Posts Tagged ‘neoconservatism’

My take on the push against Sharia in the US

9 May 2012

Those who follow me (if any) know that I am interested in changing the current financial system. In this regard, I have been following the White Hats movement, which seems loosely related to a variety of groups that go by other names.

These people want to replace the current system with one that is “equity-based.”

On googling “equity based finance” I found numerous links to articles and papers about Islamic banking. Why was this?

It is because Sharia advises in favor of equity-based financial practices.

I read the Wikipedia article on it here:
Islamic Banking

To quote the article briefly:

The term “Islamic banking” refers to a system of banking or banking activity that is consistent with Islamic law (Shariah) principles and guided by Islamic economics. In particular, Islamic law prohibits usury, the collection and payment of interest, also commonly called riba in Islamic discourse. In addition, Islamic law prohibits investing in businesses that are considered unlawful, or haraam (such as businesses that sell alcohol or pork, or businesses that produce media such as gossip columns or pornography, which are contrary to Islamic values). Furthermore the Shariah prohibits what is called “Maysir” and “Gharar”. Maysir is involved in contracts where the ownership of a good depends on the occurrence of a predetermined, uncertain event in the future whereas Gharar describes speculative transactions. Both concepts involve excessive risk and are supposed to foster uncertainty and fraudulent behavior. Therefore the use of all conventional derivative instruments is impossible in Islamic banking.

The source given for this statement is:
Mervyn K. Lewis, Latifa M. Algaoud: Islamic Banking Cheltenham, 2001

Morality in finance

This introduces the odd idea that banking, and financial matters in general, should be conducted on an ethical, even moral, basis.

The is NOT the Western tradition! To be curt, the West has practiced “rape and pillage” banking since at least the days of Rome.

Push against Sharia in US

There has been a push against Sharia in the US justified by the idea that Sharia encourages Islamic extremism (for which there is no proof, of course).

According to this article support for this backlash seems to be loosing ground. But where did it come from? The article mentions David Yurushalmi, a lawyer for the conservative Center for Security Policy (CSP). David, an anti-globalist, does not claim to be the intellectual or any other leader of this movement. However, he does firmly believe in it, as does the Center he works for.

This group honors mostly various military leaders in the US. One odd exception to this was Christopher Cox, U.S. Congressman from California, and chairman of the Securities and Exchange Commission from 2006 to 2008. This group also supports Zionism and American Exceptionalism.

According to Wikipedia, its membership includes Richard Hoagland and Linda Moulten Howe, who are prominent commentators in the alternative news community.

Again according to Wikipeida, based on a web page that no longer exists, the CSP is subsidized by donors supportive of neo-conservative causes, including the Sarah Mellon Scaife Foundation, the Shelby Cullom Davis Foundation and the William H. Donner Foundation.

I have no real way of tracing the sources of funding for these foundations. However, the Mellons were a banking and oil family. Shelby Collum Davis was an investment banker. And Donner was a steel man who got financial support from Mellon.

These guys like the “American way” there’s no doubt about that. And that includes, I presume, the “American” way (actually the Roman/Italian way) of doing banking. Many “modern” banking practices are outlawed by Sharia.

Any connection?