From 1551 to 1911 Libya was ruled by the Ottoman Empire, by Italy from 1911 to 1943 and from 1943 to 1951 was under the military suzerainty of Britain and France. The Central Bank of Libya was founded in 1956 and was run as a typical central bank until the bloodless coup d’etat of 1 September 1969.
and used the Central Bank of Libya for the sole benefit of the Libyan people.
Oil of an exceptionally high quality was discovered in 1959. However, King Idris al Mahdi as-Sanusi failed to capitalise on this bonanza or use it for the benefit of his people, and the bulk of the oil profits were siphoned into the coffers of the oil companies. On assuming power in 1969 Mu’ammar Muhammad al-Qathafi took control of most of the economic activities in the country, including the central bank, which for all practical purposes was run as a state bank. It operated as a banker of the local bankers and foreign bankers were not permitted to operate. Financing of government infrastructure did not atract riba (interest) and Libya had no national debt and no foreign debt. Its foreign exchange reserves exceeded $54 billion, which may be compared to reserves of developed countries such as the United Kingdom and Canada, which in 2010 were $50 billion and $40 billion respectively. GDP growth during the period 2000-10 was 4.32% per annum and the official figure for inflation was -0.27%.
Colonel Qathafi was described by the mainstream media as being a “terrible dictator and a blood-sucking monster”, but the reality was that with the exception of the city of Benghazi and its environs, he had the support of 90% of the population. The following benefits provided by Qathafi explain why he was so popular:
Mass manifestation in support of Muammar Gaddafi in Tripoli, July 1, 2011.
Colonel Qathafi was described by the mainstream media as being a “terrible dictator and a blood-sucking monster”, but the reality was that with the exception of the city of Benghazi and its environs, he had the support of 90% of the population. The following benefits provided by Qathafi explain why he was so popular:
■ Free education. Free electricity. Free health care. Free housing (There were no mortgages).
■ Students were paid the average salary for which subject they were studying.
■ Students studying overseas were provided with accommodation, an automobile and €2,500 per annum.
■ Newly-wed couples received a gift of 60,000 dinar ($50,000) from government.
■ Automobiles were sold at factory cost free of interest.
■ Private loans were provided free of interest.
■ Bread cost 15 US cents per loaf. Gasoline cost 12 US cents per litre.
■ Portion of profits from sale of oil was paid directly into bank accounts of citizens.
■ Farmers received free land, seeds and animals.
■ Full employment with those temporarily unemployed paid a full salary as if employed.
■ Students were paid the average salary for which subject they were studying.
■ Students studying overseas were provided with accommodation, an automobile and €2,500 per annum.
■ Newly-wed couples received a gift of 60,000 dinar ($50,000) from government.
■ Automobiles were sold at factory cost free of interest.
■ Private loans were provided free of interest.
■ Bread cost 15 US cents per loaf. Gasoline cost 12 US cents per litre.
■ Portion of profits from sale of oil was paid directly into bank accounts of citizens.
■ Farmers received free land, seeds and animals.
■ Full employment with those temporarily unemployed paid a full salary as if employed.
Qathafi’s Jamahariya “state of the masses” ensured that the wealth of this country of 5.79 million inhabitants was fairly distributed to all of its people. Beggars and homeless vagrants did not exist, while life expectancy at 75 years was the highest in Africa and 10% above the world average. The literacy rate was 82%. Regarding human rights Libya stood at 61 in the International Incarceration Index. The lower the rating, the lower the standing. The no.1 spot is currently occupied by the United States. Another major achievement, which Qathafi initiated was the conversion of the Nubian Sandstone Fossil Aquifer System into the Great Man-Made River, which supplies 6,500,000m³ of fresh water daily to the cities of Tripoli, Sirte and Benghazi. The extracted water is ten times cheaper than desalinated water. The total cost of the project, estimated at $25 billion was financed without a single foreign loan.
Prince Mangosuthu Buthelezi's foreword to
In November 2000 Saddam Hussein of Iraq decreed that all oil payments would in future be made in euros, as he did not wish to deal “in the currency of the enemy”. As has already been proven, the possession of weapons of mass destruction pretext was a deliberately concocted hoax and it was this currency decision, which cost Saddam Hussein his life and the destruction of his country.
In similar circumstances Qathafi announced in 2010 the creation of the gold dinar as a replacement for the settlement of all foreign transactions in a proposed region of over 200 million people. Libya at that time possessed 144 tons of gold. What was intended was not a return to the gold standard per se, but a new unit of account with oil exports and other resources being paid for in gold dinars. Qathafi crossed a red line and paid the ultimate price [he was assassinated by Western invasion forces in Sirte on October 20, 2011].
The Truth About Libya - Stephen Mitford Goodson, 2011.
Since 2007 Iran has stipulated that payments be made in euro currency. On 17 February 2008 the Iranian Oil Bourse for trading in petroleum, petrochemicals and gas using primarily the euro, Iranian rial and a basket of non-US currencies was established. The first oil shipments under the new system were sold through this market in July 2011. This event must be deemed as one of the prime causes for the constant Israeli and American threats to annihilate Iran.
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See also:
Imran N. Hosein (2023) - The Bretton Woods International Monetary System.
TPR (2023) - Ibrahim Traoré: Terminating French Neocolonialism & the CFA Zone in Africa.
Stephen Mitford Goodson (2022) - Who Ever Sets the Price of Gold and Silver.
TPR (2023) - Ibrahim Traoré: Terminating French Neocolonialism & the CFA Zone in Africa.
Stephen Mitford Goodson (2022) - Who Ever Sets the Price of Gold and Silver.