The Muslim Community in Chile

March 4, 2010 by · 3 Comments 

By  Salma Elhamalawy, The Society of Muslim Union of Chile

omar-ali-saifuddin-mosque the-new-abu-dhabi-mosque
Views of Al Salam mosque in Santiago, Chile  

The origins of Islam in Chile are not very clear. It is known that in 1854 two “Turks” resided in the country, a situation that was repeated in the censuses of 1865 and 1875. Their country of origin is not known, just that they were natives of some territory of the immense Ottoman Empire.

According to the 1885 census, the number of “Turks” had risen to 29, but there is no precise information on their origin and their faith, since religion was not included in that census. However, the census of 1895 registered the presence of 76 “Turks”, 58 of them Muslims. They lived mainly in the north of Chile in Tarapacá, Atacama, Valparaiso, and Santiago.

In the census of 1907, the Muslims had risen to 1,498 people, all of them foreigners. They were 1,183 men and 315 women, representing only 0.04 percent of the population. This is the highest percentage of Muslims in Chile’s history.

In 1920 a new census showed that the number of Muslims had decreased to 402, with 343 men and 59 women. The greatest numbers were in Santiago and Antofagasta, with 76 in each province.

In Santiago, the first Islamic institution of Chile, the Society of Muslim Union of Chile, was founded on 25 September 1926. Later, on 16 October 1927, the Society of Mutual Aids and Islamic Charity was established.

With the 1952 census, the number of Muslims had risen again to 956. The majority lived in Santiago, with others in the provinces of Antofagasta, Coquimbo, Valparaíso, O’Higgins, Concepción, Malleco, Cautín and Valdivia, without much organization among them.

Their numbers decreased again, so that by 1960 there were only 522, with the majority of 209 living in Santiago. A decade later, the number of Muslims had increased to 1,431. However, the census did not indicate whether they were men or women, nationals or foreigners. Nevertheless, they were spread throughout the country.

Through the 1970s and ‘80s, there were no religious leaders or centers for praying. Muslims who maintained the faith met in the residence of Taufik Rumie’ Dalu, a trader of Syrian origin.

In 1990 the construction of the Al-Salam Mosque began, the first of the country. In 1995 another mosque was inaugurated in Temuco, and 1998 a new one in Iquique. Sources of the Islamic community indicate that at the moment, in Chile, there are 3,000 Muslims. Many of those are Chileans who, as a result of their conversion, have even changed their names. In spite of the small number of believers, they are not a homogenous community. The majority are Sunnis, and the rest are Shiites. Sufi groups have also arisen, but their members are mainly of non-Arab origin.

“I’ll never forget that day,” says the imam of Al-Salam Mosque, Sami Elmushtawi. “The day of the mosque’s inauguration was a day where the dreams of the Muslim community became true.” The Egyptian imam says further, “For us this was a unique opportunity, because not every day we are visited by kings, nor mosques are inaugurated either.” Apart from the fact that the King of Malaysia inaugurated the mosque on 1 October 1995, the mosque is considered one of the three best ones of Latin America, after those of Venezuela and Brazil.

The mosque, built to welcome 500 people, consists of three floors. The first has reading rooms, multipurpose hall, baths and cafeteria. The second contains the prayer hall, and the third has the office of the imam and rooms for guests.

“There are some people who come to pray during the day, but due to work the majority come to the mosque in the evening,” indicated Sami Elmushtawi.

However, Santiago is not the only place where Muslims can practice their faith. The Islamic Chilean Corporation of Temuco, founded in October 2001 in the city of Temuco, has the mission of spreading the Islamic culture and traditions. In addition, today it tries to open more channels to spread the moral values of Islam, overcoming the prejudices after 11 September 2001.

Muslim women pray at the mosque and in their houses. Chileans converted to Islam describe how they live as Muslims in a country which is dominantly Catholic, and how they are perceived. The attack of 11 September generated insults and practical jokes against them.

Karima Alberto, a 35-year-old housewife married to a Syrian merchant, has two children. She met her husband in his store. “He was the reason I converted to Islam, he told me marvelous things about Islam so I began to go to the mosque and learned more about Islam. It was like self-discovery,” she says.

Karima says that some people started treating them differently because of the 11 September attack. Although she is yearning to go to Makkah, she has already met her husband’s relatives in Damascus. “It was not difficult to stop eating pork or drink alcohol. It’s God’s will, and it’s stated in the Qur’an. Although some people think it’s a big sacrifice, I don’t look at it that way at all. Islam has given me a new vision.”

Carla Olivari, an 18-year-old student in a mixed school, says, “Now I do not feel pressured to drink alcohol at parties or to lose my virginity.”

At the age of 16, she used to pass by the mosque until one day she decided to enter. She left the mosque as a Muslim. “I feel that Allah chose me.” Her parents, who are Catholic, did not oppose, but her brother did. “When he sees me praying in my room, he calls me a lunatic.” However, she not only fasts during Ramadan, but on other days as well. “Above all, I pray for the victims in Palestine and Iraq.”

Carla wants to marry a Muslim. “My husband has to be a Muslim. I want my children to grow up in a Muslim family that teaches them important family values. Then I will get veiled permanently, not like now, when I only use it in the mosque.”

Habiba Abdullah, 40 years old, is a doctor at Roberto Del Río Hospital. She emphasizes that she carries the surname of her father, “Because Islam permits us to conserve our surname and not to be Mrs. Somebody.”

A member of a family of six brothers, she has a single son who is 18 years old. All her family is Muslim. “I was born a Muslim, and I’m proud of it. I remember my father taking us every weekend to the mosque. We would learn the Qur’an, and we would study Arabic. Although it was difficult when I first wore my veil at work, but little by little people started accepting me. Now people are not very surprised to see me with veil.”

Still, these women are a minority in Chile. “There are always people coming to the mosque out of curiosity,” states Imam Sami Elmushtawi. “Nevertheless, it is very satisfactory when I see their faces after leaving the mosque, or when they return again. Some people come to learn Arabic, and some come to learn more about Islam. But definitely it gives me greater joy that the Muslim community is increasing in Chile.”

Salma Elhamalawy contacted at: salma_elhamalawy@yahoo.com.

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Community News (V12-I1)

December 31, 2009 by · Leave a Comment 

Salman Khan, Math tutor to the world

Salman-Khan The name Salman Khan evokes the images of a Bollywood personality. But there is another 33 year old with the same name who is changing the way people learn math and along the way changing lives of people for the better.

Salman Khan, a Mountain View resident, has posted 800 plus tutorial videos on his website the Khan Academy which interactively teach math at all levels. These videos are viewed 35, 000 times a day.

Salman Khan, who holds engineering and science degrees from MIT and an MBA from Harvard Business School, says it all started in 2004 when he was tutoring his cousin Nadia, who was having having trouble with her math, through the telephone and Yahoo Doodle as a shared notepad. She ended up getting ahead in her class and also started tutoring her brothers.

Nephews and family friends soon followed. But scheduling conflicts and repeated lectures prompted him to post instructional videos on YouTube that his proliferating pupils could watch when they had the time.

Realizing the immense potential of his method and the possibilities of the internet Khan formed the Khan Academy, a non profit organization. The nonprofit generated thousands in advertising revenue this year through YouTube and could become self-sustainable as a one-person operation within a year. Khan is in talks with several foundations for capital that could enable him to expand the organization’s reach.

For his services Khan was awarded the 2009 Tech Award for Education. The Tech Awards website praises the Khan Academy as follows:

Millions of students around the world lack access to high quality instruction, especially in the sciences and math. The Khan Academy provides it for free in a way that can be accessed on-demand at a student’s own pace.

The videos are directly teaching tens of thousands of students on every continent on a daily basis. Other non-profit groups have even begun distributing off-line versions of the library to rural and underserved areas in Asia, Latin America, and Africa.

Lilburn sued for denying mosque permission

LILBURN, GA–The Dar-e-Abbas, a local Muslim congregation, is suing the the Lilburn city council for discrimination in denying the required zoning to build a mosque. The council had denied the zoning request citing traffic and other issues. The Muslim group says that the council caved into pressure from residents.
Doug Dillard, an attorney for the Muslim group told the WABE Radio, ‘There’s seven churches within a two mile radius of this facility. Within half of mile there’s a Baptist church. They have 110,000 square feet on 11 acres. We were asking for 28, 000 square feet on 8 acres, so it was clearly discriminatory and their decision had no basis.’

The congregation filed the lawsuit under the Religious Land Use and Institutionalized Persons Act, which prohibits local governments from restricting land access to religious groups.

Madison mosque decision in Jan.

JACKSON, MI–The Madison County zoning board would decide in January whether to allow the Mississippi Muslim Association to build a mosque on US 51. The Board of Supervisors is scheduled to meet on Jan 4.

The association owns five acres just north of the Madison city limits and proposes to build the Magnolia Islamic Center, a worship center to serve the 100-plus local families who now attend a mosque in south Jackson. The association has met resistance from nearby landowners and residents, who say the project is not the best use for the property.

The association earlier this month received conditional approval from the county’s planning commission for the site plan detailing the landscaping and building design.

The plans for the Islamic center call for a 10,000-square-foot, two-story building made of red brick with a standing seam metal roof. The first floor will contain the prayer hall, multi-purpose room, office, restrooms and kitchen. The second floor will contain a prayer hall, classrooms, restrooms and office. The building is based on a capacity of 650.

Toronto’s Muslim convention sends message of unity

TORONTO, Dec. 29, 2009–Speakers at a three day  Islamic convention held in Toronto on the weekend (Dec. 25-27) urged Muslims to live up to their responsibility to save the world. The Reviving the Islamic Spirit Convention, in its eighth year, was attended by more than 15,000 people from across Canada and some from the US and elsewhere. The convention is unique as it is completely organized and managed by the youth.

The convention theme, SOS: Saving the Ship of Humanity,  hosted more than a dozen hi profile speakers from the USA, Canada, and the Middle East. Shaykh Abdullah bin Bayyah, the former minister of justice of Mauritania and a member of the Islamic Fiqh Council, said that Muslim youth must not forget the spiritual legacy of their predecessors bust must reconnect with that tradition.

Dr. Yusuf Islam, formerly Cat Stevens, was another main speaker at the event and spoke on the universal message of Islam.

The convention saw a steady stream of people converting to Islam.

Dr. Tarek Al Suwaidan (a leading scholar and public speaker from Kuwait) spoke on Islam and the modern world. He said Muslims should look up to the character of Ali (RA)  as a role model for their own lives. He also spoke at length about Islam and science and criticised those who try to force in strange assertions in such an exercise. He stated that scientific facts can never contradict Islam but scientific theories can. He said the distinction should always be kept in mind.

Shaykh Hamza Yusuf urged the assembled gathering to live up their responsibilities and fight for a sustainable and peaceful world. He said Muslims should shun bickering over minor issues and instead unite. He also said that Muslims should avoid indulging in takfeer of fellow Muslims.

Shaykh Habib Ali Al Jifri, Dr. Tareq Ramadan, Dr. Abdul Hakeem Murad, Dr. Sherman Jackson, Imam Zaid Shakir, and a host of other scholars spoke at the convention. 

Prominent Canadian politicians including Derek Lee and Liberal Finance critic John McCallum also spoke at the convention and appreciated the efforts of Canada’s Muslim youth to build an inclusive society.

The convention’s entertainment session featured live performances by Maher Zain, Irfan Makki, Junaid Jamshed, Bennami and Grammy award winning  Outlandish. The Allah Made Me Funny comedy troupe also performed.

As part of its social outreach the convention raised more than 1000 winter coats and close to 10,000 meals for the needy in the Greater Toronto Area.

The convention featured a large bazaar selling books, clothing, and other Islamic items. Prominently missing from this year’s convention were the packaged Halal food product companies. An interest free MasterCard from the UM Financial group was launched at the event.

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Swiss Vote Betrays Enlightenment Ideals

December 3, 2009 by · 1 Comment 

By Juan Cole

swiss miss This campaign poster was banned for being racist, but apparently the goal of the poster, now that is all right.

Swissinfo surveys the headlines in Switzerland Monday morning and finds that the press there universally condemned and expressed dismay at Sunday’s vote. Editors expressed consternation at the inevitable tarnishing of Switzerland’s image and worried about the consequences. Will there be boycotts? Sanctions? Appeals to the European Court of Human Rights?

I can anticipate right now arguments to excuse this outbreak of bigotry in the Alps that will be advanced by our own fringe Right, of Neoconservatives and those who think, without daring saying it, that “white culture” is superior to all other world civilizations and deserves to dominate or wipe the others out.

The first is that it is only natural that white, Christian Europeans should be afraid of being swamped by people adhering to an alien, non-European religion.

Switzerland is said to be 5 percent Muslim, and of course this proportion is a recent phenomenon there and so unsettling to some. But Islam is not new to Europe. Parts of what is now Spain were Muslim for 700 years, and much of the eastern stretches of what is now the European Union were ruled by Muslims for centuries and had significant Muslim populations. Cordoba and Sarajevo are not in Asia or Latin America. They are in Europe. And they are cities formed in the bosom of Muslim civilization.

The European city of Cordoba in the medieval period has been described thusly:

‘ For centuries, Cordoba used to be the jewel of Europe, which dazzled visitors from the North. Visitors marveled at what seemed to them an extraordinary general prosperity; one could travel for ten miles by the light of street lamps, and along an uninterrupted series of buildings. The city is said to have had then 200,000 houses, 600 mosques, and 900 public baths. Over the quiet Guadalquivir Arab engineers threw a great stone bridge of seventeen arches, each fifty spans in width. One of the earliest undertakings of Abd al-Rahman I was an aqueduct that brought to Cordova an abundance of fresh water for homes, gardens, fountains, and baths.’

So if the Swiss think that Islam is alien to Europe, then they are thinking of a rather small Europe, not the Europe that now actually exists. Minarets dotted Cordoba. The Arnaudia mosque in Banja Luca dates back to the 1400s; it was destroyed along with dozens of others by fanatics in the civil war that accompanied the break-up of Yugoslavia in the 1990s.

As for the likely comeback,that Muslims came to Europe from the 700s of the Common Era as conquerors, unlike Christianity, actually both were conquering state religions. It was the conversion of an emperor that gave a favored position to Christianity in Europe, which was a small minority on the continent at the time. And Charlemagne forcibly imposed Christianity on the German tribes up to the Elbe. In the cases both of European Christianity and European Islam, there were many willing converts among the ordinary folk, who thrilled to itinerant preachers or beautiful chanting.

Others will allege that Muslims do not grant freedom of religion to Christians in their midst. First of all, this allegation is not true if we look at the full range of the countries where the 1.5 billion Muslims live. Among the nearly 60 Muslim-majority states in the world, only one, Saudi Arabia, forbids the building of churches. Does Switzerland really want to be like Saudi Arabia?

Here is a Western Christian description of the situation of Christians in Syria:

‘In Syria, as in all other Arab countries of the Middle East except Saudi Arabia, freedom of religion is guaranteed in law . . . We should like to point out too that in Syria and in several other countries of the region, Christian churches benefit from free water and electricity supplies, are exempt from several types of tax and can seek building permission for new churches (in Syria, land for these buildings are granted by the State) or repair existing ones.

It should be noted too that there are Christian members of Parliament and of government in Syria and other countries, sometimes in a fixed number (as in Lebanon and Jordan.)

Finally, we note that a new personal statute was promulgated on 18 June 2006 for the various Christian Churches found in Syria, which purposely and verbatim repeats most of the rules of the Code of Canons of the Eastern Churches promulgated by Pope John Paul II.

That is, in Muslim-majority Syria, the government actually grants land to Christians for the building of churches, along with free water and electricity. Christians have their own personal status legal code, straight from the Vatican. (It is because Christians have their own law in the Middle East, backed by the state, that Muslims in the West are puzzled as to why they cannot practice their personal status code.) Christians have freedom of religion, though there are sensitivities about attempts to convert others (as there are everywhere in the Middle East, including Israel). And Christians are represented in the legislature. With Switzerland’s 5 percent Muslim population, how many Muslim members of parliament does it have?

It will also be alleged that in Egypt some clergymen gave fatwas or legal opinions that building churches is a sin, and it will be argued that Christians have been attacked by Muslims in Upper Egypt.

These arguments are fallacies. You cannot compare the behavior of some Muslim fanatics in rural Egypt to the laws and ideals of the Swiss Republic. We have to look at Egyptian law and policy.

The Grand Sheikh of al-Azhar Seminary, the foremost center of Sunni Muslim learning, ‘added in statements carried by Egyptian newspaper Youm al-Saba’a that Muslims can make voluntary contributions to build churches, pointing out that the church is a house for “worshipping and tolerance.” ‘ He condemned the fundamentalist Muslims for saying church-building is sinful. And Egypt has lots of churches, including new Presbyterian ones, following John Calvin who I believe lived in . . . Geneva. Aout 6 percent of the population is Christian.

The other problem with excusing Switzerland with reference to Muslims’ own imperfect adherence to human rights ideals is that two wrongs don’t make a right. The bigotted Right doesn’t even have the moral insight of kindergartners if that is the sort of argument they advance. The International Declaration of Human Rights was crafted with the participation of Pakistan, a Muslim country; the global contemporary rights regime is imperfectly adhered to by all countries– it is a claim on the world’s behavior, something we must all strive for. If the Swiss stepped back from it, they stepped back in absolute terms. It doesn’t help us get to global human rights to say that is o.k. because others are also failing to live up to the Declaration.

The other Wahhabi state besides Saudi Arabia, Qatar, has allowed churches. But they are not allowed to have steeples or bells. This policy is a mirror image to that of the Swiss.

So Switzerland, after centuries of striving for civilization and enlightenment, has just about reached the same level of tolerance as that exhibited by a small Gulf Wahhabi country, the people of which were mostly Bedouins only a hundred years ago.

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Ladies’ Qur`an Class By Fatimah Murad

September 17, 2009 by · Leave a Comment 

P1040696 A delighted chatter permeates the room, occasionally an effusive call of “Assalamu-alaikum,” or “Alhamdulillah,” rises above the general murmur as two sisters greet each other for the first time. The setting is the Qiyam-ul-Layl program, organized by the Islamic Circle of North America (ICNA) sisters-wing’s Chicago-land unit.

The majority of the participants are the regular attendees of a Quran Tafseer Class, also organized by the ICNA sisters. The class takes place in the morning after fajr prayer in a conference call room, throughout the year it takes place every Saturday and focuses on select Surahs but during Ramadan it becomes a daily occurrence so as to complete the reading of the entire Quran, in English translation, within the blessed month. This is the third year that it is taking place and, where it started as a local meeting involving sisters from the Chicago metropolitan area, it has now grown to include sisters from various states including Michigan, Florida, Maryland, and North Carolina and even from as far as Bahrain. There is diversity not only of location but also of background, there are revert Muslimahs and born Muslimahs who hail from various different nations. Many are of African American or South Asian background but there are also sisters from the Caribbean, Latin America, Africa, and the Philippines.  

Every morning, the sisters take turns reading a few of the ayahs punctuated by brief explanations and insights into the Surahs by Huma Murad and Amina Jaffer-Mohsin, the two moderators. Roll is called every class by the ever reliable Amidah Burton, to acknowledge the nearly forty participants. Through sharing their love for the Quran and Allah, the attendees have come to know and love each other as well. One sister, Afsheen Khan summed up the shared sentiments of many participant in commenting that though she had physically attended similar classes before “…this was special because of meeting so many sisters and [feeling such] spirituality.” Sister Shahina Begg who has been a regular attendee for all three years continued in a similar vein when she commented that she felt blessed in being introduced to the class because it “brought me closer to Islam and my sisters,” she added that though she initially only met her fellow participant on phone she felt compelled to “keep in touch throughout my life and inshallah stay spiritually connected.”

It was in hopes of fostering this bond, and to reap the most benefits from the blessed odd nights of the last third of Ramadan, that the Qiyam-ul-Layl event was organized. The class participants are given a chance to meet face to face, some sisters travelling from out-of-town to take advantage of the opportunity, and share a night of spirituality and sisterhood. As sister Jameela Karim explained, “The Qiyam-ul-Layl is the glue of the class, and having the program helps us put it all together. Seeing the people you hear every morning, you are fully connected.” Many sisters said they felt it created something akin to family ties.

The program allowed the sisters to share food and each other’s company, but also to join together for congregational prayers of Taraweeh and Tahajjud, and group discussions on spirituality and remembrance of God. Revert sisters, who constituted a majority among the nearly fifty attendees, shared stories of their early struggles with their families in the way of Islam, while their companions reminded the group that the greatest struggle took place within and that we all had our own hurdles to overcome. One of the greatest examples of triumph that the sisters witnessed at the Qiyam-ul-Layl was in meeting sisters Habiba Castulo and Hina Altaf, both legally blind from birth, who regularly attend the class and diligently read the Qur’an in Braille.

Jamila Yusuf commented to great agreement how she was “inspired by Habiba and Hina’s dedication to the Quran.” It was one of many instances where the sisters felt their faith had been strengthened by their fellow Muslimahs.

Though initiated as a rather humble project in hopes of sharing the knowledge of God’s word, the Quran Tafseer Class has grown into something unique and transcendent. It is difficult for any of the participants to explain exactly why this class, among so many similar ones, feels special. Moderator Huma Murad has a theory that it is due to its timing, the Prophet (s) spoke many times on the blessings of reading Quran after fajr. The greatest factor in its success, however, is the dedication and enthusiasm of its members. Newcomer Vonzella Matin called being introduced to it the “best gift I could have been given,” by sister Amidah, but she and her fellow participants have, with the help of Allah, given this gift to each other many times over.

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“Blood Libel”?

September 3, 2009 by · Leave a Comment 

Israeli Organ Harvesting

By Allison Weir

89060-main_Full Last week Sweden’s largest daily newspaper published an article containing shocking material: testimony and circumstantial evidence indicating that Israelis may have been harvesting internal organs from Palestinian prisoners without consent for many years.

Worse yet, some of the information reported in the article suggests that in some instances Palestinians may have been captured with this macabre purpose in mind.

In the article, “Our sons plundered for their organs,” veteran journalist Donald Bostrom writes that Palestinians “harbor strong suspicions against Israel for seizing young men and having them serve as the country’s organ reserve – a very serious accusation, with enough question marks to motivate the International Court of Justice (ICJ) to start an investigation about possible war crimes.”

An army of Israeli officials and apologists immediately went into high gear, calling both Bostrom and the newspaper’s editors “anti-Semitic.” The Israeli foreign minister was reportedly “aghast” and termed it “a demonizing piece of blood libel.” An Israeli official called it “hate porn.”

Commentary magazine wrote that the story was “merely the tip of the iceberg in terms of European funded and promoted anti-Israel hate.” Numerous people likened the ar ticle to the medieval “blood libel,” (widely refuted stories that Jews killed people to use their blood in religious rituals). Even some pro-Palestinian writers joined in the criticism, expressing skepticism.

The fact is, however, that substantiated evidence of public and private organ trafficking and theft, and allegations of worse, have been widely reported for many years. Given such context, the Swedish charges become far more plausible than might otherwise be the case and suggest that an investigation could well turn up significant information.

Below are a few examples of previous reports on this topic.

Israel’s first heart transplant

Israel’s very first, historic heart transplant used a heart removed from a living patient without consent or consulting his family.

In December 1968 a man named Avraham Sadegat (the New York Times seems to give his name as A Savgat) (2) died two days after a stroke, even though his family had been told he was “doing well.”

After initially refusing to release his body, the Israeli hospital where he was being treated finally turned the man’s body over to his family. They discovered that his upper body was wrapped in bandages; an odd situation, they felt, for someone who had suffered a stroke.

When they removed the bandages, they discovered that the chest cavity was stuffed with bandages, and the heart was missing.

During this time, the headline-making Israeli heart transplant had occurred. After their initial shock, the man’s wife and brother began to put the two events together and demanded answers.

The hospital at first denied that Sadegat’s heart had been used in the headline-making transplant, but the family raised a media storm and eventually applied to three cabinet ministers. Finally, weeks later and after the family had signed a document promising not to sue, the hospital admitted that Sadagat’s heart had been used.

The hospital explained that it had abided by Israeli law, which allowed organs to be harvested without the family’s consent. (3) (The United Nations Convention against Transnational Organized Crime includes the extraction of organs in its definition of human exploitation.)

Indications that the removal of Sadagat’s heart was the actual cause of death went unaddressed.

Director of forensic medicine on missing organs

A 1990 article in the Washington Report on Middle East Affairs entitled “Autopsies and Executions” by Mary Barrett reports on the grotesque killings of young Palestinians. It includes an interview with Dr. Hatem Abu Ghazalch, the former chief health official for the West Bank under Jordanian administration and director of forensic medicine and autopsies.

Barrett asks him about “the widespread anxiety over organ thefts which has gripped Gaza and the West Bank since the intifada began in December of 1987.”
He responded:

“There are indications that for one reason or another, organs, especially eyes and kidneys, were removed from the bodies during the first year or year and a half. There were just too many reports by credible people for there to be nothing happening. If someone is shot in the head and comes home in a plastic bag without internal organs, what will people assume?” (4)

Mysterious Scottish death

In 1998 a Scot named Alisdair Sinclair died under questionable circumstances while in Israeli custody at Ben Gurion airport.

His family was informed of the death and, according to a report in J Weekly, “…told they had three weeks to come up with about $4,900 to fly Sinclair’s corpse home. [Alisdair’s brother] says the Israelis seemed to be pushing a different option: burying Sinclair in a Christian cemetery in Israel, at a cost of about $1,300.”

The J report states:

“A heart said to be Sinclair’s was subsequently repatriated to Britain, free of charge. James wanted the [Israeli] Forensic Institute to pay for a DNA test to confirm that this heart was indeed their brother’s, but the Institute’s director, Professor Jehuda Hiss refused, citing the prohibitive cost, estimated by some sources at $1,500.”

Despite repeated requests from the British Embassy for the Israeli pathologist’s and police reports, Israeli officials refused to release either. (5,6,7)

Israeli government officials raise questions

Palestinian journalist Khalid Amayreh reports in an article in CCUN:

“In January, 2002, an Israeli cabinet minister tacitly admitted that organs taken from the bodies of Palestinian victims might have been used for transplants in Jewish patients without the knowledge of the Palestinian victims’ families.

“The minister, Nessim Dahan, said in response to a question by an Arab Knesset member that he couldn’t deny or confirm that organs of Palestinian youths and children killed by the Israeli army were taken out for transplants or scientific research.

“`I couldn’t say for sure that something like that didn’t happen.’”

Amayreh writes that the Knesset member who posed the question said that he “had received `credible evidence proving that Israeli doctors at the forensic institute of Abu Kabir extracted such vital organs as the heart, kidneys, and liver from the bodies of Palestinian youth and children killed by the Israeli army in Gaza and the West Bank.” (8)

Israel’s chief pathologist removed from post for stealing body parts

For a number of years there were allegations that Israel’s leading pathologist was stealing body parts. In 2001 the Israeli national news service reported:

“… the parents of soldier Ze’ev Buzgallo who was killed in a Golan Heights military training accident, are filing a petition with the High Court of Justice calling for the immediate suspension of Dr. Yehuda Hiss and that criminal charges be filed against him. Hiss serves as the director of the Abu Kabir Forensic Institute….According to the parents, the body of their son was used for medical experimentation without their consent, experiments authorized by Hiss. (9)

In 2002 the service reported:

“The revelation of illegally stored body parts in the Abu Kabir Forensic Institute has prompted MK Anat Maor, chairman of the Knesset Science Committee, to demand the immediate suspension of the director, Prof. Yehuda Hiss.”

Alisdair Sinclair’s death had first alerted authorities to Hiss’s malfeasance in 1998, though nothing was done for years. The Forward reported:

“In 2001, an Israeli Health Ministry investigation found that Hiss had been involved for years in taking body parts, such as legs, ovaries and testicles, without family permission during autopsies, and selling them to medical schools for use in research and training. He was appointed chief pathologist in 1988. Hiss was never charged with any crime, but in 2004 he was forced to step down from running the state morgue, following years of complaints.” (10)

Harvesting kidneys from impoverished communities

According to the Economist, a kidney racket flourished in South Africa between 2001 and 2003. “Donors were recruited in Brazil, Israel and Romania with offers of $5,000-20,000 to visit Durban and forfeit a kidney. The 109 recipients, mainly Israelis, each paid up to $120,000 for a “transplant holiday”; they pretended they were relatives of the donors and that no cash changed hands.” (11)

In 2004 a legislative commission in Brazil reported, “At least 30 Brazilians have sold their kidneys to an international human organ trafficking ring for transplants performed in South Africa, with Israel providing most of the funding.”

According to an IPS report: “The recipients were mostly Israelis, who receive health insurance reimbursements of 70,000 to 80,000 dollars for life-saving medical procedures performed abroad.”

IPS reports:

The Brazilians were recruited in Brazil’s most impoverished neighbourhoods and were paid $10,000 per kidney, “but as `supply’ increased, the payments fell as low as 3,000 dollars.” The trafficking had been organized by a retired Israeli police officer, who said “he did not think he was committing a crime, given that the transaction is considered legal by his country’s government.”

The Israeli embassy issued a statement denying any participation by the Israeli government in the illegal trade of human organs but said it did recognize that its citizens, in emergency cases, could undergo organ transplants in other countries, “in a legal manner, complying with international norms,” and with the financial support of their medical insurance.

However, IPS reports that the commission chair termed the Israeli stance “at the very least `anti-ethical’, adding that trafficking can only take place on a major scale if there is a major source of financing, such as the Israeli health system.” He went on to state that the resources provided by the Israeli health system “were a determining factor” that allowed the network to function. (12)

Tel Aviv hospital head promotes organ trafficking

IPS goes on to report:

“Nancy Scheper-Hughes, who heads the Organs Watch project at the U.S. University of California, Berkeley, testified to the Pernambuco legislative commission that international trafficking of human organs began some 12 years ago, promoted by Zacki Shapira, former director of a hospital in Tel Aviv.

“Shapira performed more than 300 kidney transplants, sometimes accompanying his patients to other countries, such as Turkey. The recipients are very wealthy or have very good health insurance, and the `donors’ are very poor people from Eastern Europe, Philippines and other developing countries, said Scheper-Hughes, who specialises in medical anthropology.”

Israel prosecutes organ traffickers

In 2007 Israel’s Ha’aretz newspaper reported that two men confessed to persuading “Arabs from the Galilee and central Israel who were developmentally challenged or mentally ill to agree to have a kidney removed for payment.” They then would refuse to pay them.

The paper reported that the two were part of a criminal ring that included an Israeli surgeon. According to the indictment, the surgeon sold the kidneys he harvested for between $125,000 and $135,000. (13)

Earlier that year another Israeli newspaper, the Jerusalem Post, reported that ten members of an Israeli organ smuggling ring targeting Ukrainians had been arrested. (14)

In still another 2007 story, the Jerusalem Post reported that “Professor Zaki Shapira, one of Israel’s leading transplant surgeons, was arrested in Turkey on Thursday on suspicion of involvement in an organ trafficking ring. According to the report, the transplants were arranged in Turkey and took place at private hospitals in Istanbul.”

Israeli organ trafficking comes to the U.S.?

In July of this year even US media reported on the arrest of Levy Izhak Rosenbaum, from Brooklyn, recently arrested by federal officials in a massive corruption sweep in New Jersey that netted mayors, government officials and a number of prominent rabbis. Bostrom opens his article with this incident.

According to the federal complaint, Rosenbaum, who has close ties to Israel, said that he had been involved in the illegal sale of kidneys for 10 years. A US Attorney explained: “His business was to entice vulnerable people to give up a kidney for $10,000 which he would turn around and sell for $160,000.” (15)

This is reportedly the first case of international organ trafficking in the U.S.

University of California anthropologist and organ trade expert Nancy Scheper-Hughes, who informed the FBI about Rosenbaum seven years ago, says she heard reports that he had held donors at gunpoint to ensure they followed through on agreements to “donate” their organs. (16)

Israel’s organ donor problems

Israel has an extraordinarily small number of willing organ donors. According to the Israeli news service Ynet, “the percentage of organs donated among Je ws is the lowest of all the ethnic groups… In western countries, some 30 per cent of the population have organ donor cards. In Israel, in contrast, four percent of the population holds such cards. (17)

“According to statistics from the Health Ministry’s website, in 2001, 88 Israelis died waiting for a transplant because of a lack of donor organs. In the same year, 180 Israelis were brain dead, and their organs could have been used for transplant, but only 80 of their relatives agreed to donate their organs.”

According to Ynet, the low incidence of donors is related to “religious reasons.” In 2006 there was an uproar when an Israeli hospital known for its compliance with Jewish law performed a transplant operation using an Israeli donor. The week before, “a similar incident occurred, but since the patient was not Jewish it passed silently.” (18, 19)

The Swedish article reports that `Israel has repeatedly been under fire for its unethical ways of dealing with organs and transplants. France was among the countries that ceased organ collaboration with Israel in the 1990s. Jerusalem Post wrote that “the rest of the European countries are expected to follow France’s example shortly.”

“Half of the kidneys transplanted to Israelis since the beginning of the 2000s have been bought illegally from Turkey, Eastern Europe or Latin America. Israeli health authorities have full knowledge of this business but do nothing to stop it. At a conference in 2003 it was shown that Israel is the only western country with a medical profession that doesn’t condemn the illegal organ trade. The country takes no legal measures against doctors participating in the illegal business – on the contrary, chief medical officers of Israel’s big hospitals are involved in most of the illegal transplants, according to Dagens Nyheter (December 5, 2003).”

To fill this need former Prime Minister Ehud Olmert, then health minister of Israel, organized a big donor campaign in the summer of 1992, but while the number of donors skyrocketed, need still greatly surpassed supply.

Palestinian disappearances increase

palorgans

Bostrom, who earlier wrote of all this in his 2001 book Inshallah, (20) reports in his recent article:

“While the campaign was running, young Palestinian men started to disappear from villages in the West Bank and Gaza. After five days Israeli soldiers would bring them back dead, with their bodies ripped open.

“Talk of the bodies terrified the population of the occupied territories. There were rumors of a dramatic increase of young men disappearing, with ensuing nightly funerals of autopsied bodies.”

“I was in the area at the time, working on a book. On several occasions I was approached by UN staff concerned about the developments. The persons contacting me said that organ theft definitely occurred but that they were prevented from doing anything about it. On an assignment from a broadcasting network I then travelled around interviewing a great number of Palestinian families in the West Bank and Gaza – meeting parents who told of how their sons had been deprived of organs before being killed.”

He describes the case of 19-year-old Bilal Achmed Ghanan, shot by Israeli forces invading his village.

“The first shot hit him in the chest. According to villagers who witnessed the incident he was subsequently shot with one bullet in each leg. Two soldiers then ran down from the carpentry workshop and shot Bilal once in the stomach. Finally, they grabbed him by his feet and dragged him up the twenty stone steps of the workshop stair… Israeli soldiers loading the badly wounded Bilal in a jeep and driving him to the outskirts of the village, where a military helicopter waited. The boy was flown to a destination unknown to his family.”

Five days later he was returned, “dead and wrapped up in green hospital fabric.” Bostrom reports that as the body was lowered into the grave, his chest was exposed and onlookers could see that he was stitched up from his stomach to his head. Bostrom writes that this was not the first time people had seen such a thing.

“The families in the West Bank and in Gaza felt that they knew exactly what had happened: “Our sons are used as involuntary organ donors,” relatives of Khaled from Nablus told me, as did the mother of Raed from Jenin and the uncles of Machmod and Nafes from Gaza, who had all disappeared for a number of days only to return at night, dead and autopsied.”

Why autopsies?

Bostrom describes the questions that families asked:

“Why are they keeping the bodies for up to five days before they let us bury them? What happened to the bodies during that time? Why are they performing autopsy, against our will, when the cause of death is obvious? Why are the bodies returned at night? Why is it done with a military escort? Why is the area closed off during the funeral? Why is the electricity interrupted?”

Israel’s answer was that all Palestinians who were killed were routinely autopsied. However, Bostrom points out that of the133 Palestinians who were killed that year, only 69 were autopsied.

He goes on to write:

“We know that Israel has a great need for organs, that there is a vast and illegal trade of organs which has been running for many years now, that the authorities are aware of it and that doctors in managing positions at the big hospitals participate, as well as civil servants at various levels. We also know that young Palestinian men disappeared, that they were brought back after five days, at night, under tremendous secrecy, stitched back together after having been cut from abdomen to chin.

It’s time to bring clarity to this macabre business, to shed light on what is going on and what has taken place in the territories occupied by Israel since the Intifada began.” (21)

The new “Blood Libel”?

In scanning through the reaction to Bostrom’s report, one is struck by the multitude of charges that his article is a new version of the old anti-Semitic “blood libel.” Given that fact, it is interesting to examine a 2007 book by Israel’s preeminent expert on medieval Jewish history, and what happened to him.

The author is Bar-Ilan professor (and rabbi) Ariel Toaff, son of the former chief rabbi of Rome, a religious leader so famous that an Israeli journalist writes that Toaff’s father “is to Italian Jewry as the Eiffel Tower is to Paris.” Ariel Toaff, himself, is considered “one of the greatest scholars in his field.” (22, 23)

In February 2007 the Israeli and Italian media were abuzz (though most of the U.S. media somehow missed it) with news that Professor Toaff had written a book entitled “Pasque di Sangue” (“Blood Passovers”) (24) containing evidence that there “was a factual basis for some of the medieval blood libels against the Jews.”

Based on 35 years of research, Toaff had concluded that there were at least a few, possibly many, real incidents.

In an interview with an Italian newspaper (the book was published in Italy), Toaff says:

“My research shows that in the Middle Ages, a group of fundamentalist Jews did not respect the biblical prohibition and used blood for healing. It is just one group of Jews, who belonged to the communities that suffered the severest persecution during the Crusades. From this trauma came a passion for revenge that in some cases led to responses, among them ritual murder of Christian children.” (25)

(Incidentally, an earlier book containing similar findings was published some years ago, also by an Israeli professor, Israel Shahak, of whom Noam Chomsky once wrote, “Shahak is an outstanding scholar, with remarkable insight and depth of knowledge. His work is informed and penetrating, a contribution of great value.” ) (26)

Professor Toaff was immediately attacked from all sides, including pressure orchestrated by Anti-Defamation League chairman Abe Foxman, but Toaff stood by his 35 years of research, announcing:

“I will not give up my devotion to the truth and academic freedom even if the world crucifies me… One shouldn’t be afraid to tell the truth.”

Before long, however, under relentless public and private pressure, Toaff had recanted, withdrawn his book, and promised to give all profits that had already accrued (the book had been flying off Italian bookshelves) to Foxman’s Anti-Defamation League. A year later he published a “revised version.”

Donald Bostrom’s experience seems to be a repeat of what Professor Toaff endured: calumny, vituperation, and defamation. Bostrom has received death threats as well, perhaps an experience that Professor Toaff also shared.

If Israel is innocent of organ plundering accusations, or if its culpability is considerably less than Bostrom and others suggest, it should welcome honest investigations that would clear it of wrongdoing. Instead, the government and its advocates are working to suppress all debate and crush those whose questions and conclusions they find threatening.

Prime Minister Benjamin Neta nyahu, rather than responding to calls for an investigation, is demanding that the Swedish government abandon its commitment to a free press and condemn the article. The Israeli press office, apparently in retaliation and to prevent additional investigation, is refusing to give press credentials to reporters from the offending newspaper.

Just as in the case of the rampage against Jenin, the attack on the USS liberty, the massacre of Gaza, the crushing of Rachel Corrie, the torture of American citizens, and a multitude of other examples, Israel is using its considerable, worldwide resources to interfere with the investigative process.

It is difficult to conclude that it has nothing to hide.

Alison Weir is executive director of If Americans Knew. A version of this article containing citations and additional information is available at http://ifamericansknew/cur_sit/sweden.html.

11-37

Humanism and Islam

August 13, 2009 by · Leave a Comment 

By Geoffrey Cook, Muslim Media News Service (MMNS)

Berkeley–Your author has gone back several times to the marvelous Conference of over a year ago at this city’s famous University.  Your scribe will converse on some of the comments there as well as his own personal analysis.

Our culture has taken the designation “Semitic” away from the Arab, and transferred it solely to the ethnic Jew.   This is incorrect:  Both Arabs and Jews come from the Semitic group of peoples, but this denial of the Arab’s Semitic roots and the assertion of the Jew’s sole determination of such creates the propaganda that the Palestinians are Anti-Semitic.  They both share an historical ethnic root that may even be the basis to solve the crisis, but first both groups must acknowledge their common ancestral origins.

Islam dominated Spain for eight hundred years, but loss of its foothold on Southwestern Europe was a great blow to the Ulema, and it is felt to this day.  Your writer remembers reading a Nineteenth Century Indian novel that was no more than a lamentation for its loss. 

The founder of Christianity, Joshua-Ben Joseph (i.e., Jesus Christus in the Latin) during the two centuries following the (his) death of this second most important Prophet (i.e., Issa in Arabic) of Islam was transformed from a Mediterranean peasant into the Christos (in Greek), “the anointed one” which is close to the Hebrew Messiah.   The attempt by early Christians to remake the Subaltern Prophet Issa into a “god” created great problems for the followers of Joshua in the Middle East, and made it easier for the Muslim preachers to convert the predominant Christian population due to the fact that the formulas of the Church Fathers were too confusing to the actual worshippers.  On the other hand, the tenants of Islam were simple enough for the common man, but deep enough for the more profound thinkers.  Further, horrible schisms had developed in the Primitive Church that had no relevance to the common worshiper.

In the Fifteenth Century, Islam had a presence from the Atlantic to the Pacific that lasted for five hundred years.  Unfortunately, for the Ulema, the European “discovery” of the Atlantic (through superior sailing technology) they had developed, had shifted the Center of the World.  With it came a Capitalistic society which created a Euro-centric vision.

In the contemporary period, we are leaving the Euro-centric vision.  (Even Globalism is now being questioned because of the recent economic crash.)  Yet one speaker claimed, as far as the European Union, the traditional nation-State system is breaking down. 

The question was poised on how do we deconstruct Islamaphobia that has developed in Western Post-Colonial Europe especially?  Although the historical fact is that the Islamic Arab Empire was more modern than Europe’s society from the Ninth Century (CE) onward in the terms of their time.  Truth during the “Islamic Renaissance,” came from the Koran and science (a sort of an itijihad).  This openness to enquiry gave the impetus for the great Arab philosophy of the period that had such an impact upon the West.  This was a period of enlightenment for especially the Arabic-speaking world!

Curiously, Latin America received its intellectual vigor through the lingering Islamic traditions of Spain!  One speaker voiced his opinion that European Islamaphopbia will fade with the shifting demography.  There will have to be a dialogue among the various peoples upon this globe. 

11-34

Time to Sell?

April 27, 2006 by · Leave a Comment 

Time to Sell?
So there you are, one of the lucky few who, a couple years ago, spotted the best places to invest and now see some fat gains in your portfolio holdings. Is it so great that you consider scattering your account statements on the floor and rolling around on them? Or is that just me? But then, it might also occur to you that those big gains could be temporary, while selling the big winners could lock in your well deserved gains. So, do you sell? Or do you ride the wave a while longer, hoping to increase your gains?
My first reaction to the question about ‘’taking profits’’ on big gains in emerging markets stocks or funds, or perhaps gold and energy funds, is always the same. ‘’Gee, I don’t know if that’s the smart thing to do.î Comforting, right? But let’s be realistic for a moment, even rational, as all investors think they are.
If I knew for sure when to sell raging winners or strong performers in the Indian or Brazilian markets, that would infer powers of prescience that only CNBC promoters claim to possess, though they know no more than you or I. Such a call would suggest skill at predicting the future, or at least those actions forthcoming from thousands (if not millions) of other investors with different methods and goals.
Let’s be realistic about investing! I’m guessing where to invest now. I always have — and always will. What are the best things to buy now? And the best things to sell? If anyone really knew with any certainty, then investing would be so easy, everyone would know investors who ìcrushî the market regularly. But those ìcrushersî don’t exist, do they? So no one knows for sure what to do. We’re all just making our best guesses.
After accepting that premise, we can consider our choices — with the proper amount of humility to gain favor in the eyes of the market gods, who never stay long with investors claiming great success in the markets. And just as important as humility is accepting, from the start, that making major portfolio changes may cause regret in the future.
You could sell your big winners now — only to watch them rise even higher. So will you be right or wrong? The wrong decision plus a potential ego dent can linger in your memory and affect future decision making, adding an emotional influence that makes investors even less rational. But a decision must be made, and standing pat is also a decision.
So letís look at some decision-making ideas. First, we must admit that the changes we consider are timing decisions. Yet we all know we can’t time the markets, right? Timing is another one of those widely accepted ìdead wrongî investing tenets with the same value as diversification or the concept of ‘’stocks for the long run.’’
But you can consider timing in making your decision, since you always have in the past. And so have I — and most everyone else! You donít believe me? An illustration might help. Perhaps a friend asks you what to do with new money going into his brokerage account. What should he buy? Maybe some shares of the S&P 500 index fund or a good international equity fund? Or some energy stocks balanced by a mellow bond fund?
So when would you tell your friend to buy? In a month? Next March? Or maybe you suggest buying right now, since other things, like technology or gold funds may have already run too far, too fast? Yes, any investing decision involves timing, as in what you buy from all available options.
Yes, gold stocks and funds have had a great run for the past five years! In that time, for example, Fidelityís Select Gold fund has powered about 200% higher than the S&P 500, which sits about where it started then, showing a minimal gain in nominal terms. So this point brings up two more problems. Do you avoid the big winner, the gold sector, since it has done so well and is selling at a high price? And will you re-balance your portfolio, as in selling some gold shares and adding the cash to your S&P fund?
Consider this as you decide whether to sell a high flyer like gold. In 1998, the Russian government was essentially broke and defaulted on bonds issued to foreign investors. The situation looked bleak as the stock market index sat at about 100. Only a fool or high risk taker would have ventured into something looking that bad — or so it seemed.
A couple years later, smart money saw value there and watched that index power higher, going past 300, 400 and then 500. A great time to sell and take profits, right? Surely, you wouldn’t buy into a market that had risen 300% or 400%, right? And just where is that market index now? In late April 2006, the Russian market sits just above the 1,600 level.
For another fine example, look at the Brazilian market. Pounded down in unison with the S&P 500 during the bear market of 2000-2002, it bottomed at about 8,400. But smart money saw value there and watched as that index rose about 20,000 in a little more than a year. Is it time to sell? Maybe not, even with that index hitting a new, all-time high this week, passing the 40,000 level.
Did you hear on CNBC last year that you should sell your energy stocks or funds since oil had more than doubled in price and would soon fall? With oil now costing above $75 a barrel, how smart was that? One thing I have learned the hard way is that trends tend to last longer than you think they will. Selling your best performers seems like a great idea — until you realize that the person buying your winners may hold them and make even more on them.
And re-balancing is a stupid idea for several reasons. The worst of them are that all asset classes will, at some point, have their day in the sun and that selling your winners at a high price and buying more of your losers at low prices will ensure success over the long term. For a useful illustration on how that could fail to work, consider the investor in Japan who diversified into the S&P 500 in the early 1990s.
As his home market tanked, with the Nikkei average falling from 39,000 to about 8,000 in 13 years, he would have re-balanced annually, selling some of his winning S&P shares and moving the cash into a market that continued to fall every year! Each year he added to his losers and reduced the impact of holdings in a winning category.
So how about a couple ideas that seem better to me? If you have big winners in your portfolio that are making you nervous, consider selling a portion of them over time. If the fear of losing your big gains outweighs the fear of selling too soon, go ahead and sell. But my compromise solution allows hedging your decision somewhat and reducing the chance of being glaringly wrong. You are only a little wrong, regardless of what happens.
Another idea is doing a fresh fundamental analysis on why your best performers are doing so well and whether they will continue. Recently, I overheard a conversation at a local office of a big mutual fund company catering to individual investors. The investor asked the nice lady about her interest in buying into the companyís Latin American sector fund, a recent big winner. The lady commented that recent performance was impressive, indeed, but wondered how long those big returns could continue. If you, like this lady, have no idea about your holdingsí recent performance, you need to do some fundamental research, rather than just walking away from what seems too good to be true.
Brazilian stocks, a major portion of any high-flying Latin America fund, still look as good as ever! In fact, they look better now than three years ago when that market began its current bull market. And the market is still quoted as selling at about 13 times earnings, on average, while the country enjoys a trade surplus and its government, a small budget surplus.
Adding to these factors is a recent development regarding energy. Brazilís domestic oil production now sufficiently satisfies domestic demand, lessened by a long-running project to produce substantial amounts of sugar-based ethanol. Sharply rising energy prices have little effect on the economy. And while concerns are warranted, based on past events, that the currency could lose value sharply, Brazil sits on billions of dollars, enough to intervene on behalf of the real.
Similar conditions now exist in Russia, though they did not when that market began its huge bull trend. Awash in foreign currency reserves, the country, as a major world supplier of ever more costly energy, now runs budget surpluses. When Russiaís bull market ensued, oil sales were barely profitable. Fundamentals have clearly improved, right along with rising stock prices, which are much higher now. And valuations have risen right along with them.
The best of all fundamentals may be found in gold. When gold began its huge move higher, our federal government was running deficits so small that co-mingling excess Social Security withholdings as part of general operating funds (during Clinton’s second term), appeared to be a small federal budget surplus. Since then, the Bush regime has splashed red ink everywhere, and America’s unfunded liabilities for retirement programs like Social Security and Medicare have shot higher, from about $20 trillion in 2000 to over $50 trillion, with some estimates even higher.
And since Americans are not saving, all government funds must be borrowed. Of course, all the money left in the world wonít buy that many bonds, since countries with money to spend, like China, Russia, etc., have domestic investment needs. Our leaders will, no doubt, print whatever money is needed, and that amount grows shockingly higher — much higher than anyone thought possible when the Bush team took charge five years ago. So rising inflation makes our bonds really bad deals and makes borrowing even harder. The dollar printing press will run for the foreseeable future, so the fundamental case for gold improves along with its valuation.
With energy, today’s supply-and-demand problem was not as evident in investor thinking four or five years ago. The Iraq war has decreased oil production there, something not factored into the thinking of pre-war energy investors. And didn’t we all assume that oil production would increase after the invasion?
And as the Bush administration continues to anger eight other oil suppliers, such as Iran, Saudi Arabia, Venezuela and Russia, the potential use of energy as an economic weapon is higher now than when Bush, early in his first term, looked into Vladimir’s eyes and felt his honest soul. So again, fundamentals rise along with prices.
The best reason to sell or, better, scale out of your biggest winners is when the holdings just become too large in your overall portfolio. If you intended to maintain a 10% allocation in gold shares or funds, (which one really doesn’t matter, since they’ll rise together) and your gold holdings have risen to 15% or 20% of your portfolio, reduce your exposure. The added volatility resulting from such a large asset class position only increases the chance of your making an irrational decision later.
Of course, keeping your shares in a rising market like gold increases your chance of winning big, too, so factor that in as well. And when you sell some of your big winners, you must find something else with solid fundamentals to buy. And how many opportunities like that are available now?
So don’t sell just because something has done well. And don’t re-balance annually either, by taking money from sectors or asset classes in the middle of wonderfully profitable secular bull markets and adding hard-earned gains into something like the S&P 500, clearly in the early stages of a secular bear market.
Have a great week.
Bob