[GJM] Islamic Banking, and Finance on You Tube!!

[Rodney Shakespeare]

Dear Robert,
1.    There is much misunderstanding about "Islamic Banking".  Such banking is generally part of conventional finance the only difference being that the contracts between banks and customers appear to avoid the payment of riba/interest but in practice do not.  Riba/interest appears to be avoided because the contracts make use of particular legal devices e.g. a double sale, or a mark-up.  As a result "Islamic Banking" is now more profitable than conventional banking and it is expanding into a field of millions of people who previously did not make use of banking services (believing them corrupted by riba).

At the Harvard conference a year or so ago it became very clear that conventional banking believes that there is now no essential difference between itself and "Islamic Banking" -- it is a matter of brand name presentation.  For example, they both use fractional reserve banking (which creates money) out of nothing; they both add interest (although one uses particular legal devices to avoid the appearance of interest); and they are both essentially unconcerned about the development and spreading of productive (and the associated consuming) capacity thereby getting the Say's Theorem balance and forwarding social and economic justice.

Those things said, there are undoubtedly many people in the Islamic Banking industry who feel trapped by the fact that they are part of conventional banking and would like to find a new way forward.  The problem for them -- is how?  They have to keep their jobs etc.

Rodney Wilson is Professor at Durham.  It is fair to say that he is very knowledgeable about "Islamic Banking".

2.    Very different. of course, is the Islamic Economics/Finance developing at Trisakti University.  It proposes a gradual move to 100% reserve banking (thereby curtailing the ability of the banking system to create money out of nothing and add riba/interest) and, at the same time, opens up a supply of interest-free loans, administered by the banking system, for the development and spreading of productive capacity.  Such economics'finance would never result in the sort of financial collapse we may be seeing starting at this moment.  The article on binary economics on Wikipedia gives you the essence of what is proposed.  Alternatively, go to www.binaryeconomics.net.


Rodney Shakespeare






----- Original Message ----- 
From: "robert searle" <dharao4 at yahoo.co.uk>
To: <discussion at globaljusticemovement.net>
Sent: Saturday, August 11, 2007 5:52 PM
Subject: [GJM] Islamic Banking, and Finance on You Tube!!


> 
> Dear All,
> 
>       There appears to be some interesting stuff on
> Islamic Finance on You Tube. There is even another
> Rodney...in this case a Rodney Wilson who appears in
> one of the You Tube entries though I did not see all
> of his video...
> 
> R.Searle
> 
> --- YouTube Service <service at youtube.com> wrote:
> 
>> Searle8 wants to share a video with you:
>> http://www.youtube.com/watch?v=tVhnWBilJYM
>> 
>> Video Description
>> 
>> http://islamicfinanceandbanking.blogspot.com
>> 
>> Need for Islamic standards?
>> 
>> Islamic banking is flourishing around the world, but
>> currently there are no international standards, with
>> each institution having its own advisory board.
>> Hussain Al Qemzi, CEO, Sharjah Islamic Bank looks at
>> the future, and whether standardisation is needed.
>> 
>> Personal Message
>> 
>> This is awesome!
>> 
>> To accept my friend request, click here:
>>
> http://www.youtube.com/signup_login?u=dXxouEwAvMs&ci=C60759C03279362B
>> 
>> To respond to Searle8, click on the following link:
>> http://www.youtube.com/outbox?to_user=Searle8
>> 
>> Thanks,
>> Searle8
>> 
> 
> 
> 
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