The concept of the Islamic state first arose among Islamic modernists, so let us first examine the issue of Islamic modernism or modernist Islam. It has various roots, but in essence it stems from a misunderstanding of Western dominance over the lands of Islam, which itself issues from a complete misreading of western history and the nature of Western society. The modernists assume that it was the features of Western society that were unusual to it and different from Islamic modes that gave Westerners dominance over the lands of Islam, and that therefore it is sufficient merely to imitate the West in those unusual features for there to be a resurgence of political power in the lands of Islam, neglecting the obvious fact that what makes the Westerners ‘different’ is kufr.

They mistakenly assume that Muslims can regain some power by taking those elements from the West which they think led to the apparent demise of Islam politically. Thus we have ‘Islamic’ economics, ‘Islamic’ constitutions, ‘Islamic’ science, and ‘Islamic’ banks, etc., etc. We have had all the rush to industrialise and to purchase armaments and fit out ridiculous ‘modern’ armies, which have all proved totally ineffective. The flaw in this is because there is a total misunderstanding of the nature of Western society and the modern state.

The very essence of the modern state is that it is a body which borrows enormous sums of money from banking institutions. This is needed desperately by the banks because they are in great need of large borrowers who will create grand projects and return the interest they owe their shareholders and depositors. There is tremendous pressure on bankers to put their funds to profitable use. Today those large borrowers are the different nation-states and the great multinational corporations. Then the state taxes its citizens to maintain the interest payments on the loans – the national debt [which must never be repaid].

The most fundamental mistake we make is when we think that the state taxes in order to pay for all its services. Rather the state taxes to keep paying the interest on its debts. Many of the huge state-services: for example, infrastructure, are paid for from loans.


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