MERRY CHRISTMAS AND A HAPPY FATWA

A fatwa is an Islamic religious ruling, a scholarly opinion on a matter of Islamic law; it is not necessarily "binding" on the faithful. But it does carry weight.

On Friday night, Sheikh Yahya Safi, while delivering a sermon, warned the faithful that “participating in the festivals of non-Muslims is a kind of cooperation in the disobedience of Allah” and one of the  "falsehoods that a Muslim should avoid ... and therefore, a Muslim is neither allowed to celebrate the Christmas Day nor is he allowed to congratulate them (the infidels) ".

The Sheik is not a semi literate fanatic. He is an Islamic scholar with a higher degree in Sharia Law and the Imam of the largest mosque in Australia. His sermon was tailored to the audience and I see no evidence that anyone got up and left in disgust.  One can deduce therefore, that the congregation did not find his utterings too offensive. There is some evidence, though, that some found the content of the sermon unwise;  and the consequent public airing on Facebook of the fatwa, was deemed to be “irresponsible” by the Grand Mufti of Australia.

One should also point out that the Sheik was not breaking new grounds in his interpretation of the Sharia Laws:  in 2009, In Egypt, Sheikh Yousuf Al-Qaradawi, issued a fatwa forbidding Muslims to participate in Christmas celebrations or mark the holiday in any way. “Such appearances are prohibited by Islam,” he said. “Muslims participating in them are ignorant of Islamic teachings in this regard.” Al-Qaradawi, is head of the European Council for Fatwa and Research, president of the International Union of Muslim Scholars (IUMS), and a spiritual guide for many Islamist organizations, including the Muslim Brotherhood.

The Egyptian Christians saw this as part of the wider problem of Muslim persecution of Christians in Egypt.   The Australian Christians will no doubt draw their own conclusions.

 

The reaction of the Australian Muslim community is just as interesting and telling:

Samier Dandan, the head of the Lebanese Muslim Association, which oversees the mosque, said the fatwa was unsanctioned. He blamed a junior employee for airing the fatwa; he did not condemn the fatwa itself, merely the airing of it.  And he refused to apologise. Nor did he suggest that the Sheik may be happier elsewhere.
''Removing the post was the right thing to do,'' Mr Trad, a spokesman for a section of the Australian Muslim community and a controversial figure in his own right, said.  But was Mr. Trad referring to the removal of the fatwa from the Facebook or withdrawing the fatwa itself?

The fallout from this fatwa will be considerable. It may, perhaps, force our politicians to re-examine our immigration policies; it could become a major obstacle in progressing interfaith relations and understanding; it will add to the antipathy that many Australians feel for Muslims. Finally, it casts a shadow on multiculturalism in Australia.

Before signing off, I leave you with this thought: Sheik Yahya Safi came to this country in 1992. I assume that he became an Australian citizen several years later. If that is the case, instead of the Oath of Allegiance, he would have taken the Australian Citizenship Pledge.  It reads:

From this time forward, under God,
I pledge my loyalty to Australia and its people,
whose democratic beliefs I share,
whose rights and liberties I respect, and
whose laws I will uphold and obey.

I wonder which part of the Pledge did the Sheik had in mind when he was issuing the fatwa?

LIES, DAMN LIES, AND STATISTICS

On the 5 December the Reserve Bank of Australia announced that the interest rate will be reduced by 25 points, to 3%.  It took a few days for the effect to be felt but most major banks indicated, with various degree of bad grace, that some of the benefits will be passed on to the consumers; passing on the full reduction would have amounted to, as the chairman of the Westpac Bank put it  “.banks  ... subsidising the home buyers” (apparently,  the cost of borrowing offshore funds has gone up). It appears that the banks have no obligations to reduce the interest rates by the full amount or any part thereof.  They tend to do so, to be sure, because, well... because.. they are such good corporate citizens.

Even an economic ignoramus such as I am came to the conclusion that lower interest rates are good for the economy, good for the housing industry, and good for those who are paying off a mortgage.  Gail Kelly, Westpac Chief Executive, added to seasonal cheer by signalling that more good news can be expected early in the New Year.

It occurred to me that it would be interesting to look up what is happening in other parts of the world.  But before doing so, I felt a need to define some of the terminology used. So:

Cash Rate:  In Australia the Cash Rate is set by the Reserve Bank of Australia and applies to the interest paid by the banks to the RBA through the overnight money market. In the USA the Cash rate is set by the Federal Reserve Bank. Most countries have an analogous central banking authority to adjust and regulate the prevailing commercial interest rate in the country. Thus, the Cash rate presently in Australia, is 3%, as in Canada.

Prime Rate: The interest rate that commercial banks charge their most credit-worthy customers.

Variable Mortgage Rate:  Is the rate homeowners are charged. The interest rate is not locked in but “floats” depending on the prevailing rate.  The borrower has the option to pay off the loan at any time. The present variable rate in Australia is about 5.5%.

Term Deposit Rate: interest paid on maturity date for a specified amount of money deposited for a agreed period of time. Term Deposits generally carry a fixed rate of interest.

Real Rate of Interest:  Essentially, the variable rate adjusted for inflation.                                              

Bearing the above in mind, I put together a composite table, from various sources, none, I suspect, too reliable, such as the World Bank, others:  

Country	Federal or Reserve bank rate (where available)	Deposit rate	Average Interest rate	Non-performing loans to total gross loans, %	Real Interest Rate, 2011 Adjusted for inflation. )
Australia	3%	4.2% (var) 5%> fixed	5.6%	2.2% *	1.3% (current figure is expected to be slightly higher.)
Canada	1%	0.1%	4.75%	1.1%	-0.2%
China	6%	2.8%
* (Euro. Central Bank)	0.75%	NA	4%	3%	N/A
Japan	0.1%		1.88%		3.7%
UK	0.5%		5.00%		1.4%
USA	0.25%	1%	3.6%	4.7%	3%

Further digging showed that our banks in Australia are paying considerably more interest than banks in other countries which has resulted in a substantial growth of foreign currency deposits, i.e. foreigners keeping their savings or investments in Australia. Although the upside is considerable, the downside, in particular adding strength to the Australian dollar, is problematic.

The default rate, is small in comparison to other developed countries. Nevertheless when the present 2.2%, is compared to the 2007 figure which stood at 0.7%, it is an increase of almost three fold and I would think it is a cause for concern.

Overall we seem to be doing well. Is this because or despite our government?

And of course there is always the nagging problem of lies, damn lies, and statistics.

BIBI'S FOLLY

I am trying hard to remember an armed conflict which ends with no losers, only winners. The last conflict in the Middle East ended with just that: winners all round. Maashal, the leader of the political wing of Hamas, claimed victory, Bibi bowed to international and US pressure not to resort to a land incursion of the West Bank, thus winning a few brownie points and a promise from Hamas that they will stop raining missiles on Israel, US reasserted itself as a major player in the region; Hilary made all the right noises, and Morsi emerged as a statesman demonstrating that he is not entirely shackled by Muslim Brotherhood ideology.  

Actually, there was a loser, albeit a temporary one:  Mahmoud Abbas, the President of the Palestinian Authority, a secular Arab leader who has acknowledged publically and unequivocally, the right of Israel to exist within secure borders. His only precondition to direct negotiation is that Israel stops building new settlements in West Bank.  Since direct talks did not eventuate, he reneged on his promise and went to New York, from which he emerged a clear and unambiguous winner. Bibi responded by announcing that more than 3,000 housing units will be built in the E1 zone, also reneging on his promise to US not to do so.

The UN vote in the status of Palestine is not just a diplomatic defeat for Israel; it is a slap on the face; a well deserved one, some may add.  Just take a look who voted against the resolution: Israel itself, US and Canada, (staunch allies) Panama, the Czech Republic (who did more protecting its Jewish citizens during the war than any other East European country) and several Micronesian states. All the friends of Israel, including Australia who never wavered in its support, could only manage to abstain. Israel is losing friends and allies and the old standby of blaming all anti-Israeli sentiments on anti-Semitism, no longer works. Germany, who has backed Israel both by words and deeds since the formation of the Jewish state, no doubt as partial compensation for the Holocaust, is finding increasingly difficult to do so. Five European countries have summoned the Israeli ambassadors to voice their disquiet; liberal Jews throughout the world are questioning and condemning, some for the first time, recent Israel’s policies.

There is some suggestion that Bibi is acting out  elaborate Machiavellian play to win Israel’s hard right. Once elected he would find a face saving way to back out of a plan that is likely to finally alienate US. However, as Tzipi Livni said: “by then we will have lost [the support of] the entire world and Israel’s closest friends.”