Misprision of treason

Uncle Shariah

The insurance giant AIG has lately become the poster child for corporate risk-taking, mismanagement and greed. Its unimaginably large losses, rooted in insurance it extended to financial companies engaged in subprime mortgage-backed transactions, have destroyed both AIG's corporate reputation and balance sheet.

Indeed, but for the fact that Treasury Secretary Henry Paulson - who during his days running Goldman Sachs had extensive ties to AIG - deemed the insurance firm "too large to fail," the company would surely have gone under by now. Instead, Mr. Paulson gave AIG well over $40 billion of the slush-fund Congress intended to bailout the financial sector (part of a total $150 billion the U.S. has sunk in AIG to date). As a result, you and I and our fellow taxpayers have been saddled with ownership of nearly 80 percent of this once high-flying and now-floundering global insurance enterprise.

Another result of AIG's nationalization is, if anything, even more worrisome."

It turns out that AIG has a subsidiary specializing in "takaful" - insurance products that are purportedly "Shariah-compliant." I say purportedly because - while they have been cynically deemed "pure" (halal) by Shariah advisers that AIG employed for the purpose of making such certifications - the Islamic code expressly prohibits business transactions that involve risk. Consequently, insurance products designed to hedge against risk are inherently "impure" or haram.

Whatever the status of AIG's "takaful" products under Islamic law, the U.S. government now has a vested interest in their financial success. Uncle Sam has become Uncle Shariah.

In so doing, Henry Paulson has acted in a manner that not only appears to smack of a conflict of interest and egregious disregard for the public's fiduciary interests. He also seems to have violated the Constitution.

The First Amendment of the Bill of Rights has long been interpreted as prohibiting the establishment of any national religion or conferring upon one religion a preference over others. By taking a massive stake in a company that explicitly promotes Islam's Shariah law, the U.S. government is acting at odds with both of these revered principles.

Fortunately, an important legal initiative has just been launched aimed at blocking Mr. Paulson and the Federal Reserve Board from engaging in this sort of unconstitutional behavior via Shariah-Compliant Finance (SCF) and other commercial transactions. A lawsuit filed Dec. 15 in U.S. district court in Michigan by an Iraq war veteran named Kevin Murray contends that:

"The Shariah-based Islamic religious practices and activities that the government-owned AIG engages in - activities that are funded and financially supported by American taxpayers, including Plaintiff, who is forced to contribute to them - are antithetical to our Nation's values, customs, and traditions with regard to religious liberty, religious tolerance, and the proscriptions of the First Amendment. These government-funded activities not only convey a message of disfavor of and hostility toward Christians, Jews, and those who do not follow or abide by Islamic law based on the Quran or the teachings of the Prophet Mohammed, but they also embody actual commercial practices which are pervasively sectarian and which disfavor Christians, Jews, and other 'infidels,' including Americans."

The litigation seeks relief in ways that would be far-reaching at a time when the U.S. government has bought not only most of AIG but owns some 20 other financial institutions - and seems intent on encouraging their embrace of Shariah-Compliant Finance. (Notably, in November, Mr. Paulson's fellow Goldman Sachs alumnus and point-man for the financial sector bailout, Assistant Treasury Secretary Neel Kashkari, convened an "Islamic Finance 101" seminar where officials in the "policy community" were propagandized by Harvard University professors and other champions of the SCF industry.)

The court is being asked to rule that, among other things, the defendants' "policy and practice of approving, endorsing, promoting, funding, and supporting Shariah-compliant finance" and "the United States government's ownership interest in and use of taxpayer money to financially support AIG and its Takaful Insurance business, which is pervasively sectarian, violate the Establishment Clause."In addition, Murray v. Paulson seeks a permanent injunction against such practices both with respect to AIG and Shariah-Compliant Finance more generally.

Most Americans remain unaware of the menace posed by Shariah, let alone the extent to which it is being insinuated stealthily into our country. Happily, the latter is the subject of an excellent new book by the acclaimed scholar of Islam, Robert Spencer, entitled, "Stealth Jihad: How Radical Islam is Subverting America Without Guns or Bombs."

Murray v. Paulson therefore provides not just an opportunity for an urgently needed constitutional ruling and injunctive relief with respect to the U.S. government's submission to Shariah. This lawsuit brought on Mr. Murray's behalf by one of the nation's preeminent public interest law firms, the Thomas More Law Center, and by the formidable litigator/Shariah expert David Yerushalmi, who also serves as the Center for Security Policy's general counsel, affords the American people a vital teaching moment:

Official promotion of Shariah law is unconstitutional and, given Shariah's inherently seditious nature (it explicitly requires the violent overthrow of all non-Islamic governments in favor of a global theocracy), acquiescence to its insinuation in this country constitutes a felony offense known as "misprision of treason."

We cannot tolerate and must not permit Uncle Sam's morphing into Uncle Shariah. Prompt action by the courts on Murray v. Paulson may spare us that monstrous transformation.

By Frank J. Gaffney, Jr.

http://www.jewishworldreview.com/cols/gaffney121608.php3

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Is Treasury complicit?

If "cash is king," then Middle East coffers are irresistibly enticing. During a recent tour of Saudi Arabia and the Gulf states, Deputy Treasury Secretary Robert Kimmitt applauded the "growing role" of Arab banks in the U.S. economy. Treasury is seeking buyers for its newly acquired bailout assets because more than $1 trillion in cash is urgently needed to rescue the largest U.S. banks.

However, cash from the Arabian Gulf comes with a vital string attached: Islamic banking, erroneously viewed as an ancient practice. In fact, Islamic banking is a newly invented institution: "Neither classical nor medieval Islamic civilization featured banks in the modern sense, let alone 'Islamic' banks," notes Timur Kuran, professor of economics and law at the University of Southern California. According to the Dinar Standard, "assets managed by Islamic banks are in excess of $700 billion - predominantly concentrated in the Middle East." Islamic banking took off in the 1970s, but was first concocted by Muslim Brotherhood founder Hassan al-Banna in the 1920s. The stated goal was to penetrate the Western finance system, corrupting it from within in hopes of creating a parallel system to re-establish a global Islamic empire governed by Islamic law (Shariah). Islamic rules of commerce (fiqh al-muamalat) forbid interest (riba) and investing in a prohibited (hara'am) enterprise. They also mandate tithes on wealth (zakat). However, the Koran fails to precisely define these concepts. Imams and ayatollahs differ, for example, on whether riba prohibits all interest or only usurious interest.

While the overhaul of American and Western banking regulations is urgent, Islamic banking cannot be the answer because Muslim clerics - not U.S. laws and regulators - make the rules. In 1969, the Saudis created the Organization of the Islamic Conference (OIC), which is now leading the charge for global expansion of Islamic banking and has established new regulatory, accounting and auditing organizations to govern such banks. Notably, the OIC's charter is to "liberate Jerusalem and Al-Aqsa [mosque] from Zionist occupation."

Not surprisingly, zakat from Islamic banks often funds terrorist groups like the Muslim Brotherhood's Hamas. That organization's agenda was exposed during the Dallas trial of The Holy Land Foundation, a Hamas front group and an American Muslim charity just convicted of terrorism crimes. Evidence of the charity's true purpose included an 18-page "explanatory memorandum" outlining its "strategic goal … that all their work in America is a kind of grand Jihad (holy war) in eliminating and destroying the Western civilization from within."

Sharia financing forbids loans to entities labeled hara'am, such as industries that use alcohol, and to all Israeli businesses The Arab League Council established the boycott against Israel on December 2, 1945, (more than two years before creation of the Jewish state). The boycott prohibits all Arab states, companies and individuals from any financial or trade relations with Israel. Companies worldwide are blacklisted for doing business with Israel, as are companies doing business with boycotted firms. The OIC high commissioner for the boycott of Israel coordinates the efforts of its 57 member states from the Central Boycott Office in Damascus.

In response, the United States made it illegal for individuals or companies to cooperate with the Arab boycott. The law mandates reporting of boycott requests and imposes civil and criminal penalties against boycott participants. Arab boycott requests have risen sharply in tandem with the U.S. financial crisis and the rapid growth of Islamic banking. The Commerce Department's Bureau of Industry and Security reported a 20 percent increase in Arab boycott requests overall from 2005 to 2006, and the Congressional Research Service reported 24 boycott requests to U.S. companies in fiscal 2007 from little Bahrain alone.

On April 5, 2006, Congress unanimously condemned Saudi Arabia for its continued enforcement of the boycott - which violated commitments the Saudis made to the World Trade Organization in 2005. Nonetheless, last August Saudi Arabia and other Gulf states threatened to boycott Nissan, which aired a commercial on Israeli television promoting a fuel-efficient car, and demanded the Japanese carmaker's apology. Not a word from Washington.

Instead, the Treasury Department, hungry for petrodollars, is holding seminars to promote Islamic banking and U.S. taxpayers are footing the bill. This practice must stop. Islamic banking corrupts our financial system, enables the illegal Arab economic boycott of Israel and entangles government with Islam in violation of the First Amendment's Establishment Clause.

Rachel Ehrenfeld and Samuel A. Abady
The Washington Times
December 11, 2008

Rachel Ehrenfeld is director of the American Center for Democracy.
Samuel A. Abady is a civil rights lawyer.

http://www.washingtontimes.com/news/2008/dec/11/islamic-banking/

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Response from David R.:

This is not something for litigation. This is something for legislation. Somebody in congress or the Senate needs to propose a new banking law that prohibits US banks or financial institutions from engaging in "discriminatory and religiously biased investment plans". You shouldn't be able to do "white-christian, only lending/investment fund", so too FDIC regulated banks and investment agencies shouldn't be allowed to have "sharia friendly" investment/lending portfolios, that prohibit investments in companies that do business with Female owned, Israel, or Alcohol etc., stemming from a particular relgious racist, dogma. Turn their whole "political correctness" dogma around on them.

Posted December 16, 2008 06:18 AM
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