Toby Birch

Articles:

Islamic Finance for All – Bahrain Conference

November 2008

NOTES:

Philosophy
When commentators talk of the cause they actually discuss the symptoms
Mortgage market is just the mechanism or engine of a bad philosophy, fuelled by debt

Misplaced Mantra: Growth at any price – a philosophy that will cost the earth. Stability
Growth examples – cancer (destroys host) and yeast cells (destroy themselves)
Secular view - control over nature and cyclicality; summer requires winter recuperation
Nature and markets have a habit of reminding us of our insignificance
Exploitation: Sahara desert, dustbowls in America during Great Depression

Not anti-private sector, capitalism – positive elements – requires control of money supply
9/11 Federal Reserve politicized – not politically acceptable to have recession
Mortgage market manipulation ARM 2004– inflationist inside not terrorist on outside
Fractional banking – imbalance & instability – concentration of wealth – self-destructive
One sided business: collateral – always win with interest. Share options – misalignment

Dilution of currency weakens purchasing power = inflation
Ancestors: understood usury & debasement were bad - coin clipping and castration
Debt creation is theft from the next generation – an imposter or cuckoo in the nest
No other example in nature where parents squander resources from the next generation
Correct philosophy required like Founding Fathers – puts the next generation first
Financial footprint – carbon footprint – debt and interest is an economic pollutant

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