Thursday, September 4, 2014

The World Embraces Shariah-compliant Finance

One of the great anarchic institutions today is SWIFT, the worldwide voluntary convention of Society of Worldwide  Interbank Financial Telecommunications.  It is absolutely critical to the economy, and has exactly zero association with any state.  It's a club.

There is a sort of geography of Islamic finance, with various regimes adhering to various degrees of orthodoxy in Shariah compliance.  Malaysia is probably what might be described as most liberal, but in my view the whole enterprise of Shariah compliant finance is following the path to usury that Christendom trod.

In any event, to the degree that finance is Shariah compliant, and at variance from common banking practices, an addendum of rules must be adopted by SWIFT, and this has been done.  Kevin sent this in...

"Globally, the growing interest in Islamic finance as a viable alternative to conventional finance has heightened awareness of the need to adopt international standards to automate paper-based Islamic finance operations," says Kiyono Hasaka, Standards Specialist, Asia Pacific at SWIFT. "With SWIFT's growing presence in Southeast Asia and the Middle East, we are well positioned to act as an enabler to bring the financial communities together, define market practice and automate Islamic finance processes using international messaging standards."

So, in fact, the worldwide banking community is embracing Shariah-compliant financial practices as an option.

As soon as we can manage to withdraw the armed forces from the middle east, which are causing the USA to become isolated, the rest of us can start trading there, buying what we were not able to steal.

We have elections coming up in which we can vote out of office the isolationists who advocate more war, and we can end the rerun of the "greatest threat ever known" scam run on in before the Iraq invasion.    USA policy needs to catch up with SWIFT.

Feel free to forward this by email to three of your friends.