ISIS Minting Coins, Claiming They Will Undermine The Economies Of Enemies

By Darren Smith, Weekend Contributor

isis-gold-dinarThough as further evidence ISIS is establishing a form of structuralized government, ISIS claims it will undermine Western currency markets with its minted bullion coins. It is using such to establish internal payments and as a hard currency to fund its black marketeering in illegal trade items. Since ISIS lacks a recognized currency, gold provides an intrinsic value in trade in foreign commerce.

However its reliance on bullion coinage can also make it vulnerable to economic countermeasures.

ISIS released on August 29th a propaganda film touting its return of the gold dinar, claiming it will displace the United States from international financial transactions by replacing dollars with bullion coins such as gold, silver, and copper. The film titled “The Rise of the Caliphate: Return of the Gold Dinar” describes how the United States created the Federal Reserve, promising to make payments in gold upon demand accompanied by surrendering dollars. However, the United States then deceived the world by switching to a fiat currency with paper dollars and eventually removing the dollar as payable in gold. The US then maintained dollars in a “satanic way” by using oil, forcing other countries to buy and sell oil in dollars through the petrodollar system.

A site dedicated to the ISIS coinage makes the following claim:

Declaration of the Islamic State launching its own currency

In the name of Allah, the Most Gracious, the Most Merciful! Praise be to Allah, Lord of the Worlds, and peace be upon Muhammad and his family and companions…

Under decree of caliph Ibrahim (May Allah bless him!), ruler of all faithful Muslims of the Islamic State, proclaiming the Islamic State to produce its own currency to prevent blind and tyrannical monetary system that was imposed on the Muslims and was a reason for their enslavement, impoverishment and the wasting of national wealth, making it easy prey in the hands of the Jews and Christians. For this purpose the Islamic Financial House has examined the issue and developed a project (Praise be to Allah!) dedicated to minting gold and silver coins according to the domestic value of these metals.

This site (ISIS-Coins.com) tracerouts to a hosting company in Luxembourg, and has its domain registration made private by a company in Russia. It might be proxied.

The ISIS now claims replacing dollars with gold will cause major economies such as Russia and China to sell US T-bills, leading to a collapse of the economy in America.

Al-Monitor reports during an interview with a former jihadist and Islamic commentator Najeh Ibrahim who stated:

“The fact that [ISIS] is monetizing its currencies carries more than one message. The first message is addressed to the world, in which IS confirms that it has become a [legitimate] state. The second is addressed to Muslim youth, in which IS asserts that the Muslims’ dignity and economic power, lost since the era of the caliphate, have returned.

Each coin has its own connotation. The first is a 1-dinar coin of pure gold weighing 4.25 grams [0.15 ounces], and this is the same weight as the first gold dinar of Umayyad Caliph Abd al-Malik ibn Marwan. On its reverse side, the 1-dinar coin has a symbol of seven wheat stalks, representing the blessing of spending in the path of Allah. The second coin is the 5-dinar coin and weighs 21.25 grams [0.75 ounces]; it is imprinted with a map of the world, representing the extent of territory [the Prophet] Muhammad’s reign would reach.”

There are economic, political and scientific relations between the countries [that cannot be overlooked]. To be recognized as a state, [ISIS] must be accepted by others. There are 192 countries in the world and none of them recognizes [ISIS] as a state, and therefore its currency will not be recognized.” He added, “Any currency must be accepted by the transaction parties. The holder of a currency must not feel threatened by using this currency. An Egyptian worker in Libya working in an area controlled by [ISIS] will not accept his salary in [ISIS] gold dinar, because he knows that he cannot transfer this amount to his children in Egypt. If this worker is caught carrying this dinar in Egypt, he may be subject to legal prosecution. People will not use this currency, even if [it is] made of gold.”

The ISIS arguments fail on many macroeconomic fronts. Any given national currency is backed by local governments and the gross domestic product of that nation, goodwill, and economic strength; not just the holding of precious metals. ISIS coinage lacks any recognition by other states and therefore other than its intrinsic metal value fails in the ability to convert it to other currencies. It likely also will be a closed system in with regard to international black market trade because those engaging in illicit trade with ISIS can only return such currency to those recognizing the ISIS. Nations also can ban possession and trade in this currency, severely limiting its demand and encouraging its devaluation.

The metal value of these coins will fluctuate and will be inversely proportionate in many ways to rises in economies of other nations, as investors sell gold abandon a traditionally perceived safe haven during bear markets. The copper coins are for practical purposes entirely valueless due to the value of copper and the small quantities for which the coins are available.

Yet another worrying factor is where ISIS obtains its gold. With the raping of important historical artifacts and world heritage sites it only seems logical ISIS will turn to extracting gold from irreplaceables and robbing citizens of gold held privately.

One method that the West can engage in economic warfare against ISIS could be found in a similar front prosecuted against Great Britain during the Second World War by the Nazis–See Operation Bernhard for more information.

In the operation the Nazi Government attempted to crash the British Economy by forging millions of pounds of banknotes and releasing these counterfeits into the world economy. While it did lead to disruptions, failures to fully execute the plan and other factors made the operation largely unsuccessful. It did however force the Bank of England to deprecate the notes subject to counterfeiting and reissue new banknotes.

A similar approach could be taken against ISIS currency. The coinage is easier to forge, save for weight. The West could dump large quantities of counterfeit coins having no intrinsic bullion value in an effort to undermine confidence in the currency and lead to inflationary pressures. Whether such actions would can have a positive cost / benefit remains to be seen however.

By Darren Smith

Source: Al-Monitor

The views expressed in this posting are the author’s alone and not those of the blog, the host, or other weekend bloggers. As an open forum, weekend bloggers post independently without pre-approval or review. Content and any displays or art are solely their decision and responsibility.

122 thoughts on “ISIS Minting Coins, Claiming They Will Undermine The Economies Of Enemies”

  1. Liberals are smart and conservatives are stupid. You do stumble across a fact from time to time. It’s rare but it does happen. Canada has its share of ignorant people. They haven’t risen to the level of the types found in the US government. Try Inhofe.

  2. Johnstone is getting a lotta play. I read about her in a scathing piece in the Daily Beast, so she is not obscure. She did not know what Auschwitz was!! Come on man. Even Nancy Pelosi and Amy Davis know about Auschwitz. That is stone cold ignorant. I thought liberals were smart, and conservatives stupid??

    1. Nick – history is a real problem teaching. Even if you are speed teaching it, you are lucky to get through WWII. Now, if they expect you to get up to Desert Storm, then a few things have to go.

  3. Alex Johnstone is nobody, just a poorly educated dips*t of the sort that can be found in any country. Another goofball is running for office in Victoria who believes the 9/11 incident explanation is a lie. She believes those experts who can prove that two planes could not have caused the towers to collapse. The experts she believes are like the one or two percent who disagree with the 95+% who connect mankind’s role to climate change. There are these idiots in every county.

    The telling part of this diatribe by our resident sleuth is how he bases his arguments on obscure and unrelated incidents and persons. I guess if you search hard enough you can find support for even the most obtuse platforms.

  4. Who is Alex Johnstone and what does he have to do have to do with Chicago sports?

    Can he rush the passer? Cause we could use him. But you mentioned Canada. We didn’t do too well with our last Canadian adventure. Never mind.

    Go Cubs (and bears).

  5. Alex Johnstone. Discuss. I could care less if people of your ilk leave or stay. But, if all the liberals who have said, “If [fill in the blank] is elected I’m moving to Canada” actually did move to Canada, Alex Johnstone could get elected PM.

  6. Hey, there’s always the Cubbies 🙂

    What could go wrong?

    Back the Future predicted it, and Lexus has built a hover-board. It has to happen.

    … if it weren’t for that damn goat… or the black cat… or Steve Bartman….

  7. My biggest problem is having to endure the Bears game this afternoon. And, as this season progresses, I may truly need a nurse.

    So, Paul, do you think you could try not to make them too angry till the season is over?

    Go Bears.

    1. fiver – after putting my pop-psychology hat on, the best advice I can give you to find a better team to be loyal to. My team got killed last night. I figure by Thursday I will be done grieving.

  8. KCF, Although I do mostly defense work, I also did some plaintiff cases over the years. I’ve discussed this case w/ DBQ since her family were printers. A guy died from mesothelioma and the widow hired my client to represent her. The guy was a linotype operator when he was in his 20’s-40’s. He was in his 60’s when he died. I found that the metal pot w/ the molten metal was lined w/ asbestos and did a lot of work tracking down evidence. The asbestos was inside the pot and surrounded by metal. Once in awhile a small piece of asbestos would be exposed. It never seemed to me to be anything like dockworkers or ship builder exposure, but I was no expert. I just gathered the evidence. It could well be the guy had a genetic predisposition. I think he was a nonsmoker and I remember that being a plus in our favor. As you stated, many mesothelioma patients are smokers. Maybe there is an LPN here who can provide us w/ expert info.

  9. KCF,

    “Barbie Fiver” Huh?

    And you’re trying to pose as a doctor?

    Hmmm….

    How well do you think that’s going for ya right about now?

  10. KCF,

    What did I miss? You claim that those researchers found a necessary genetic component, but the blurb you posted says nothing about that. You somehow extrapolated the “necessary” component from the language “Because only a small fraction of asbestos-exposed individuals develop malignant mesothelioma….”

    A genetics degree is not required to recognize you made quite a leap there. And your blurb simply doesn’t back it up.

    Perhaps you might quote the language noting that the researchers were looking for a necessary cause instead of just predisposition. Even better, perhaps you might link to where it was found that those without a genetic predisposition can’t and don’t develop mesothelioma. We won’t hold our breath.

    But, really, to come full circle, please explain why a doctor, any doctor, even an internet doctor, would complain about his patients not inhaling asbestos fibers. “Go ahead kids, breathe deep. Your genes will protect you.” Wow.

    Even more mind boggling: What patient would ever want to be treated by such a doctor?

  11. And I would try to show the difference between asbestos exposure and a blow to the head, but I seriously don’t think you’re capable of understanding it.

    But a clue for Barbie Fiver: high serum cholesterol is not the same as a gunshot to the heart.

  12. Shorter Fiver: “Science is hard.”

    Even though you admit you didn’t understand what I posted, you reject my argument.
    “I don’t know what you said, but it’s wrong.”
    Hilarious.

    Advice: Don’t try surgery.

  13. KCF,
    Not too crazy about linking sources, huh? Oh well, I’ll work with I have.

    Taking the legal point first, my guess is that you misread the case and that it involves multiple defendants and multiple exposures. There is plenty of litigation over just whose asbestos caused a particular plaintiff’s mesothelioma and what to do with cumulative exposures. But that is not to say there is any serious disagreement over whether or not mesothelioma is caused by asbestos and related fibers.

    As to the medical blurb, I confess much of it went over my head. Genetics isn’t my strong suit. But researchers hypothesizing that some people may have a genetic predisposition to mesothelioma seems to me to be a pretty far cry from stating it is necessary for causation. They didn’t even seem to address that. Also, as a legal matter, any such predisposition is irrelevant. The defendant takes the plaintiff as found (egg-shell plaintiff).

    As for the “not everyone exposed develops mesothelioma so asbestos isn’t a cause on its own” argument, well, that’s just silly. Not everyone who gets hit in the head suffers a concussion, but even an internet doctor would be hard pressed to state that a blow to the head doesn’t cause concussions – even if that internet doctor could pull up a blurb noting research into genetic predispositions to concussions.

    1. fiver – I think, (therefore I am), that you and KCFleming are having your biggest problem because you have not defined your terms. The Jesuits taught me that the first thing you do is define the terms, then move to the argument.’

      There are a couple of things you should be aware of, if you are not. Some people have a genetic predisposition to some diseases. Let’s take an easy one: alcoholism. We know that alcoholism shows up more in some families than in others. In some cases almost all the members of the families on both sides are alcoholics. Even without doing testing we can make a good guess that alcoholism runs in that family. Knowing that, we should not be inviting them to keggers when they are in college. And we should warn them that any children they have have a 50/50 chance of being an alcoholic.

      We also know that a single person in a family may become alcoholic. None of the rest of the family is affected. There is no way to predict this.

      We also know that some people drink outrageously while in college and maybe the first couple of years out of college, then mellow out to just a few drinks a week. There is no way to predict this group.

  14. Liberty? Just like the Founding fathers… in fluffy words maybe, NOT AT ALL in practice.

    Check our prison population and talk to me about liberty (Not really ever mentioned here)

  15. Oh I forget for a bit, DS is the type of guy vulnerable people have to put their hands up around and allow for invasive searches…. OF course he would simultaneously advocate for genocide (in veiled terms) whilst claiming to stand with the Kurds and bring ISIS to justice for genocide. Hahahahahaha jingoism sucks….

    1. chipkelly – you seem to have a problem with this site and its moderators. There is nothing that says you have to stay.

  16. Relax, DS you can come out of your house. chill on the Islamaphobia….

Comments are closed.