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Showing posts from September 18, 2011

Islamic finance-The only SOLUTION

For more than a quarter century, Islamic banking and finance has been developing from an idea and an expression of Muslims’ distinct identity to a mature and fast-growing industry. With the latest global financial crisis, Islamic banking and finance became one of the most debated issues around the world. Because all that is different in their shape and reaction is attractive, Islamic banks have been analysed since the onset of the crisis in order to identify their characteristics, sources of resilience, weaknesses, potentials and opportunities for growth.

The Islamic Banking System is an important component of Islamic finance. Islamic finance has unique features because its foundation is laid on the principles and rules of Islamic Law (Al-Shari’ah), which states that everything is owned by Allah and man has only been permitted to use it (Chapra 2000). Accordingly, the use of funds is governed by several regulations.

In a general first assessment of Islamic banking, the risk and equit…

Recent events in the Global Economy hint towards the failure of the American Empire

After America's credit downgrading and the spectacle of deadlocked Congress, Alex Spillius in Washington argues that the US still has the power to solve its problems.

Did the American empire end last week? It is tempting to say yes.

Standard & Poor's decision to remove the world's economic superpower from its list of risk-free borrowers was a somehow fitting climax to a sorry chapter that exposed Washington's paralysis for all to see.

As much a political critique as a financial judgment, S&P's statement condemned the "effectiveness, stability and predictability of American policymaking", and indicted the gridlock that made a credible deficit-reduction deal impossible.

The agency had agreed with the Obama administration that $4 trillion needed to be saved from the $14.3 trillion debt over ten years. But the 11th hour deal to raise the borrowing limit and reduce the deficit that pulled the US back from the brink of a first ever default saved "o…