Wednesday, October 24

Do big banks need more capital?

See this article from Risk Centre. I quote:

With all due respect to the Nout Wellink and the other members of the BCBS, we do not believe that the implementation of the Basel II proposal or anything that looks remotely like it would have alleviated the ongoing collapse of the market for complex structured assets. When an entire asset class literally dies in a matter of weeks, the risk is infinite. To us, measuring the liquidity or market risk of a Structured Investment Vehicle ("SIV"), with or without the Basel II framework, makes about as much sense as using statistics to predict corporate credit defaults.

Remember too that most of Basel II is based upon the very quantitative models and rating agency methods which caused the subprime crisis, thus offers of assistance from Basel II's creators within the BCBS should be viewed with caution. Basel II merely mimics the business processes of the Sell Side investment houses, systems which are intended first to enable new financial transactions and, as a secondary matter, manage the risk.

Without going into too much detail, I agree with the above sentiments. You see, I have a slightly different perspective on this. Based upon my previous research on extreme events, I am firmly of the belief that the relationships between various factors in these extreme events becomes dramatically non-linear in nature.

So a structure such as Basel II which relies on linear modeling to provide an indication of risk capital is ok for stable, linearly correlated markets but fails miserably when it moves into the fat tails. If you just look at the investment banks, they are taking billions of dollars in losses. My question, if you still are quibbling about it, why did the risk management models not pick up this problem?

Now the fact that the risk management models did not pick up the sub-prime mess leads me to wonder whether it makes sense to provide estimates of capital adequacy based upon these very same risk management models? No Sir.

The answer is that the banks need MORE capital, not less capital. More capital has the downside of implied opportunity cost, less capital has the downside of shaking the entire financial system through systemic risk. If I was a central banker, I would take a hard close look at Basel II.

Now why would you want Iranian Gas?

Indian officials seem to be getting all excited about the Iranian Gas Pipeline all over again. I had seriously thought that they would have given up this silly exercise because of the lack of Indian participation in the trilateral committee meetings between India, Pakistan and Iran but this report seems to say that they are again getting all excited about it.

Here's my previous essay on this topic dating back to January 16, 2004, and nothing has changed since then. The sheer messy geopolitics of Pakistan itself should warn you off on the fact that you do not want your energy supplies in the hands of countries which are basically incapable of managing itself. It is having a full fledged civil war in 2 provinces, terrorist bombings galore and a rabid form of Islamism rampant in there. Furthermore, that country is supporting terrorists within India. Just what kind of stupidity is this?

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Attack Helicopters to fight terrorism?

If you are at the stage that you need attack helicopters to fight terrorism, then you have basically lost the fight against terrorism and are now in a WAR!. Terrorism is a very complex animal, something like genetic testing and mapping. Using attack helicopters on terrorism is like using a sledge hammer inside a gene laboratory. I am not that fussed with the Bell 412 helicopters, they are after all utility helicopters. Used for transport, reconnaissance and other military, para-military and police work.

I am more concerned by the usage of Cobra Helicopters (AH-1F). These are proper gun ship platforms with multi barrel 20 mm cannon, multi rocket launchers and ability to carry and deploy TOW Missiles. I would love to have one of those when I am faced with an armoured column or infantry which has been deployed in APC's, but for crying out loud, what the hell are you doing with a Cobra Attack Gunship in Pakistan?

This is waging war. And the fact that it is being done inside Pakistan means that it is civil war. Now why on earth has this situation been allowed to degenerate to this level that you need helicopter gunships to control terrorists, militants or what have you?

And using American Gunships, the very same gunships being used in Iraq and other places is really going make the Pakistani Taliban feel all cuddly. Just one reason to understand why Al Queda wants President Musharraf killed, he is one with the hated Americans.

But the idea that these helicopters is for counter-terrorism is a dreadful mistake. This is full fledged war going on, my friends, and needs to be considered as such. I do not like this, this is not going to be productive, and this American style of waging war rather than treating terrorism as a crime is going to create far more problems than it resolves.

Tuesday, October 23

Darfur is a quarrel over a camel

Here's the Great Libyan Strategist and Political Thinker Muammar Gaddafi sprouting off on his theory on Darfur.

Libyan leader Muammar Gaddafi has likened the conflict in Sudan's Darfur region to a "quarrel over a camel" that has become an international issue.

Local leaders could have solved the tribal dispute if it were not for the economic interests of international powers in the region, he explained.

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India and Israel: The great seduction

A great article on how Israel and India are linking up in wonderful ways to leverage technology and innovation.

Like all dreamers, Israeli entrepreneur Harel Cohen had an idea to change the world — well, to be precise, India.

“It’s one of the world’s biggest countries, it will be the world’s biggest economy in 40 years,” said Cohen, 37, an amiable, strongly built former Israeli army officer. “But with 22 languages and 10 scripts, India doesn’t have enough Indian-language keyboards.”

An e-mail and a flight to India in 2004 got him into the door of Vijendra Shukla, head of language technology at the government-run Centre for the Development of Advanced Computing in Noida and a pioneer in the development of Indian-language software.

Cohen is now CEO of FTK Technologies, which has a simple but smart way of programming keyboards for different languages: fit a webcam on a laptop to intuitively track the user’s fingers and create a “virtual” keyboard on screen, which mirrors the keystrokes of the real keyboard.

At the click of a mouse, it can switch from Kannada to Urdu or eight other languages. Indian words that took two minutes to type, now take 20 seconds.

It was December 2005 when, like hundreds of entrepreneurs who populate the tech hubs around Tel Aviv, Israel’s throbbing business capital, Cohen flew to New York. Within hours he sold his idea to a private investor. “I don’t think he’s ever been to India,” said Cohen of his investor. “He said, ‘it’s bound to be good, there’s one billion people there.’” It was as easy as that. “There’s a lot of money in Israel for ideas,” Cohen said. “That’s how it goes.”

People like Cohen are packing the flights to India and fuelling a spiralling but largely unknown trade beyond diamonds and secretive defence buys — India is now Israel's biggest arms customer, with $5 billion (Rs 2,000 crore) in purchases, officially, since 2001 - to infotech, security systems, drip irrigation, even television shows.

Annual trade is expected to touch $5 billion, a 46 per cent rise since 2006.

“We've been around for 24 years, but only recently have we become sexy," said Anat Bernstein-Reich (42), deputy chairperson of the Israel-India Chamber of Commerce, over lunch in downtown Tel Aviv.

Bernstein-Reich has an office and an Indian partner, Alfred Arambhan, in Sherly Rajan village in Mumbai’s upmarket western suburb of Bandra. A mother of three, she advises Israelis on conducting and developing business in India and her firm, A&G Partners, has interests that range from investment banking to Bollywood.

Israelis want to profit from India’s great leap forward, Indians seek opportunities in one of the world’s high-tech hubs. Over the last year, Mumbai’s Mansaria group has bought over Israel’s largest tyre manufacturer, Sun Pharma, has bought a stake in Israel’s largest pharma company, Jain

Irrigation from rural Jalgaon in Maharashtra has bought into a drip-irrigation company, a field in which Israel is a world leader.  

In another high-tech hub in the town of Petah Tikva — in the late 19th century the first Jewish immigrants fought malaria and began life here in what was then Palestine — Associate Vice-President Giora Reish said his company, Gilat Satellite Networks, is bidding for one of India's largest telephone expansions, a tender issued this month by state-run BSNL to link 14,000 villages.

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How to write a good business case

This is a great article, basic common sense! Worth quoting in full.

 

Business plan howlers

By Luke Johnson

Published: October 23 2007 17:48 | Last updated: October 23 2007 17:48

I spend a lot of my time studying business plans from entrepreneurs looking for investment. Many are impressive but some are ghastly. Among the worst offences are:

Aggressive confidentiality clauses and an obsession with non-disclosure agreements. I find this sort of pushy legal stuff very off-putting, especially for start-ups. Often you are expected to sign up to very rigid terms without knowing anything about the proposition. In such circumstances, I just turn the deal down flat. If the entrepreneurs distrust me that much they ought to seek backing elsewhere. Would-be restaurateurs are often the worst offenders – would I really bother stealing their idea?

Overly technical documents. Business plans should be written in layman’s terms and avoid all jargon and endless acronyms. They should be readable and accessible, not obscure. Inventors can get too wrapped up in their subject – they forget that there are always thousands of projects seeking money. And promoters often use long-winded gobbledegook to disguise a fundamentally bad idea. If I can’t understand the deal, I don’t get involved.

Lack of focus. Plans that cover too much territory and companies that try to do too much at once don’t appeal to me. Successful concepts are usually simple, and successful entrepreneurs generally concentrate on a finite market and product range.

Preposterous valuations. Things that are far too expensive go straight into the bin. Such plans normally work back from a daft conclusion based on wild future projections or spurious comparisons. Instead, valuations should be based on sensible estimates of what investors would really pay. This means you miss the odd Facebook, but I can live with that.

Biographies. These should be honest and full. They are perhaps the single most important part of the entire proposal. I really want to know the owners and individuals who will make the thing happen. Vague or overly concise CVs make me suspicious. The résumés of the chief executive and finance director are the ones that matter: big name non-executives cannot compensate for weak executive managers who are actually running the business.

The numbers. This is the critical stuff. The funding requirement, the estimated returns, the cash flow projections: these must be attractive and sufficiently ambitious to be worthwhile. No one is going to put huge effort into a project that will never grow beyond one man and his dog. The figures should all be stated up front in an uncomplicated format. Do not bury them at the back of the pack.

The competition. All capable entrepreneurs know their competition well. If they say they have none, they are fooling themselves. A solid business plan has plenty of specifics about their rivals and why their particular proposition has a genuine competitive advantage.

Do not expect a perfect presentation. Every situation is flawed. If an investor is looking for an opportunity with no drawbacks, he will never invest in anything. I quite like deals with a known problem, because it can then be addressed and the price can be adjusted to compensate.

Huge appendices and too many spreadsheets. These might be necessary for loan applications but equity investors tend to decide based on a few important points. All the supportive evidence and background material can be supplied later if the proposal is of real interest. Don’t bury the hooks with padding.

Getting someone else to write it. It shows when advisers rather than principals write a plan. It lacks authenticity. By all means have experts assess your work – but do the first draft yourself.

Make sure it can be e-mailed. Do not rely on the post or present would-be backers with voluminous amounts of paper. Just get their e-mail addresses and send them the core presentation online. Catch their attention early and it may lead to something.

Unbelievable margins, profits and returns. Plans that suggest your company will quickly achieve operating margins of 35 per cent, returns on capital of 100 per cent and so on are not credible. Be realistic and conservative and you are more likely to be taken seriously.

Writing a business plan is an art. It should give a venture the best possible chance of securing finance, and it is worth taking great care over the task.

lukej@riskcapitalpartners.co.uk

The writer is chairman of Channel 4 and runs Risk Capital Partners, a private equity group

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Are female bankers scary?

Is it true that women who claim to be dynamic, ambitious and self-starting often come across as simply intimidating instead?
Yes, according to a recent panel at the 8th Annual Women in Business Conference, held at London Business School last week.

The panel on personal branding was made up of (among others) Melissa Carnathan, managing director at Merrill Lynch, Jane Champ of American Express, and Julie McEver, head of research at New Philanthropy Capital.

Each of the women on the panel claimed that despite attempts to present themselves as (merely) professional, competitive and ambitious, they have instead at some point in their careers been labelled as ‘scary’.

The panel argued that in the typically macho banking world such traits are encouraged in men, yet a dynamic edge is often frowned upon when exhibited by women.

True or false? Can women be forceful but not frightening? How can they get ahead without being tarred with the ‘scary’ brush? Should such qualities be celebrated rather than censured? Your comments please…

In my experience, yes, women MD's can and are frequently scary.

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Researching Terrorism - hmmm

Well, so Mohammed Atif Siddique was convicted of terrorism related crimes. His defence was that he was researching terrorism. Well, I am also researching terrorism, but you wouldn't catch me..

  • He provided training material on bomb-making
  • He provided training material on the use of weapons
  • threatened to become a suicide bomber
  • showed fellow-students videos of beheadings and suicide bombers
  • told friends that Osama Bin Laden was his god
  • may have been planning to take part in a series of al-Qa'eda inspired attacks planned in Canada
  • one of his targets would be central Glasgow
  • Going to be trained in order to achieve status as a suicide bomber
  • large number of files stored in a concealed location on your laptop computer
  • contain terrorist propaganda particularly emanating from al-Qa'eda glorifying terrorism - especially suicide bombing
  • under covert surveillance by the security services for several months
  • items found in his possession indicated he had close links with those who promoted al-Qa'eda.
  • set up a series of websites on his home computer with direct links to the inflammatory fortnightly magazines Muaskar Al-Battar and Sout Al-Jihad
  • Muaskar Al-Battar, which translates as "The Camp of the Sword that Cuts", featured pages of information about survival techniques, guerrilla warfare and light and heavy weaponry, including details of how to use rocket launchers.
  • Sout Al-Jihad - or Voice of Jihad - included extensive details on bomb-making, including how best to set booby-trap devices. It also featured lists of ingredients and materials needed to make explosives.
  • Siddique also had hundreds of other inflammatory documents on his computers, including one featuring tips on how to plan assassination operations and how to obtain training in Afghanistan.

His lawyer says that he is "deeply and profoundly chastened by this whole experience". Well, now he has 8 years to ruminate over his chastisement!

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This time its Jewish Rage Boys

A haredi woman was attacked on a Beit Shemesh bus by five haredi youths Sunday for refusing to move to the back of the bus, police said.

"They started beating me murderously," the soldier said in an interview.
The midday attack on the Egged 497 bus culminated in a clash between several dozen haredi men and police.
During the melee, the suspects fled and the rioters were dispersed by  police,  no injuries  were reported in the incident, but the tires of a police vehicle were punctured.

Last year, a 50-year-old American-Israeli woman making her way to the Western Wall was beaten on a Jerusalem bus for refusing to move to the rear of the bus. The woman, Miriam Shear, was slapped, kicked, punched and pushed by a group of men who demanded that she sit with the other women in the back of the city bus, which was not one of the segregated lines.

Decades of fights for women's equality and we still have these Neanderthals with their penile organs growing out of their craniums. 

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Music and Islam - the argument rages on

Muslim Live 8 was held recently and raised millions for the victims of Darfur. Sami Yusuf was belting out his songs at this concert. You can hear his songs online as well. I suppose its an acquired taste.

I have been masticating a bit on music and Islam generally. But then I remembered something that my sister forwarded to me from this funny clown of a woman, Yvonne Ridley. Here's the article which Yvonne wrote about Sami.

Pop Culture in the Name of Islam
YVONNE RIDLEY
Monday, April 24, 2006

I FEEL very uncomfortable about the pop culture which is growing around some so-called Nasheed artists. Of course I use the term ‘Nasheed artists' very lightly. Islamic ‘boy bands' and Muslim ‘popsters' would probably be more appropriate.

Eminent scholars throughout history have often opined that music is haram, and I don't recall reading anything about the Sahaba whooping it up to the sound of music. Don't get me wrong. I'm all for people letting off steam, but in a dignified manner and one which is appropriate to their surroundings.

The reason I am expressing concern is that just a few days ago at a venue in Central London, sisters went wild in the aisles as some form of pop-mania swept through the concert venue. And I'm not just talking about silly, little girls who don't know any better; I am talking about sisters in their 20's, 30's and 40's, who squealed, shouted, swayed and danced. Even the security guys who looked more like pipe cleaners than bulldozers were left looking dazed and confused as they tried to stop hijabi sisters from standing on their chairs. Of course the stage groupies did not help at all as they waved and encouraged the largely female Muslim crowd to "get up and sing along." (They're called ‘Fluffers' in lap-dancing circles!)

The source of all this adulation was British-born Sami Yusuf, who is so proud of his claret-colored passport that he wants us all to wave the Union Jacks. I'm amazed he didn't encourage his fans to sing "Land of Hope and Glory." Brother Sami asked his audience to cheer if they were proud to be British ,and when they responded loudly, he said he couldn't hear them and asked them to cheer again.

How can anyone be proud to be British? Britain is the third most hated country in the world. The Union Jack is drenched in the blood of our brothers and sisters across Iraq, Afghanistan, and Palestine. Our history is steeped in the blood of colonialism, rooted in slavery, brutality, torture, and oppression. And we haven't had a decent game of soccer since we lifted the World Cup in 1966.

Apparently Sami also said one of the selling points of Brand UK was having Muslims in the Metropolitan Police Force! Astafur'Allah! Dude, these are the same cops who have a shoot-to-kill policy and would have gunned down a Muslim last year if they could tell the difference between a Bangladeshi and a Brazilian. This is the same police force that has raided more than 3000 Muslim homes in Britain since 9/11. What sort of life is there on Planet Sami, I wonder? If he is so proud to be British, why is he living in the great Middle Eastern democracy of Egypt?

Apparently the sort of hysteria Sami helped encourage is also in America, and if it is happening on both sides of the Atlantic, then it must be creeping around the globe and poisoning the masses. Islamic boy bands like 786 and Mecca 2 Medina are also the subject of the sort of female adulation you expect to see on American Pop Idol or the X-Factor. Surely Islamic events should be promoting restrained and more sedate behavior.

Do we blame the out-of-control sisters? Or do we blame the organizers for allowing this sort of excessive behavior which demeans Islam? Or do we blame the artists themselves?

Abu Ali and Abu Abdul Malik, struggling for their Deen, would certainly not try to whip up this sort of hysteria. Neither would the anonymous heroic Nasheed artists who sing for freedom; check out Idhrib Ya Asad Fallujah, and you will know exactly what I mean.

Fallujah is now synonymous with the sort of heroic resistance that elevated the Palestinians of Jenin to the ranks of the resistance written about in the Paris Communeand the Siege of Leningrad. The US military has banned the playing of any Nasheeds about Fallujah because of the power and the passion it evokes.

If those Nasheeds had sisters running in the streets whooping and dancing, however, the Nasheeds may be encouraged because of haram activity surrounding them.

Quite frankly, I really don't know how anyone in the Ummah can really let go and scream and shout with joy at pleasure domes when there is so much brutality and suffering going on in the world today. The rivers of blood flow freely from the veins of our brothers and sisters from across the Muslim world. Screaming and shouting the names of musical heroes drown out the screams coming from the dungeons of Uzbekistan where brothers and sisters are boiled alive in vats of water. How many will jump up and down and wave their arms in the air, shouting wildly for justice for our kin in Kashmir, Afghanistan, Chechnya, Palestine, and Iraq? There are many more killing fields as well across the Asian and Arab world. Will you climb on theater chairs and express your rage over Guantanamo Bay and other gulags where our brothers and sisters are being tortured, raped, sodomized, beaten, and burned? Or will you just switch off this concerned sister and switch on to the likes of Sami Yusuf because he can sell you a pipe dream with his soothing words and melodic voice?

Oh, Muslims, wake up! The Ummah is not bleeding; it is hemorrhaging.
Listen not to what is haram. Listen to the pain of your global family.

This is what he wrote back to her.

Dear Yvonne,

Peace and blessings of God be upon you.

Your recent article on ‘Pop Culture in the Name of Islam’ has been brought to my attention. I commend you for voicing your opinion and raising some very important issues – albeit in a very provocative manner. I thought it would be useful to share some of my thoughts with you on this matter.

As a Muslim artist, I regularly seek clarification and advice from world-renowned scholars on art, music, singing and culture. Be informed that the subject of music is one of the most controversial topics in Islamic Jurisprudence. I respect those who consider music to be haram. Yes eminent scholars of our past have opined such. However, I respect and follow the opinion of other eminent scholars – classical and contemporary, who permit singing and the use of musical instruments. The well-established jurisprudential rule states that ‘in matters where there is ikhtilaf (differences of opinion) there is to be no condemnation of either opinion.’ This is from the beauty of the religion of Islam. The diversity of our cultural, legal and social traditions is something we are in dire need of celebrating not condemning. So let’s agree to disagree on this one.

The obsessive fascination of fans towards any celebrity - be it in arts, music, politics, media, etc - to the point of hysteria and hero-worshipping is definitely unhealthy not to mention un-Islamic. Of course, as Muslims, we are required to abide by certain etiquettes in whatever situation we may find ourselves in. However, I definitely did not see girls dancing or behaving indecently in any of my concerts. To state otherwise is a gross exaggeration if not an outright fallacy. And if indeed that did take place then let’s deal with it in the true Prophetic tradition - a tradition that imparts love, mercy, tolerance and wisdom. Let me share with you the story of the Bedouin who came to the Prophet’s mosque and started urinating in the mosque itself. The Companions rushed to grab him and give him a ‘good beating.’ But the Prophet did not allow them to do so and told them to let him be. After the Bedouin had urinated, the Prophet asked his Companions to bring a bucket of water and wash the place. Afterwards he called the man and with gentleness and affection explained to him that this was a place of worship and that it should be kept clean. Though I have to say that had the Bedouin been around today he would be lucky to get away with just a ‘good beating’!

Indeed the state of contemporary mainstream music is one dominated by celebrity worship, materialism and the constant promotion of a consumerist culture that seeks only to derive instant emotional and physical gratification. The arts industry in general – and the music industry specifically – is being commercialised at the expense of art itself. We don’t value good art or good music anymore – it’s about what can sell most in the market. In the midst of all this, it is upon all conscious and responsible artists who look beyond the commercial to work in refining arts and music. Apart from entertaining audiences, music is a powerful medium to communicate values and social messages. In these times where heinous crimes against humanity are being committed, we as artists – Muslims or non-Muslims, British or non-British – have a duty to use this medium to bring some sanity to this world of unrest, fear, violence, terror and war. Human life and dignity are values that should be cherished and championed by all. Had you listened carefully to the songs in my latest album which is actually entitled ‘My Ummah’ before hastily passing judgements, you would have noticed my modest attempt at addressing issues facing the global Muslim community – such as regaining our lost legacy in all spheres of human life, oppression in different parts of the Muslim world, Aids, landmines, poverty and freedom to wear the hijab.

This leads me to another important issue which you raised – that of identity and culture. Who are we? How do we define ourselves? What do we stand for? Let me remind you again – I am a British Muslim. Proud to be Muslim and proud to be British! Why? Because this is what Islam teaches me to be – loyal towards my faith and my country. Throughout our rich history, wherever Muslims settled they adopted and fused the best aspects of the local culture/society with Islamic teachings and traditions. As Dr. Umar Faruq Abdallah, a leading American Muslim scholar and thinker writes in ‘Islam the Cultural Imperative’:

In history, Islam showed itself to be culturally friendly and, in that regard, has been likened to a crystal clear river. Its waters (Islam) are pure, sweet, and life-giving but—having no color of their own—reflect the bedrock (indigenous culture) over which they flow. In China, Islam looked Chinese; in Mali, it looked African. Sustained cultural relevance to distinct peoples, diverse places, and different times underlay Islam’s long success as a global civilization.

At a time when leading Muslim scholars and thinkers have reached an advanced stage in crystallising theories of citizenship and positive integration into Western societies, any discussion of renouncing parts of our identity is simply ridiculous, dangerous and destructive – especially for someone who has no other homeland. Such emotional fist-pumping and chest-pounding about renouncing our British identity may seem attractive to a minority of Muslim youth, but as Muslims in positions of influence like yourself, we should not play to these base instincts. Rather, we should try to be more far-sighted and responsible in our discourse and not sacrifice this in the pursuit of tabloid-style sensationalist journalism.

Do you not see the Prophet of Islam shedding tears whilst migrating from Makkah – his beloved homeland to Madina despite the persecution he suffered at the hands of its people. Britain is my home. I was raised here as a child, I went to school here, most of my friends – Muslims and non-Muslims - are British and my earliest as well as fondest memories are rooted here. Does being British mean I take pride in the oppressive and exploitative colonial past of Britain? Does it mean I support the British invasion of Afghanistan and Iraq? Does it mean I support the Anti-Terrorism Act? Does it mean I support the erosion of civil liberties and human rights? Of course not! But Yvonne, let us be fair and not forget that it was in Britain that the world witnessed the largest anti-war demonstration – a testimony to the moral consciousness of the British public. I too was in that demonstration voicing my discontent over the foreign policies of our government. Although we have our fair share of racism, Islamophobia, discrimination, under-representation – and in no way am I claiming that we live in a utopian society, but I still believe that British society is amongst the most tolerant, open, liberal, multi-cultural and inclusive societies in the world. We don’t need to go far but Muslims in the Continent would envy the liberties and opportunities that British Muslims take for granted. Actually the real debate that needs to take place is how are we to shape this emerging British / European / Western Muslim identity and what direction it should take. I see my work a humble contribution towards that end.

You are critical of my mention that the Metropolitan Police is inclusive of Muslims. By God, who are you depending on to protect and safeguard our streets? Yes, there is no doubt that the Metropolitan Police have committed a series of grave mistakes and blunders – the recent Forest Gate incident is one such example and the Police must be held fully accountable for their actions. But we as Britons and Muslims have a religious and civic obligation to help maintain a safe and secure Britain. This actually raises serious questions about the participation of British Muslims not just in the Metropolitan Police but in mainstream civil society. We have three options as a community: [1] To assimilate and lose our cultural, ethnic and even religious roots. [2] To ghettoise and divorce ourselves from society and face extermination. [3] To positively integrate and contribute to society whilst remaining loyal to both faith and country. I – like the vast majority Muslims – have chosen option three. We need to build trust and partnerships with civil institutions and engage with them. This path entails that we be active members in our communities and societies; that we participate at all levels of society from politics to sports, from academia to arts, from business to media; that we reserve and exercise the right of dissent and criticism; that we join our fellow citizens in building a safe, peaceful, tolerant and pluralistic society that embodies the values of freedom and justice. Thus I commend you for standing in the last European Elections, General Elections and the recent Council Elections as a candidate in order to get your views heard, to make an impact, and to represent British people – although I hope you have better luck next time. Positive engagement – not anarchist ranting -– is the path we must tread.

It is true that the state of the global Muslim community is saddening but are we meant to live in perpetual grieving and lamenting and dress in black? Despite all the oppression and persecution suffered by the Prophet, he would always find time to celebrate the different joyful moments in life such as marriages, births, Eids and other happy occasions. He, peace and blessings of God be upon him, also found time to enjoy poetry and even had appointed a personal poet – the notable companion Hassan ibn Thabit.

Maintaining balance and adopting the middle way is the key in these troubled times of ours. Extremism and extremists have no place in Islam and in our civil societies. “Perished are the extremists” is a famous Prophetic tradition. Extremism is not a problem unique to Islam. Every religion, every way of life, every ideology has its puritans and those willing to distort and misinterpret it to meet their own agenda. And these are no different to those that commit acts of terror, who preach extremism, and who sow seeds of hatred in the name if Islam. There is no denying that Muslims in places like Palestine, Iraq, Kashmir and Chechnya are facing oppression and tragedy every day, and both the Muslim world and the West need to come together to solve these problems in the greater interest of humanity. Western governments in particular must understand that to help the majority of Muslims defeat the minority of extremists, they must assist us in eradicating the daily humiliation faced by Muslims across many parts of the world. Ending this humiliation is the only way forward for us.

You have every right to criticise and disagree with me or anyone else for that matter, and I always welcome any advice and constructive criticism for I know my defects and shortcomings are many. I am guided by the ancient wisdom which states ‘May God have mercy on the one who shows me my defects – for that is the best gift he could give me.’ However, in the Islamic tradition there are adab (ethics) of criticism and disagreement. I know you wrote your article with sincerity and zeal, but on a more personal level, I was deeply pained and saddened by the hostile tone and the vulgar style of your language that was brimming with sarcasm and was clearly un-Islamic, indecent and a gross violation of the beautiful teachings of our beloved Prophet who said “I was not sent except to perfect your manners.” Using words such as “astagfirullah dude,” “lap-dancing,” ‘whooping and dancing,” and describing the volunteer stewards as “pipe cleaners” and “bulldozers” are inappropriate to say the very least. What shocked and even angered me was the way you shamelessly insulted our pure innocent sisters who were supporting a charity concert by describing them as “fluffers”! (Incidentally, these very sisters managed to raise over £100,000 for orphans all over the world.) I – like the vast majority of those who read your article – was blissfully ignorant about the very existence of this disgusting obscene word, and I would question the wisdom of introducing it to the vocabulary of your readers. As to my performances, I always consciously endeavour to be responsible, respectable, modest and dignified on stage.

It has been my approach that whenever personal criticism is levelled at me I ignore it and get on with my work, as my philosophy in life is to build and not destroy, and to unite not divide. However, on this occasion I felt duty-bound to respond because of the dangerous ideas and notions contained in your article. Yvonne, let us work together as fellow Muslims and Britons in building a better future for our community and all human beings and strive to make our world a safer, more peaceful, tolerant and prosperous place.

Yours faithfully,

Sami Yusuf

Reading the responses tells me that there seems to be still a debate going on. Here are some more comments, and here, and here, and here,  and here, and and and.

Quite a lot of the respondents thought that Music was haram. Curiouser and curioser. If Music is haram, would Islamic Relief, the charity accept the money? Would Sudan allow that money to be used in Sudan?

As for Yvonne Ridley, may God give her long life, she is real fun. See here when she is dragged over coals, she is ok when she is talking to illiterates but when faced with people who are smart, intelligent and knowledgeable, she goes all wonky and stammers and runs away, very funny! :)

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