensive than printing it, so it can depreciate by only so much.
And while some metals can tarnish, they can be polished up easily enough with little effect on their original value. Any loss of value from that would still be less than the average rate of inflation for a paper currency.
Shortly after the Spaniards opened up the New World, there was so much gold coming back to Spain that farmers didn't bother to farm, because everybody had SO MUCH GOLD!
Come harvest time, gold depreciated really, really fast.
It's value increases. But since hording it has no value in itself, either one can melt it down to build something with it or spend it sooner or later, in which case its value will depreciate again. So while there can certainly be fluctuation like any other currency, at least inflation and deflation of the currency will more or less balance each other out over time, unlike fiat currency.
Now of course the Islamic State won't last long enough to enjoy this advantage, but just saying.
but how can they spend it except within their own culture...they view our money as satanic, so once it begins to circulate we just remove the circulation and they have nothing
And I would not cal IS a 'culture'.
It's like the gold standard. Now that's something worth emulating
MMMmmm. . . pie.There's another angle to this story. IS and Al whatever TF are western constructs they've announced their intentions to subvert the west, so have all the other nations reverting to gold standard, see what I'm gettin at, the gold standard enemy of democracy has just been signaled out as just targets. In order to save toilet paper money the gold has to go. Gold is the enemy of western democracy, that's why we sold it all.
Only the enemies of mom and apple pie would covet gold and silver.
There's another angle to this story. IS and Al whatever TF are western constructs they've announced their intentions to subvert the west, so have all the other nations reverting to gold standard, see what I'm gettin at, the gold standard enemy of democracy has just been signaled out as just targets. In order to save toilet paper money the gold has to go. Gold is the enemy of western democracy, that's why we sold it all.
Only the enemies of mom and apple pie would covet gold and silver.