Currency of The Khilafah

Abdul-Kareem

The Khilafah's currency is based on the gold and silver standards where the coins and notes in circulation are 100% backed by gold and silver. Islam did not leave any question unanswered, especially questions concerning the complexities of economic life. The Shari'ah has therefore defined the Islamic currency as gold dinars and silver dirhams along with their corresponding weights in gold or silver. The Shari'ah rules related to money such as zakat, blood money (diyah) and hoarding all specify values in gold and silver.

 

Unlike the paper standard operating in the world today, the Bait ul-Mal (State Treasury) is not allowed to print any money unless it has the corresponding amounts of gold and silver in its reserves. This means the persistent inflation found in the world today would not exist in the Khilafah as the currency always keeps its value.

To illustrate this point when the UK operated the gold standard in the 19^th and early 20^th century, its price level in 1914 was the same as in 1816. However, after abolishing the gold standard and operating a purely paper currency, the UK faced persistent inflation with a yearly increase in the price level. Over a fifty year period from 1948 to 1998 the price level was 19 times higher in 1998 than in 1948.

Nowadays, it's impractical to actually use gold and silver coins for transactions as happened historically, so paper banknotes and copper, nickel and zinc coins would be used for day to day purchases. However, these paper notes and metal coins must be 100% redeemable at any time in to their corresponding amounts of gold and silver, with a small administrative charge to cover the minting process.

The Khilafah operates a bi-metallic standard with gold and silver currency circulating within the economy at the same time. This means the Khilafah is in fact operating two separate currencies.

At the time of the Messenger (saw) and the Khulufa'a Rashideen the Muslims traded with gold and silver by weight. They did not mint a distinct currency for the state and instead used gold and silver in many forms. They used Byzantine Dinars and Persian Dirhams as well as gold dust, ingots and jewellery. The traders would weigh the gold and silver, and value it accordingly. This continued until the time of Khaleefah Abdul-Malik ibn Marwan in 77AH, when he began minting Islamic dinars and dirhams in their Shari'ah weights of gold and silver.

When the future Khilafah is established it will take some time before the old currency notes and coins in circulation e.g. Pakistani PKR's or Indonesian IDR's, can be completely abolished and replaced with minted dinars and dirhams. This is not a problem as long as the Khilafah from day one makes the PKR or IDR 100% backed by gold or silver.

A simplified example of how this would work is as follows. The Khilafah calculates the total value of its gold and silver reserves and then fixes their value to the total amount of PKR's or IDR's in circulation as best it can. Depending on its reserves it may decide to link the existing currency in circulation to silver and then issue a separate currency for gold or vice-versa.

The current market rate for silver is $18.12.[4] A silver dirham is 2.975g in weight. An Islamic dirham is therefore worth approx. $1.90, PKR 132.57 or IDR 17,511.70.

The current market rate for gold is $934.00.[5] A gold dinar is 4.25g in weight. An Islamic dinar is therefore worth approx. $140.02, PKR 9.762.19 or IDR 1.289,493.11.

Therefore silver is a better choice for small to medium transactions whereas gold is more suited for medium to high transactions, especially in the short term before the Khilafah mints a new currency that formally replaces PKR's or IDR's in circulation.

Since Allah (swt) has blessed the Muslim Ummah with an abundance of wealth and natural resources increasing the gold and silver reserves of the state is not a problem. The Khilafah will immediately price all sales of oil, gas and other resources in gold and silver and therefore break the link between these resources and the dollar. The international money markets would be forced to deal in gold dinars and silver dirhams since the west's addiction to oil will continue for many years to come. Interestingly at the time of writing the oil price is $144.18 and a gold dinar is worth $140.02. A barrel of oil therefore equals roughly 1 dinar.

As regards the practicalities of minting notes and coins, what monetary units should be produced and designs etc., these are all styles and up to the Khaleefah to adopt as he deems best for the economy.

The gold dinar (4.25g) is the monetary unit of the Islamic State's gold currency. The dinar can be sub-divided in to 1000 fulus. Historically fils (p. fulus) was the name given to copper coins. Today the name fils will mean gold coins that are divisions of a dinar.

The silver dinar (2.975.g) is the monetary unit of the Islamic State's silver currency. The dirham was historically divided into 100 piastres in the Ottoman State. Piastres are therefore silver coins that are divisions of a dirham.

The following tables show examples of how gold dinars and silver dirhams can be minted by the Khilafah for use in everyday transactions. It also shows the current levels of the Zakat Nisab (limit over which zakat must be paid). The fils and piastre are small enough for purchasing everyday items such as bread and milk. The table uses four currencies for illustrative purposes: US dollars, UK Pounds, Pakistan Rupees (PKR) and Indonesian Rupiah (IDR).

Gold Dinars

Monetary Unit	Weight (grams)	Amount in US Dollars	Amount in UK Pounds	Amount in Pakistan PKR	Amount in Indonesian IDR
1 fils	0.004g	$0.14	£0.07	PKR 9.76	IDR 1,289.49
5 fils	0.021g	$0.70	£0.36	PKR 48.81	IDR 6,447.47
10 fils	0.043g	$1.40	£0.71	PKR 97.62	IDR 12,894.93
20 fils	0.085g	$2.80	£1.42	PKR 195.24	IDR 25,789.86
50 fils	0.213g	$7.00	£3.55	PKR 488.11	IDR 64,474.66
100 fils	0.425g	$14.00	£7.11	PKR 976.22	IDR 128,949.31
¼ dinar (250 fils)	1.063g	$35.00	£17.77	PKR 2,440.55	IDR 322,373.28
½ dinar (500 fils)	2.125g	$70.01	£35.54	PKR 4,881.10	IDR 644,746.56
1 dinar	4.25g	$140.02	£71.07	PKR 9,762.19	IDR 1,289,493.11
2 dinar	8.5g	$280.04	£142.15	PKR 19,524.39	IDR 2,578,986.23
5 dinar	17g	$700.10	£355.36	PKR 48,810.97	IDR 6,447,465.57
10 dinar	42.5g	$1,400.20	£710.73	PKR 97,621.94	IDR 12,894,931.14
20 dinar (Zakat Nisab)	85g	$2,800.40	£1,421.45	PKR 195,243.88	IDR 25,789,862.28

1ounce gold = $934.00

1g gold = $32.95

Source: NY Gold Market. www.kitco.com 4^th July 2008

Please note gold prices change on a daily basis.

An example of the dinar notes and coins is at the end of this article for illustrative purposes.

Silver Dirhams

Monetary Unit	Weight (grams)	Amount in US Dollars	Amount in UK Pounds	Amount in Pakistan PKR	Amount in Indonesian IDR
1 Piastre	0.03g	$0.02	£0.01	PKR 1.33	IDR 175.12
5 Piastre	0.149g	$0.10	£0.05	PKR 6.63	IDR 875.59
10 Piastre	0.298g	$0.19	£0.10	PKR 13.26	IDR 1,751.17
20 Piastre	0.595g	$0.38	£0.19	PKR 26.51	IDR 3,502.34
50 Piastre	1.488g	$0.95	£0.48	PKR 66.29	IDR 8,755.85
1 dirham	2.975g	$1.90	£0.97	PKR 132.57	IDR 17,511.70
5 dirham	14.875g	$9.51	£4.83	PKR 662.87	IDR 87,558.52
10 dirham	29.75g	$19.02	£9.65	PKR 1,325.74	IDR 175,117.03
20 dirham	59.5g	$38.03	£19.30	PKR 2,651.47	IDR 350,234.06
50 dirham	148.75g	$95.08	£48.26	PKR 6,628.68	IDR 875,585.15
100 dirham	297.50g	$190.15	£96.52	PKR 13,257.35	IDR 1,751,170.31
200 dirham (Zakat Nisab)	595g	$380.30	£193.04	PKR 26,514.70	IDR 3,502,340.61

1oz silver = $18.12

1g silver = $0.64

Source: NY Silver Market. www.kitco.com 4^th July 2008

Please note silver prices change on a daily basis.

An example of the dirham notes and coins is at the end of this article for illustrative purposes.

Opinion » Columnists

Message from Colonel Mu’ummar Qaddafi

13.04.2011

Gaddafi Unplugged and Uncensored

Translated by Professor Sam Hamod, Ph.D.

Recollections of My Life: Col. Mu'ummar Qaddafi, The Leader of the Revolution.

April 5, 2011.

　

In the name of Allah, the beneficent, the merciful...

For 40 years, or was it longer, I can't remember, I did all I could to give people houses, hospitals, schools, and when they were hungry, I gave them food. I even made Benghazi into farmland from the desert, I stood up to attacks from that cowboy Reagan, when he killed my adopted orphaned daughter, he was trying to kill me, instead he killed that poor innocent child. Then I helped my brothers and sisters from Africa with money for the African Union.

I did all I could to help people understand the concept of real democracy, where people's committees ran our country. But that was never enough, as some told me, even people who had 10 room homes, new suits and furniture, were never satisfied, as selfish as they were they wanted more. They told Americans and other visitors, that they needed "democracy" and "freedom" never realizing it was a cut throat system, where the biggest dog eats the rest, but they were enchanted with those words, never realizing that in America, there was no free medicine, no free hospitals, no free housing, no free education and no free food, except when people had to beg or go to long lines to get soup.

No, no matter what I did, it was never enough for some, but for others, they knew I was the son of Gamal Abdel Nasser, the only true Arab and Muslim leader we've had since Salah-al-Deen, when he claimed the Suez Canal for his people, as I claimed Libya, for my people, it was his footsteps I tried to follow, to keep my people free from colonial domination - from thieves who would steal from us.

Now, I am under attack by the biggest force in military history, my little African son, Obama wants to kill me, to take away the freedom of our country, to take away our free housing, our free medicine, our free education, our free food, and replace it with American style thievery, called "capitalism," but all of us in the Third World know what that means, it means corporations run the countries, run the world, and the people suffer. So, there is no alternative for me, I must make my stand, and if Allah wishes, I shall die by following His path, the path that has made our country rich with farmland, with food and health, and even allowed us to help our African and Arab brothers and sisters to work here with us, in the Libyan Jamahiriya.

I do not wish to die, but if it comes to that, to save this land, my people, all the thousands who are all my children, then so be it.

Let this testament be my voice to the world, that I stood up to crusader attacks of NATO, stood up to cruelty, stood up to betrayal, stood up to the West and its colonialist ambitions, and that I stood with my African brothers, my true Arab and Muslim brothers, as a beacon of light. When others were building castles, I lived in a modest house, and in a tent. I never forgot my youth in Sirte, I did not spend our national treasury foolishly, and like Salah-al-Deen, our great Muslim leader, who rescued Jerusalem for Islam, I took little for myself...

In the West, some have called me "mad", "crazy", but they know the truth yet continue to lie, they know that our land is independent and free, not in the colonial grip, that my vision, my path, is, and has been clear and for my people and that I will fight to my last breath to keep us free, may Allah almighty help us to remain faithful and free.

　

c: Col. Mu'ummar Qaddafi, 2011/05/04

Copyright Col. Mu'ummar Qaddafi, - Mathaba.Net

With permission to

Lisa Karpova

Pravda.Ru

Morons gather at White House to celebrate death of the man who did not plan 9/11 and who died a long time ago, anyway - David Icke Website

Morons gather at White House to celebrate death of the man who did not plan 9/11 and who died a long time ago, anyway - David Icke Website

Jinn

Ibn Abdul Barr said, "The jinn, according to the scholars of the language, are of different types:

1. If one is mentioning the jinn purely of themselves, the are called jinni.*
2. If one is mentioning the jinn that live among mankind, they are called aamar whose plural is amaar.
3. If one is mentioning the ones that antagonize the young, they are called arwaah.
4. If one is mentioning the evil ones that antagonize humans they are called shaitan for the singular [and shayateen for plural].
5. If they cause even more harm and become strong, they are called afreet."**

*Notice the similar sound between jinni and english's "genie". TV and other media have twisted the concept of jinn; however, it is interesting to note its origin is from Islam. "I Dream of Jeannie" is a TV show based around a Genie (jinni, plural of jinn).  In this show, Jeannie, the genie, frequently was given a request and the requestor never quite got what was requested as she was always creating unintentional mischief.  However we understand that the shaitan among the jinn antagonize humans, not that they are kind beings who accidentally mess up on occasion.  Those who seek aid (such as asking for favors or making request) from the jinni will find deception and a twisted type of aid that doesn't really meet the requestor's original request, but that satisfies the shaytaanic jinn's desire for evil.

**An Ifrît (strong) from the jinns said: "I will bring it to you before you rise from your place (council). And verily, I am indeed strong, and trustworthy for such work." [The Noble Qur'an 27:39]

Narration - Reported by al-Tahhaawi in Mushkil al-Athaar, 4/95, and by al-Tabaraani in al-Kabeer, 22/214

Abu Tha’labah al-Khushani said: “The Messenger of Allaah said: ‘The jinn are of three types: a types that has wings, and they fly through the air; a type that looks like snakes and dogs; and a type that stops for a rest then resumes its journey.” [Shaykh al-Albaani said in al-Mishkaat (2/1206, no. 4148): al-Tahhaawi and Abu’l-Shaykh reported it with a saheeh isnaad]

http://muttaqun.com/jinn.html

Metabolic Poisons:

What's Wrong with Partially Hydrogenated Oils?

Eric Armstrong

TreeLight.com/Health

Hydrogenation is the process of heating an oil and passing hydrogen bubbles through it. The fatty acids in the oil then acquire some of the hydrogen, which makes it more dense. If you fully hydrogenate, you create a solid (a fat) out of the oil. But if you stop part way, you a semi-solid partially hydrogenated oil that has a consistency like butter, only it's a lot cheaper.
Because of that consistency, and because it is cheap, it is a big favorite as a butter-substitute among "food" producers. It gives their products a richer flavor and texture, but doesn't cost near as much as it would to add butter.

In short, the essential fatty acids (contained mostly in polyunsaturated oils) are the most important nutrients there are -- more important than vitamins, minerals, or even proteins. Because, without them, there is no life. They are the substance and foundation of life energy.

http://www.treelight.com/health/nutrition/PartiallyHydrogenatedOils.html

Prayer - according to Maliki Law

http://www.lamppostproductions.com/wp-content/uploads/2011/02/prayermanual.pdf