The UK economy is drowning in debt; the American economy is drowning in debt; the world is drowning in debt. The big question is, if everybody is in debt, who is in credit? The simple answer is the banks. The world banking system is one enormous Ponzi scheme
. Now, all that could be changing if Islamic banking comes to the City of London.
Last December, Ahmad Fuzi Abdul Razak of the World Islamic Economic Forum Foundation
spoke to the BBC
in general terms about its merits. More recently, David Cameron announced
the launch of a sharia
-compliant £200 million bond issue at a meeting in London of the same organisation.
Alas, there are those who complain that the rhetoric of Islamic banking is not matched by the reality. British Moslem David Pidcock
has long complained that in the "Islamic" Republic of Pakistan there is no such thing as Islamic banking, that its financial system
is no more halal
than a pork chop!
Sadly, he may be right. Islamic banking is nothing new to the UK; the Islamic Bank of Britain
claims to be fully sharia
-compliant, its market share is minuscule, and until the entire system is thrown out of the window, it will be struggling against the tide.
Nevertheless, this recent announcement is to be welcomed. The leading text on Islamic banking is Banking Without Interest
(Revised Edition) by Muhammad Nejatullah Siddiqi. A short appraisal of it by a Western academic can be found here