Federal Reserve Discovers Deviancy

About 16 years ago, Senator Daniel Patrick Moynihan offered a striking view of the degradation of standards in society. He observed that deviancy was measured as increases in crime, broken homes, and mental illness. These reached levels never seen by earlier generations in the U.S. As a means of coping with the onslaught, society often sought to define the problem away. The definition of customary behavior was expanded. Actions once considered deviant from acceptable standards became, almost immaculately, within bounds. In the case of the authority by the Federal Reserve, deviancy has been all but ignored.

After opening up with a classic comparison of standards in society, Kevin Warsh has other observations about the Federal Reserve that would lead one to wonder if central bankers are really lost, but couching this misdirection as a new philosophy of public exploration of purpose and policy. No such luck fellow Americans and globalists.

Warsh asks: “Will deviancy be defined down with the understanding that a rare crisis is the price for dynamic, robust economic growth?” The Federal Reserve is exploring new philosophy of social and monetary control, but is still thinking within the same old box of capitalism and economic growth via Wall Street and bankers instead of the real economy where the mainstream actually live and grow their lives.

Even Warsh recognizes that over the last few decades that America has not lived in a golden age. He says that periodic, cyclical weakness occur. There were lessons to be learned. Did we learn lessons at any point along the way? Now Kevin Warsh is asking bankers and economic pundits what they want in a new ‘touchy-feely’ approach of philosophy to the recent banking crisis. That’s right…this was a banking crisis, not just another recession. If bankers had not become economic and social deviants, the U.S. and the world would not be in this recession.

Still, Warsh is asking his friends and banking associates whether they choose stability or performance. What do you think bankers will say? The Fed is not really talking change, just more of the same boilerplate economic policies, unchanged for decades and augmented with more control measures and power for central bankers. The Fed doesn’t seek to reform anything, but has plenty to say that supports the status quo. The U.S. and the Fed, through the brotherhood of central bankers, has misused a position of trust. Now the Fed is printing vast sums of money (credit) that will ultimately tumble the dollar and create a larger crisis. ~ E. Manning

The Seduction of Convenience

Prepaid Banking Cards Sell in Muslim Banking

For years, the Muslim banking community has resisted the standard trappings of the banking industry. The National Bank of Abu Dhabi, one of the leading banks in the United Arab Emirates, has announced the issuance of its Dubai eGovernment Pre-paid card. Now, the Muslim is being offered an alternative to cash and checking as the New World Order of electronic banking and tracking further tightens the noose on the unsuspecting world: all in the name of convenience. The bankers are focusing on “the non-banked” like low-salaried employees, retirees and students.

The typical publicity line is that the banking card “allows cardholders to better budget finances by limiting spending to the amount of funds that have been loaded to the card, ensuring greater convenience, benefits and security for all United Arab Emirates resident and visitors. Do you smell the control while the bankers and government officials rub their hands in glee? How easy will it be to round up tourists in the event of any uprising or government collection program? The government has absolute control of the money with this new card. Beware of the seduction of convenience.

Islamic Banking Protected from Subprime

Islamic banking, by its nature, is set apart from the traditional banking market. Islam invokes the principles of Sharia, the holy law set forth in the Qur’an. The Qur’an forbids the charging of interest in exchange for a loan or trading debt. Every step of a transaction is carefully reviewed by an Islamic scholar to test for compliance with the tenets of Islam.

Banks that operate under these principles shun collateral debt obligations linked to subprime (high risk) mortgages because the legal instruments do not comply with Muslim law. Rasheed al-Maraj, Bahrain central bank governor stated: “Islamic banks have been largely shielded from the U.S. mortgage crisis, which may even open doors for expansion beyond traditional strongholds in Arab and Asian markets. The lack of problems relating to traditional market and financing may serve to enhance the viability of the Islamic banking market and expansion into the U.S. market as prices for real estate continues to drop.

Events within the traditional banking industry and global finance provide an opportunity for growth in an alternative banking market for Islamic banking customers although there remains the risk of falling real estate values in a declining economic situation that currently exists in the U.S. Islamic banking is working on methods to reduce the risk of loss during declining market periods.

More on Islamic Banking

Islam Banking Debate in Canada

Read about the interesting stand that some Muslims are taking in Canada. Canadian bankers want in on the potential profits.

“Islamic banking is nothing more than an attempt by Islamists, with backing from Middle Eastern financial institutions and their Western partners, to scare Muslim Canadians into believing that they should pay more to the banks and demand less in return, as an act of religiosity.”

Report On Business 1/29/2008

“What we need is a better deal from the banks for all Canadians, rather than dividing us up into religious groups and pacing obstacles in the way of better integration of all Canadians,” Ms. Hassan said. “Religion has no place in the banking or mortgage industry.”

“In Ottawa, meantime, decision-makers are mulling how to handle a banking trend that’s worth hundreds of millions of dollars annually in the Islamic world and may be attractive to Canadian Muslims, known as the fastest growing immigrant population.”