Posts Tagged ‘money’

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Note to readers

September 21, 2013

WordPress, which hosts this blog, appears to have begun running small adds at the bottom of our posts.  Money Jihad does not know who these advertisers are, does not necessarily endorse their products or services, and receives zero share of advertising profits.

This blog has always existed without advertisements, sponsors, or donations; it is a labor of love.  Thanks to hundreds of thousands of readers, 300 subscribers, and 3,500 Twitter followers for joining in the fight to expose terrorist financing.

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Government shares wealth with MILF

July 18, 2013

The central government of the Philippines has brokered a deal with the radical Moro Islamic Liberation Front to split revenues generated in the breakaway southern island of Mindanao.  The MILF (or “Bangsamoro”) will receive 75 percent of tax revenues, 75 percent of mining revenues, and 50 percent of fossil fuel revenues, with the central government retaining the balance.  The “crown jewel” of the agreement is that the MILF will receive their whopping cut through an automatic, annual, haggle-free grant from the central government.

It remains to be seen which taxes, such as zakat, jizya, or kharaj, the MILF may seek to impose on Mindanao residents.  The agreement is reminiscent of a truce between the government of Pakistan and militants in the tribal belt that resulted in the imposition of jizya against Sikhs in that country in 2009.

From the Philippine Star on Tuesday:

MANILA, Philippines – A wealth-sharing deal with the Moro Islamic Liberation Front (MILF) is advantageous to the country and “will stand the test of legality and constitutionality,” the chief of the government panel negotiating peace with Muslim rebels said yesterday.

In a press briefing at Malacañang, chief negotiator Miriam Coronel-Ferrer said a wealth-sharing scheme approved on Saturday was justified as it would make the envisioned Bangsamoro entity self-sustaining and progressive.

The Bangsamoro is also entitled to automatic appropriation from the central government.

Based on the agreement, the Bangsamoro entity gets 75 percent share in taxes and revenues from natural resources and metallic minerals and 50 percent from energy and other mineral resources.

Ferrer said that of all the provisions in the wealth-sharing annex, “the jewel in the crown” was the provision entitling Bangsamoro to automatic appropriation and regular release of budget.

The allocation will be in the form of an annual “block grant” from the central government similar to the internal revenue allotment (IRA) received by local government units.

“The formula for the automatic appropriation of block grant will be provided in the basic law. Many of us have not focused on this detail because much of the reporting on media have concentrated on the sharing arrangements with regard to natural resources but, as I said, this is the jewel in the crown,” Ferrer said.

At the same time, Ferrer said the agreement provided that revenues collected by the Bangsamoro from additional taxes and their share in government income from natural resources would be deducted from the annual block grants on the fourth year of the operation of the regular Bangsamoro government.

“This provision came from the MILF. It indicated that behind the haggling for more share is the intent to be less and less dependent on the national government,” Ferrer said.

“It indicated that the intention is not to get the ‘lion’s share’ for its own sake but to be able, in the future, to stand tall as a progressive and peaceful region; an equal partner of the central government in an equally peaceful and progressive country,” she said.

“This, indeed, is the true meaning of partnership – a partnership that is not based on dependency and patronage, but on the strength and capacities introduced by both for the benefit of the whole,” she added.

Ferrer said this was a unique provision because there would be automatic appropriation that would spare the region from the constraints of central budgeting process.

“I would like to say that this is a structural difference. This is not just an add-on in terms of additional percentage or whatever but this, basically, redefines the whole structure with regard to the financing of the Bangsamoro government,” Ferrer said…

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Wednesday word: digital cash

March 13, 2013

Before there was bitcoin, there's the larger concept of digital cash

Julian Gaspar defines digital cash as “an electronic payment system that represents currency in an electronic format that moves outside the normal network of money”.*

Because it operates outside the conventional currency system, digital cash may allow for greater freedom in transactions.  Critics point out that transactions in such systems are anonymous, difficult to trace, and can be used for criminal activity.

* Gaspar, Julian, Introduction to Business (Boston:  Houghton Mifflin Company, 2006).

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Bin Laden family on top 10 Arab rich list

December 27, 2012

Osama Bin Laden’s family places #7 among the fifty wealthiest businessmen and families of the Arab world for 2012 according to Arabian Business.  The Bin Ladens continue to be awarded lucrative public contracts by the government of Saudi Arabia—our “ally” in the global war against terror.

Unlike the Saudi oilmen who made their wealth directly from petrodollars, the Bin Ladens have always benefited from Saudi Arabia’s second largest business—the hajj—and the construction and logistical support the massive annual pilgrimage requires.  (Of course, the money for the public contracts wouldn’t be there without the kingdom’s oil wealth.)

Arabian Business explains the family’s rising fortunes:

As Saudi government spending keeps rising, so do the fortunes of the Gulf’s most prominent family construction empire. Last year, the Binladin Group won deals to construct Prince Alwaleed’s Kingdom Tower and the expansion of the King Abdulaziz International Airport in Jeddah. Between then the contracts are worth over $20bn. Adding to those deals was a bumper contract to help build the first phase of the Haramain railway link.

The family fortune is based on a construction business that paid immense dividends when decades ago it was awarded contracts for major renovations at Mecca and other religious buildings in Saudi Arabia and abroad. Founded by Mohammed Binladin, the family also built several palaces in Riyadh and Jeddah for the royal family and carried out restoration work following an arson attack on Jerusalem’s Al Aqsa Mosque in 1969. Salem, Mohammed’s eldest son, ran the empire left behind by his father upon his death in 1968 until he died when his private plane crashed in Texas in 1988.

Mohammed left 54 sons and daughters from several marriages…

And we’ll always remember the most famous of his sons, for whose victims this wealthy family should be paying restitution.

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Government funds go to halal slaughterhouse

December 10, 2012

The state government of Victoria has given a halal abattoir a half million dollars to put more sheep to death under the knife of the Muslim slaughter man.  Along with the funding, an export license granted to the abattoir to ship halal meat to the Middle East has helped double the number of sheep it exports, according to ABC.  Surely, Australian taxpayers will be delighted to learn that their money is being given away to subsidize halal butchery:

Abattoir upgrades for halal sheep processing

By Lucy Barbour

Tuesday, 20/11/2012

A Victorian abattoir has received half a million dollars in funding from the State Government to expand its facilities at Stawell, in the state’s west.

The Frewstal abattoir will use the money to build a freezer room in the hope of increasing halal sheep meat exports to the Middle East.

General manager Greg Nicholls says most abattoirs are now using halal slaughter methods for both export and domestic product.

“You’ve got to be halal to be able to get rid of all your offal, and even though not all our meat goes to the Middle East, a lot of the offal does,” he said.

“To be able to find a market for those products, you’ve got to go down that track.”

What’s worse, as an accompanying radio report from ABC points out, is that about 80 percent of the meat sold domestically in Australia is halal, unbeknownst to consumers.  Without labeling or other disclosure requirements on the halal industry, Christians are unwittingly eating meat killed under recitation of a Muslim prayer, and animal rights advocates unknowingly eat the meat of animal killed in a brutal procedure.

Take a listen:

The halal food industry is a lot like the sharia finance sector and the Islamic charitable sector.  These sectors are used as vehicles to deepen the Islamization of Western cultures, and the profits are siphoned off for mysterious causes.

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Turkish brides wear cash sewn on veils

April 26, 2012

Can anybody explain this photograph recently taken by Daniele Pellegrini?

Muslim woman turned into financial sex object

The caption reads, “A bride wears bank notes on her veil as part of an Islamic wedding in central Turkey,” but I suspect a creative reader could come up with a better caption than that.

A separate website offers some background that sheds some light on Turkish weddings:

…Weddings in Turkey are a lavish affair with celebrations that may last for several days before and after the actual marriage ceremony. The traditional gifts for the bride and groom are money and gold. There are no European or American style wedding lists. Prior to the wedding, the respective families buy furniture and household goods for the young couple. Guests do not give the newlyweds towels, toasters or pots. Instead, they shower the bride, literally, with banknotes and coins. Every jeweler in Turkey sells coins for the occasion. Red is the color of good luck and fortune; therefore, the gold coins, which serve as wedding gifts, come with a tiny red silk bow and a pin attached. On the evening of the marriage ceremony, bride and groom make their formal entrance…

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Paper money “utterly haram”

September 18, 2011

Islamic “philosopher” Imran N. Hosein isn’t done talking about the evil of Western paper money.  During a live audio linkup from Trinidad to South Africa during Ramadan last year, Hosein lectured a Capetown mosque on the wickedness of “bogus and fraudulent and utterly haram paper currencies.”

Hosein argues that Western nations are “playing God” by creating money.  In order to protect the ummah (Muslim community) from this “storm” of infidel currency and shirk (Arabic for idolatry), Allah has metaphorically put the ummah to sleep in a cave.  Hosein concludes that, one day, the ummah will awake to a world that uses only gold dinars and silver dirhams.

Here’s a four-minute excerpt about the money.  Take a listen:

The full, bloated 72-minute lecture (covering everything from Muslim dress codes, last year’s floods in Pakistan, and the sinking of some island in Dubai) is here for those with enough patience to listen to this bizarre yet colorful Islamist nutjob.

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Rare Muslim opposes gold…for wrong reason

February 3, 2011

I began reading this article with great excitement, and thought, “Finally, a Muslim economist is talking sense instead of frothing at the mouth about the ‘evils’ of paper currencies.”  It seemed so good at first that I figured a fatwa would be issued against him within the next 24 hours.

Until I read his real reason for opposing a return to the gold standard:  “He said gold supply was dominated by non-Islamic countries.”

There you have it.  It’s not about what’s best for the global economy, for stabilizing prices, or what the best medium of exchange truly is.  It all boils down to what gives Islam the upper hand.  Thanks, Professor.  From the Malaysian National News Agency, Bernama.com on Jan. 17:

KUALA LUMPUR—Islamic countries should continue to use paper currency instead of gold dinar as history has shown that the return to the coinage system could increase interest rates and inflation would be difficult to control.

Professor of Comparative Economic History at International Centre for Education in Islamic Finance (INCEIF), Dr Murat Cizakca, said money should serve as a medium of exchange, not as a commodity.

“We need to continue with paper currency, and the central banks controlling paper currency should have full autonomy,” he said.

Cizakca said this at a public lecture entitled, “Islamic Gold Dinar:  Myths and Reality” organized by the Association of Chartered Islamic Finance Professionals and INCEIF here Monday.

He said gold supply was dominated by non-Islamic countries.

“The gold dinar will be exposed to speculation as the gold price also have its ups and downs.

“Thus, Islamic countries should continue to use paper currency and increase trade between each other, and eventually in the future agree to a common paper currency,” he said…

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Counterfeiting in India at crisis levels

November 9, 2010

Counterfeiting by Islamist groups has become widespread in South Asia.  It’s only kaffir paper currency.  Might as well steal, copy, and decimate it.  (See here, here, and here for semi-related coverage.)

Puneet Madaan sends in the latest on the counterfeiting saga from a Rediff article entitled “Fake money worth Rs 120,000,000,000,000 in India” on Oct. 26:

Even as the government of India speaks of taking preventive measures to curb the menace of fake currency, statistics show there is nearly Rs 12,00,000 crore worth of fake currency still in circulation in India.

While India managed to seal the fake currency’s Pakistan and Nepal route into India to a large extent, Inter Services Intelligence-sponsored operatives have furthered their activities by shifting base to Thailand.

These elements have been pumping in fake currency into the Indian market with help of operatives of the Dawood gang who have a strong base in Thailand.

The key player in this racket today is Aftab Bhakti, a D Gang operative who reports directly to Major Ali and Arshad Khan, both top ranking ISI officers.

Bhakti grew in stature, as he had been operating out of Thailand for nearly a decade. During his earlier stint, he coordinated with the mafia in Thailand on behalf of the D-gang. They were primarily into smuggling of drugs.

The D gang’s network is very deep-rooted in Thailand and there was already an existing route between this country and Bangladesh through which drugs were being smuggled.

Moreover, as this particular route was not on the radar of the Indian agencies, the ISI thought it would be best to use this route to transport fake currency as well.

Earlier, all notes were being printed in Pakistan and then transported into India through Nepal. However, the scenario changed post the November 26 attacks on Mumbai, which prompted the ISI to rethink its strategy.

In the current scenario, the notes are being printed in Thailand and then local operatives pump it in to India via Bangladesh.

Intelligence Bureau officials told rediff.com that they have shared information to this effect with the Central Bureau of Investigation, which is looking into this case in India…

Puneet also forwarded an email he received from India along with the article.  The correspondent wrote:

Read the rest of this entry ?

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Terror-linked Saudi bank launches major remittance program to Pakistan

April 13, 2010

Somewhere in Pakistan, a Taliban cleric is waiting on his pay day from his Saudi masters.  And a new program just might help him out.

The mysterious (putting it politely) Al Rajhi Bank (and its “Tahweel Al-Rajhi Remittance Centers”) has gotten together with Pakistan’s largest bank to make transferring funds from Saudi Arabia to Pakistan easier.

The bankers assure us that this has been examined by FATF.  They even say it will help prevent illegally transferred funds.  But although bank transfers may theoretically be better than hawala, does the world really need more than the six billion more Saudi riyals that are already being transferred from Arabia to Pakistan annually?  From Khaleej Times on Apr. 10:

JEDDAH — Tahweel Al Rajhi of Saudi Arabia and Habib Bank Ltd have introduced a new remittance product called ‘HBL Fast Cash’ in Riyadh on Tuesday.

The free-of-charge Fast Cash, which ensures instant transfer of funds to the beneficiaries in Pakistan, requires no bank account for either the remitter or the beneficiary.

Hazem Elhagrasey, head of Tahweel Al Rajhi, who announced the launch, said, “The new service will assure that the beneficiaries will receive payments in cash within minutes in Pakistan.”

Zahid Raza Khan, counsellor at the Pakistan Embassy, and Tariq Matin Khan, HBL’s general manager for financial institutions and international banking, were present during the announcement. Elhagrasey said up to 500,000 Pakistan rupees could be sent from Saudi Arabia to any HBL branch in Pakistan through the programme. “The beneficiary will receive an SMS alert for collection at no additional cost,” he added. Matin Khan said the HBL, with over 1,450 branches, is the largest bank in Pakistan with a domestic market share of over 40 per cent.

“The remitters can benefit from the huge HBL network to send money to any nook or corner of Pakistan. Fast Cash is offered to customers free of charge as part of the State Bank of Pakistan’s programme to reward customers who send money via banking channels,” he added.

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Hawala still rampant 8 years after 9/11

November 26, 2009

At an anti-terrorism conference in India this week, one year after the jihadist attacks on Mumbai, the police chief for Jammu and Kashmir said that not enough is being done to stem the tide against hawala.  For readers who may be a little confused by hawala, this old diagram from the Washington Post illustrates the basics:

Unfortunately for our security in the world today, many hawala transactions are not so benign as WP’s cabbie scenario.  Here’s the real lowdown from The Hindu on the hawala today:

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