The ISIS dinar: A bad day for gold?

This may have been a very bad day for anyone who believes in gold and silver currency.

Today it was reported in the Telegraph that Islamic State, near universally recognised to be one of the most revolting regimes in history, announced it would mint a new gold, silver and copper currency to “emancipate itself from the satanic global economic system.”

Few libertarians are likely to argue against the idea of the prevailing system of finance in the modern world being something akin to satanic – given its fiat currency and nonexistent monetary value is at the root of runaway inflation, forever mounting debt, and its resulting legacy of crippling taxation – but they must surely have hoped for a more respectable patron of its alternative.

True, this will be an interesting experiment to observe, but what do you do with the results? Even if the currency is a success, the name of Islamic State is rightfully far worse than mud; and while negative association may be a logical fallacy, that isn’t going to change the fact that few are likely to listen to such tainted ‘good’ news.

Even Ron Paul, who has never flinched from unpopular causes or making a controversial point, may find it hard to back up his Case for Gold with “it worked really well in the Islamic State.”

One of the most unintentionally hilarious passages in the Telegraph report, however, was Josie Ensor’s assertion that Islamic State was “thought to earn up to £5 million a month through extortion of local businesses.”

Did she mean taxation?