Bismillah irrahman irrahim

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THE ISLAMIC DINAR. Introduction.
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I would like to introduce you to some general ideas and
guidelines to the very important issue concerning all the
Muslims today, which is the abandonment of Riba.

Allah, subhana wa ta'ala, says in Qur'an: "wa hallal allahul
bai'a wa harramul riba"; which means: "Allah has permitted
trade and forbidden usury (Riba)". Also Allah says in the
Qur'an: "ia yuha alladhina 'amanu uttaqu Allaha wa dharu ma
baqiya mina riba, ina kubtum muminin. Fain lam taf'alum,
fadhadhu biharbin mina Allahi wa Rasulih", which means, "O
you who believe! Fear Allah and give up what remains of your
demand for usury, if you are indeed believers. If you do not,
take notice of war from Allah and His Messenger".

The issue of the dinar relates to the prohibition of Riba, the
chronic economic paralysis of Muslim countries, to the
destruction of the Khalifate, the unity of the Ummah under one
currency and what is most important the restoration of the
fundamental pillar of zakat. This is to say, the issues that matter
to the people who want to see a Dar al-Islam and the Khalifate
restored again, and among this people the sufies, who care
nothing except Allah, are in the first line.

The magnitude and the importance of this issue comes before
other, often over-stretched, minor matters. If a tiger is about to
devour you, you do not entertain yourself with a mosquito.

The enemies of the Islamic Dinar are the enemies of the
Sunnah of Rasul, salallahu alaihy wa salaam. They have to
denounce the practice of the Sahaba and the practice of the
Ummah for all the centuries since the beginning until the fall of
the Khalifate. They have tried in the past to convince all of us
that the Banks were halal (like Muhammad Abdou and his
followers did). Then they came with the Islamic Bank, which is
like Islamic whisky. But as the fallacy of Islamic Banking, was
openly revealed (by the Sufies) and as their practices have
became known as fraudulent and usurious (in Islamic Law)
despite their deceitful use of Islamic terminology (such as
qirad, shirkat, kira, etc.), they have tried to content everybody
with the cynical idea of "being practical in a sinful world".
They have justified the use of paper money, even in Muslim
countries, with false doctrines and meditated silence. While the
Muslims all over the world are still today being cheated and
robbed by a monetary system totally unjust, deceitful and
contrary to Islamic practices, based banking paper-money, a
methodical cover of puritanical and esoteric doctrines borrowed
from decaying Christianity and a noisy silence over the
important issues was spread with scientific precision,
sometimes using false 'alims and false sufies, to keep the
Muslims busy by a self-inflicted sense of guilt (a doctrine of
'your iman is not good enough') and trivial matters of no
importance, or its opposite reaction, a fanatical radicalism
deprived of real aims.

Apart from the very ignorant who still believe that Islamic
Banking is Islamic or believe that paper money is modern and
wonderful to people, is there any justification to remain
passive, silent in a kind of dispassionate helplessness, on this
well known subject? The answer must be an emphatic NO. We
cannot let the helplessness of few lifeless people contaminate
our spirit. We should not accept those who say: "I believe in it,
but it cannot be done or it cannot be done today. We are waiting
[for a signal]". They are ignorant about the nature of the deen.
Leave these people alone. Keep the company of the Sufies that
are going ahead. This are people whose carelessness about the
world let them see through. And where other are suspended in
sea of impossibilities and doubts, the Sufies will show you the
easy way to victory. As sufies, we undertake the obligations of
all the Muslims in our hearts and deal with them as if they were
ours. We cannot be bother with our ego. That is why we
simply forget it.

Sufies believe, out of their taqwa, that we are responsible for
everything without excuse. Yet, they know that they are
incapable for such task, out of their own dependence of Him.
But they know and act accordingly, that Allah is capable.  And
by His Power, out of their hope in Him, they can achieve their
obligations and show others how to do it.

We will fulfil our duties by the authority of Allah, subhana wa
ta'ala. We do not fear the state, or the banking system, or
anything else. We, only fear Allah. Our path is a path of
showing easiness towards Allah; of showing the Muslims that
by Allah, and by our obedience to Him, that is what we call by
"giving up", we become in charge of our affairs. I recall the
title of the book of the great wali of Allah and Shaykh of our
tariqa Shaykh Ahmad Ibn Ataillah, may Allah be pleased with
him, "The Book of illumination on the Giving Up of the
Management of Affairs". The title is enough. It also reminds
me of what Allah says in the Qur'an in Surat al-Layla:

"fa amma man a'ata wa attaqa wa saddaqa bil husna,
fasanuiassiruhu lil iusra
wa amma man bakhila wa astaghna wa kadhdhaba bil husna,
fasanuiassiruhu lil 'usra".

which means,

"if you give sadaqa and fear Allah and you believe in the
Goodness [of Allah], we will facilitate your way to easiness.
But if you are mean and [you think] you are self-sufficient [from
Allah] and you do not believe in the Goodness [of Allah], we
will facilitate your way to difficulty.

The path of tasawwuf is a path of easiness. This is opposite of
the people whose path and teaching are full of doubts, hidden
meanings, waiting for the Mahdi and unknown mysteries. Our
path is certainty and increase of certainty.

We firmly believe "la hawla wa la quwatta illah billah". There
is no two powers, but only The One. Kufr and the kaffirs have
no power. Their illusion of power depends on us, the Muslims,
in as much as we are not fulfilling our duties. The power of
Muslims is borrowed from Allah, by His Will, as we obey and
submit to Him. Kaffirs are to us, just like flies are to people.
They are there to keep us clean. But if we are dirty they become
a bother to us. So the issue is really in our hands without
excuse.

You should nevertheless, be aware that there are non-Muslim
and some Muslims that when they hear that the [other] Muslims
are introducing the Islamic dinar as their medium of exchange,
they will twist in themselves in  real agony, as they rightly fear
that their petty worries and trivial fantasies are being blown
apart by the real imperatives and force of a Resurgent Islam.
But don't worry, it will be very easy to identify them, because
their agony will show in their passivity and lack of interest for
what is happening. This is because, as Shaykh Darqawi, may
Allah be pleased with him, told us, they are dead.

The present Prime Minister of Turkey, may Allah bless all the
Turkish people and through their resurgence give us a Khalifa,
His Excellency Dr. Necmettin Erbakan has brought the matter
of the Islamic Dinar to the frontline of the Islamic discourse to a
point of no-return. He has pledged the will and commitment of
the Muslims of Turkey to the establishment of the Islamic Dinar
as the currency of an Economic Union of Muslim Countries.
He astonished many people, who had looked with contempt
and dismissive condescending what the sufies have been saying
and struggling for for a long time. Many, who had pledged
themselves to the folly of Islamic Banking and the nonsense of
what they call Islamic Economics, have, with their paralysed
silence, shown us that they do not know how to react to it.
They are now out of touch with the dynamic and powerful
Raising of Islam which they seem to be unable to see or taste.
They now only see themselves in front of the abyss of wasted
good will in prosaic phobias and irrelevant matters, they created
for their gullible followers. Although some will prefer not to
look IF they can get away with it.

I am proud to say that the dinar that Dr. Erbakan hold in his
hand when he first publicly pronounced his intentions in the
Blue Mosque of Istanbul, surrounded by the takbirs of our
excited and committed Turkish brothers, was a dinar struck
under the authority of the Amir of the Spanish Community, he
himself a long-time devoted Sufi of the Shadili-Darqawi-
Murabitun tariqah, in the city of Granada, may Allah reward
him by His Generosity for doing that.

I, like all the people present, will  remember forever the
moment when His Excellency Dr. Necmettin Erbakan and my
Master, Shaykh Abdalqadir as-Sufi al-Murabit, together by the
hand, proclaim from the podium, to the cheerful people of
Istanbul and the shocked Turkish media, in the Opening
Ceremony of the I International Conference of Islamic Thinking
in Istanbul on May of last year, that the dinar was the currency
of the Muslims.

By the Mercy of Allah, all the sufies stand together in this
point of the introduction of the Dinar. I recall the words of the
wali of Allah and the Light of Fatih in Istanbul, Shaykh
Mahmud Effendi, who, surrounded by his murids and others,
as my Master Shaykh Abdalqadir As-Sufi showed him the
dinar and the dirham that our community in Germany was
putting in circulation, said: "This is the money of the Muslims.
It is very important. We should do it very quickly".

Let all the sufies, of all the tariqahs, united by the love on the
Rasul, salallahu alaihi wa salaam, let us be ahead and take upon
ourselves to be the beginners of the introduction of the dinar
and the dirham, only for the pleasing of Allah, subhana wa
ta'ala, by the fulfilment His Command, and so that everybody
else can follow.

The following simple introduction presented in parts will be
followed by deeper analysis and guidelines for the
abandonment of Riba and the establishment of complete and
self-transformative Islamic Trading. There will be also practical
guidelines of how you can obtain the coins and how you can
start using them.

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THE ISLAMIC DINAR.
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Introducing the Islamic Dinar and Dirham
by Umar Vadillo
----------------------------------------

From the beginning of Islam until the fall of the Khalifate
the currency of the Muslims has been the Islamic Dinar and
Dirham.

THE HISTORY OF THE ISLAMIC DINAR AND DIRHAM

In the beginning the Muslims used gold and silver by weight and
the dinar and dirhams that they used were made by the
Persians. The first dated coins that can be assigned to the
Muslims are copies of silver dirhams of the Sasanian Yezdigird
III, struck during the Khalifate of Uthman, radiallahu anhu.
These coins differ from the original ones in that an Arabic
inscription is found in the obverse margins, normally reading
"in the Name of Allah". Since then the writing in Arabic of the
Name of Allah and parts of Qur'an on the coins became a
custom in all mintings made by Muslims.

Under what was known as the coin standard of the Khalif Umar
Ibn al-Khattab, the weight of 10 dirhams was equivalent to 7
dinars (mithqals)

In the year 75 (695 CE) the Khalif Abdalmalik ordered Al-
Haddjadj to mint the first dirhams, thus he established officially
the standard of Umar Ibn al-Khattab.

In the next year he ordered the dirhams to be minted in all the
regions of the Dar-al-Islam. He ordered that the coins be
stamped with the sentence: "Allah is Unique, Allah is Eternal".

He ordered the removal of human figures and animals from the
coins and that they be replaced with letters. Gold and silver
coins remained official currency until the fall of the Khalifate.
Since then, dozens of different paper currencies were made in
each of the new post-colonial national states created from the
dismemberment of Dar al-Islam. This command was then
carried on throughout all the history of Islam. The dinar and the
dirham were both round, and the writing was stamped in
concentric circles. Typically on one side it was written the
"tahlil" and the "tahmid", that is, "la ilaha illah Allah" and
"alhamdulillah"; and on the other side was written the name of
the Amir and the date. Later on it became common to introduce
the blessings on the Prophet, salallahu alayhi wa salem, and
sometimes, ayats of the Qur'an.

THE QUESTION OF PAPER MONEY

Allah says in the Qur'an:
"And amongst the People of the Book there are those who, if
you were to entrust them with a treasure (qintar), he would
return it to you. And amongst them is he who, if you were to
entrust him with a dinar would not return it to you, unless you
kept standing over him.
Qur'an (3,75)

Qadi Abu Bakr Ibn al-Arabi, the greatest authority on Qur'anic
Law wrote in his famous "Ahkam al-Qur'an" about this ayat:
"The benefit that can be taken from this is the prohibition of
entrusting the People of the Book with
goods".

Qadi Abu Bakr said: "The question concerning entrusting
property is legislated by the text of Qur'an." This means that
the ayat is a legal judgement of absolute validity and of the
greatest importance to the deen.

Entrusting wealth to non-Muslims is not allowed, but
furthermore, taking a non-Muslim as a partner outside Dar al-
Islam (where we stand over them) is extremely restricted,
because they might cheat or might use our wealth in forbidden
transactions. Since paper-money is a promise of payment, can
it be permitted to trust the issuers while they hold the payment
(our property) outside our jurisdiction? History has also
demonstrated repeatedly that paper money has been a
permanent instrument of default and cheating the Muslims.

In addition, Islamic Law does not permit the use of a promise
of payment as a medium of exchange.

WHAT IS THE ISLAMIC DINAR AND DIRHAM?

According to Islamic Law...
The Islamic Dinar is a specific weight of gold equivalent to 4.3
grammes.
The Islamic Dirham is a specific weight of silver equivalent to
3.0 grammes.

Umar Ibn al-Khattab established the known standard relationship
between them based on their weights: "7 dinars must be
equivalent to 10 dirhams.

"How can I use them?
1.- I can save them because they are wealth in themselves.
2.- I can pay zakat and dowry as they are requisite within Islamic
Law.
3.- I can buy and sell with them since they are a legitimate
medium of exchange.

THE IMPORTANCE OF THE DINAR AND THE DIRHAM

Ibn Khaldun wrote in his book "Al-Muqaddimah":
"The Revelation undertook to mention them and attached many
judgements to them, for example zakat, marriage, and hudud,
etc., therefore within the Revelation they have to have a reality
and specific measure for assessment [of zakat, etc.] upon
which its judgements may be based rather than on the non-
shari'i [other coins]. Know that there is consensus [ijma] since
the beginning of Islam and the age of the Companions and the
Followers that the dirham of the shari'ah is that of which ten
weigh seven mithqals [weight of the dinar] of gold. ... The
weight of a mithqal of gold is seventy-two grains of barley, so
that the dirham which is seven-tenths of it is fifty and two-fifths
grains. All these measurements are firmly established by
consensus."

The primordial uses of the Dinar and the Dirham are:

TO SAVE
Gold or silver are the most stable currency the world has ever
seen

From the beginning of Islam until today, the value of the Islamic
bimetallic currency has remained surprinsingly stable in relation
to basic consumable goods:

A chicken at the time of the Prophet, sallallahu alaihi wa
sallam, cost one dirham; today, 1,400 years later, a chicken
costs approximately one dirham.

In 1,400 years inflation is zero.

Could we say the same about the dollar or any other paper
currency in the last 25 years?

In the long term the bimetallic currency has proved to be the
most stable currency the world has ever seen. It has survived,
despite all the attempts by governments to transform it into a
symbolic currency by imposing a nominal value different from
its weight.

Reliability.

Gold cannot be inflated by printing more of it; it cannot be
devalued by government decree, and unlike paper currency it is
an asset which does not depend upon anybody's promise to
pay.

Portability and anonymity of gold are both important, but the
most significant fact is that gold is an asset that is no-one else´s
liability.

All forms of paper assets: bonds, shares, and even bank
deposits, are promises to repay money borrowed. Their value
is dependant upon the investor's belief that the promise will be
fulfilled. As junk bonds and the Mexican peso have illustrated,
a questionable promise soon loses value.

Gold is not like this. A piece of gold is independent of the
financial system, and its worth is underwritten by 5,000 years
of human experience.

TO PAY ZAKAT
Zakat cannot be paid with a promise of payment

Zakat can only be paid with tangible merchandise, called in
Arabic 'ain. It cannot be paid with a promise to pay or a debt,
called in Arabic dayn.

From the begining the zakat was paid with dinars and
dirhams. Most significant is that the payment of zakat was
never allowed in paper money during all the ottoman period
right until the fall of the Khalifate.

Shaykh Muhammad Illish (1802-1881), the great maliki cadi,
said that if you were to pay zakat with paper-money only its
value as merchandise (dayn), that is, its value as paper can be
accepted. Therefore, its nominal value is irrelevant as payment
of zakat.

Shaykh Illish wrote:
"If the Zakat was obligatory by considering its substance as a
merchandise, then the nisab would not be stipulated according
to its value but according to its substance and its quantity, as is
the case with silver, gold, grain or fruits. Since its substance
[paper] is irrelevant [in value] in respect to the Zakat, then it
should be treated as the copper, iron or other similar
substances.'

Zakat cannot be paid in paper money (American dollars for
example). This is a serious innovation (bid'ah) in one of the
five pillars the deen of Islam.

For those not familiar with the fiqh on zakat I will quote from
the Se'adet-i Ebediyye or "Endless Bliss" written by Husain
Hilmi Effendi (the founder of Ihlas Foundation) in 1956. It is


not a book of the maliki fiqh [which we use], but it is a book
supported by the people who use the name "Ahl al-Sunnah"
and it can enlighten the understanding of our "de facto" 'alims.
For those who do not know about this book, this is preface
note of the book itself: "Se'adet-i Ebediyye is a book prepared
according to the Hanafi madhhab. There is not any knowledge
or word, which contradicts the creed of "Ahl-i Sunnat and
Jama'at in this book." Here are the relevant quotes:

"the zakat of paper money is to be given in gold. It cannot be
given in paper money"

"It is haram to accept any money which is not gold or silver as
zakat or kharaj [from Harun Rashid]"

"Ignorant people say, "Paper money cannot be compared to
bonds [which are not acceptable as payment of zakat] written
out between two people. It is day's currency. It has become
attested  universally. It is indispensable to give it today." They
should not be believed. Something cannot be universal,
indispensable or permissible by the word of us the populace."

"In none of the books written or the fatwas given during that
long period [the Ottoman Empire] has it been said or stated that
the zakat could be given in paper money."

The return to the payment of zakat in gold and silver is an
essential part of the re-establishment of Islam.

We must be particularly aware of those who say 'it is not
practical to pay zakat in gold and silver'. This is a false
argument, not the issue. The issue is the fulfilment of the Allah's
Law. We must work towards the establishment of the Law. The
return of the gold Dinar, like the return of the Khalifate, may or
may not appear to be practical yet no Muslim can deny that these
are our obligation.

TO BUY AND SELL

The Dinar and the Dirham are the currency of the Islamic
UmmahNo more hundreds of different paper currencies
diseased with inflation.

A piece of gold is equaly valid wherever you are in the world.

In the past, Muslims were able to travel throughout the Islamic
world and trade with dinars, as theycould at home. From the
XV century onwards the Europeans started to introduce the
banking promisory note in Muslim lands. Paper money gave
European traders an incredible purchasing power that
overwhelmed and eventually surpassed the Muslims'
superiority in world trading.

Gold was money well into this century, and for at least two
centuries before, most bonds, including govern-mental ones,
were gold bonds. But after the First World War, since the
financial demands of the war led governments to print paper
money in excess, the convertability to gold was first suspended
for the most part, and finally terminated.

How important is the dinar and the dirham to the deen of
Islam?

Al-Qurtubi (d. 1273), one of the greatest commentators of
Qur'an, wrote in his renowned Tafsir about the following ayat
of Qur'an,
."O you who believe! Obey Allah and obey the Messenger and
those in command among you. ..."
Qur'an, 4, 59

that the ayat is an order to "obey the Sultan with respect to
seven things: the minting of the dinar and the dirham, fixing
weights and measures, legal judgements, Hajj, Jumu'ah, the
two Eids and Jihad."

The minting of the dinar and the dirham is therefore the first
obligation of the Sultan to be commanded and to be followed

FATWA ON PAPER MONEY

Paper Money is not a legal medium of exchange
If paper money is a debt representing a merchandise (dayn):
The debt must have a definition of what is owed.

But even if it is defined as a proper debt, a debt cannot be used
as a medium of exchange. Concerning paper-money as wealth
entrusted to non-Muslims, this is not allowed.

If paper money is a tangible merchandise ('ayn):

Its value corresponds only to its weight as paper. Equally we
take the value of the dinar by its weight not by its nominal
value.

Either way, paper money cannot be accepted as a medium of
exchange.

An Instrument of tyranny

We have heard economists saying:
"We need a flexible currency"
"We need a currency that can be expanded or contracted
according to the needs of the economy"
"An increase in currency will quicken industry"

These are all fallacies to justifiy the insolvency of the issuers of
the notes in order to avoid their obligations to pay.

There is, in truth, a great charm in the idea of being able to pay
off all our needs, satisfy all the government expenses and to
make the whole communtiy prosperous, just by printing a few
characters on bits of paper. But when a man is capable of
believing that, he will believe anything.

Another fallacy to justify theft is to say:"It is an emergency"
indeed a war can influence anybody to accept what appear to be
solutions. After the emergency comes the semi-emergency of a
crisis, or an almost-emergency time or an almost-normal time.
In every case our individual rights are no longer in our hands.

Any failure to repay in whole or in part what is due by the
promissory note is but a form of theft

THE RING - The trap and decay of the Khalifate

Up until the XV century the Muslims were in total charge of
world trading. From then on the Europeans started to take over
by the power of the ring.

The ring is a simple mathematical equation, which, as mentioned
by Richard Wagner in his famous opera, gives total power to
the person who uses it, although it contains a curse: "Whoever
uses it, will never be loved". Power was not wielded by gold,
but by storing it in a guarded cave. People slaved to mine it, but
were ruled by whoever possessed the ring.

This mathematical formula attached to debt and symbolic money
destroyed the Muslim Khalifate.

This mathematical formula is what banking is all about.

The formula needs a pre-condition: the existence and acceptance
of symbolic money.

Then it consists of lending 'at interest' symbolic money they [the
banks] do not have.

By lending 20 times more than they have, all repayments of 10%
become in accounting like 200% (20x10%).

We pay 10%, but they collect 200%.

But if everyone seems to win, who is the loser?

The losers are all passive holders of the currency who will suffer
the inflation originated by the money created out of nothing.
That is it !

Once the Muslims accepted their symbolic money they
inadvertedly authorised the magical system which gave the
banks a previously undreamed of world dominion.

The ring did not just conquer the states, its power was so
fascinating, that it transformed the states into banks.

And the States became banks

This convenient method of 'coining credit', was soon discovered
by the governments and they issued their own promissory
notes in paymnet of their expenses; a resource the more useful,
because it was the only mode in which they were able to
borrow money without paying interest, their promises to pay
on demand being, in the estimation of the holders, equivalent to
money in hand.

The governments incapable of containing their own expanding
deficits then created the legal money. The law of legal tender
established that all money issued by the issuing authority must
be accepted by force in payment of any debt.

The legal money abolished the contractual law that guaranteed
the freedom of the people to choose and imposed on the citizens
an artificial currency with a legal value established by the
government.

This convenient method of 'coining credit', was soon discovered
by the governments and they issued their own promissory
notes in payment of their expenses; a resource the more useful,
because it was the only mode in which they were able to
borrow money without paying interest

In the beginning there was gold...
then paper was issued as a promise to pay in gold
and finally the issuers broke their promise and transformed paper
into a non-redeemable official note.

We should now reverse the process...
governments should freely convert their currency
and finally eliminate all paper currencies

MONEY, A COMMODITY OR A SYMBOL

Until the beginning of the twentieth century the most popular and
universal medium of exchange was gold and silver coins.

Currency was considered to be as flexible as any other
merchandise. People responding to their own particular needs
demanded the coins and also offered them, thus their market
value was established daily.The debate that divides the
defenders of gold and silver and their adversaries is not new, it
has been going on for more than three centuries.

Today money is represented by pieces of paper as non-
redeemable official notes whose quantity can be increased at
will.

This symbolic money originated from private contracts or
promises to pay issued by goldsmiths and later by banks.

Money is a symbol and not a commodity:

"It is the denomination of the currency of the money that men
regard in bargaining, not the quantity of silver. It is the public
authority upon the metal that makes it money" (Nicolas Barbon,
1696)

"Money is a symbol of a thing and represents it" (Charles-Louis
de Montesquieu, 1748)

"Money is the symbol of all commodities" (François-Veron de
Forbonnais, 1776)

"All monetary functions which are usually performed by gold
and silver coins, may be performed as effectively by a
circulation of inconvertible notes having no value but that
ficticious and conventional value... they derive from law"
(John Fullarton, 1848)

Money is a commodity and not a symbol:

"Silver and gold, coined or uncoined, though they are used for a
measure of all other things, are no less a commodity than oil,
tobacco, cloth or stuffs" (Josiah Child, 1689)

"Money is not a mere symbol, for it is itself wealth; it does not
represent values, it is their equivalent" (Guillaume-François Le
Trosne, 1777)

"Gold and silver have value as metals before they are money.
The coins which today have a merely ideal denomination are in
all nations the oldest; once upon a time they were all real, and
because they were real people reckoned with them." (Fernando
Galiani, 1803)

"The false definitions of money may be divided in two main
groups: those which make it more and those which make it
less, than a commodity" (Wilhelm Roscher, 1858)

Some Common FALSE OBJECTIONS to Gold & Silver as a
medium of exchange

In any debate about gold and silver, certain objections are
repeatedly raised by opponents of monetary freedom, even
though those objections have been refuted many times before.
Some of these objections are:

· There is not enough gold;

· Russia and South Africa, since they are the principal
producers, will benefit;

· Gold is subject to undesirable speculative inf- luences;

· Gold will produce instability in prices.

The first objection, that there is not enough gold, is based upon a
misunderstanding of the price of gold. It assumes that the
present exchange ratio between a weight of gold and notes is
the exchange ratio that must prevail when the gold is made a
medium of exchange. Such obviously is not the case. To put it
simply, lower prices under gold currency will eliminate the
necessity for larger sums. One could buy a suit that costs 400
paper units with 20 gold equivalents at a different exchange
ratio.

The second objection, concerning Russia and South Africa is
equally groundless. It could be considered an advantage, in the
same way oil or a fertile soil could be equally, in comparative
terms. The amount of gold already taken out of the earth in the
last two thousand years is already superior to the known but
unminted reserves of Russia and South Africa. The unminted
reserves of Russia are estimated to be about 250 million ounces
which is less than what the United States already has in minted
reserves. The demand for gold as a medium of exchange will
release the existing hoardings, a process which is already in
vogue in most central banks.

The third objection, that gold is subject to speculative
influence and therefore too unstable to be used as a medium of
exchange, is also false. During the 70's, gold became a major
hedge against inflation. The run-up in gold prices from $35 to
$850 per ounce came as a result of fears about the value of
paper-money and developing international crises. People who
object to gold because it is speculative confuse cause and effect.

The real speculation is provoked by an irredeemable paper-
money system and people who logically want to protect
themselves from it.

The fourth objection says that gold will produce instability in
prices. Comparing prices in gold in the U.S. in 1833 with
1933, just prior to the abandoning of the domestic gold
standard, the index of wholesale commodity prices increased
only 0.9 percent in one hundred years! Since then the index
increased 350% by 1971 when President Nixon, declaring
international bankruptcy, announced that no more gold would
be given in exchange for dollars. In the last twenty years the
index has gone up around 400%.

Gold is therefore stable and fit to be money, and history has
shown us that there is no money more unstable or unfit than
paper-money.

The EFFECT of the Dinar and the Dirham on Business

Paper-money, which does not render any service except in
exchange for something productive, is made artificially
productive by interest.

On the other hand, every genuine enterprise, like the use of a
house or a manufacturing process, can only be productive by
the services rendered to society.

Interest competes and wins over genuine enterprises profitable to
society. The genuine business has to pay the interest out of the
profit from a genuine service to society, but the bank makes
profit out of the interest through the artificial expansion of the
money lent.

The final result is that the higher the interest rates the greater the
destruction of 'less competitive" businesses

The EFFECT of the return of the dinar and the dirham will be

The shift of capital investment from the most "speculative areas"
to the more productive areas.As a result a new landscape
associated with the dinars and the dirhams will re-emerge, that
is, the world of Islamic Trading

A new re-start for trading will come about through the
restoration of two of its most representative but losts
institutions:
the market-place which will replace supermarkets
and
the caravans which will replace monopolistic distribution

And the return of the guilds, that is, associated independent
intelligent workteams, in which the relationship
master/apprentice will replace employer/employee

The EFFECT of the Dinar and the Dirham on the Real Estate

Today you want to buy a house and a bank will offer you a
mortgage. This is how the ring distorts the operationthe house

The annual rent of this house is 10% of its value
but,...
the same money is offered by the bank at 5%, which considering
inflation is a bargain!

Why would the bank be so generous, when it could rent the
house and obtain the house plus a higher 10% return?
This is the paradox of the ring.
Out of that 5% interest the bank will make a 100% profit with the
mathematics of the ring.

The borrower thinks that the interest is better than paying the
rent, the bank makes a higher profit out of expanding money
who loses? All the holders of the newly inflated currency by its loss of
value (inflation).

THE HIRE-ABILITY OF MERCHANDISE

A house can be rented, it is a hireable merchandise
Money cannot be rented, it is a non hireable merchandise

Profit and rent come only from real services to society -this is the
end of speculative economy and the beginning of real
prosperity to society.

This is because investment will have to be directed towards real
services, instead of being drawn by the artificial profit of the
ring which like a parasite lives off real services.Without the
mortgage, housing prices will simply find a new stability
established by the equilibrium between the offer and a new
demand based on what people can really pay.

Imam Sahnun wrote in the great Madinan text, "Mudawwana al-
Kubra", 12:46
"Money is something which it is not permissible to hire."

The Practical Use of the Dinar and the Dirham

In the beginning, networks of shops and individuals which will
accept the gold and silver coins as a medium of exchange will be
distinguished by a sign or window sticker.

Just like Visa or American Express cards started to be introduced
in society. Each shop will have the sticker indicating that they
accept the dinar and the dirham.

The transportation of gold and silver will be facilitated by a
network of agencies that will allow money to be sent to any
corner of the world. It will operate by a simple method of
book-keeping. Just like the company Inter-flora makes available
flowers all over world without needing to send the flowers
physically.

Equally the gold and silver could be made available in different
parts of the world although only the balance between the
different agencies needs to be physically transported

A future use of cash cards would allow you to retrieve gold and
silver from your own account in any shop of the network.

Under the strong supervision of the WITO, World Islamic
Trading Organisation, companies will be able to issue cards
which let you retrieve money just like modern cashiers allow
you to collect paper money

The TRANSFERRAL of gold and silver to a third party by
means of special debit cards. This is the most delicate of all
questions, since many forms of transferral of money are not
allowed in Islamic Law and open the door to fraudulent abuse of
trust.

That is why any step in this direction will need to be strongly
monitored by WITO or some civil authority, to prevent the
account keeper from turning into a bank by lending money and
/or creating money out of nothing by expanding the credit.

FREEDOM

The question of money
is primarily a question about freedom.

When people were free to choose
they universally chose gold and silver

Now we are forced to accept
the system of artificial money, whose
legal value is determined by the State.

"Money is any merchandise commonly accepted
as a medium of exchange."
said Imam Malik

We propose to return to gold and silver
They are part of the Revelation and the Sunna
They offer stability and order.
They are the end of political money
They are the end of money manipulation

THEY REPRESENT FREEDOM

From:
Abdalbarr Brown
Murabitun of Madison, Wisconsin. America