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Partnership between leaders and clerics, therefore, serves as the root of Islamic finance. This concept springs from the essence of the Umma, the body or community of believers, central to the spirit of Islam. For Muslims, the Umma represents a single and unified entity; it breathes, thinks, and prays in unison. It exudes the soul of Islam. Individualism within
Islam does not make sense because Islam, based on tribal culture, does not recognize it. Traditional tribal values, such as the strong sense of belonging, the obligation to help friends in need, and the acceptance of religious leaders’ authority are the pillars of Muslim culture. Sharia scholars transplanted these values into Islamic economics; these same principles allowed Arab Bedouins to withstand the harshness of the desert for centuries. Cooperation was essential in such a hostile environment and is still a must in modern times.
Partnership is the heartbeat of Islamic economics. “Underlying the system is the philosophy of risk sharing: the lender must share the borrower’s risk, making the two in effect partners, injecting a strong social component into the financial system. This concept separates Islamic Finance from Western Finance, which seeks to maximize profits and minimize loss through diversification and risk transfer.” Also, money must be put to work. Because Islamic finance prohibits interest, it seeks revenues from rents, royalties, business profits, or commodity trading; a mortgage, for example, represents a “rent to buy” arrangement. Thus, conceptually, Islamic economics is the opposite of Western finance, which revolves around the individual’s self-interest.
Above all, Islamic finance represents the sole global economic force that conceptually challenges rogue economics. It does not allow investment in pornography, prostitution, narcotics, tobacco, or gambling. As discussed above, since the fall of the Berlin Wall, all these areas have blossomed thanks to globalization outlaws under the indifferent eyes of the market-state.
This:
Above all, Islamic finance represents the sole global economic force that conceptually challenges rogue economics.
How about this:
http://www.informationclearinghouse.info/article20091.htm
We are supporting the Ethiopian Government's occupation of Somalia because George Bush told us to: because Somalia is a front line in George Bush's ill-conceived, counter-productive, utterly discredited, "about to be booted out in the United States" so-called war on terror. We were against the former Government of Somalia because they were an Islamic Government, just as we are against the Government in Sudan because they are an Islamic Government, and just as Ethiopia, on our behalf, opposed the Government in Eritrea because they are an Islamic Government.
Similar to this:
http://www.lewrockwell.com/north/north512.html
WHAT IS THE SOLUTION?
In theory, there are two possible solutions, neither of which has any possibility of being implemented in my lifetime or yours.
One solution is free banking. This was Ludwig von Mises’ suggestion. There would be no bank regulation, no central bank monopolies, no bank licensing, and no legal barriers to entry. Let the most efficient banks win! In other words, the solution is a free market in money.
Another solution is 100% reserve banking. Banks would not be allowed to issue more receipts for gold or silver than they have on deposit. Anything else is fraud. There would be regulation and supervision to make sure deposits matched loans. This was Murray Rothbard’s solution. The question is: Regulation by whom? With what authority?
There would be no government-issued money. There would be no government mint. There would be no legal tender laws. There would be no barriers to entry into coin production.
There would also be no free services. There is no such thing as a free lunch.
Anything other than free banking or 100% reserve banking is a pseudo-gold standard or silver standard. It is just one more invitation to confiscation.