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 Replies: 31 / Views: 7,045 |
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Pillar of the Community
United States
1192 Posts |
I read more about it and that's the point. They want to get away from fiat currencies. They are currently using normal Iraqi money that is almost worthless. They want to return to the old currencies based on the value of the metal.
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Pillar of the Community
United States
1192 Posts |
They going to have a heck of a problem making change unless they don't introduced some more gold coins than the one they plan. There would be like a $650 gap from their planned silver coin and their gold coin. So much easier when gold and silver was 1:40.
How much would a dime size gold coin be worth?
Edited by Bertensgrad
11/13/2014 10:49 pm
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Pillar of the Community
Canada
3692 Posts |
I don't know if it's just the resizing of the image, but they're going to have a hard time pressing out ovals designs onto round blanks.
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Pillar of the Community
United States
589 Posts |
Quote:
There would be like a $650 gap from their planned silver coin and their gold coin. So much easier when gold and silver was 1:40. But you fail to realize that's a 650 "USD gap". USD means nothing to them, for many reasons. The simplest being, once they monetize the metal in the form of a coin, they can set the Gold-Silver ratio to whatever they want and make their currency the "strongest" in the world. Since at that point, they are not dealing with "gold" and "silver" but are instead dealing with "legal tender" "currency". Remember, Gaddafi wanted the world to buy Libyan oil with Dinars, not gold, even though the dinars he proposed would have been made of gold. The only way a nation could thus buy oil would be to first obtain the dinars (the monetized gold) at whatever price Gaddafi would have wanted, and then use them to purchase the oil. The same thing could happen here. A nation (or whatever ISIS is) reintroducing gold and silver as currency has the potential to destroy the entire world economy. Going from hard currency to fiat is easy, the converse isn't...at least without a few casualties (or all the world) along the way. My conjecture, of course. |
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Pillar of the Community
United States
1192 Posts |
I don't really see them having much involvement with the world outside a North Korea sort of way. Most international transactions will be on the black market to avoid sanctions. I don't think they have too much interest in international affairs outside conquest.
That being said Iraq doesn't have any large gold reserves or mining potiential. So wouldn't the price of their currency be highly reliant on international commodity prices. Just seems like they would either undervalue gold or overvalue silver if they aren't careful. In a open market the silver money would drive out the gold and it would be hoarded.
I guess you could solve it by only allowing silver to be used for payment for up to $50 or something with silver not being legal tender above that.
Edited by Bertensgrad
11/14/2014 10:14 am
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Pillar of the Community
United States
4692 Posts |
Interesting. Can someone provide a link to an actual news article?
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Pillar of the Community
United States
4692 Posts |
Small change would be made with bullets.
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Bedrock of the Community
Australia
21788 Posts |
I think it is the intention of ISIS to use their coinage system as a single currency across the whole of the islamic world, administered by a single islamic government. It would be an attempt to repeat the coinage system of the early caliphates of the 7th century. Impossible for such a currency to work, on a more than one country basis. Even the Roman Empire had different coinage systems that worked in a practical way.
Their ideal is to have the whole world under islamic control; their version of a one world government.
Those who find that they could not live under such a system would have long since been eliminated.
In THEIR minds, you would then have genuine peace.
Such is impossible; there have been very deep divisions within the islamic world for centuries.
Would I collect ISIS coins?
Possibly.
I already have quite a few early islamic coins in bronze, silver and gold. They are lots of fun, and a difficult challenge for me to fully identify.
There are a few of us here in the CCF that collect Nazi coins with a clear conscience, and the Nazi government did some very evil things under THEIR control.
Edited by sel_69l
11/14/2014 5:05 pm
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Pillar of the Community
Canada
2805 Posts |
I think the problem and the difference here is that they are killing people right now. The 3rd Reich killed its millions decades ago, and there is no possible way that the modern trade in Nazi memorabilia could benefit real Nazis (so it's mostly a matter of personal taste) - but ISIS is still in power, and buying their memorabilia probably would actively encourage them.
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Pillar of the Community
United States
589 Posts |
The whole "killing people right now" comment...what about Soviet Russia? More people were killed by and under Stalin than Hitler. Stalin was our ally. How many people does the US kill? Google the drone strikes and child deaths. The numbers are astounding.
ISIS is making millions daily from oil sales on the black market. If they are allowed to conquer, they will (over time) become a recognized nation. Look at history and conquering barbarians and what became of them. ISIS can buy, right now, all the bullion they want from their oil sales. They can expand into Kuwait and Saudi Arabia (albeit with push-back from the Kuwaitis and Saudis) and if successful can one-by-one conquer the oil producing nations we import from and then they are in the international marketplace (since there'd be no real alternative).
All I know is that if they do mint coinage, they will be exercising the most sovereign of all rights and will cease being a "terrorist organization" or a "quasi-state" and be a true State. Even if it is of a terrorist nature.
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Pillar of the Community
Australia
3831 Posts |
There is a brilliant solution to this!
Once they mint gold coins, why not let the counterfeiters replace them with gold plated lead coins?
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Bedrock of the Community
Australia
21788 Posts |
Interesting thought:  Could our friends the Chinese, get their fakes to circulate as counterfeits, within the ISIS coinage system?  |
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Pillar of the Community
 United States
711 Posts |
Islamic State Money: ISIS To Mint Its Own Currency And Create 'Financial System'http://www.ibtimes.com/islamic-stat...stem-1723433Quote:
Surviving under Islamic State group rule is about to get much more complicated. The militant group's "Treasury Department" announced Thursday that it would soon begin minting its own silver, gold and copper coins. And with that statement, the official Islamic State Financial System has been launched. Quote:
Various reproductions of what the coins will look like were disseminated over social media. On one side of the coin the words "Islamic State" are written in the center. The flip side varies depending on the value. The five-dinar gold coin has a map of the world and the one-dinar gold coin is pictured with an etching of wheat stalks. The 10-dirham coin has a photo of the al-Aqsa Mosque and one of the two copper coins is emblazoned with a crescent moon.   
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Pillar of the Community
Canada
1118 Posts |
Libertad, my Arabic is rudimentary but I believe the center is the denomination and the outside script is the decleration of faith, transliterated it says "LA illaha illa Allah Mohammed rasulu Allah" which means that there is no God but God and Mohammed was his messenger.
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Pillar of the Community
Canada
1118 Posts |
The first three letters on the gold coin (read right to left) is DAL NOON RA, so yes, it does give the denomination in the middle. In the future I will leave the Arabic to Sap.
Edited by Harmonica
11/15/2014 10:23 pm
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Replies: 31 / Views: 7,045 |
First Page
Posted 11/13/2014 10:46 pm
