Tuesday, December 17, 2013

Pillars of a fully Islamised Economic System

Assalamu 'Alaikum

 Pillars of a fully Islamised Economic System:

1)    Islamic Monetary system pegged against Gold and
 GDP subject to international Hisbah.

2)    Islamic Banking on equity only. Investments taken 
on Equity ; Financing given on equity.

3)    Bank deposits must be taken on equity; only then can 
the financing be done on equity.

4)    The whole premise of taking deposits on debt 
and giving money on debt is to be avoided.

5)    Debt only for purchase of assets but even then 
subject to ayat 280 AlBaqarah.

6)    Debt to fund working capital of business is prohibited.

7)    Payment System Banks deals only 
on "debit card basis".

8)    Investment System banks take money on equity, 
invest on equity. 

9)    No Fractional Reserve Banking

10)  International Trade on Gold Dinar Exchange system

11)  Debt financing only for some financing of cars and
 houses until a more permanent alternative is executed

12)  Zero debt financing for business.

An Islamic system cannot be simply inserted into a 
non Islamic overall environment.



The Biggest Scam In The History Of Mankind - Hidden Secrets of Money Ep ...

Sunday, December 15, 2013

The Myth Created by the Banksters

Assalamu 'Alaikum

The Myth Created by the Banksters
Nation A is a small but wealthy nation. The benevolent government worries about unemployment amongst the nation’s youth. The government realises SME’s are the key to creating employment as in all other nations they are the greater creator of jobs and the greater contributor to GDP than the large corporations. The government have a whole array of SME friendly policies to boost its SME sector. The results are not encouraging as only a small number of SME’s seems to be benefitting from these SME boosting policies. Those in the know, knows this is because of the reluctance of everyone to move from the platform of debt to the platform of equity in helping the SME’s. The debt banking grip on everyone’s mind is so strong from 300 years of riba brainwashing that nobody considers the possibility of equity investing in SME’s as a solution. The bank’s excuse of not having enough staff to monitor investments in SME’s is taken as gospel and never challenged again whether it cannot really be done with little additional  human resource cost to everyone. However that is not what this article is all about and I will not explain or preach to those who refuse to open their minds.

Saturday, November 30, 2013

Brunei Darul Hudud

Brunei Darul Hudud

Assalamu ‘Alaikum,

Actually the proposed new name for this blessed nation is Brunei Darul Dzikr in line with the aspirations of a truly inspired King. Consummate obedience to Allah the Almighty is the only way to describe the outstanding bold decision of the Sultan of Brunei to insist his nation be govern by the laws of Allah swt true to the demands of the Quran.

Surah AlMaidah Ayah 48 translates :

“And We have revealed to you, [O Muhammad], the Book in truth, confirming that which preceded it of the Scripture and as a criterion over it. So judge between them by what Allah has revealed and do not follow their inclinations away from what has come to you of the truth. To each of you We prescribed a law and a method. Had Allah willed, He would have made you one nation [united in religion], but [He intended] to test you in what He has given you; so race to [all that is] good. To Allah is your return all together, and He will [then] inform you concerning that over which you used to differ.

Tuesday, November 12, 2013

Islamic Candyfloss

Dear Gillian,

Coming back from the World Islamic Economic Forum in London, and hearing the impassioned speech by UK Prime Minister David Cameron on the virtues of Islamic Finance and the intention of his Government to pursue Islamic Finance with vigour so much so as to turn London into a Centre of Islamic Finance on par with Kuala Lumpur and Dubai, I was equally bowled over by the import and thrust of your article below. With over 22 years involvement in Islamic Finance I do have a little vested interest in seeing it expand.
Expansion of Islamic finance means the expansion of the ideals of fairness and justice in this world. This is where I do not know how to begin to describe my feelings. Pride over its international recognition is tinged with a certain guilt and fear that the current form of Islamic finance as practised in the Muslim world today may not live up to expectations when it comes to the crunch. Let me take the bull by the horn and come up with an explanation of Islamic finance early in my piece so that we are all on the same page. Islamic finance is basically broadly divided into two category, Islamic debt financing and Islamic equity financing. What we have observed in the development of Islamic finance in the world today is the monopoly of Islamic debt finance to almost the total exclusion of Islamic equity finance. Many of us believe the true alternative to Western conventional finance is Islamic Equity Finance and not Islamic Debt Finance. Debt by whatever name is unjust when used to finance risk projects that demand sharing of risks by all parties. Islamic debt finance to finance projects that demands risk capital will be equally unjust to project owners who defaults for business reasons totally out of their control. This is where my mixed feelings earlier came from. Is Islamic finance going to be any different if it is solely based on debt?

Another issue Gillian, is that we cannot discuss finance ignoring the surrounding issues that determines the shape of finance. These issues principally revolves around fraudulent money creation, fractional reserve banking and legitimacy of fiat money as an article of faith in the economy. When we play the board game of Monopoly, inflation is never an issue right, the price of that Mayfair or Park Lane Property never goes up right? Why is that? That’s because we know the bank have a fixed volume of money. Now imagine a game of monopoly where the bank is at liberty to increase the volume of money at its whims and fancy. We will soon find the price of properties being on a permanent upward trend right? In the real world when the volume of money can be increased at someone’s whim and fancy then those on low and fixed wages will suffer will they not? The volume of good and services cannot keep pace with voluminous and callous increase in volume of money.

Who is this someone in a nation who can increase the volume of money at his whim and fancy? If our answer is the government then we will get 10 marks, for on average the government through paper notes and coins produce only 10% of  a nation’s money supply. If we answer banks then we will get 90 marks because on average banks create 90% of a nation’s money supply through what is called fractional reserve banking. The USD1000 you place in a bank’s current account and is given a cheque book to spend? Very soon the banks will lend the same USD1000, at reducing amount of course because of the reserve at Central bank requirement, such that at the end of the day 25 people will hold cheque books believing they hold various reducing portions of the original USD1000 you deposited. This is David Copperfield stuff, where banks create money out of thin air. Mathematically, with a 2% reserve requirement, a USD1000 deposit can result in thin air money of USD25000; and a USD1billion deposit can result in USD 25billion of money created by banks out of thin air.

Why am I describing this obviously fraudulent money creation system? Because an Islamic bank that operates in this system is also guilty of creating money out of thin air. Whither fairness and justice to the world when one is equally guilty of fraudulent money creation? Why do I call it fraudulent? You remember that game of monopoly I described above where the bank is now allowed to create as much money as it wishes? What if the banker choose to lend the newly created money only to his friends and which they use to buy up all properties, will not these select group of friends become very rich, and society then pays for their wealth through inflation when volume of goods and services increases do not match the volume of money increases. This process of enriching the rich and impoverishing the poor is implicit in the debt based banking system when monies are lent by banks only to monied people with collateral. So Gillian, an Islamic bank caught in a fractional reserve banking and Islamic debt banking system is also guilty of enriching the rich and impoverishing the poor. So whither fairness and justice to the world?

The overriding Islamic legal maxim in Muamalat or Islamic economic matters is AlGhunm bi AlGhurm i.e rewards comes only with risk. Only when Islamic banks practise this; only when they favour equity finance in place of debt, only when risk is not a four letter word to them, will they be the true saviour the world awaits.

Best regards,


November 8, 2013 6:39 pm

When candyfloss costs dear

By Gillian Tett

‘Western finance was like a bubble of sticky froth, from which a few “real” assets had been spun and re-spun’
©Shonagh Rae
Seven long years ago, I had a chance to meet Sheikh Muhammad Taqi Usmani, a Pakistani scholar who is also a leading expert in Islamic finance. It was an unexpectedly memorable conversation. Back then, during the height of the credit bubble, there were very few people who expressed strong criticisms of how western finance worked. But Usmani was scathing. Most notably, he bewailed the tendency of American and European banks to create money untethered from any real assets; or, as he put it, to spin “derivatives out of more derivatives”. Indeed, to Usmani it seemed as if western finance was almost akin to a giant ball of candyfloss: a bubble of sticky froth, from which a few “real” assets or economic activities had been spun and re-spun to support numerous ephemeral financial deals, much in the way a tiny piece of sugar can be used to concoct a giant puffball. “Western banks create money from money,” Usmani told me, contrasting this with the world of Islamic finance, where “money is always backed by assets” and relies on “equity financing not debt”.
Today, such criticisms no longer look quite radical – or unusual. On the contrary, following the collapse of the credit bubble even men such as Alan Greenspan, the former chairman of the Federal Reserve, are fretting about the inexorable expansion of western finance. And, if you listen to American Tea Party activists discussing the tottering piles of American debt and exploding money supply, their concerns (ironically) sound rather similar to those of Usmani.
In the past few days I have had reason to ponder Usmani’s words again. Late last month, George Osborne, the British chancellor, announced that the UK government plans to issue its first “Islamic bond”, or a debt instrument that complies with Islamic principles. The news has provoked cynicism in some City quarters, since it seems something of a diplomatic ploy. But, to my mind, this partly misses the point. For whatever Osborne’s motives, one benefit in having a British Islamic bond in play is that it might prod more people to glance at the principles behind Islamic finance. And those ideas are thought-provoking, for Muslim and non-Muslim alike, since they present a vision of money that is refreshingly different from the ideas that 21st-century western financiers and consumers take for granted.
What are these core principles? The central issue is a belief that usury is morally and religiously wrong (haram). In that sense, then, Islamic scholars echo the precepts of the medieval Christian church. Observant Muslims are not supposed to make or receive loans with any interest. But another crucial point is that debt as a whole is discouraged: Islamic finance prefers to finance business and government via investors who share risks, ie with equity.
And Islamic scholars hate the idea of using money to make more money, as a game in itself. Instead, they believe that financial flows should be tethered to tangible productive enterprises or trade, since money should serve the “real” economy. This is very different from the embedded ideas of 21st-century western finance or banking in previous centuries.
In the 20th century, some Islamic financiers started to build financial structures that complied with these ideas (say, by creating risk-taking “banks”). And, ironically, these days western banks such as Deutsche Bank, Citigroup and HSBC have now jumped into the fray too, borrowing modern western financial innovations, such as securitisation, to dance around Islamic strictures.
Some of this activity looks contradictory, if not comical: like the church of medieval Europe, there is a whiff of hypocrisy and religious arbitrage. But notwithstanding that, the fact remains that the core principles – if not all the practice – are fascinating. After all, the idea of tethering our financial system more closely to the “real” economy and tangible, productive enterprises seems distinctly appealing these days. Likewise building a system around equity, not debt, with a less financial candyfloss. Indeed, perhaps the really curious issue here is not that Islamic scholars are promoting those ideas but that other religious groups have not been trumpeting them on moral grounds too. Yes, the new Archbishop of Canterbury has appealed for bankers to behave in a more moral way but why didn’t the Church criticise western finance more loudly before 2007? Why is nobody demanding Christian bonds to support infrastructure spending, say?
It would be an intriguing question to ask when, or if, those Islamic British bonds ever appear. Finance might just possibly be one area where religions could learn from each other.

Bottom of Form


Friday, September 27, 2013

How do we begin to make people understand? / Bagaimanakah dapat kita memberi faham kepada ummah?

Assalamu 'Alaikum,
We can understand if the non-Muslims are lost as to what happened and no not how to solve the problem. But for Muslims to be not aware of the solutions is just amazing! What the article described is what will happen to an economy where Quranic tenets are not observed. This is the reason why Allah and His Rasul declared war on riba 1400 years ago. This is what will happen when you allow riba to breed to its ugliest permutation. A riba driven economy makes the rich richer and the poor poorer. Money which is not pegged against gold or GDP and not monitored by an International Hisbah organisation will breed legalised theft by the chosen international reserve currency. In local economies fractional reserve banking is the local riba dragon that ravages the poor. In the international scene interest based international loans ala economic hitmen style ravages poor countries. In every nation a combination of the interest and debt based banking system, fractional reserve banking and money creation not pegged against specie combine to wreck havoc on the poor.
Where do we begin, how do we begin to make people understand.................
Kita boleh memahami sekiranya orang bukan Islam ketandusan fikiran bagaimana ini boleh berlaku dan apakah penyelesaiannya. Tetapi sungguh menakjubkan sekiranya orang Islam sendiri tidak nampak penyelesaiannya! Apa yang artikel ini gambarkan ialah apa yang akan berlaku kepada ekonomi dunia sekiranya tuntutan AlQuran diketepikan. Inilah sebabnya Allah dan RasulNya istihar perang terhadap pengamal riba 1400 dahulu. Inilah apa yang akan berlaku sekiranya kita benarkan riba berleluasa dan membiak tanpa diawasi. Ekonomi yang dikemudi riba akan mengkayakan yang kaya dan mengkedanakan yang miskin. Wang yang tidak disandarkan kepada emas atau KDNK dan dipantau oleh Persatuan Hisbah Antarabangsa akan membenar mata wang yang merupakan mata wang rizab antarabangsa melanun tanpa batasan. Diekonomi peringkat negara pula perbankan rizab pecahan menjadi perompak orang miskin. Diekonomi peringkat antarabangsa pinjaman riba ala pembunuh ekonomi upahan menjadi perompak negara miskin.Disetiap negara pakatan jahat perbankan rizab pecahan, sistem perbankan riba dan hutang, dan wang yang tidak bersandarkan ‘ain akan bekerjasama untuk mencuri dari yang miskin.
Bagaimanakah dapat kita memberi faham kepada ummah......

Wednesday, August 28, 2013

The Truth of the Matter / Hakikat Sebenarnya

Excerpt from the book called 13 Bankers by Johnson and Kwak / Petikan dari buku yang dipanggil 13 Bankers oleh Johnson dan Kwak

·         “The failure to regulate not only derivatives, but many other financial innovations, made possible a decade long financial frenzy that ultimately created the worst financial crisis and deepest recession the world has endured since World War II.”

This is what happens when finance is not governed by Shariah.

·         “Derivatives grew to over USD680 trillion in face value and Credit Default Swaps grew to over USD50 trillion by 2008 contributing to the inflation of the housing bubble. When that bubble burst, the collapse in the value of securities based on the US housing market triggered the financial crisis. US and other governments bailed out their banking sectors with rescue packages worth hundred of trillions of dollars.”

These bail outs are by creation of fiat money out of thin air which is fraudulent and a thievery of the ordinary man’s purchasing power

Monday, August 26, 2013

Ulama dalam kedudukan berkuasa politik perlu membenarkan profesional Islam menjalankan kerajaan sementara mereka mengawal selia kerajaan tersebut melalui Dewan Ulama / Scholars in position of political power must allow Islamic professionals to run the government while they oversee the governing via the Dewan Ulama

Assalamu 'Alaikum,

Apa dah jadi? Bergabunglah tenaga professional Islamik dengan barisan ulama demi kemajuan Islam. Sedarlah bahawa British telah sekularkan kita. Barisan ulama perlu ketangkasan tenaga professional Islamik; dan tenaga professional Islamik perlu bimbingan barisan ulama. Bacalah tulisan tulisan cendiakawan saperti Prof Syed Naguib AlAttas (Islam dan Sekularisma) untuk memahami hakikat sekularisma bangsa Melayu khasnya dan umat Islam amnya oleh Barat. Kita wajib bergabung sehingga sistem pendidikkan kita mampu wujud insan kamil yang syumul ilmunya berkemampuan menguasai kedua -dua dunia dan akhirat. Bukankah begitu banyak contoh dalam sejarah Islam dimana pemimpin-pemimpin agung Islam rela berundur diri demi kesatuan dan maslahah Islam?

Wednesday, August 21, 2013

Al-Beltagy wrote to his Shuhada daughter recently killed by Asisi snipers

Al-Beltagy's letter to killed daughter Esmaa
Muslim Brotherhood leader Mohamed al-Beltagy wrote a letter to his daughter Esmaa killed on Wednesday by snipers in Rabaa al-Adawiya 

Muslim Brotherhood leader Mohamed al-Beltagy wrote a letter to his daughter Esmaa al-Beltagy killed on Wednesday by snipers at the sit-in at Rabaa al-Adawiya.
The letter published on the social media account of al Beltagy expressing his feeling to his daughter reads as follow:
"My dear daughter and invaluable teacher…
I don’t bid adieu to you conversely I say “see you tomorrow”.

Wednesday, August 14, 2013

So sad for Misr, so sad for Sham, so sad for Gaza./ Sedih untuk Misr, sedih untuk Sham, sedih untuk Gaza.

So sad for Misr, so sad for Sham, so sad for Gaza.

Your death is our death,
Your misery is our misery,
Your hardship is our pain,
Oh Allah please save our brothers and sisters who are facing such brutal treachery
Surely You are the Defender of the oppressed.
Surely You answer the du’a of the oppressed

Oh Allah grant taufiq and hidayah to our leaders so that they understand the bigger battle they have to plan and fight.

Sedih untuk Misr, sedih untuk Sham, sedih untuk Gaza.

Kematian mu adalah kematian kami,
Kesengsaraan mu adalah kesengsaraan kami,
Keperitan mu adalah keperitan kami,
Ya Allah kau peliharalah saudara-saudara kami yang sedang mengharungi kezaliman
Sesungguhnya kau pembela orang-orang yang teraniaya.
Sesungguhnya kau makbul du'a orang-orang yang ternaniaya

Ya Allah kau limpahkanlah taufiq dan hidayah kepada pemimpin pemimpin kami supaya mereka memahami perjuangan yang lebih besar yang mereka perlu rancang dan harungi.

Saturday, August 10, 2013

Dear Douglas

Dear Douglas,

Thank you for the Eid greetings. Yes its the day to celebrate the victory over the self which is what Ramadhan is all about. A month of fast not only from food and drink but the attainment of a higher level of purity and thankfulness for the countless blessings bestowed by Allah the Almighty.

Nonetheless it pains many Muslims and I am sure a good number of concerned non Muslims over what is happening in Syria, Egypt and Palestine. If we do things in the name of God it cannot be that other humans must suffer for our acts of worship. It has to be wrong if fellow humans must suffer in our effort to please God. Lets us reflect on this important proviso.

Friday, August 2, 2013

Even with an economics background I am always baffled by the analysis of the ever so politically correct economic writers. / Walaupun dengan latar belakang ekonomi saya sentiasa bingung dengan analisis penulis ekonomi sekarang

Assalamu 'Alaikum
Even with an economics background I am always baffled by the analysis of the ever so politically correct economic writers. / Walaupun dengan latar belakang ekonomi saya sentiasa bingung dengan analisis penulis ekonomi sekarang

Even with an economics background I am always baffled by the analysis of the ever so politically correct economic writers. The US flooded the world with green pieces of toilet paper over the recent years in their so called Quantitative Easing . Then they threatened or decided to stop further episodes of this craziness and that according to these politically correct economists spells doom for the rest of the world, the Malaysian economy not excluded?

I mean, shouldn't we be celebrating that the US have decided to stop this madness?! It’s not unlike we flooding small kids with lollipops and suddenly we worry about their health because we intend to stop giving them another flood of lollipops?! These writers did not they realised that with QE the US bought the world's real assets, our palm oil etc, with green pieces of toilet paper?!! Shouldn't this be their concern instead of worrying the US will stop further flooding of these green toilet paper?!

Sunday, July 28, 2013

The key to the fall of President Mursi is the fact that Misr is a debt slave nation / Kunci kepada kejatuhan Presiden Mursi adalah hakikat bahawa Misr adalah sebuah negara hamba hutang.

Assalamu 'Alaikum
The key to the fall of President Mursi is the fact that Misr is a debt slave nation / Kunci kepada kejatuhan Presiden Mursi adalah hakikat bahawa Misr adalah sebuah negara hamba hutang.

The key to the fall of President Mursi is the fact that Misr is a debt slave nation. A situation engineered by the Zionists owned World Bank and US Corporotocracy many ,many years ago. A Corporotocracy is an evil cooperation between Zionists owned private interests, White House and International Organizations like the World Bank. In the 1950s and 1960s, the World Bank through Consultant firms engaging Economic Hitmen preyed on poor developing countries with a view to turn them into debt slaves of America ( Read: John Perkins - Confessions of an Economic Hitman). The job of the Economic Hitmen is to over estimate the electricity needs of poor undeveloped nations.

Sunday, July 21, 2013

Bank Musyarakah Ganti Bank Islam ? / Musyarakah Bank as a replacement of current Islamic Banking Model?

Can we continue to ignore equity Islamic finance?

 Assalamu 'Alaikum,

Can we continue to ignore equity Islamic finance?

An economic system is where economic units interact to produce the optimal amount of goods and services needed by the economy. A key factor introduced into  economics by Shariah is the legal maxim, AlGhunm bi AlGhurm meaning rewards comes with risk.

In Islamic muamalat one is not entitled to reward unless one is willing to expose oneself to risk. This provides a fair formula for the economic units. and the economy runs on equity instead of debt.

The problem with today’s economy is that we have allowed an unnatural formula to persist in economic transactions. This is the formula of debt. Instead of an equity transaction where both parties are exposed to risk and reward we have accepted a situation where a particular economic unit is given a special dispensation on risk or where one is spared of all risks.

Friday, July 19, 2013

Soalan Berkaitan / Question Regarding Zahid’s Say Blog Posting “Fiat Money and Economic Degradation of Muslims”

Assalamu 'Alaikum

Soalan Berkaitan Zahid’s Say Blog Posting  “Fiat Money and Economic Degradation of Muslims”
Kepada: zaziz@hotmail.com
Tarikh: Selasa, 16 Jul 2013 16:11:52 -0700
Subjek: Re:  Fiat Money and Economic Degradation of the Muslims
Adakah Perbankan Islam juga mengamal riba dengan nama yang lain?
Dipohon pencerahan

Mereka juga terlibat dengan perbankan rizab pecahan seperti bank-bank konvensional. Perbankan rizab pecahan adalah di mana RM1000 yang anda letakkan di dalam suatu akaun semasa dengan sebuah bank akan dipinjam berkali-kali oleh bank-bank sehingga akhirnya ramai orang memegang buku cek yang mengaku memilikki RM1000 tunai yang anda mula-mula letakkan di bank anda tersebut. Bank boleh berbuat demikian sebab tidak ramai orang yang datang keluarkan tunai; kebanyakkan membuat bayaran dengan buku cek. Mereka tahu lazimnya mereka hanya perlu simpan  tunai hanya 10% daripada jumlah keseluruhan buku cek tersebut. Ini kerana itulah jumlah maksima yang biasa dikeluarkan oleh orang dari bank didalam sesuatu masa.

Tuesday, July 16, 2013

Fiat Money and the Degradation of the Muslims

Assalamu 'Alaikum,

Excellent article by Prof Kameel attached below. Prof Kameel has long been an advocate for the removal of the fiat money system. Fiat money system is one of the most important issues of our lifetime. It is so important that in the last few messages to mankind, the last few verses of the Quran and in the Khutbah Wida' by Rasulullah s.a.w. we are again warned about the dangers of riba, which is what fractional reserve banking is, the mother of all riba!  We need to clearly understand Prof Kameel's  message. Fighting riba should interest us who worry about the future of our grand children; it should interest us who wish to live life as true Muslims, free of riba: It should worry us who worry about the fate of Palestine and Al-Alqsa; it should worry us who worry about Misr and a host of other debt slaves nations, slaves to nations who are kings of riba ; it should worry us who are Nationalists and worry about the fate of the Malays. I submit if we really do understand, there is no other issue as critical as riba, they just pale in comparison. No other sins Allah and His Rasul declare war on as in riba.
AlBaqarah : 278 & 279

O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers.
And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your principal - [thus] you do no wrong, nor are you wronged.

Thursday, July 4, 2013

Let us not reach this stage / Janganlah kita sampai ketahap ini

Assalamu 'Alaikum

Let us not reach this stage / Janganlah kita sampai ketahap ini

In America in 2010 25 hedge fund managers were reported to have made over US22 billion for themselves while 44 million Americans were on food stamps. CEO pay increased 27% in 2010 when over 20 million Americans were unemployed

Let us not reach this stage here in Malaysia
The issue is not about eradication of poverty in a society. The issue is about the widening gap between the rich and the poor because of our blind adherence to the current debt based and fiat money and fractional reserve banking based banking system.