Government savings schemes to be Islamicised

Discussion in 'Diamond Lil's' started by Always_a_Civvy, Apr 23, 2007.

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  1. The Government have announced that they are seeking to make all Government savings vehicles (including Premium Bonds) Sharia friendly. Of course if they are to be fully compliant this means discriminating against those of other faiths and none who have no such caveats (bearing in mind that investments bearing interest are technically abominable acts in the Bible too). It seems special rights for the religious are to trump those of the rest of the population yet again.

    One potentially serious consequence of any such system, for example were it to apply to pensions, could see pensions savings undermined through their reliance on Gilts which, as secure Government investment vehicles, were they Sharia compliant, could be expected to give lower returns.

    For once I side with conservative opinion in opposing this as a matter of principle. Religion is a choice as is practicing a religious lifestyle. Whilst people should not be discriminated against on account of their beliefs, they should not be allowed to impose their beliefs on others who hold different opinions and share different values. This change would impose Islamic economic values on those too poor to invest in commercial saving vehicles, thereby discriminating against the non-Muslim majority. Muslims can simply choose to save in ordinary investment vehicles which are the norm in non-Islamic countries.

    http://www.timesonline.co.uk/tol/news/politics/article1690413.ece
     
  2. From my understand this is a form of Islamic banking, which requires banks to have 100% (or close to it) reserves(i.e. has actual money in the bank to lend out).

    Unlike fractional reserve banking(which only has a fraction of reserves, about 10%, which means for each £1 you save the bank can lend out £10 and charge interest. ) which is essentially creating money out of nothing.

    Actually doing something like this (Islamic banking) should lower inflation, which is actually caused by the creation of money from nothing by banks (partly).
     
  3. Ah, then we could experience the joys of zero inflation; like the Japanese did. No! count me out, as they say.

    If the Muslims don't like the way we do things, they know where Heathrow and Dover are.
     

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