posted by Christopher W. Holton

Bloomberg, one of the biggest financial news conglomerates in the world, has published a story about a report out of Australia by Melbourne’s Deakin Business School, which essentially calls for all investors to consider Shariah Compliant Financial products as safe havens during times of crisis.

This is a tired old, fraudulent meme that was discredited shortly after the last serious global financial crisis in 2008-2009. The article linked below reads more like an advertorial than a news article.

Investors, unfortunately, have short memories and will not remember Dana Gas and the crisis that almost caused a collapse of markets in the UAE and involved defaults by a major issuer of Shariah-Compliant Bonds (sukuk).

The Bloomberg article contains some gross distortions:

The study defined shariah-compliant indexes as excluding firms involved in non-Islamic finance, gambling, tobacco and entertainment, as well as those with debt-to-market value ratios above 33 percent.

This is no definition of Shariah-Compliance, which is based on the principles of Shariah itself, a barbaric theo-political-military-legal-social doctrine designed apply power over subjugated people of all faiths.

The Dow Jones Islamic Index didn’t offer much shelter back in the crisis year of 2008, when it tumbled 39 percent, against the 44 percent slump in the MSCI AC World Index.

Note that this statistic appears to contradict the conclusions of the report described in the Bloomberg article, which is exactly what came out of research conducted in 2009-2010 when financial jihadists first started touting Shariah-Compliant Finance as a safe haven.

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