Tuesday, November 21, 2006

An Islamic bond would be a golden opportunity for the US

Marc Chandler wrote at FT.com The US Treasury should consider issuing a dollar-denominated Islamic bond or sukuk - an act that would signal respect for Islamic law

You must be insane. Why on earth should the US Treasury "show respect for Islamic law". Muslims in the US should show respect for US law.
and people and implicitly acknowledge the limitations of military and political strategies. A sukuk issued as a way to fund US assistance in rebuilding Lebanon, for example, might be the way to start.
Considering that Hezbollah is trying to overturn the current Lebanon government, and Syria is killing Christian legislators, I think we need to hold off any aid to Lebanon, until we find out who is going to get the money.
The US has traditionally been a leader in financial innovation, one of its critical comparative advantages. Financial instruments compliant with Muslim law, or sharia, are a relatively new and growing market,
As I understand Sharia law, they cannot charge interest, which means financial instruments that cannot charge interest may be new, but I can't imagine it is a growing market.
the significance of which others such as the UK and Japan already sense.

No comments: