Continuation of the answer to the previous question: Are the things found today, such as oil, gasoline, food, and others, valued in gold or in currency?

The Shaykh : Now, the things that were valued in gold can be limited to five, ten, or a hundred. Do you say yes or no?

The questioner : The things that are valued in gold.

The Shaykh : Yes, the things that people need to deal with, such as food, drink, clothing, housing, oil, gasoline, and other items. These things that were previously valued in gold are limited to five, ten, or a hundred.

The questioner : Of course, they are not limited.

The Shaykh : They are not limited. Keep your composure, I want to build upon your answer. Do not get excited because you are young. Keep your composure a bit. So, these things that I said were following you, these things that were previously valued in gold, are they limited to five, ten, or a hundred?

The questioner : No

The Shaykh : They are not limited.

The questioner : Yes.

The Shaykh : Okay, now the economic scale has reversed, as you say from the economists. Gold is now valued by other things. What is this other thing that has taken the place of gold? Gold was valued by it, so now it is valued by other things. What is this other thing? It is oil, for example, it is industry, it is agriculture, it is, and so on.

The questioner : I mention what I found in some newspapers. I found in some newspapers, and there are many, that on the news page of the newspaper, the domestic page, yes, I think the currency prices are according to the dollar. So they put the dollar as if it were the German mark. As for the dollar, it equals so much, the French one so much, and so on. This means this. I found this in many newspapers. So it seems the dollar has taken the place, of course, and what corresponds to it or what it is based on, the massive American revolution in industry, factories, agriculture, and the like, yes, military power. So, in reality, I lean toward this opinion that the global reality has changed. That is, this theory that gold is the reserve.

The Shaykh : Please, do not deviate from the topic.

The questioner : Yes, I said the dollar.

The Shaykh : You still return and say the economic system has changed. We are done with this.

The questioner: Okay

The Shaykh : I want to know now what is the thing that has taken the place of gold, which things were valued by, so that gold is now valued by other things.

The questioner : The dollar.

The Shaykh : The dollar. Okay, does the value of the dollar go up and down or not?

The questioner : Of course, it goes up and down.

The Shaykh : If so,

The questioner : And gold goes up and down.

The Shaykh : Glory be to Allah. When you say, my brother, gold goes up and down, we return to the previous issue. Gold was valued by everything. Now you say gold goes up and down. Does gold go up and down relative to other standards, yes or no?

The questioner : Relative to itself, as I said, for example, in its time, Russia offered a large quantity of gold for sale, so gold became cheap. And when new quantities are extracted from the gold mines in South Africa, it becomes cheap. When it is bought, for example, in countries, according to the law of supply and demand, it changes.

The Shaykh : We do not differ, but all of this and that returns to determining what is the standard by which all things are valued. What is it? You say the dollar. This valuation of the dollar is not a valuation of itself, but a political valuation. You yourself just said, and this is agreed upon, that this paper currency has no intrinsic value.

The questioner : Yes.

The Shaykh : This paper currency has no intrinsic value. Its value is by what is stored for it. We used to say, by what is stored for it in gold. And they used to, and I witnessed this in the Syrian currency, that for the Syrian pound, there were so many grams of gold in the bank.

The questioner : This was written on the Syrian currency.

The Shaykh : I am telling you, this was the case. Okay, so now the issue is what has taken the place of gold in valuation. You say the dollar. The dollar does not have an intrinsic value like gold. We gave an example just now, the German mark... it is scattered dust. Suppose now, as for gold, its value remains whatever hardship or economic or agricultural poverty the country suffers. The value of gold remains preserved.

The questioner : It does not remain without value.

The Shaykh : So, if you say that the American dollar is what all things are valued by, even gold, even silver, even oil, I do not think this is correct. Because the dollar is paper and has no intrinsic value. So there is a customary value. Is this customary value international, or is it related to a specific country, which is America? Without a doubt, and therefore, for its own political and economic interest at the same time, I think you know that sometimes it raises the value of the dollar and sometimes it lowers its value. Is this correct?

The questioner : Yes.

The Shaykh : So it is a political issue, not an economic one. Or if it is economic, it is for a specific country, not for all countries and workers. Whereas gold is an international matter in which people do not differ that it has an intrinsic value. Therefore, the valuation of things, first, does not have an intrinsic value like paper currency. Its valuation is not by paper currency because its country is strong, but it is valued by a metal that has an internationally recognized value, recognized in reality by individuals and nations.

The questioner : This currency, for example the dollar, is the currency of a country, but this country has dominance over the world. So also, from what I have heard, now in the reserves of countries, they put, as they used to put, for example, so many kilograms of gold in the reserve, they put so much dollar in the reserve.

The Shaykh : My brother, I know this, but I am looking for the operative cause. Because the American state is strong. Suppose now, and may it be soon, what happened to Germany happens to the American state. What will happen to the stored dollar that you are saying is now in other countries? What will happen to it?

The questioner : Of course, the situation will change.

The Shaykh : Meaning it will collapse. Okay, and if it were gold in its place.

The questioner : Of course, it will not collapse.

The Shaykh : Please.

The questioner : To confirm your words, my Shaykh, before World War II, the dominant currency was the Australian pound, because its country was a great political power.

The Shaykh: That is correct.

The questioner : And in contrast, the same British pound. The British pound does not decrease in value because it is known that it is the country in the world with the most gold, which is Britain. But in contrast, if we look at Italy, although it is industrially advanced, it has neither political power nor gold power. Therefore, their lira keeps going down. So this matter is that gold is the political power in the money of paper currencies.

The Shaykh : This is what I see, and Allah knows best. In any case, the time has become eleven o'clock. Perhaps Abu 'Abd al-Rahman, we have not delayed you from anything.

The questioner : No, no, may Allah preserve you.

The Shaykh : And it is possible we have delayed someone else too.