This news came somewhere in early July but forgot to blog about it:
Daesh have began recently the use of a gold dinar as their currency standard for commercial trade, denouncing the usage of paper currency printed by US’ ‘crusader Federal Reserve institution’.
According to Al-Masdar News, oil merchants in Deir Ez-Zor, Syria, were instructed to use the gold dinar if they were to conduct oil purchases from Daesh-held oil plants. The Daesh gold dinar is proclaimed to have a value that equals 190 US dollars.
Hmm… No other details are there on the mechanics of the currency regime. What is Daesh? It is Arabic name of dreaded organisation ISIS.
This blogpost argues how the idea shaped earlier in 2015:
From an historical perspective, the picture that Daesh paints about the gold standard is rosy and oversimplified. I must give them credit, however, for presenting a much better description of the prevailing balance of US dollars outside of US borders acting as the global reserve currency, and how these things are tied to rates of American borrowing that are unsustainable. Daesh is certainly not the only group making this argument- their hatred for the US Federal Reserve is most notably shared by libertarians in the USA, an interesting overlap the video never explicitly addresses. Daesh then offers its own solution- a return to real gold and silver coinage and not fiat notes- which it claims will bring down the American financial empire. Let’s look at the history to understand the problems of gold coinage and see what Daesh offers, if anything, as solutions.