Saturday, February 22, 2014

The Financial Crisis in America

News agencies reported that the U.S. House of Representatives approved on 11/2/2014 CE to raise the U.S. debt ceiling until 15 March 2015.
America witnesses today an unenviable economic and financial situation, the U.S. economy is slowly bleeding ... The United States began its fiscal year (the first of October 2013), with the closure of the government institutions because of the dispute over the budget between the Senate and House of Representatives, in which 850 thousand employees were forced to take unpaid leave. In order to avoid declaring bankruptcy, Congress in October 2013 raised the debt ceiling to 16.7 trillion dollars until February 27, 2014. This was just a postponement of the intractable financial crisis in America. American warnings have increased regarding the failure of Washington to pay the debt, which would be a precedent and a devastating disaster, with repercussions may be more serious than the financial crisis in 2008. In the summer of 2011, a similar political situation regarding the debt ceiling took place and paralyzed Washington, prompting Standard & Poor's, the credit rating agency, to strip the United States of AAA rating.
These successive financial crises are not the first of its kind and will not be the last, as long as the White House gang, the servants to the owners of financial capital in Wall Street, are not afraid to be accounted nor punished, no one in the world will expose it, and puts an end to the policy of intimidation and terror allowing America to live like a parasite that suck the blood of the victims ... America depends on the largest military force on the earth, backed by an annual budget of $800 billion, which it imposes on the world in order to fund its own greed and cravings... It is in this does not differ much from the British colonial policy in its heyday in the nineteenth century. The economies in the capitalist system of the colonial powers flourish from plundering the riches of the world and enslaving its peoples buy military force, hiding sometimes behind the "soft power" of diplomacy and economic and financial policies whereby fates of people are in the hands of speculators in the financial markets in the capital's markets, whether in America or in Europe.
Previously the governments of the U.S. have raised the debt ceiling 74 times since 1962. This is just an escape from the treatment of the root of the problem caused by spending growth without funds covering costs, resorting America to the colonial policy of imposing its currency (the dollar, which has lost 97% of its value over the past century), the global currency for international trade, and making other countries finance the U.S. deficit by buying bonds of the U.S. Treasury, with the promise to pay the financial claims at a later time will never arrive. As long as America has the military superpower upper-hand, no one in the world will dare to stand on its way. This is nothing more than a cowboy policy which is based on the logic of force and in the looting of the wealth of others.
Each time, the American politicians lack the long term vision, and do not care that they are in evading the financial claims by raising the debt ceiling (which exceeded 17 trillion dollars, more than the gross national product, which is 16 trillion dollars) and their resorting to a policy of printing paper, which they call dollars is causing inflation to rise, and the growing debt on future generations, but they are only concerned with the next elections and not the flood that will follow.
The next generations will have to shoulder the burden of the policies of the foolish American politicians, and the peoples of the world that suffer hardship and misery and work day and night and give up their wealth for the sake of the leisure of the gangs of finance of Uncle Sam, which does not contain a definition for justice and truth, but his dictionary is of a cowboy based intimidation and terror. This manipulation by the U.S. of the fiscal policy will cause a financial disaster for the emerging economies such as Turkey, Indonesia and others. The U.S. financial policies attract capital to its financial markets to finance its debt, and that means the departure of investors from emerging markets, this drives the governments of Turkey and Indonesia, and elsewhere, to raise interest rates in an attempt to attract capital which means to raise the cost of domestic debt, or be exposed to the pressures of the local currency speculators which will produce a financial meltdown, as in East Asia in 1997.
In short, the reality of the world today that it suffer under the hell of the gangs of capital controlling the capitals of colonialism, the only way out of this misery for humanity, is by seeking the shelter of the Islamic economic system which is based on the system of gold and silver, and prevents financial speculation, and it also prevents usury of all kinds.
O Ummah of Islam, the best nation brought to mankind
It is time that you demolish the thrones of rulers, slaves of Western colonialism, and work to establish the Khilafah that liberates people from the injustice and oppression of Capitalism and brings them to the justice and mercy of Islam.
أَفَحُكْمَ الْجَاهِلِيَّةِ يَبْغُونَ وَمَنْ أَحْسَنُ مِنَ اللَّهِ حُكْمًا لِقَوْمٍ يُوقِنُونَ
"Then is it the judgement of [the time of] ignorance they desire? But who is better than Allah in judgement for a people who are certain [in faith]"
(Al-Ma'ida:50)
Osman Bakhash
Director of the Central Media Office of Hizb ut Tahrir
Monday, 17 Rabii' II 1435 AH
17/02/2014 CE
Issue No : 1435 AH /016

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