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.

                                                                                                             

This article is about the myth created by banksters throughout the world. The myth that all governments must support them in their positions, which ultimately is bad for all nations and its peoples. It is because of the banks’ chronic risk aversion disease that all nations suffer from wide youth unemployment. SME’s are the key to every nation in creating employment because they are simply the best creator of jobs. See the statistics below from the IFC:

Country	Percentage of jobs generated by SME’s
Indonesia	99.6%
Egypt	91%
Korea	86.7%
Pakistan	80%
Japan	74%
China	69.7%
Philippines	68%
Malaysia	65%
South Africa	61%
Singapore	50%
Australia /Morocco	48%

SME’s are also very significant contributor to GDP. See the statistics below also from the IFC :

Country	Contribution to GDP by SME’s
South Africa	61%
China	60%
Indonesia / Germany	57%
South Africa	56%
Japan	55.3%
Egypt	54%
Korea / Singapore	50%
Australia / Morocco	48%
Malaysia	47.3%

However banks do not like SME’s because they are too risky for them. Islamic Muamalat's legal maxim of AlGhunm bi AlGhurm or Rewards only with Risk is unheard of to them. Banks would rather lend to large corporates making the rich richer, focus on personal finance so that we become a nation of people with high personal debts, and they prefer to divert deposits overseas through the interbank market and make other countries thrive. The nations’ SME’s starving of funds is not their concern. 

When pushed to do so they extend a little but really more lip service than anything else. Their risk disease is at a too advanced stage. Graduate unemployment suffered by all nations which could easily be settled via a well funded SME sector is not their concern. They say their risk aversion disease must be supported by the government as otherwise the nation’s payment system will collapse. If they lend to SME’s and SME’s are risky, they may fail and when they fail the payment system of nations will collapse.

Let’s call the banksters bluff. Let’s separate the payment system from the credit system. Let’s not allow banks who operate current account and issue chequebooks be the same banks who are allowed to extend credit. And let's see whether we cannot kill the fractional reserve banking evil in the same process. 

Let the payment system banks focus only on the nation’s payment system and earn their income from payment system fees. Let the credit system banks be the banks who extends credit to the companies and see whether any credit failure on their part will collapse the nation’s payment system. 

What will be their excuse now for not supporting SME’s? Perhaps they might even see the light and the wisdom of equity investments compared to credit lending.

So how come banks got the government supporting them in their risk aversion madness? How come the people who we allow to gather the nation’s funds on our behalf are allowed to invest in areas that do good to their bottom line but devastating to the nation? How come they got the governments concern about their profitability when they are not doing things the nations wants them to do? The banksters are ultimately guilty and culpable for all nations graduate and school leavers unemployment. Their aversion from SME’s kills the creation of jobs in SME’s and by extension kills the potential mushrooming of multiplier jobs from booming SME areas. Let’s end the myth, lets nationalise these banksters.

Zahid