THE RETURN of the GOLDEN DINAR
The return to the Islamic currency of Dinar and Dirham is
far more significant than re-branding of banknotes.
It is a return to real currency based on actual precious
metals. Namely gold and silver as was the Sunnah and order of Muhammad (saw)
over 1400 years ago,who said,
“The measurements are based on Makkah while the weights are
based on Madinah”
In Islam, 1 dinar is 4.25g of Gold and 1 Dirham is 2.975g of
silver. IS have recently declared that they will mint 7 new coins based on
these weights of actual gold and silver.
This is in contrast to the fiat currency system currently in
place in almost the entire world. A fiat system is not backed by any real
value, gold, silver or any other physical asset. Rather the only value place on
such paper currency is the acceptance of the currency forced by the government
and confidence in that state and its economy.
This is why the value of paper
currency can change with simple rumours, politics or public fear.
The problems caused by this system is most apparent in the
recent credit crunch and can be summarized as follows.
Fiat Currency
summarized
One of the purposes of using paper currency that are not
backed by gold or silver is to retain the option to simply print more money as
needed by the state. This has a number of effects on the society,
1)
The state has the ability
to spend money it doesn't or didn't have and
2)
The increase in notes
circulating decreases the confidence in that currency making everyone’s money
worth less, which is why prices go up.
Rotten fruits of
paper money
(i)
States print money to spend
in emergencies such as war because they cannot afford to spend enough
otherwise. Essentially this is like taxing all citizens without their knowledge
as every citizen’s salaries, savings and hard earned cash is simply worth less and therefore buys less than it should. It is the
equivalent of each citizen giving some of its money to the state as a new tax.
(ii)
States print money to pay
back their debts which often have a lot of interest added to it. This of course
causes inflation and the real victim of this money saving tactic is the poorest
of communities who cannot afford the new high prices and interest rates.
(iii)
Every time a state prints
money to pay off its wealth creditors, it further impoverishes the most needy,
increasing the divide between rich and poor.
(iv)
It is possible for the
value of paper money to be completely ruined such as German currency after
World War II which became completely worthless after being defeated.
(v)
As the value of paper money
is entirely based on confidence, allied states often collaborate to maintain
value in each other’s currencies while denouncing and devaluing the currency of
enemy nations.
(vi)
All of these processes
progressively makes the poorest in society suffer and increase in poverty while
simultaneously enriching the already rich further increasing the divide between
rich and poor.
The return of the Golden Dinar and Silver Dirham will put an
end to all of the above oppression, dictatorship and irresponsible state
behaviour and provides citizens with a universal currency that has actual value
anywhere in the world. It puts an end to inflation and stops punishing citizens
for the irresponsible spending and borrowing of their government.
The return to this forgotten Sunnah could see the
eradication of poverty, exploitation and the profound disparity between classes
in the world. It could be the beginning to an end to third world debt and the
recovery of honour and dignity to billions of people in the world.
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