Book Review

The Color of Money: Black Banks and the Racial Wealth Gap

By Mehrsa Baradaran

Harvard University Press. 2017.

In her book "The Color of Money: Black Banks and the Racial Wealth Gap," Mehrsa Baradaran delves deep into how financial systems have gone to create and continue racial inequities in the United States. Juvaria Jafri writes, "It provides invaluable historic links between wealth inequality and racial prejudice, along with detailed political economy of the working of financial institutions, how property ownership works, and the now familiar trope of self-help as substitute to systemic transformation.".

The Color of Money

In the book "The Color of Money", Mehrsa Baradaran theorizes financial systems based on racial wealth disparity in America. She points out that 60% of black Americans have either never had a bank account or had limited banking services, in contrast to 20% of white Americans. She says that reducing this inequality to merely racism ignores the monumental role of other subtle factors like 'commerce, credit, money, and segregation' that have silently worked at fracturing this gap of wealth in the modern American society.

Black banking

The "Black banking" idea dates back to the formation of small military banks during the Civil War of the 1860s. These banks were created primarily to deal with the salaries of black soldiers. The most pressing example among these is the Freedman's Bank that initially appeared plausible due to the fundamental government support by the administration of Abraham Lincoln. Still, in actuality it was a private investment bank having management personnel who were directly involved in active speculation. It encouraged the black community to use it as a personal savings bank while teaching the values that came with thrift and capitalism.

A financial Catastrophe

Baradaran insists that one of the distinct features of capitalism is that capital has the ability to reproduce itself by use of credit. However, the Freedman's Bank denied the black community this benefit because it was not a lending bank to depositors. The result was that the bank collapsed after incurring huge losses when their management invested customer deposits in the westward expansion of the railroad, later called 'the first postwar asset bubble'. It represented a financial catastrophe for many in the black community and a reason for general distrust of both the state institutions and banks in particular. The case for black banking continued to be advocated for, not just because many black leaders – among them individuals who worked in the bank as tellers, clerks, and bookkeepers – could envision success, but also because the legitimization of Jim Crow laws and segregation effectively closed off the black community from public life in America. Within this racially segregated setting 'not only was it impossible for black banking to be separate and equal, but they also could not even be separate and profitable'.".

White and Black Businesses

There were many structural reasons for this: for instance, although the number of black businesses increased exponentially between 1917 and 1930, because these were almost always individually owned and closed when the founder died they offered only a weak infrastructure for the production and accumulation of capital. Moreover, since the black community could not avail themselves of credit or insurance from a white bank or buy a home from a white realtor, the cost of accumulating capital was always higher. And prohibitions meant black businesses had to get black customers while white businesses could sell their products to all customers: the implication in this case is that, in addition to competing with white businesses, black businesses were also competing with other black businesses and therefore could not enjoy economies of scale.

 The Wealth Gap

The wealth gap is mainly due to the disadvantage blacks have had in owning homes. Given that white institutions rarely gave black individuals loans, if they did, the interest rates would be abnormally high. Black banks were thus filled with home loans, putting themselves at a risk of property value impairments when blacks bought houses due to segregation. A combination of the economic push, as well as racism, thus fueled the strong push by white individuals to prevent black people from entering their neighborhoods, since the fear of one's neighborhood deteriorating and becoming part of the ghetto was a major issue.

Civil Rights Movement

The successes of the Civil Rights movement, which fully got under way in the 1960's resulted in the black community receiving formal legal and political equality but not economic equality. When President Nixon took office in 1969 he confronted the vigorous white backlash against a new radical black movement with opposition to legal race discrimination and government integration efforts. As such, black banking was a part of black capitalism, which people viewed as a government affair in meeting the demands of the black populace.

Black Capitalism

Also, black capitalism could not solve the problem of capitalisation for the black banks faced with nonperforming loans, increasing costs and reduced profits, along with low investment capital. "Moreover, since most of the shareholders had to be black for a bank to qualify as a black bank, the limitation in number of possible investors for such bank impliedly limited its capabilities of attracting more funding. The volatility of deposits was also witnessed in the black banks that faced a higher rate of withdrawals of deposits than the white banks. These deposits were quite volatile and had to be underpinned by government securities to limit the risks involved, which did indeed lower returns and depress profitability.

The Flow of Capital

Baradaran demonstrates one of the segregationist banking system problems is one of the flow of capital: money deposited in a black bank ends up leaving the black banking system too as 'Black banks were still exporting funds from the ghetto.' Their excessive focus on government securities meant that they used deposits from customers to fund mortgages elsewhere. During the era of the second mortgage markets, the flow of deposit money to other people's mortgages rose as a result of the security that was mortgage-backed. Presently, globally, banks were investing in mortgages all over the world. For black banks, this became a new and less more transparent means for them to perform the financial filter role — shifting money from the inner city to the wider economy' 245.

Besides the fact that black borrowers have always had limited access to the loan markets, they were the hardest hit during the subprime era; it is estimated that over 53% of total black wealth was lost in the 2008 financial crisis. Since the crisis, black banking has generally been in decline, except in few rare moments of growth.

While Baradaran grounds her book in a historical analysis of wealth disparity within the framework of racial bias, she also includes such diverse themes as political economy concerning financial institutions, regimes of property ownership and its particulars for maintaining inequalities, and the idea of self-help in opposition to systemic transformation. All these are interconnected and very relevant, especially in an Anglo-American context, with austerity policies and with the increasing decline of the post-war welfare state. There is also a focus on 'workfare' and, particularly in Britain, on asset-based welfare like 'Help to Buy'. Moreover, it could extend into developing countries. Many of the comments about how this initiative—the black-owned banks—isn't going to work in creating wealth growth apply directly to the criticisms about microfinance and financial inclusion efforts in growing parts of the world.

 Abu Ubaida's Concerns

Abu Ubaida, the spokesperson for the Al-Qassam Brigades, which is the military arm of Hamas, recently spoke out about the dire situation in Gaza. He mentioned that the famine affecting Gaza has now reached the prisoners of the Israeli occupation. Some of these prisoners are facing serious health issues due to lack of food and medicine.

Deception in Negotiations

Abu Ubaida also addressed the ongoing ceasefire negotiations, stating that the occupation government is not being honest. He emphasized that for any deal to be made, the aggression must stop, forces must withdraw, displaced persons must return, and reconstruction must begin.

Double Standards

American Administration's Response

Abu Ubaida criticized the American administration for showing concern over a small number of Israeli prisoners while ignoring the suffering of the Palestinian people. He called out their double standards and lack of regard for human rights.

Barbaric Aggression

Abu Ubaida revealed that the occupation had planned its aggressive actions before the events of October 7th. He stated that the Palestinian people responded to this aggression with the October 7th epic, standing up against attempts to Judaize and destroy Al-Aqsa Mosque.

Call to Action

Abu Ubaida urged Palestinians in the West Bank, Jerusalem, and occupied Palestine to stand up and protect Al-Aqsa. He also called on Muslims worldwide to mobilize and confront the occupation's arrogance.

Source: Al Jazeera

Reflection on the War

Israeli writer Gideon Levy believes that after 150 days of war in Gaza, Israel has not gained any strength or safety. In fact, he argues that the country is not more popular, united, or proud of itself.

Harsh Realities

Levy wrote in Haaretz that the past days of war have been tough and have not benefited Israel in any way. He believes that Hamas has actually emerged stronger, despite losing many fighters.

Public Opinion

Surprisingly, Levy notes that most Israelis still support the war, even after months of destruction and international backlash. Israel is now seen as a pariah and faces economic challenges.

The Darkest Days

Levy describes the past few months as the darkest in Israel's history. The country is now less secure, faces global sanctions, and risks losing American support. The war has also damaged Israel's democratic institutions.

International Standing

Israel's reputation has suffered greatly, and its relations with the United States have deteriorated. The ongoing violence and displacement have only fueled more hatred towards Israel.

The Future Outlook

Levy is not optimistic about the future, as long as Israel refuses to consider fundamental changes. He compares the mindset of continuing the war to that of a gambler who keeps betting despite losing everything.

Moral Ambiguity

Levy questions the morality of believing that killing thousands of Palestinians will bring peace to Gaza. He urges Israelis to reflect on the true costs of the war and consider if it was truly necessary.

Source: Haaretz

Intensified Attacks

On the 154th day of the war on Gaza, the Israeli forces increased their airstrikes and artillery bombardment in different parts of the Strip. Meanwhile, hunger is becoming a serious threat to many people trapped in northern Gaza.

Demands for a New Deal

The spokesperson for the Al-Qassam Brigades, the military wing of Hamas, stated that any new exchange deal must include stopping the aggression, withdrawing military forces, providing relief for the population, allowing the return of displaced individuals, and reconstructing Gaza.

Attacks in the Red Sea

Two explosions near a ship off the coast of Yemen have been reported. The Houthis have claimed responsibility for targeting Israeli ships in the Red Sea, Bab al-Mandab Strait, and Gulf of Aden in recent months.

Increasing Casualties

The Ministry of Health in Gaza reported a total of 30,878 deaths and 72,402 injuries since October 7 due to Israeli aggression. The ministry also mentioned 8 massacres in the past 24 hours, with a majority of victims being women and children.

Hamas Response

Hamas rejected the results of an Israeli army investigation into the "flour massacre" that occurred west of Gaza City. They described the investigation as misleading and false, emphasizing that Palestinians were deliberately targeted.

UN Warning

The UN Human Rights Commissioner warned that expanding settlements in the occupied Palestinian territories is a war crime and hinders the possibility of a viable Palestinian state.

Prisoner Exchange Negotiations

Hamas spokesperson emphasized the importance of a ceasefire in negotiations for a prisoner exchange. They highlighted the dire situation faced by prisoners due to illness and lack of resources.

Expectations of Aid Corridor

An aid corridor to Gaza is expected to start operating soon, following approval from Israel. This initiative aims to deliver much-needed aid to the people in Gaza.

Possible Ground Operation in Lebanon

Hezbollah reported the killing of its members in Israeli bombings in southern Lebanon. Israeli Chief of Staff is preparing plans for a potential ground operation in Lebanon, drawing lessons from the Gaza conflict.

Martyrs because of the fall of aid funds

Something terrible happened on the 154th day of the Israeli war on the Gaza Strip. The government media office in Gaza reported that 5 Palestinians lost their lives and many others were injured when humanitarian aid was dropped from planes. The aid boxes didn't land properly and ended up falling on people's heads.

Eyewitness Accounts

Eyewitnesses saw planes dropping lots of aid boxes, but some of them didn't open their parachutes correctly. This caused the boxes to fall quickly on groups of Palestinians who were waiting for them to land. The boxes fell on Palestinian gatherings north of the Beach Camp and on Al-Jalaa Street north of Gaza City.

Tragic Consequences

Witnesses and Palestinian medical sources said that the falling boxes resulted in the deaths of some Palestinians and injuries to others who were eagerly waiting for the aid. This was a heartbreaking accident that shocked everyone in the area.

Source: Al Jazeera

What is Going On?

 Back in 1945, the United Nations was created to help countries work together and keep peace. Nevertheless, some people think it's not fair because powerful countries have more say than others. It is like a big club where some members have more power than others.

Alternative Political Bodies

Smaller countries have tried to create their own groups within the United Nations to stand up for their rights. One example is the Non-Aligned Movement, which started in 1961. It is like a smaller club within the big club.

Special Legitimacy

The United States and its friends have their own idea of what's right and wrong in international law. They often use their power to veto decisions that don't benefit them. It is as if they made the rules that work for them.

Consequences

Recently, the United States defended Israel in the Gaza conflict, even when many other countries disagreed. This has caused some tension in the international community. The United States is also not a member of the International Criminal Court, but still tries to use it to cover up its actions.

These choices will have consequences in the future. The world is facing a crisis of legitimacy, and just making small changes will not fix the problem. A big deal needs to be addressed.

Source: American press

Continued Aggressions on Gaza

On the 152nd day of the war on the Gaza Strip, the Israeli army continued to target civilians waiting for food aid and bomb residential areas, resulting in many casualties. The Palestinians in the besieged Strip are also facing starvation.

Recent Aggressions

Two Palestinians were killed and 9 others were injured in a bombing at the Nabulsi roundabout in Gaza City. Another 7 were killed and at least 10 were injured near the Wadi Gaza checkpoint. Additionally, 5 people died in a bombing on a house in the Nuseirat camp.

Starvation Crisis

Dr. Ashraf Al-Qudra reported that 20 people have died due to malnutrition and dehydration. Qatar's representative to the UN called the use of food as a weapon a war crime and genocide.

Israeli Casualties

An Israeli sergeant was killed and 12 soldiers were wounded in an ambush in Hamad Town. 42 soldiers are now being treated, with 9 in serious condition. The total toll of Israeli soldiers since the war began is 587.

Confrontations in the West Bank

Palestinians were injured in clashes with Israeli forces in Bethlehem. 4 people were injured in Bethlehem and more in the Dheisheh camp. Germany and the Palestinian Authority condemned Israel's approval of new settlement units.

Lebanese-Israeli Border

Hezbollah carried out 3 attacks on Israeli military sites in response to attacks on southern villages. The Israeli army downed a booby-trapped drone launched by Hezbollah.

Houthi Naval Attack

An American ship was attacked in the Gulf of Aden by Houthi naval missiles, resulting in deaths and injuries. The crew rejected warnings from the group.

Ceasefire Talks

US National Security Council spokesman John Kirby mentioned a framework agreement for a six-week ceasefire, with the release of detainees and more aid. The US is working with Qatar to achieve this.

Source: Al Jazeera

  Amir opens Abdullah Al-Salem University

HH the Amir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah attended and patronized the inauguration ceremony of Abdullah Al-Salem University (AASU) in Shuwaikh. The ceremony was attended by HH the Prime Minister Sheikh Dr Mohammad Sabah Al-Salem Al-Sabah, Chairman of the Supreme Judicial Council, President of the Court of Cassation Dr Adel Bouresli, and senior state officials. The minister of education and scientific research, Dr Adel Al-Adwani, emphasized the importance of investment in human resources, reforming education, and training youth for a competitive market.

The political leadership's continuous support contributed to the establishment of Kuwait University (KU), the nation's first university, during the reign of late Amir Sheikh Sabah Al-Salem Al-Sabah. AASU, named after Kuwait's 11th ruler, Sheikh Abdullah Al-Salem Al-Sabah, was named after him. The university has three colleges: Business and Entrepreneurship, Computing and Systems, and Engineering and Energy, as well as integration studies. The university aims to provide a broad spectrum of scientific and knowledge to support the country's renaissance and development.

  Kuwait PM stresses resolve to continue combating corruption

PM stresses resolve to continue combating corruption KUWAIT -- His Highness the Premier said the government is considering carrying out with the high-speed train project to transport passengers and goods between Riyadh and Kuwait, adding that its cost is reasonable and takes into account environmental safety. His Highness the Amir's visit to the Sultanate of Oman witnessed the inauguration of al-Duqm Refinery, overlooking the Gulf of Oman and the Arabian Sea, the Premier said, noting it is one of the pioneering projects that could be expanded in the future, and pointing out that it links Kuwait's oil exports to the world. His Highness the Amir also held talks with brothers in Bahrain, Qatar and the UAE on enhancing security, political and economic bonds and ties for wider horizons, His Highness the Premier concluded.

  The Kuwait Fund for Development has contributed to financing more than 1,000 projects over a period of 61 years

The Kuwait Fund for Development participated in an event held by the Permanent Delegation of Kuwait to the United Nations at its headquarters in New York, which brought together the Fund and many parties concerned with development affairs in Latin American and Caribbean countries and island countries. During the event, the Fund’s delegation reviewed its development contributions around the world and in this region in particular. In addition to explaining the mechanism for providing loans to finance development projects.

Acting Director General of the Kuwait Fund for Development, Walid Shamlan Al-Bahar, confirmed in a speech he delivered during the event that the Fund, as the development arm of the Kuwaiti government, has contributed to financing development projects for Arab countries and other developing countries for more than 61 years, in order to support their efforts aimed at strengthening social and economic development plans. For their people. In the same context, Al-Bahr added that the Fund has expanded the geographical scope of its operations over the past decades, to include more than 105 countries, noting that these countries have benefited from more than 1,000 loan agreements.

In turn, the representative of the permanent delegation, Ambassador Tariq Al-Bannai, said: Development was and remains the basic pillar of the United Nations system and the national plans of each of our countries. The Fund was established in 1961 to represent Kuwait’s means of contributing to the development of friendly countries around the world, as it symbolizes the support of our people. To improve the lives of others, and today's event is an integral part of our principled foreign policy to promote South-South cooperation and share in the blessings that God has bestowed on our nation.

Next Ramadan crescent Cannot Be Seen in Kuwaiti Skies

The Al-Ajiri Scientific Center has announced that the next crescent for the month of Ramadan will not be visible in the sky of Kuwait. They explained that this year, Ramadan will have a spring-like atmosphere, falling in the winter season for the next 9 years. According to their calculations, Ramadan will start falling in the winter seasons from next year onwards, with a return to coincide with the days of Al-Murabbaniyah in 4 other years starting from 2028. The weather during this time is expected to be moderate and cold until 2034.

Changes in Ramadan Seasons

The beginning of Ramadan during the winter season will bring different seasons, with longer night hours compared to daylight hours. This will result in shorter fasting hours, which are usually longer during the summer months. The year 1445 AH - 2024 AD will mark the last Ramadan in the spring season, with a return to this season after 27 years.

Sighting of the Crescent

The center confirmed that it was impossible to see the crescent of Ramadan this year in Kuwait, based on specific criteria related to its visibility in the sky. The fasting hours this year will be 13 hours and 10 minutes, with the dawn call to prayer at 4:44 in the morning, decreasing by one minute each day. The Maghrib call to prayer will be at 5:54 in the evening.

  “Hofath” Ramadan Celebrations in Mosques

The Kuwaiti Charitable Society (Hofath) is gearing up for its eighth Ramadan project to celebrate Ramadan nights in mosques. The project includes various activities such as Ramadan lessons, Qur’anic competitions, and Iftar tables for fasting individuals.

Preparations for Ramadan

The Hofath Association has completed its preparations for Ramadan, focusing on charitable and Quranic projects. They aim to serve the Qur’an and provide support to those in need during the holy month.

  “Al-Hayat Charity” Ramadan Campaign

Al-Hayat Charity Association is set to launch its Ramadan campaign for the current year, focusing on promoting solidarity and compassion among Muslims. The campaign includes various charitable and humanitarian projects to support communities in need.

Projects and Programs

The association’s projects range from iftar meals to clothing for orphans, aiming to provide a decent life for those affected by economic crises and conflicts. Last year, the association supported over 185,000 beneficiaries during Ramadan.

Donations can be made through the association’s website or hotline.

Kuwaiti Union of Charitable Societies and Foundations condemn Israeli Aggression

The Kuwaiti Union of Charitable Societies and Organizations strongly condemned the Israeli occupation's bombing of a Kuwaiti aid truck in the Gaza Strip. They emphasized the importance of protecting humanitarian workers in Gaza and ensuring their safety and basic human rights. The attack on the aid truck goes against humanitarian values and principles agreed upon internationally.

Support for Relief Efforts

The head of the Federation of Charitable Societies and Organizations, Saad Al-Otaibi, expressed solidarity with charities providing relief in Gaza. He reaffirmed support for their efforts to deliver humanitarian aid to those in need. The Federation is committed to assisting civilians in humanitarian crises.

Kuwait Foreign Minister Demands Occupation Abuse Stoppage

Foreign Minister Abdullah Al-Yahya called for an immediate stop to the occupation's aggression and urged for international protection for the Palestinian people. Discussions at the Arab League Council meeting focused on supporting joint Arab action and addressing the challenges in the region, particularly the events in Gaza and the occupied territories. Cooperation between Arab countries, friendly nations, and international organizations was also discussed.

“Social Reform” launches the “Musnad” Center for Sharia Sciences

The Social Reform Society in Jahra Branch just opened the Musnad Center for Sharia Sciences. This center is all about teaching and spreading knowledge about Sharia, which is super important in their society. Dr. Salem Hamad Al-Qahtani, the President of the Social Reform Society, talked about how crucial it is to focus on Sharia culture.

New Beginnings

The head of the Da’wah and Sharia Education Sector, Khaled Mufarreh, mentioned that this center is just the beginning of many projects they have planned. They want to make sure everyone in Kuwait, especially students interested in Sharia sciences, have access to this knowledge. The center will cover a wide range of topics like hadiths, jurisprudence, principles of jurisprudence, Quran interpretation, and more.

Future Projects

Mufreh also shared that they have more projects in the works to reach different age groups in Kuwaiti society. The first activity at the Musnad Center was reading a book called “The Virtues of the Month of Ramadan” by Ibn Shaheen. It was read by Sheikh Dr. Wahib Khoj Al-Taymi Al-Makki, who is an expert in Sharia and Arabic sciences.

The 27th Endowment Forum kicks off today under the slogan “30 Years of Leadership”

Another exciting event happening in Kuwait is the 27th Endowment Forum. This forum is all about celebrating the 30 years of leadership in the Waqf sector. The General Secretariat of Endowments is hosting this forum to highlight the contributions of Waqf in Kuwait and Islamic societies.

Important Achievements

The forum will showcase the achievements of the Secretariat over the past 30 years, including investment, advocacy, and strategic planning. They want to share their success stories and the impact they have had on Kuwaiti society. The forum will also feature experts from inside and outside Kuwait to share their knowledge.

Charitable societies discussed with the Al-Azhar delegation scholarship opportunities for expatriates to Egypt

Lastly, Kuwaiti charitable societies met with a delegation from Al-Azhar University to talk about scholarship opportunities for students from Arab and Islamic countries. These students faced challenges in their home countries and came to Egypt to study at Al-Azhar University. The goal is to provide educational and rehabilitation opportunities for these students.

The Charitable Organization in Kuwait appreciates the cultural role of Al-Azhar University and is working with them to support students from all over the Islamic world. They want to provide educational opportunities for those in need and promote a moderate Islamic culture.

  Honoring Winners of Al-Kharafi Quran Memorization Competition

The Al-Kharafi Quran Memorization Competition recently honored its winners in its 25th session. The competition, held annually under the patronage of former Kuwait University Director Dr. Fayza Al-Kharafi, saw participation from 47 nationalities with over 3,500 male and female contestants.

Nada Al-Kharafi's Speech

Nada Al-Kharafi, representing the ceremony's sponsor, expressed her joy in honoring the winners. She thanked Dr. Fayza Al-Kharafi for sponsoring the competition and emphasized the importance of children memorizing the Holy Qur’an. She also thanked various organizations for their efforts in caring for the contestants.

Competition Growth

The competition, initially local, has grown internationally with increasing participation each year. It was initiated by Jassim Al-Kharafi in 1997 and is now organized by the "House of the Qur’an" in Fahaheel.

Massacres and Battles Continue

On the 147th day of the conflict in Gaza, the Israeli army continued to commit atrocities, including the devastating "Flour Massacre" that resulted in over 110 deaths and 250 injuries. Battles between the resistance and the Israeli army are ongoing, particularly in the Al-Zaytoun neighborhood of Gaza City.

Israel Killed its Prisoners

The Al-Qassam Brigades reported that 7 prisoners were killed in Israeli bombings in Gaza, including 3 whose fates were previously unknown.

16 Massacres by Israel

The Ministry of Health in Gaza reported 16 massacres against families, resulting in 193 deaths and 920 injuries in the past 24 hours. The total number of casualties from the Israeli aggression has risen to 30,228 deaths and 71,377 injuries.

Losses on the Israeli Side

The Israeli army disclosed that 5 officers and soldiers were injured in the recent battles, with reports of heavy losses in an ambush in Khan Yunis. Since the ground invasion began, over 240 Israeli soldiers have been killed and 1,400 injured.

Abu Ubaida's Statement

Abu Ubaida, the spokesperson for the Al-Qassam Brigades, revealed that 7 POWs  were killed in Israeli bombings, with the total number of enemy prisoners killed possibly exceeding 70.

International Reactions

Global condemnation of the "Flour Massacre" continued, with demonstrations in various cities expressing solidarity with Gaza. An investigation by the New York Times raised doubts about the Israeli army's account of the incident.

Lebanese Front

Hezbollah targeted Israeli sites and downed a drone, while Israeli aircraft conducted raids in southern Lebanon. Hezbollah claimed to have hit an Israeli force and soldiers in settlements.

American Aid

President Joe Biden announced US plans for an airdrop of food aid to Gaza to address the worsening hunger crisis. Efforts are being made to secure a ceasefire for more aid delivery.