- First, issuing and minting Dinars and Dirhams according
to the traditional standard weights and measures.
- Second, total freedom to buy, sell and possess any
quantity of Dinars and Dirhams within Islamic Law.
- Third, facilitate the transport and transference of
gold for international trading by a network of appointed agencies throughout
the world.
- And finally, change all paper notes for newly minted
Dinars and Dirhams, and abolish all paper-money privileges.
Issuing and minting Dinars and Dirhams according to the
traditional standard weights and measures.
The first stage is the minting of the coins according
to acceptable standards. Dinars and Dirhams have already been minted under
the supervision and standards of the World Islamic Trading Organisation
and are in circulation in Spain, Germany and South Africa, soon to be
followed by Switzerland, England, and other Muslim countries.
The definitions of the standards of Dinars and Dirhams set up by WITO
are based on the same size and weight as the original ones in Madinah
al-Munawwara.
Total freedom to buy, sell and possess any quantity of
Dinars and Dirhams within Islamic Law.
This has four stages:
The first stage is the complete freedom to trade in gold and to possess
it. Everybody has to be able to buy it, sell it, lend it, borrow it, import
it and export it in any quantity. This includes the elimination of all
taxes imposed on the purchase or sale of gold and silver.
The second stage will be the individual freedom to use gold in all economic
transactions. People must enjoy the freedom to use gold when buying goods
or services, without the mediation of an artificial paper currency. That
is, the law of Legal Tender by which it is obligatory to accept the artificial
currency issued by the state as payment of every debt, public or private,will
have to make an exception to all 'contracts in gold' or 'clauses in gold'
1 that will determine specifically that the payment will be made in gold.
In summary, the legal freedom to fulfil contracts in gold.
Once this has been attained we would have reached the 'parallel currency
standard'. This will not restrict official transactions in any way, nor
will it prevent the financing of the government. The system of state finance
will continue to work. All contracts already established in US dollars
or the official currency will be satisfied in that currency, but all contracts
in Dinars or Dirhams will have to be satisfied in Dinars and Dirhams.
The paper currency issued by the government and the Dinars and Dirhams
will be circulating simultaneously. The relative supply and demand of
each currency will determine its rate of exchange, which will fluctuate
constantly in response to that supply and demand.
The third stage of the way towards bimetallic currency will be individual
freedom to mint coins. The first coins were minted by jewellers and private
people. Private coins circulated freely in history throughout the whole
world. Whoever does not want to take the time and bother to weigh and
test these coins or has no confidence in the mark and stamp of the minter,
he will still be free to use the official currency of the nation.
The fourth stage will be that the government will decide to make its currency
freely convertible into gold. It could adopt the prevailing rate of exchange
between both currencies as legal parity and from that moment on the government
will guarantee the unconditional convertibility of its paper notes in
gold. This will be a legislation of the gold currency that will gradually
lead towards freedom.
Facilitate the transport and transference of gold for
international trading by an international network of appointed agencies
throughout the world.
It is quite obvious that in our era of artificial paper
money currency, the way to bimetallic currency seems locked because of
the lack of a nation that will take the lead. It is not realistic to think
that the government of a western kafir country will provide such a leadership.
Naturally the monetary authorities of US and the western countries will
defend the present bankrupt state of affairs that makes so much less painful
their own commercial deficits and their inflation. They would like to
maintain their artificial currencies which force creditor countries to
accelerate their inflation in order to follow their pace.
There is an alternative that allows one to attain monetary stability and
economic co-operation: the national currencies must be all convertible
and redeemable in gold, and the international balances must be satisfied
in gold. But, again, that will not happen without a nation that will take
the lead.
The introduction of a gold currency in international trading will, on
the one hand, produce a mimetic effect in other Muslim countries who have
had enough of supporting western nations' deficits and, on the other hand,
it will provide a solid foundation for a newly constituted prosperous
and just trading order. In this context the idea of Islamic Trading will
rapidly gain strength and meaning.
A firm step in this direction will be the setting up of a network of selected
agencies throughout the world which will allow traders immediately to
pay in one country and receive the currency in another. The network will
be regulated by a system similar to banking clearing or 'Interflora' (the
flower delivery company), that will effectively allow traders to benefit
from a world currency to make international payments.
Change all paper notes for newly minted Dinars and Dirhams,and
abolish all paper-money privileges.
The final stage will take place once the rate of exchange
between the paper notes and the gold has been established and legal parity
ensures the unconditional convertibility according to that rate. The final
transition to bimetallic currency will be achieved when the government
exchanges all the paper notes of different denominations for newly minted
Dinars and their equivalent in Dirhams.
Then all paper currencies will be strictly treated as debts or promises
of payment of debt (The Bank of England will pay the bearer...),therefore
subject to all the restrictions that apply to these kind of documents
in Islamic Law. Debts and promises to pay are private contracts limited
to that frame - they cannot be used as a medium of exchange: debts cannot
be used to purchase gold or silver, under the principle of 'gold for gold,silver
for silver, hand to hand, equal for equal'. Debts cannot be used to pay
in delayed terms, that is called debt for debt which is a non-acceptable
transaction. They cannot be transferred except under specific circumstances
that involve the guarantee and the presence of the person who owes the
money,etc.
Go
to Chapter 8
The Return of
the Gold Dinar
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