Friday, December 26, 2014

No Seignorage For ISIS: Much Heralded Islamic Currency Fails to Materialize

From the Boston Globe:
The Islamic State’s vaunted exercise in state-building appears to be crumbling as living conditions deteriorate across the territories under its control, exposing the shortcomings of a group that devotes most of its energies to fighting battles and enforcing strict rules.

Services are collapsing, prices are soaring and medicines are scarce in towns and cities across the ‘‘caliphate’’ proclaimed in Iraq and Syria by the Islamic State, residents say, belying the group’s boasts that it is delivering a model form of governance for Muslims.

Slick Islamic State videos depicting functioning governing offices and the distribution of aid fail to match the reality of growing deprivation and disorganized, erratic leadership, the residents say. A trumpeted Islamic State currency has not materialized, nor have the passports the group promised. Schools barely function, doctors are few and disease is on the rise....MORE
We were one of those doing the heralding:
ISIS To Introduce Its Own Gold/Silver Coinage