Phares said that Hizb ut-Tahrir, rather than training members to carry out terrorist acts like Al Qaeda, focuses instead on indoctrinating youths between ages of 9 and 18 to absorb the ideology that calls for the formation of an empire — or "khilafah" — that will rule according to Islamic law and condones any means to achieve it, including militant jihad.

Hizb ut-Tahrir often says that its indoctrination "prepares the infantry" that groups like Al Qaeda take into battle, Phares said.

"It's like a middle school that prepares them to be recruited by the high school, which is Al Qaeda," he said. "One would compare them to Hitler youth. ... It's an extremely dangerous organization."

Phares said Hizb ut-Tahrir has strongholds in Western countries, including Britain, France and Spain, and clearly is looking to strengthen its base in the U.S.

"The aim of this conference is to recruit within the Muslim community in America," he said. "The Middle East governments go after them, but in the U.S. they are protected, so having a base here is going to help their cells around the world."

Originally posted by masonwatcher
This thread is a T&C violation because it is from a blog. Not because of the opinions. Of course I think the opinions expressed is close to incitement and patently untrue, nevertheless, that is not the issue. Posting threads based on blogs is a T&C violation. Savvy?

When a pro-terrorist organization announces its intention to launch a financial jihad against the West, it is well worth learning their methods --- especially when they promote a religious pseudo-financial scheme through largely unregulated practices purported to be safer than the conventional. But ultimately, the new assets are constructed with as little, and perhaps considerably less, transparency than the last wave of toxic assets that hit the economy, with catastrophic results.


The Muslim organization Hizb Ut Tahrir capitalizes on Muslim Brotherhood founder Hassan al-Banna's 20th century derivative, encouraging followers to build a parallel financial structure. Al-Banna envisioned the resultant Shari'a-compliant finance as a “back door” into Western financial markets and institutions through which to supplant liberty and prosperity with Islam. Muslim clerics including MB spiritual leader Yusuf al-Qaradawi promote Shari'a finance as generally safer than Western investments, a diversification method to steady personal assets -- and a stable economic system that should replace capitalism. Call it “financial replacement theology,” if you wish.


In July, Hizb Ut Tahrir plans to launch its U.S. arm with a huge Chicago “Khalifah conference” heralding the coming Caliphate and global Islamic supremacism. After 9/11,

Germany and Sweden outlawed Hizb Ut Tahrir.

In July 2005, Pakistan's then-president Pervez Musharaf warned Britain not to tolerate its continued U.K. presence. But in the U.S., Hizb Ut Tahrir has proudly announced intentions to replace capitalism with Islam.

In July, Hizb Ut Tahrir plans to launch its U.S. arm with a huge Chicago “Khalifah conference” heralding the coming Caliphate and global Islamic supremacism. After 9/11, Germany and Sweden outlawed Hizb Ut Tahrir. In July 2005, Pakistan's then-president Pervez Musharaf warned Britain not to tolerate its continued U.K. presence. But in the U.S., Hizb Ut Tahrir has proudly announced intentions to replace capitalism with Islam.

Founded five years into Jordan's illegal occupation of East Jerusalem in 1953, Hizb Ut Tahrir labels itself “peaceful” but strategically objects to violence only for the time being. The group sympathizes with the Muslim Brotherhood, considers Europe's democracies “a farce” -- and deems the U.S., UK, and Israel works of “the devil” -- and seeks to impose Islamic law (Shari'a) worldwide.

Major banks from Citigroup, HSBC, Chase, Bank of America and Lloyds TSB -- probably unaware of the etymology of Islamic finance -- established subsidiaries offering Shari'a-compliant products. Mutual funds at Principal Financial Group, UBS, Amana Funds and SEI Investments, among others, followed suit. Especially late last year as the devastating toll of sub-prime mortgage lending mounted, clients were assured that Islamic banking -- in many respects a dangerous financial fad -- was much safer than other banks and investment houses.

Yet bad economic news has not escaped the supposedly secure Islamic investing sector. Islamic securities can also (like all other asset classes) go into default, moreover. Holders of East Cameron Partners LP's “safe,” asset-backed Islamic bonds (sukuk) now line up before a Louisiana bankruptcy judge with all the other hapless creditors of the Texas-based Easter Cameron Oil and Gas Co. that filed for Chapter 11 reorganization last October.

The East Cameron default was no one-time Islamic finance anomaly, either. In May, Kuwait's Investment Dar Co. -- 50 percent owner of the Aston Martin Lagonda luxury car manufacturer -- defaulted on a $100 million sukuk. And in June Saad Group Islamic bonds traded at a quarter of their “face” value -- that is, the the roughly $650 billion price at which issued by Saudi billionaire Maan al-Sanea's company. The Saad Trading Contracting & Financial Services subsidiary, like East Cameron, went into financial restructuring, aka bankruptcy, after the Saudi Central bank froze the al-Sanea family accounts.

As I've often previously warned, events now show that Shari'a banking may prove more susceptible to market dislocations than other financial sectors.

Islamic bonds employ “some of the most complex” Western structured finance tools ever created. They transform liquid, traceable cash flows from interest-bearing debt into illiquid assets -- that cannot be easily unwound. In the 1980s, bond sponsors transformed trillions of dollars in cash flow claims on illiquid real assets into liquid, traceable mortgage-backed “pass-throughs” and “collateralized debt obligations” (CDOs).

The Muslim Brotherhood quickly re-branded the “special purpose entities” (SPEs) -- that kind that, coincidentally, sank Enron -- as Islamic “special-purpose vehicles (SPVs).” Shari’a banks use these vehicles to “restructure interest-bearing debt, collecting interest [as] rent or [a] price mark-up.” Issuers of sukuk al-ijara -- Shari'a bonds like those now in default -- sell hard assets to SPVs, which sell share certificates to fund their investment and in turn lease the purchased assets back to the sukuk issuers, collecting the principal plus interest that they then pass to sukuk investors as “rent.” But now, sukuk issuers are defaulting on “rent,” implying that SPVs can't sell or return property to issuers when their sukuks mature.