Bank of England announces new support for UK Islamic banks

[Incal]

It's good from a consequential point of view: the sooner the UK goes to hell, the sooner it can be reset.

[Graham]

See it more as a positive as they are moral and stable compared to many banks.

[Laly]

See it more as a positive as they are moral and stable compared to many banks.

It’s rather nonsense to praise the so-called “ethics” of Islamic finances. And if Islamic banks resisted better to the 2008 crisis, it’s because they accumulate huge money supplies that are not invested because of the lack of projects in adequacy with their Islamic principles, preventing from developing a country.

The Turkish economist Timur Kuran published the very interesting and complete book [i]Islam and Mammon: The Economic Predicaments of Islamism[/] at Princeton University Press on the topic. He explains well it’s just scam, smoke and mirrors as well as hypocrisy.

In this bold and timely critique, Timur Kuran argues that the doctrine of Islamic economics is simplistic, incoherent, and largely irrelevant to present economic challenges. Observing that few Muslims take it seriously, he also finds that its practical applications have had no discernible effects on efficiency, growth, or poverty reduction. Why, then, has Islamic economics enjoyed any appeal at all? Kuran’s answer is that the real purpose of Islamic economics has not been economic improvement but cultivation of a distinct Islamic identity to resist cultural globalization.

These findings raise the question of whether there exist links between Islam and economic performance. Exploring these links in relation to the long-unsettled question of why the Islamic world became underdeveloped, Kuran identifies several pertinent social mechanisms, some beneficial to economic development, others harmful. https://press.princeton.edu/books/pa...lam-and-mammon

He, like others (including Muslims, as I showed in the OP), undermines the main arguments for Islamic finances, which are:

- The end of interest on money -> He says, concerning Islamic finance, on p. xvi, that “nowhere has interest been purged from economic transactions”. The payments of interests are just disguised under the names of ijara, mudaraba, Murabaha, or musharaka.

- More economic justice and equality – He says, p. 26, that it’s completely false and "does not necessarily transfer resources to the poor; it may transfer resources away from them." He says it doesn’t help the poor but serves as "a convenient pretext for advancing broad Islamic objectives and for lining the pockets of religious officials."

- More ethics -> He says, on p. 7, it’s false, since "the renewed emphasis on economic morality has had no appreciable effect on economic behavior.", as "certain elements of the Islamic economic agenda conflict with human nature." (p. 34).

[Dick]

It’s rather nonsense to praise the so-called “ethics” of Islamic finances. And if Islamic banks resisted better to the 2008 crisis, it’s because they accumulate huge money supplies that are not invested because of the lack of projects in adequacy with their Islamic principles, preventing from developing a country.

The Turkish economist Timur Kuran published the very interesting and complete book [i]Islam and Mammon: The Economic Predicaments of Islamism[/] at Princeton University Press on the topic. He explains well it’s just scam, smoke and mirrors as well as hypocrisy.





He, like others (including Muslims, as I showed in the OP), undermines the main arguments for Islamic finances, which are:

- The end of interest on money -> He says, concerning Islamic finance, on p. xvi, that “nowhere has interest been purged from economic transactions”. The payments of interests are just disguised under the names of ijara, mudaraba, Murabaha, or musharaka.

- More economic justice and equality – He says, p. 26, that it’s completely false and "does not necessarily transfer resources to the poor; it may transfer resources away from them." He says it doesn’t help the poor but serves as "a convenient pretext for advancing broad Islamic objectives and for lining the pockets of religious officials."

- More ethics -> He says, on p. 7, it’s false, since "the renewed emphasis on economic morality has had no appreciable effect on economic behavior.", as "certain elements of the Islamic economic agenda conflict with human nature." (p. 34).

The 2008 crisis is the reason why we’re in this mess today and the central banks are all at fault. The stock market crash back in the spring was manipulated to see if everything will fall apart and it didn’t. A few US senators sold their stocks after the coronavirus briefing back in February plus the majority of printed stimulus fiat was to bail out the banks. Of course the crash was blamed on the black swan event. I wouldn’t be surprised if they crash the market again early next year as well. It could be even worse which is why I always tell people to follow economics instead of politics to get a broader picture of geo-political events.

[Laly]

The 2008 crisis is the reason why we’re in this mess today and the central banks are all at fault. The stock market crash back in the spring was manipulated to see if everything will fall apart and it didn’t. A few US senators sold their stocks after the coronavirus briefing back in February plus the majority of printed stimulus fiat was to bail out the banks. Of course the crash was blamed on the black swan event. I wouldn’t be surprised if they crash the market again early next year as well. It could be even worse which is why I always tell people to follow economics instead of politics to get a broader picture of geo-political events.

It’s not because our traditional system is dysfunctional that we have to give ourselves over to something vile like the simulacrum constituted by Islamic finances.