August 31, 2015

ISIS money — coins minted in gold, silver, and copper.

Supposedly breaking free of "the capitalist financial system of enslavement, underpinned by a piece of paper called the Federal Reserve dollar note."
Minting the coins is relatively easy, [said Baghdad-based economist Basim Jameel], as goldsmiths in Mosul imported machines from Italy in recent years, each one able to produce about 5,000 coins a day. The metals probably come from banks the group seized, ransoms, the homes of Christians and other minorities who fled, he said....

Oil, the group said in the video, will now only be sold for gold.... Because Islamic State is classified as a terrorist group, the coins can’t be traded legally.

“They’ll only be used in these areas and people will only buy these coins for their daily needs and expenses,” said the economist Jameel. “Nobody outside their control will accept the currency and I don’t know how they’ll keep up with demand, as they are losing resources day after day,” he said. “At the end of the day, this is a media propaganda tool.”

23 comments:

harrogate said...

What is it about crazy people and gold?

The Drill SGT said...

What is it about math? The 5 Dinar is double the gold of the 1 Dinar :)

Ron Winkleheimer said...

I'm confused. The picture of a dinar accompanying the article showed one that had a representation of a human. But the description of the dinar being issued by ISIS was of wheat and a map of the world.

So was the picture of an ancient dinar? In which case, perhaps the prohibition on depicting humans in art was not so strict as ISIS would like to believe?

Curious George said...

I'd put Kobe Bryant and Obama's face on the coins.

AllenS said...

Go ahead, Google "Obama coins".

Bob Boyd said...

“the capitalist financial system of enslavement, underpinned by a piece of paper called the Federal Reserve dollar note,”

Sounds like Occupy Wall Street.

MadisonMan said...

Gives new (or the same) meaning to Blood Money.

rehajm said...

The group said its 21-carat 1-dinar coin weighs 4.25 grams, while the 21-carat five-dinar coin weighs double that.

One Mosul resident...said his family and others will exchange a certain amount of old money into the new Islamic State currency to pay household expenses.

That means the gold in the lowest denomination, the 1 dinar coin, would have a market value of US $135.58 or about one quarter the average Iraqi household monthly income. Not the best strategy if you want your currency to be adopted as a medium of exchange.

HoodlumDoodlum said...

JV team sprucing up their uniforms, as it were.

MikeR said...

17 Sickles in a Galleon, and 29 Knuts in a Sickle, it's simple enough.

Michael K said...

When Alexander overthrew the Persian Empire he captured their treasury. He coined gold and silver coins from it to pay his soldiers. I have several of those coins. I wonder if the ISIS coins will be curiosities if we ever get a competent president?

dbp said...

" “Nobody outside their control will accept the currency and I don’t know how they’ll keep up with demand,"..."

If the demand is so limited, then it should be easy to keep up with it.

mikee said...

What is the collector value of such coins, in mint, uncirculated condition without any visible blood stains on them?

Peter said...

Perhaps they don't realize that "dinar" is derived from "denarius," and was a pre-Islamic (silver) coin?

In any case, the problem with fixing your currency to a gold standard is well known: currency supply is limited by supply of gold, which will result in deflation if the economy expands faster than the gold supply.

clint said...

They've seized territory, enforce their laws, and now print currency.

At what point will we be forced to admit that they have become a rogue state, rather than a JV-league terror cell?

damikesc said...

One Mosul resident

Remember when Obama came into office and the city of Mosul wasn't owned by terrorists? Ahh, memories.

Tyrone Slothrop said...

I've coined a new word, so to speak. Numislamist-- one who collects ISIS currency.

holdfast said...

"In any case, the problem with fixing your currency to a gold standard is well known: currency supply is limited by supply of gold, which will result in deflation if the economy expands faster than the gold supply."

I'm thinking that gangbusters economic growth is not the main threat facing a radical Islamic society. No, it's all about war booty, ransoms and smuggled oil. It's basically the Barbary Pirates on land.

jimbino said...

I wonder if ISIS will now put "God" on all their coins and bills just to show they're not at all interested in running a free country.

Expat(ish) said...

Uh, does anyone not expect rampant counterfeiting more or less immediately?

A soft gold coin made by (god help us) Italian minting equipment has got to be the easiest target in the world.

-XC

Owen said...

Coins should have a human torso on one side and it's bloody head on the other.

Jason said...

Walter Breen, call your office!

The Godfather said...

Sheesh! Every smart-ass comment I thought of has already been used.