U.S. Interest in Shariah Finance Opens Dangerous Doors, Critics Say

Fox News ^ | 11/13/08

[Sammy67]

Shariah-compliant banking, sometimes called Islamic banking, is growing in popularity in the Western and Islamic worlds. But critics say American interest in the system at a time of economic crisis is opening the door to increased Islamic influence in the American banking system. Worse yet, some fear the banks may be helping to finance international terrorism.

In Shariah-compliant banking, lenders may not charge interest and investors cannot make money from forbidden industries like gambling, alcohol, pork and pornography. Selling debt, devising derivatives and short selling are also prohibited, and investments must be closely tied to actual assets.

In the U.S., the Dow Jones Islamic Index tracks Shariah-compliant companies and funds, and funds have sprung up like the Amana Mutual Funds Trust and the Azzad Asset Management.

American investment funds, like those offered by TD Ameritrade and Charles Schwab, can invest in Shariah-compliant companies, and those companies can offer investments in American companies. Top holdings in the Azzad Ethical Midcap Fund, for example, include Western Digital Corp., Southwest Electric Co. and Apple Computer, Inc.

But allowing Shariah-compliant finance in the U.S. is green-lighting a seditious system that supports jihad, said Frank Gaffney, founder and president of the

[Sammy67]

The invasion continues.

[CatQuilt]

Economic crisis or no economic crisis, this is a stupid idea...

[AmericanVictory]

Drive oil prices down further and keep them there and see how Shariah banking does.

In addition we need to restore the patent system to return new ventures based on better technology to these shores. Our banking badly needs to improve but not toward Sharia banking.

[OneWingedShark]

>Economic crisis or no economic crisis, this is a stupid idea...

I tend to agree. If someone wants to open an index-fund or a mutual-fund that ‘complies’ with the restrictions, that’s their business. (Like ‘socially responsible’ funds; although, if interest is forbidden it makes things seem a bit futile... though I suppose you could look at corporate investments like that of purchasing gold hoping that it’s price will rise.)

HOWEVER, in no means should the US Government involve itself in these things... that would be too close to establishing a law about religion, given that we’re talking about economic-conformity to a religious law.

[proxy_user]

Once Congress hears that pork is not allowed, that will be the end of it.

[Don Stadt]

Erm...

I’m probably going to be shot down if not banned for pointing this out, but what the hey.

The Pilgrim Fathers condemned usury, Catholicism condemned it too, so did Baptist and Methodist teaching. It’s explicitly condemned in the Bible just as it is condemned in the Koran.

There is one reason why Moslems have Shariah mortgages and Christians don’t have Christian mortgages: a Christian mortgage would have to be issued on the basis that the lender doesn’t get rich off the backs of the people he’s lending to.

Which means, that a “proper” Christian mortgage, just like its Shariah counterpart, would be anti-capitalist and therefore anti-American.

So, there’s irony for you.

To put it bluntly, a mortgage that properly complies with Christian doctrine is by definition incompatible with right wing political doctrine.