VOA promotes Sharia Finance with your taxpayer dollars

“This is the type of article one might expect to see on the Muslim Brotherhood’s web site. Yet, it was paid for by US taxpayers and it was distributed by Uncle Sam…” So says Shariah Finance Watch, and they’re right. Be sure to read all their excellent observations on this.

“Focus on the Little Guy Could Boost Islamic Banking in Indonesia,” by Sara Schonhardt for VOA News, January 31 (thanks to Shariah Finance Watch):

Indonesia’s central bank has recently embraced new regulations for Islamic banking, which it sees as key to building on last year’s strong economic growth. In a country that is home to more than 200 million Muslims, the potential for expansion is enormous, although Islamic finance still accounts for a small part of the country’s financial market. […]

Some financial experts say Islamic banking principles, which limit the use of sophisticated derivatives and require transactions to be backed by real assets, could prevent the excessive leverage that undermined the global financial system two years ago.

Bank Indonesia senior bank researcher Dadang Muljawan says those characteristics helped convince the government to develop its dual-banking system. “The Islamic bank can survive very well the economic crisis. This is maybe what has been seen by the Indonesian government as an opportunity …. If we have two systems that can work together and then if one goes bust – I hope not – the other one can sustain,” he says.

That does not negate the need for better supervision. The system still requires proper supervision. “Jokingly we sometimes say that we can’t say Islamic banks are too holy to fail … it’s not the magic word,” he says. […]

For now, the focus will remain on building small and medium-sized businesses in the financial sector. But there is hope that improved regulations and new government measures could see Indonesia grab a bigger slice of what the central bank says is a $900 billion global market for Islamic banking.

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  1. says

    Some financial experts say Islamic banking principles, which limit the use of sophisticated derivatives and require transactions to be backed by real assets, could prevent the excessive leverage that undermined the global financial system two years ago.

    Said people are full of s***.

    There is a clear, rational and functional way to limit the use of derivatives to a reasonable level:

    Stop the bloody stimulus!

    In practical terms, that means letting interest rates raise to market levels (no more cheap credit through fake money from the Fed), stopping the Open Market Operations (no more infinite government borrowing of fake money from the Fed), and no more bailouts of bloated financial institutions at the expense of working people.

    Financial superstition is no salvation, it it a deceitful system feeding the Jihad.

  2. says

    There are usually few times when a “religious” belief can be proven wrong, but the basis of so-called Sharia finance is one such example. It says that interest, aka “the time value of money” shall be zero. Well, the time value of money is not, and never can be zero. Simply asserting that to be the case is no more valid than asserting that 1+1=0. And the proof is all the bullshit ways they try to disguise, rename, deny, etc the reality of interest in their transactions, even though they call it anything but interest.

  3. says

    BCCI was a Sharia bank.

    BCCI’s policy was determined by Muslim interests and ideals, and anchored in the desire to increase the economic power and political leverage of local Muslim communities by exploiting their lucrative and sometimes illict activties. . .

    The strength of BCCI in Muslim communities stemmed from its Islamic banking practices, which do not permit interest payments. The Koran forbids “usury” (interest), therefore the law of the land in both Pakistan and Iran follows the Koran. . .

    BCCI became the conduit for approximately $1 billion of unrecorded Islamic banking deposits to be used under contractual stipulation for community investments according to Islamic law.

    Such massive infusion of unrecorded deposits from Arab, primarily Saudi, investors provided BCCI with a distinct advantage over its Western counterparts.

    – “Evil Money” by Rachel Ehrenfeld

  4. says

    Islam_Macht_Frei has an excellent point here. Zero-point interest rates is a mockery of what was supposed to be ‘money’, and will lead to complete economic chaos.

    Interest rates is what keeps things in order in the economy, an expression of ‘Time preference’ (the value of having something Now rather than Later), an expression of how much savings are present in society, and is also the average rate of return on decently-run businesses.

    Messing with the interest rate causes all kinds of distortions in the economy. Manipulating the interest rate down to zero (or near-zero) levels constitutes significant money-printing, which will eventually debase the currency towards worthlessness.

    The arcane workarounds in Sharia finance may well look like pure hypocrisy, but they are a pragmatic safeguard against the worse evil: The destruction of money as such.

  5. says

    This article just saddens me. No, not only for the Sharia finance angle, but the entity shilling it; the Voice Of America. The VOA is the radio station of the US government. (Our government, if you are American). This especially hurts since the VOA has historically operated and aimed it’s programming for populations under anti-American regimes, and ideologies and dictators that repress. And now, the VOA is shilling Sharia Finance. Great. Just. Great.

  6. says

    Just a quick update to what Islam comprises:

    * Religion
    * Legal system
    * Penal system
    * Governmental administrative system (legislative & bureaucratic)
    * Military
    * Banking system

    That’s quite a scope. Did I miss one here?

    *** Bukhari Vol 4 Bk 52 Nbr 267 ***

    This differs from JudeoChristianity, Hinduism, Bahai, Sikhism, Confucianism, Shintoism, Zoroasterianism, paganism, and the rest?

    *** 93:4 ***

    But maybe not so much from secular humanism (read: Marxism).

  7. says

    OT – you guys may want to check on Google’s search engines periodically. This web site is no longer featured at the top of the searches for “Jihad Watch;” ironically there is a “Jihad Watch Watch” front and center though.

    Keep up the great work – you must be really bugging the moonbats!

  8. says

    Occasional nutty phenomena on Wall Street such as the derivative craze are not an endorsement of the primitive, hypocritical Sharia investment rules.

  9. says

    Google Search is most certainly NOT the same for everyone!

    We had this thing about searching for ‘Islam is’, and I just couldn’t reproduce the weird behaviour discussed here. I also get JihadWatch right on the top, Pamelas blog soon thereafter, and no “Jihad Watch Watch” on the first page.

  10. says

    [OT again – pls excuse]

    Google has a “server farm” in Goose Creek, SC. And likely some local “talent” pulling strings. Corruption at its finest!

  11. says

    A comment on Shariah Finance: Today Act for America website sponsored an inter-net live program on this noteworthy topic; The Presentors includes Liza Piraneo and Joy ? both top notch persons woking for Act for America on this issue and many others at the Congressional and Senatorial level in Washington. It is worth the viewers here at JihadWatch to go to Act for America and see the Video that Joy has there. By the way Joy is a former Wall Street Consultant/Trader; and she really knows her stuff. What was revealed today is at best startling with respect to how DEEP Shariah Financial has penetrated the International Banking System, the US Treasury Department and the FCC. To wit, many of these folks do not realize the Depth and the Power Grab that will eventually result as a consequence of their actions. If in fact they do know, then they are Traitors of the worst type! check it out Act for America.org
    orthodox apostle

  12. says

    I just checked Google and Jihadwatch is right at the top. first thing. I didn’t see a Jihadwatchwatch…I wonder what’s going on?

    Is Google’s search the same for everyone everywhere?

  13. says

    It is always featured at the top from my regular IP. I checked it at the local library today with the results I described above. Dumbing down the masses? One can only guess. 😉

  14. says

    * Religion
    * Legal system
    * Penal system
    * Governmental administrative system (legislative & bureaucratic)
    * Military
    * Banking system

    That’s quite a scope. Did I miss one here?

    Yup. Medical care system: a daily glass of camel urine and the morning nose-snort will cure just about anything. And, of course, FGM for the half-people.
    And educational system: memorization of the Koran in Arabic (most likely not your native tongue) is the epitome of learning and wisdom.