Saturday, May 19, 2012

How the US Dollar Will Be Replaced


May 17, 2012

How the U.S. Dollar Will Be Replaced

By Brandon Smith

After being immersed in the world of alternative economic analysis for several years, it sometimes becomes easy to forget that most people do not track forex markets, or debt to GDP ratio, or true unemployment, or hunch over IMF white-papers highlighting subsections which expose the trappings of the globalist ideology. Sometimes, you just assume the average person knows what the heck you are talking about. This is, of course, a mistake. However, it is a mistake that is borne from the inadequacy of our age and our culture, and is not necessarily a product of weak character, either of the analyst, or the casual reader.

Of Money Lending Risks vs Business Risks

Assalamu 'Alaikum

Commenting on the article by Salman Sheikh below Islamic banks should also learn to differentiate money lending from business risks. Islamic bank leases assets and sells assets; they should manage business risks not money lending risks which is the realm of conventional banking.

Take a cold hard look at term sheets and legal documents, an intelligent Islamic banker will be able to identify the money lending risk management clauses in there which should be remove if one does not want to be labelled a money lender 

The operative legal maxim in Muamalat is Alghunm bi Alghurm. One is not entitled to reward unless one is willing to expose oneself to risk. The Muamalat practitioner who understands this Shariah injunction seeks risk to justify his rewards 

Risk is only ugly to riba bankers; Islamic bankers who wants to be Islamic Muamalat practitioners are required to seek risks as a matter of Shariah injunction.

Best regards and Salam
Zahid

Reflections on One Decade Operations of Islamic Banking in Pakistan


Salman Ahmed Shaikh

Islamic banking in Pakistan roughly started one decade ago and now there are 5 full-fledged Islamic banks in Pakistan and more than 15 conventional banks that have Islamic banking branches.

The industry has grown by more than 10 percent consistently during the last five years and despite the economic slump after 2007 in economy, the growth in Islamic banking had remained consistent and even gained more steam at least in Pakistan and that has been roughly the case elsewhere too.


However, any meaningful assessment and reflection on the performance of Islamic banking must take into account much more than the growth, market share, size of balance sheet and profits.


Islamic financial institutions built their reputation and gained acceptance from masses having promised socio-economic benefits of an egalitarian financial system based on Islamic principles. Hence, this merits a careful analysis of performance on these and similar parameters.