On Sunday George Soros was interviewed on CNN for his opinion on the present financial crisis. George Soros said that the days of the United States borrowing from China were over. The position of the United States as financial leader of the world is now compromised. The US debt load is going to dramatically increase in the coming months. Just too much growing leverage. The middle class will be squeezed out and down. The era of the past 30 years are over. A new world order is now being established. >>>>>
“I think foreign companies realise there are alternatives and they will explore more, and look at new initiatives at Islamic banks to draw more capital and resources to service their clients. This is certainly growing,” Pitsuan told Arabian Business on the sidelines of the conference. >>>>>
There are mounting fears that Ukraine, Kazakhstan, and Argentina could all now slide into a downward spiral towards bankruptcy, while western banks exposed to property bubble across Eastern Europe have seen their share price crushed.
The markets are pricing an 80pc risk that Ukraine will default, based on five-year credit default swaps (CDS) – an insurance policy on a country being able to pay its debts. >>>>>
For a rational solution to this, go to the next post.
In response to: Replace capitalism with Islamic financial system: cleric
“The collapse of the capitalist system based on usury and paper and not on goods traded on the market is proof that it is in crisis and shows that Islamic economic philosophy is holding up,” said the Egyptian-born, Qatar-based cleric.
“The Western system has collapsed and we have a complete economic philosophy as well as spiritual strength,” he said at Sunday’s opening of a conference on Jerusalem. >>>>>
In an economic “system based on usury and paper and not on goods traded on the market” the borrower, (the average Westerner), is in a state of crisis from the signing of the contract. The primary reason why many Western experts oppose this, is not because of the name Islam, but because Muslims are amongst the primary whistle-blowers about the inevitability of unjust economic enslavement of the average person.
Those who stand to benefit in a system that practices usury/interest are amongst the primary public-relations representative and co-conspirators of establishing a state of Islamophobia.
Take away the label of Islam, and deal with pure mathematics, logic, social conscience and justice — and the Islamic economic system is no doubt superior to capitalism and communism – put together.
Like the term ‘democracy,’ ‘capitalism’ is purported as great, but in practice is not even applied by the people who champion the cause.
Such interventionism is a regular feature of state capitalism, though the scale today is unusual. A study by international economists Winfried Ruigrok and Rob van Tulder 15 years ago found that at least 20 companies in the Fortune 100 would not have survived if they had not been saved by their respective governments, and that many of the rest gained substantially by demanding that governments “socialise their losses,” as in today’s taxpayer-financed bailout. Such government intervention “has been the rule rather than the exception over the past two centuries”, they conclude. >>>>>
But President Susilo Bambang Yudhoyono and his economic team have sought this week to reassure investors that the economy is in much better placed now to weather any crisis.
The chairman of Indonesia’s capital market watchdog Fuad Rahmany says they suspended the stock exchange because the market had become panicky and irrational. >>>>>
I am not a conventionally religious man, or even a very superstitious one, but I do wish George W. Bush would stop asking God to bless America. Every time he does, we seem to be visited with another plague, suggesting divine wrath over our president’s evil ways. How else to explain the persistent calamity that has marked this administration: a pointless but very costly war over nonexistent Iraqi WMD, the destruction by flood of New Orleans, the betrayal of the nation by the moneychangers – from Enron to Goldman Sachs – who Bush welcomed into the temple of the White House? >>>>>