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man‐made policies have encouraged poor use and wastefulness

Last year the world produced a record 2.1 billion tonnes of grains, an increase of 5% on the year before. What is most shocking is that although a total 2.3 billion tonnes of food will be produced in 2008, only 1.5 billion is expected to be consumed. This highlights globally the failure to make better use of existing food produce and to distribute it more efficiently and fairly. Whilst some food stock will inevitably be destroyed due to poor storage, the fact remains that man‐made policies have encouraged poor use and wastefulness. The European Union has for many years given its farmers generous subsidies under its Common Agricultural Programme (CAP). The result has been that overproduction has taken place where excess ‘food mountains’ have been deliberately destroyed in the past. Where they have been have given to the poor in other parts of the world, they have been dumped at lower than the production cost, ruining local producers.

America too provides its farmers generous subsidies. The result is that whilst the IMF and the World bank force third world countries to end any support they may give to their farming industry under the pretext of encouraging efficiency, market liberalisation and structural reforms, Western farmers derive a major portion of their income from government subsidies. The sudden surge in food prices was due to speculators who have sought to diversify investments away from bonds, securities and mortgage related debt. After the credit crunch these were regarded as very bad investments. With money being diverted into buying stocks of wheat, corn and oil at some point in the future, using futures’ contracts, this speculation is a self feeding cycle of frenzied increases.

In the same period Central Banks led by the Federal Reserve Bank of America pumped hundreds of billions of dollars into the Western banking system to save their banks and their financial system. This is one of the consequences that America has utilized ever since it de‐ linked it's currency from the Gold standard. Western governments chose to bail out these banks by printing and lending them money, an expansionist monetary policy, rather than risk the inevitable political consequences of these banks going bankrupt (As was seen with Bear Stearns and Northern Rock). The result of this increase in the global money supply has been global inflation. This in turn naturally forced up the prices of goods and services denominated in dollars as there was more dollars in circulation. As increase in money supply leads to the devaluation of the currency i.e. its purchasing power reduces. All commodities including food are denominated and traded in dollars on the world’s financial markets.

With the amount of dollars circulating the financial markets soaring, the current crisis has been exasperated by the fact that most countries around the world, particularly poorer third world countries, hold foreign currency reserves mostly in dollars. As the purchasing power of the dollar has decreased, the worth of these dollar reserves has eroded, whilst at the same time food prices have increased. Countries which rely on importing food grains have been hit twice, in order for them to import food they would need to use their dollar reserves which have lost their purchasing power (i.e. they would need to use more dollars to buy the same amount of food), They would in all cases need to buy more dollars from the foreign exchange markets to by food which would mean they would need to sell their local currency to gain dollars (affecting their own exchange rate) and then buy food which is continually rising in price. As a result prices for food and other imported goods and services have increased in proportion to the inflationary effect.

The sub‐prime crisis has been exported to the poorest parts of the world by the US in order to save their financial system from ruin by literally printing more money. The media has been concentrating on the immediate causes, which has avoided a discussion on the deeper issues and causes. A large chunk of land goes into producing products that are unnecessary or excessive in their production, such as tobacco and sugar. Also 80% of the world’s production is consumed by the wealthiest 20%. The global food shortage in the coming months will further intensify as the increase in money supply slowly distributes itself through the global economy. As Western governments continue to pump money into their failed financial systems, the full effects of inflationary pressures are yet to be felt.
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the greed of speculators knows no bounds

The overall reserves‐to‐production ratio ‐ an indicator of how long proven reserves would last at current production rates – outside of the Middle East is about 15 years comparing to roughly 80 years in the Middle East. It is for this reason that George Bush said in April 2007, US dependence on overseas oil is a "foreign tax on the American people ." This is one of the most volatile regions in the world; and its importance will only grow stronger. The US is currently very worried about political developments in this region. A return of the Khilafah as predicted by several think tanks can potentially cripple America’s economy, at a time where its political leverage is at its weakest since the end of the cold war. The Oil price crisis once again highlights that the greed of speculators knows no bounds. It was greed that drove many banks to lend sub prime loans to individuals with no ability to repay the loans. It is again greed that is driving speculators to bet on Oil prices with no intention of actually purchasing the oil in order to make profits on the price differences – whatever the affect on the world. Such speculators drove the bubble, and then moved to the sub prime bubble once it burst and now they are pouring into the last remaining sector commodities – it is for this reason oil prices have reached astronomical levels, well beyond the reach of those who need it most.

The Western world consumes 50% of the 21st century’s most important resource, it produced less then a quarter of it. It is over consumption rather then China and India that are causing the crisis. The US specifically produced only 8% of the world’s oil but consumes 25% of it. Global Food Crisis As the Credit crunch crisis matured another crisis hit the headlines. The soaring cost of food on the international markets raised the spectre of global inflation. The price of wheat alone has increased an astonishing 120% since August 2007, with the price of rice increasing by 75% since February 2008. With the Western world reeling from the collapse of the housing bubble crisis, the global food crisis would spell disaster due to food being essential for life.

Western policy makers have refused to link the credit crunch with the food crisis as many investment banks and speculators moved out of the sub‐prime sector and into commodities to shore up their losses and inflate another bubble to replace the housing bubble. To deflect attention several reasons were put forward by Western politicians’ and the mainstream Western media to explain the sudden price surge. The most commonly offered explanation was that food demand has increased globally over the last few years. In particular they cite the growing economies of China and India as having tightened global supplies of wheat, rice and corn; as they grow more affluent they are increasing their demand for meat based products for which these food stuffs are essential. They also cited poor harvests recently, particularly in Australia the worlds number two wheat producer, due to the ongoing drought the country is experiencing.

Another reason put forward is that the wheat fungus striking parts of Eastern Africa, Yemen, Iran and Pakistan. These increases together with the increase in Corn price have been blamed on the growth in countries such as Brazil and America using land to grow Corn for bio‐fuel derived Ethanol as a substitute for petrol. Thus, according to their argument, the land that could be used to grow wheat and rice is being lost. Although food prices have been rising these reasons in no way explain the sudden surge in prices globally in such a short space of time. Despite all the claims about corn being used for bio‐fuel, corn prices have only increased by a relative modest 31% as compared to the triple digit increases in wheat and rice prices in 2008. The populations of India and China have not increased to their present size in the space of a year. Neither have they grown proportionately affluent in the same space of time. China's economic growth has been underway for the last 30 years since it first started to reform its centrally controlled economy. India has also only introduced free market reforms since the early 1990s. Moreover global food production has increased twice as fast as the increase in the world population in the last 25 years.
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Turkey permits its property to be utilized by the adversary to execute different Muslims

Turkey is willing to permit its land to be utilized by the adversary to kill different Muslims while 18 month old Ali and his dad smoldered alive in Palestine were disregarded

On tenth June 2015 the first clump of US F-16s touched base in Turkey to battle ISIL (Source: Agencies)

The United States has conveyed about six F-16 warplanes to Turkey to help operations against the Islamic State of Iraq and the Levant group (ISIL), the US mission to NATO has said.

The sending of warplanes at the Incirlik Base is the first since Ankara and Washington came to an arrangement two weeks prior to offer access to the US and the global coalition in the battle against ISIL in Syria and Iraq.


It is not the first time Turkey is permitting the adversary of Allah to utilize its base to dispatch assault to the individuals in the Muslims lands.

The choice was activated as a reason, after various assaults inside of Turkey by ISIS.

Be that as it may, Turkey ought to have realized that ISIS is the political apparatus utilized by U.S. to protect Assad's administration and to prevent the Islamic revolution in Syria.

It is clear that ISIS is always attempting to make clashes and unsteadiness in the zone and as an outer power to the encompassing nations to join the partnership.

Already U.S. has neglected to achieve Syrian support for coalition bunches they made until ISIS began to exist. U.S. begun to utilize the thought of an "Islamic State" for Syria and Iraq so that Muslims begin battling one another as to ensure the power of their country state. It was a U.S. arrangement for the Kurds in the Turkish fringe to include against ISIS when they were assaulted. It is a comparative arrangement to maneuver Turkey in into the conflict when ISIS dispatched the assault to Turkey and U.S has succeeded. It will look great to the Turkish individuals when this is utilized as a strong justification to help U.S battling ISIS.

Presently turkey is turned out to be a piece of the U.S alliance together to battle her "companion" ISIS. For the sake of the nation state, Turkey is willing to slaughter different Muslims and help U.S to fortify the ISIS existent. The Incirlik base will be utilized by US and the partnership to dispatch assault not to ISIS but rather to the range of Islamist group or innocent Muslim individuals in Syria. Assad administration will welcome this move since this will help to fortify his position

Why goodness why Turkey's leader, would you say you are willing to bow your head to help the adversary? Constantinople was freed by Sultan Muhammad Al-Fateh, the focal point of Ottoman Empire, the populace of Sultan Sulaiman Al-Qanuni and the son of Sultan Abdul Hamid II whose always securing Muslim area and the individuals, not in any case willing to surrender to the foe. Why would it be a good idea for you to?

Recall that you have the force and obligation to secure the Muslim or else you will be questioned in the day after.

وَٱلۡمُؤۡمِنُونَ وَٱلۡمُؤۡمِنَـٰتُ بَعۡضُهُمۡ أَوۡلِيَآءُ بَعۡضٍ۬‌ۚ يَأۡمُرُونَ بِٱلۡمَعۡرُوفِ وَيَنۡهَوۡنَ عَنِ ٱلۡمُنكَرِ وَيُقِيمُونَ ٱلصَّلَوٰةَ وَيُؤۡتُونَ ٱلزَّكَوٰةَ وَيُطِيعُونَ ٱللَّهَ وَرَسُولَهُ ۥۤ‌ۚ أُوْلَـٰٓٮِٕكَ سَيَرۡحَمُهُمُ ٱللَّهُ‌ۗ إِنَّ ٱللَّهَ عَزِيزٌ حَكِيمٌ۬
“The believing men and believing women are allies of one another. They enjoin what is right and forbid what is wrong and establish prayer and give zakah and obey Allah and His Messenger. Those – Allah will have mercy upon them. Indeed, Allah is Exalted in Might and Wise.”
(Qur'an Surat At-Tawba 9:71)

Another Islamic Propagator Martyr in the Dictator's Jails in Uzbekistan

We got the news of the suffering of one of the Islamic Dawah bearers in Uzbekistan, an individual from Hizb ut Tahrir, Sultan Murad Musaev, who was conceived in 1969. Two months prior to the end of his jail term he was exchanged from the Confinement 64/47, in the city of Kizilleteba in Novosqui Area to Tashkent Jail (Sanjurod, Prisoner Healing center K E N-Specialist). The relatives of the martyr have said that when they went to him in the no so distant past, he was healthy, yet the martyr let them know a couple of days before his passing amid a phone discussion that he was given some type of medication. This is not the first run through the fierce Karimov administration led pharmaceutical tests on Hizb ut Tahrir detainees.

Messenger of Allah ﷺ said:
«سيد الشهداء حمزة بن عبد المطلب، ورجل قام إلى إمام جائر فأمره ونهاه فقتله»
“The master of martyrs is Hamza Bin Abdul Muttalib, and the man who stood in the face of the unjust ruler (Imam) and ordered him (to do good) and forbade him (from doing evil), and he was killed by him (the ruler).”
After the body was given over to his family, the security system apparatus demanded surging the entombment of the martyr, and not to distribute any data about the passing of their son, furthermore recorded the internment strategies and filmed those the orderlies of pretty nearly 60 individuals.

We offer the group of the martyr our sympathies requesting that Allah All-powerful acknowledge our brother in the gathering of martyrs, and that He سبحانه وتعالى bestows on his family and relatives patience, determination and comfort, and to respect him to be in the company of the Prophets, Devotees, and martyrs and the righteous in the most astounding piece of Heaven (Al Firdaous). Furthermore, to hurry the day of Karimov's account and his partners in crime, Karimov who built up a resentful administration against individuals and Islam in Uzbekistan, which kills and torments Muslims consistently. Might Allah shake his entity and send down His سبحانه وتعالى punishment on him and on the individuals who tailed him on the plan in the world and the Hereafter.

وَلَا تَحْسَبَنَّ اللَّهَ غَافِلًا عَمَّا يَعْمَلُ الظَّالِمُونَ إِنَّمَا يُؤَخِّرُهُمْ لِيَوْمٍ تَشْخَصُ فِيهِ الْأَبْصَارُ * مُهْطِعِينَ مُقْنِعِي رُءُوسِهِمْ لَا يَرْتَدُّ إِلَيْهِمْ طَرْفُهُمْ وَأَفْئِدَتُهُمْ هَوَاءٌ
“And never think that Allah is unaware of what the wrongdoers do. He only delays them for a Day when eyes will stare [in horror]. Racing ahead, their heads raised up, their glance does not come back to them, and their hearts are void”
(Qur'an Surat Ibrahim: 42-43)

The future of energy security will play a key role in the global balance of power

The future of energy security will play a key role in the global balance of power. These factors are four: 1. The Eastern threat ­ The Middle East is gradually shifting from being a uni‐polar region in which the US enjoys uncontested hegemony to a multi‐polar region. The US will face more competition from China and India over access to Middle East oil. Soaring global demand for oil is being led by China's continuing economic boom and, to a lesser extent, by India's rapid economic expansion. Both are now increasingly competing with the US, the European Union and Japan for the lion's share of global oil production. The demand for greater oil is affecting America's ability to pull itself out of its downturn and is creating inflation across the Western world. If China at any time in the future should develop its political will and ambition, it is in a relatively strong economic position to substantially weaken America. 2. The Russian threat ‐ Russia, the leading producer of natural gas and one of the leading oil producers, is the global winner. The relationship between the European Union and Russia is now dominated by Russia and will in the future make Europe dependent on Russian oil and gas.

The oil shocks of the 1970s had different effects on different European countries. Britain had some North Sea oil and the prospect of more, as did Norway. Germany and France had little or no oil of their own. Differential shocks in the coming period of oil shortages will make it harder to maintain the Euro‐zone. Vladimir Putin has already used oil and gas as a diplomatic weapon against the European states, which have had to fall into line in June 2007 after making grandiose demands against Russia. Russia even made veiled threats against Britain during the famous spy poisoning case. Russia has also in the last year stopped supplying energy to its neighbours to quell dissent and ensure political allegiances. Unlike China and India, Russia has a history of political strength and maturity, and the evidence over the last two years is that Russia has begun re‐inventing itself as a regional power, after winning back Kazakhstan and Uzbekistan from the American grip and managing the stop the influence of the three revolutions in that region.

 America is becoming increasingly worried about the growing economic and political influence of Russia. 3. Oil and Petrodollars. One of the achievements of the US in the 1970's was to peg the price of oil to dollars. This meant that oil transactions are carried out in dollars only. This has allowed the US to maintain the dollar as the world premier currency and the currency of choice for foreign reserves. However one of the key factors behind the rise in the price of oil is the devaluing of the dollar. Trading countries require more dollars for oil simply because the dollar is worth less ‐ this would have increased the price of oil regardless of the increasing demand for it. Today the European Union led by Britain and Germany are increasingly calling for pegging oil to the Euro; thereby stabilising the price of oil, and giving a stable revenue to oil producing countries.

However, this severely impacts the dollar as a currency and if this was to happen would perpetuate America's economic crisis as the dollar would devalue even more. 4. The importance of the Middle East. Despite current supply shortages of oil around the world and the future restrictions, the importance of the Middle East, will not lessen. In fact it will become the most crucial area in the world. This is because 61% of the world’s oil reserves are in the Middle East. “Proved" oil reserves are those quantities of oil that geological information indicates can be with reasonable certainty recovered in the future from known reservoirs. Of the trillion barrels currently estimated only 39% are outside the Middle East. Today, 61% of global oil reserves are in the hands of Middle Eastern regimes: Saudi Arabia (22%), Iraq (11%), Iran (8%), UAE (9%), Kuwait (9%), and Libya (2%). Currently of the 11 million barrels per day (mbd) the US imports 3 million barrels per day are from the Middle East. But in the years to come dependence on the Middle East is projected to increase by leaps and bounds. The reason is that reserves outside of the Middle East are being depleted at a much faster rate than those in the region.
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main factors driving the oil crisis

Mark Lewis from Energy Market Consultants explained in a BBC interview “We really don't know what the fundamentals are doing at any point in time; the markets are looking for signals from the fundamentals. Some of them are irrelevant, some of them are wrong, some of them are meaningless, but they affect prices nevertheless.” Sean Cronin, editor of Argus Global Markets explained “When the New York oil price broke through $100 a barrel for the first time at the start of 2008, one of the factors cited as being behind it was the assassination of Benazir Bhutto in Pakistan on 27 December 2007, that didn't strike us as making any sense at the time.” Hence there is a difference between the factors that raise oil prices because they affect sentiment and the ones that genuinely affect supply and demand for oil. This means hedge funds and the large investment banks in reality trade on rumour, not fact.

The speculation by hedge funds and Investment banks attempting to shore up their losses have been the main factors driving the oil crisis. There is however a number of other factors that have affected oil prices and will continue to shape the future geo‐political scene Refinery Capacity A major factor which will add to the Oil crisis is the fact there are little plans to develop Oil refineries. An oil refinery is an industrial process plant where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, heating oil, kerosine, and liquefied petroleum gas Oil refineries operate on a 'just‐in‐time' basis; this has affected the building of new refineries. The huge costs and the long lead times for building them affects decision making and as a result they are built only when they’re needed. Both oil and gas prices were relatively low during the 1980’s and 1990’s; hence very few refineries were built. The surge in prices in the late 1990’s was not expected to last hence refinery capacity did not increase ‐ since to finance refineries a 25 year forecast of supply and demand is used.

The rise of India and China happened too fast for an increase in refinery capacity; this is why over the past few years there have been refinery bottlenecks, which have contributed to the increased price in refined products such as gasoline, naphtha and jet fuel etc. Although Oil production has continued to increase and although consumption is set to rise, for the last 30 years very few refineries have been built across the world. The region that has the largest oil reserves (61%) and pumps 31% of the world’s oil – the Middle East, only refines 8% of it. 76% of the worlds oil is refined in regions with very little oil, but increasing demand for oil. The US refines 20% of the world’s oil, whilst Europe refines 22% of the world’s oil and the Far East refines 27% of the world’s oil. Hence even though the Muslim world has the lions share of oil, in essence this is useless considering the inability to refine it, for this reason most of the oil is piped to the Far East and Europe to be refined, then the products are sold to the Muslim world. The primary motive behind the lack of US refinery new builds was due to the low price of oil, new refineries would have been an expensive venture eating too much into profits. In the 1980s and 1990s, the fashion for American refineries was not to build more, but to close existing ones.

In 2001, Senator Ron Wyden authored a comprehensive report on the state of the US refining industry. He noted that between 1995 and 2001 there were a total of 24 refinery closures in the United States. Wyden uncovered several memos and internal documents from major oil companies that charted the way that capacity in the US refining industry was reduced to maintain higher profits. In Europe not only have no new refineries been built for two decades but there are no plans to build any in the future. There are no firm expansions in refining capacity, not just in the US but in North America, South America and Europe. All of the expansions are in the Middle East and Asia, by the time they come online oil consumption would have drastically increased. This has added to the price hike of oil and will play a key role in the future. Energy Geopolitics Although the current crisis has in large part been due to speculators moving out of the sub‐ prime crisis and into commodities there are however a number of Geopolitical factors and trends that will affect oil prices in the future. The age of oil, produced its own technology, its balance of power, its own economy and its pattern of society.
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current weakness in the world’s stock markets

That is, the rights to a single barrel of oil are bought and sold many times over, with the profits or losses going to the traders and speculators. Given the current weakness in the world’s stock markets, the falling value of the dollar, and the credit crunch caused by the sub‐ prime mortgage crisis in the US, speculators are putting their funds into such safe havens as gold and oil, spiking up their prices. The large purchase of crude oil futures contracts by speculators have, in effect, created an additional demand for oil, driving up the price of oil for future delivery in the same manner that additional demand for contracts for the delivery of a physical barrel today drives up the price for oil on the spot market. As far as the market is concerned, the demand for a barrel of oil that results from the purchase of a futures contract by a speculator is just as real as the demand for a barrel that results from the purchase of a futures contract by a refiner or other user of petroleum.

 Speculation Driving the Oil Crisis A June 2006 US Senate Permanent Subcommittee on Investigations report on “The Role of Market Speculation in rising oil and gas prices” noted, “... there is substantial evidence supporting the conclusion that the large amount of speculation in the current market has significantly increased prices” One geo‐political expert confirmed ‘Today 60% of crude oil price is pure speculation driven by large trader banks and hedge funds and with the development of unregulated international derivatives trading in oil futures over the past decade, the way has opened for the present speculative bubble in oil prices.’ Hence when speculators purchase a contract to buy oil at a given date, they do not actually buy or sell the oil but merely buy and sell the right and take the price differentials, physical oil is not traded. This is what has caused oil to reach astronomical levels; it has led to riots and inflated prices well beyond the common person.

This is why it is no surprise to see in a May 6th 2008 report from Reuters that Goldman Sachs announced oil could in fact be on the verge of another “super spike,” possibly taking oil as high as $200 a barrel within the next six to 24 months. A large number of futures contracts where taken out as soon as the news went public. That headline, “$200 a barrel!” became the major news story on oil for the next two days. Many speculators followed with their bets? A common strategy speculators are using desperate for more profitable investments amid the US sub‐prime disaster is to take futures positions selling ‘short’. By selling a commodity or any financial instrument short in essence this is betting on the price of the commodity or financial paper to fall. Short‐sellers do not own anything they sell ‐ they borrow them from pension funds and insurers. A common example is where; a hedge fund would borrow a million shares in Megabank for a fee. It would then sell those million shares at the prevailing market price of £8 a share, making £8 million in total. The hedge fund is betting and hoping that Megabank's share price would then fall. If it falls ‐ to £4 a share the hedge fund then buys a million shares for £4m and returns them to the lender.

This means that the hedge fund has banked a real cash profit of £4m. Lehman Brothers, the investment bank, has estimated that fuel is 30% overpriced because of an influx of money into the oil market from investment funds. It believes that hot money accounts for between $20 to $30 of the recent increase in oil prices and that about $40 billion has been invested in the sector so far this year — equal to all the money pumped into oil last year. Understanding the ‘Fundamentals’ Most analysts and experts continue to interpret the price of oil price movements due to fundamentals – in the oil industry the fundamentals are factors that influence the supply of, and demand for, oil. Things such as the increasing demand from China and India, as well as fears that a stand‐ off between the US and Iran could interrupt supplies are considered as having a bearing on oil prices. Alternatively, financial factors may be at work, such as a hedge fund having to sell a particular oil contract so it does not end up receiving a tanker‐load of oil. However most fundamental information is not freely available.
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thousands of oil transactions daily

Crude oil comes in many varieties and qualities, depending on its specific gravity and sulphur content which depend on where it has been pumped from. Because there are so many different varieties and grades of crude oil, buyers and sellers have found it easier to refer to a limited number of reference, or benchmark, crude oils. Other varieties are then priced around this, according to their quality. Brent is generally accepted to be the world benchmark, although sales volumes of Brent itself are far below those of Saudi Arabian crude oils. Brent is used to price 66% of the world's internationally traded crude oil supplies. In the Gulf, Dubai crude is used as a benchmark to price sales of other regional crudes into Asia. In the United States, the benchmark is West Texas Intermediate (WTI).

This means that crude oil sales into the US are usually priced in relation to WTI. However, crude prices on the New York Mercantile Exchange (Nymex) generally refer to ‘light, sweet crude.’ This may be any of a number of US domestic or foreign crudes but all will have a specific gravity and sulphur content within a certain range. Slightly confusingly, the Organisation of Petroleum Exporting Countries (OPEC) ‐ a cartel of some of the world's leading producers ‐ has its own reference. Known as the OPEC basket price, this is an average of seven ‐ always the same seven ‐ crudes. Six of these are produced by OPEC members while the seventh, Isthmus, is from Mexico. OPEC aims to control the amount of oil it pumps into the marketplace to keep the basket price within a predetermined range. In practice, the price differences between Brent, WTI and the OPEC basket are not large. Crude prices also correlate closely with each other. Due to the nature of oil requiring extracting and refining participants commonly use futures contracts for delivery in the following month. In this type of transaction, the buyer agrees to take delivery and the seller agrees to provide a fixed amount of oil at a pre‐arranged price at a specified location.

Futures contracts are traded on regulated exchanges and are settled (paid) daily, based on their current value in the marketplace. Oil price crisis Although many experts continue to cite fundamentals are causing the price of oil to peak, this is no way explains the sudden hike in Oil prices, China and India’s demand for oil has been known since the early 1990’s as well as the worlds continuing appetite for oil, this in no way explains the sudden hike in prices. The price of oil has been on an upward trend since the beginning of the 21st century and the driving engine for this has been speculation. With all the economies that have adopted Capitalism the financial sector is the driving engine which generates wealth. However wealth is not generated by producing real goods, goods which are made in factories, people are employed and then paid a wage.

Most of the wealth generated in Capitalist nations is from the financial sector that doesn’t actually produce anything but provide a service where one can bet on the future price of items. Capitalism was named after its most prominent aspect – Capital, the accumulation of capital and making money out of money is a lethal cocktail when greed and consumption are added – all these are the basic aims Capitalism attempts to achieve. In this endeavour Capitalism promotes the securitisation (trading) of any commodity whether it is real or imagined. Originally the stock market was created to bet on the future movement of share prices as well as the performance of a company. Thereafter the derivatives market was created which is a casino where betting takes place on the movement of the stock market and in the last two decades all commodities can be speculated upon. On March 30th 1983 Nymex introduced futures in petroleum. That meant oil prices being fixed daily, determined by the give‐and‐take of Nymex traders, with buyers and sellers monitoring their computer screens worldwide. A futures contract is a promise to deliver a given quantity of a standardised commodity at a specified place and time in the future. It is a derivative, not the real thing. There are thousands of oil transactions daily, but few of these shipments are delivered. Instead, they are constantly re‐traded, based on the market price of the moment.
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problems in raising funds in the money markets

As the credit markets froze Northern Rock requested the Bank of England, as lender of last resort in the UK, for a liquidity support facility due to problems in raising funds in the money markets. This created a run on the bank as depositors lost all confidence in the bank leading to queues developing across the nation as depositors withdrew their cash in panic. The British government took the controversial decision to nationalise Northern Rock as its collapse would have inevitably spread to other banks as panic stricken depositors attempted to withdraw their savings ‐ the whole banking sector would have collapsed. A similar scenario occurred in March 2008 with Bear Stearns one of the world’s largest investment banks as it was forced to write‐off three of its investment funds in the sub‐prime market. Bear Stearns's problems escalated when rumors spread about its liquidity crisis which in turn eroded investor confidence in the firm. With the housing sector the driving engine for the US economy for the last decade; its collapse will have severe repercussions across the global economy as much of the world’s banks placed their money through complex securitisation in the sub‐prime market.

With the US economy considered already in recession this will have world wide affects as the US economy drives the world economy due its huge consumption. Oil: The Crude Facts The US administration threw billions of dollars at its banking industry who suffered huge losses due to the housing market crash. As the credit crunch has matured most banks to shore up their losses moved into commodities. The price of oil crossed the $100 a barrel Mark in January 2008 – the highest since oil was first discovered over 100 years ago. The importance the black stuff plays in the modern economy is so crucial that slight changes in prices can affect economies. Today oil is used for numerous everyday products across the world, most commonly for powering combustion engines such as fuel oil, diesel oil and petrol. Oil is also used as fuel for heating and lighting (e.g. kerosene lamp).

The petrochemicals industry produces many by‐products such as plastics and lubricants. It also manufacturers solvents (alcohols) through oil, without which there would be no chemicals industry. The free flowing hydrocarbons allow many farming techniques and fertilizers. Hence small shifts in the price of oil have far reaching consequences. The fact oil prices shot through the roof at the same time the credit crunch matured has been publicly kept separate otherwise this would mean the housing bubble has been replaced by the commodities bubble. Oil Past and Present It was British naval power that brought Oil to the international scene. In 1882, Oil had little commercial interest. The development of the internal combustion engine had not yet revolutionised world industry. With Germany on the verge of shifting the global balance of power by developing its own oil propelled ship Britain began converting its naval fleet from bulky coal‐fired propulsion to the new oil fuel. WW1 brought to the international scene the importance of oil; it came to be seen globally as the key to military success. In an age of air warfare, mobile tank warfare, and naval warfare bulky coal‐fired propulsion gave way to oil.

Oil required only 30 minutes for ships to reach top speed compared to 4‐9 hours when coal was used, battleships powered by coal emitted smoke which could be visible 10 kilometres away whilst oil had no tell‐tale signs. The strategic advantage it gave was insurmountable and the British empires control of oil supplies become even more important given the fact that Great Britain had no oil supplies at the time. It was the capturing of the rich oil fields of Baku on the Caspian Sea denying vital supplies to Germany that resulted in the end of WW1 and German surrender. William Engdahl geopolitical expert outlined the importance of oil ‘rarely discussed, however is the fact that the strategic geopolitical objectives of Britain well before 1914 included not merely the crushing defeat of Germany, but, through the conquest of war, the securing of unchallenged British control over the precious resource which by 1919, had proved itself as a strategic raw material of future economic development – petroleum. This was part of the ‘great game’ – the creation of a new global empire, whose hegemony would be unchallenged for the rest of the century, a British – led new world order.’ Britain and France concluded a secret oil bargain (Sykes–Picot agreement) agreeing in effect to monopolise the whole future output of Middle Eastern oil between them. Oil Markets Crude oil, also known as petroleum, is the world's most actively traded commodity. The largest markets are in London, New York and Singapore but crude oil and refined products ‐ such as gasoline (petrol) and heating oil ‐ are bought and sold all over the world.
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Americans refinanced their homes

The mathematical models and simulations that the banks relied upon did not predict a scenario where defaults would become so numerous that even the top tier AAA‐rated tranches would be affected. Sub­prime market collapse As the housing sector continued to inflate due to the appetite for housing by Americans, the sub‐prime sector continued to also grow. Commercial banks entered what they considered a buoyant market that could only rise, many Americans refinanced their homes by taking out second mortgages against the added value to use the funds for consumer spending. The first sign that the US housing bubble was in trouble was on the 2nd April 2007 when New Century Inc the largest sub‐prime mortgage lender in the US declared bankruptcy due to the increasing number of defaults from borrowers. In the previous month 25 sub‐prime lenders declared bankruptcy, announcing significant losses, with some putting themselves up for sale.

This was in hindsight the beginning of the end. The crisis then spread to the owners of collateralised debt who were now in the position where the payments they were promised from the debt they had purchased was being defaulted upon. By being owners of various complex products the constituent elements of such products resulted in many holders of such debt to sell other investments in order to balance losses incurred from exposure to the sub‐prime sector or what is known as ‘covering a position.’ This second round of selling to shore up funds and meet brokerage margin requirements is what caused the collapse in share prices across the world in August 2007, with the market getting into a vicious circle of falling prices, leading to the further sales of shares to shore up losses. This type of behaviour is typical of a Capitalist market crash and is what caused world‐wide share values to plummet. What made matters worse was many investors caught in this vicious spiral of declining prices did not just sell sub‐prime and related products; they sold anything that could be sold. This is why share prices plummeted across the world and not just in those directly related to sub‐prime mortgages.

International institutes who poured their money into the US housing sector realised they will not actually receive their money that they loaned out to investors as individual sub‐prime mortgage holders were defaulting on mass on such loans this resulted in all those who took positions in the housing sector not being able to pay the institutes they borrowed money from. It was for this reason central banks across the world intervened in the global economy in an unprecedented manner providing large amounts of cash to ensure such banks and institutes did not go bankrupt. The European Central Bank, America’s Federal Reserve and the Japanese and Australian central banks injected over $300 billion into the banking system within 48 hours in a bid to avert a financial crisis. They stepped in when banks, such as Sentinel, a large American investment house, stopped investors from withdrawing their money, spooked by sudden and unexpected losses from bad loans in the American mortgage market, other institutions followed suit and suspended normal lending.

Intervention by the world’s central banks in order to avert crisis cost them over $800 billion after only seven days. Credit Crunch Banks across the world fund the majority of their lending by borrowing from other banks or by raising money through the financial markets. The borrowing between banks is undertaken on a daily basis in order to balance their books. As the realisation dawned that sub‐prime mortgage backed securities existed across the banking sector in the portfolios of banks and hedge funds around the world, from BNP Paribas to Bank of China. Many lenders stopped offering loans, some only offered loans at very high interest rates and most banks stopped lending to other banks to shore up their books. As no bank really knew how much each bank was exposed to the sub‐prime crisis many refused to lend to other banks, this led to a credit crunch whereby those banks who made the majority of their loans from borrowed money found credit was drying up. The first indication that this housing crisis was not just going to affect the US and would spread to the wider global economy was the effective collapse of Britain’s Northern Rock. Northern Rock was the 5th largest mortgage lender in the UK and funded its lending by borrowing 80% from the financial markets.
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no correlation between loan performance and compensation

Mortgage brokers did not lend their own money. There was no correlation between loan performance and compensation. Hence there were big financial incentives for selling complex, adjustable rate mortgages for such companies since this would earn higher commissions. In 2004 Mortgage brokers originated 68% of all residential loans, with sub‐ prime loans accounting for 43% of brokerages' total loans. Securitisation Most sub‐prime lenders then invented another way of making money in a sector which was already highly risky. Many lenders wanted to ensure they didn’t lose out at possible money making opportunities in the sub‐prime market and developed a number of complex products; this was achieved by breaking down the value of the sub‐prime mortgage market and various home loans into financial sausage meat ‐ just as wholesome as the real world equivalent ‐ and selling them on to other institutions.

Debt was sold to a third party, who would then receive the loan repayments and pay a fee for this privilege. Thus debt becomes tradable just like a car. Hence the ability to securitize debt provided a way for risk to be sliced and diced and spread, thereby allowing more mortgages to be sold. Since 1994, the securitisation rate of sub‐prime loans increased from 32% to over 77% of total sub‐prime loans. This process effectively increased the number of financial institutions with a stake in the sub‐prime mortgage market. This was allowed to happen due to the manner in which the original sub‐ prime loans were securitised. Many institutions including mainstream Wall Street investment banks became owners of collateralised debt obligations (CDO’s). These are bonds created by a process of deconstructing and re‐engineering asset‐backed securities.

This essentially works by providing investors with access to the regular payments received from debt payers in return for paying to have access to the CDO as well as managements fees. Thus Wall Street investment banks made investments in the cash flows of the assets, rather than a direct investment in the underlying asset. Many institutions also became owners of mortgage‐backed securities (MBS) which were created out of the repackaging of sub‐prime loans. In simple terms this is where a bank sells a set of debts as one product. In return for a fee the new holder of this debt obligation receives the regular loan repayments. In most cases such a debt forms part of a pool of mortgage based debts lumped together into a form of asset or bond, each with different degrees of risk attached to them. Thus owners of MBS’s actually do not know the source of where the payments are coming from or even which sectors they’re being exposed to. The MBS market is worth of $6 trillion currently, even more then US treasury Bonds. The difference between CDO’s and MBS’s is in the latter the property is placed as collateral.

In any event of a downturn in the housing market it would not only be the sub‐prime providers who would lose out, but now all those who purchased collateral products would also be exposed. Credit Ratings Most debt carry ratings which indicate the amount of risk they entail, such a task is undertaken by credit rating agencies as an independent verification of credit‐worthiness. The spotlight was originally thrown on the industry after the 2001 collapse of Enron ‐ a firm built on securitisation as well as the role of credit rating agencies in the financial crash in the Asian financial crisis in 1997. Charlie McCreevy, EU internal market commissioner commented: "What's the common denominator between Enron, Parmalat, special purpose vehicles, conduits and the like? They are off­balance sheet vehicles where the risk has theoretically gone with them: tooraloo, adiós." US home loans had been pooled and packaged into tradable securities by Wall Street banks, before being sold on to financial institutions around the world. As they were bought and sold, these mortgage‐backed securities were valued according to the ratings given to them by the credit rating agencies. Credit agencies (dominated by the big three; Moody's, Standard & Poor's and Fitch) classify the risk of these repackaged securities according to their exposure to risky markets. CDO’s were classified into tranches, the highest tranche was perceived to be very low risk and was often given an AAA rating – the same rating as high grade US Treasury Bonds. This is because in the event of default the first to incur the loss would be the lower tranches and not the top tier.
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more US citizens becoming indebted

A large chunk of consumer spending is on the purchase of homes and obtaining mortgages. Housing in turn fuels appliance sales, home furnishings and construction. In 1940 44% of US citizens owned their own homes, by 1960 62% of Americans owned their homes. Currently nearly 70% of all housing is owned by its constituents. The increase in home ownership has resulted in more and more US citizens becoming indebted, US household debt is $11.4 trillion (2006). This is a staggering figure considering 20% of US households now have more debt then assets. This debt represents enormous confidence in the future of the economy because the actual money doesn’t exist. This debt is seven times the amount of dollars in circulation (M1 Money Supply), which is only $1.3 trillion (2007). Lenders assume the money will exist when it comes time for people to repay their debts. The importance of the consumer to consume to the US economy was outlined by Richard Robbins expert in anthropology in his award wining book ‘global problem and the culture of capitalism,’ ‘a couple of days after the al Qaeda operatives crashed two planes into the world trade centre on September 11th US congress members met to plan a message to the stunned public. “We’ve got to give people confidence to go back outside and go to work, buy things, go back to the stores, get ready for thanksgiving, get ready for Christmas,” said one member of congress, echoing the message of the president ‘get out’ he said “and be active members of our society.” (CNN 2001).

‘The fact that after one of the most shocking events in US history government officials were urging citizens above all to shop and work is ample testimony the significance of consumption in the effective working of our economy and indeed for the whole society.” Creating the Sub­prime Market The Sub‐prime mortgage market differs from the prime (primary) market as it comprises all those people who do not meet the criteria for a mortgage in the mainstream market. The adoption of the Depository Institutions Deregulatory and Monetary Control Act in 1980 was part of the deregulation drive that eliminated many restrictions to lending, this resulted in loans reaching unprecedented levels which led to the mainstream mortgage market becoming saturated and reaching its peak of profitability. Those with patchy credit histories and of low income were turned away from mainstream mortgages at a time when the market was buoyant due to consumer spending and borrowing.

The Sub‐prime market was carved out after this point as 25% of the US population fell into this category and represented a market opportunity. Hence US lenders gave mortgages to people who had little means to pay for a mortgage and charged them a rate of interest much higher than the commercial rate due to the increased default risk. They issued these mortgages safe in the knowledge that if the buyer defaults, then they would be able to repossess the property, and sell in a buoyant property market. By the start of 2007, the sub‐prime market was valued at more then $1.3 trillion. Traditional banks stayed away from this risky market and instead remained focused on prime lending and questioned some of the business practices of sub‐prime companies such as their aggressive lending and accounting practices. Between 1994 and 1997 the number of sub‐ prime lenders tripled, going from 70 to 210. Because such institutions were not banks they possessed no customer deposits and in order to expand many lenders turned to the stock market for funding. Companies such as Money Store, AMRESCO Inc, Dallas and Aames Financial Corporation, all raised capital through placing some of their companies on the stock market. Relatively young lenders such as Long Beach Financial Corporation; Irvine, California‐ based New Century Financial Corporation; Delta Funding Corporation; and Cityscape Financial all took their companies 100% public.

By the end of 1997, the top 10 lenders accounted for 38% of all sub‐prime lending. The collapse of the Russian rouble and long term capital management in 1997 resulted in a number of foreclosures leading to the demise of six of the top 10 sub‐prime lenders. This left an enormous vacuum in the sub‐prime industry that resulted in a series of acquisitions by commercial banks such as Washington Mutual's acquisition of Long Beach Financial Corporation. Associates First Capital, the third‐largest sub‐prime originator at the time, was purchased by Citigroup Inc. In 2001, Chase Manhattan Mortgage Corporation acquired Advanta Mortgage Corporation, the 16th‐largest sub‐prime lender at the time for $1 billion. In 2003, HSBC Finance Corporation acquired sub‐prime powerhouse Household Finance, which had earned the rank of largest sub‐prime lender in the two years prior to its acquisition by HSBC.
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unprecedented crisis with key sectors on the verge of disaster

With the global economy facing the very real possibility of recession and inflation – especially food inflation skyrocketing, the worlds most important and most traded resource reached unprecedented levels. In January 2008 the price of Oil passed the $100 mark when a single trader in search of market fame pushed through a small trade. By May 2008 the price of oil reached an unprecedented $135 a barrel. Oil has risen by 25% since January 2008 and by nearly 400% since the beginning of the 21st century. With Oil playing a key role in the functioning of Western economies they face an unprecedented crisis with key sectors on the verge of disaster. The sudden rise in global commodity prices occurred in almost the same period as the global credit crunch crisis. Western bankers, economists and politicians have all failed to publicly link the crisis’s and have dogmatically blamed China and India for consuming too much, greedy speculators, regulation and transparency.

The Global credit crunch, food crisis and oil crisis has once again highlighted the fragility of Capitalism, as the fallout from the credit crunch and the wider economic crisis continues, demands for alternatives are certain to grow. The aim of this book is to scutanise the causes of the current crisis and evaluate some concepts which go to the heart of Capitalism which will always cause such crisis. It will asses the various factors that have all contributed to the crisis and scrutanise why Capitalism regularly has economic crisis. The Islamic view on such factors will be presented in the form of an Islamic economy under the Khilafah in order to show how Islam will bring the much needed stability the world needs. Adnan Khan 5th June 2008 Global Credit Crunch The ‘credit crunch’ crisis that reverberated round the world was Global Gross domestic essentially an American created problem. Since gaining product (GDP) 2007 independence from Britain in 1776 the United States of America after 230 years has grown into a fully integrated, industrialised economy that manufacturer’s 28% of the world's output. Barring a ‘great depression’ type catastrophe the US economy should be worth a mammoth $14 trillion by the end of the US tax year on October 2008.

The 300 million people of the US generate more wealth then the next five nations combined and the US has been the world’s largest economy every year since 1872. Post Industrial Economy Prior to WW2 the US economy was largely industrial based with most of the labour force employed in the manufacturing sector. Since the war the US economy has been transformed into a service based economy, 80% of US wealth is generated in the service sector. Wholesale trade, the manufacturing of consumer goods and retail comprise 65% of the services sector, i.e. the consumption of goods is what drives the US economy. The US over the last 30 years has become reliant on consumption and today is the world’s largest consumer of many items. The US is the main engine for economic activity in the world and its huge level of consumption is responsible for most of the growth being experienced by China and India. With only 5% of the world’s population the US consumes 25% of the world’s oil and imports 9% of all goods manufactured outside the country, (the most in the world, 32% of this is consumer goods).

The manufacturing of goods and the labour behind them are being continually outsourced to cheaper locations, China has benefited from this immensely as it is now a factory for the US as 70% of its manufactured goods end up in the US. The US currently manufactures strategic items such as heavy machinery and items it considers of national interest and refuses to transfer such technology such as arms, aircrafts, motor vehicle parts, computers and telecommunications. The US consumer is now buying more from overseas than ever before, so much so that the US now has a huge trade imbalance with the rest of the world. Its trade deficit or the amount it imports more than it exports, with the rest of the world stood at a record $763.6 billion by the end of 2007. The American consumer is at the centre of the US economy, their consumption is what drives the economy, their spending allows companies to continually expand production and any fall in spending would result in the complete breakdown of the US economy.
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The world is once again in the midst of a global crisis June 2008 1 Contents Introduction 03 Global Credit Crunch 05 Oil: The crude facts 11 Global Food Crisis 19 Understanding the Fragility of Capitalism 22 The Islamic economy 36 Capitalism: A history of financial crisis 48 Conclusions 52 Glossary 57 Bibliography 61 Introduction Capitalism (economic Liberalism) has been credited for generating wealth that has been unprecedented in history. For many historians the struggle between Capitalism and Communism for global supremacy was settled through the ability of Capitalism to generate vast amounts of wealth and prosperity for its people. The battle between the two ideologies resulted in free markets, free trade, financial markets and the removal of state intervention in the economy becoming prerequisites for 21st century economies. Proponents of Capitalism continue to hold the development of South East Asia especially Japan as well as Germany were a direct result of the adoption of Capitalism. The Third world has also not been spared, Indonesia, Pakistan, South America, Africa as well as the Middle East were all sold the idea of free markets, and all of these regions and nations now have Western style financial markets where large sums of wealth are the subject of speculation on the state of the economy and future revenue flows.

Malaysia was the first of the Muslim world to set up Western style financial markets which attracted many Western companies, hedge funds and even George Soro’s (world renowned speculator). Pakistan’s KSE 100 Index was the best‐performing stock market index in the world as declared by the international magazine “Business Week” in 2004 It is currently valued more then $30 billion. The remainder of the Muslim world also have financial markets, with the Gulf States having the largest. However only those aligned to the rulers or from their families have benefited from the financial markets. Although the Western world led by the US continue to sell Capitalism and its adoption as the only way for progress Capitalism has come to be characterised with the regular boom and bust, recession and even economic collapse. The 1997 Asian financial crisis has been attributed to liberal style financial markets, speculation and many nations such as Indonesia and Thailand a decade later have been unable to recover from the crisis. The world is once again in the midst of a global crisis which began with the financial crisis, that engulfed the world.

The ‘Credit crunch’ as it has come to be known brought panic and turmoil in the summer of 2007 to the world’s financial markets causing the US housing market bubble to burst. The crisis threatens a worldwide economic recession, potentially bringing to a halt more than a decade of increasing prosperity and employment for Western economies and potentially wiping a staggering $1 trillion off of the value of the world economy. Many experts have commented on individual factors that caused the crisis, once again steering well clear of blaming Capitalism. As each month commenced from the summer of 2007 more and more information become clear about the extent of the problem. The collapse of Northern Rock, the 5th largest bank in the UK, the bankruptcies of nearly all of the Sub‐ prime providers in the US, the continued coordinated actions by the world’s central banks in pumping billions into the financial markets and the stunning meltdown of Bear sterns, the 5th largest investment bank in the US in March 2008.

Whilst many individuals in the West were reeling from the credit crunch and contemplating queuing outside their bank to withdrew their savings in case their bank was next to collapse disturbing headlines made the front pages of all major newspapers in the West about the soaring cost of basic food commodities. The World Bank warned that these price levels will be maintained until the year 2015. Many poor people around the world who already spend most of their disposable incomes on food are suddenly finding it impossible just to feed themselves. With riots and protests seen as far wide from Haiti to Indonesia, the lack of food has the potential to create geo‐political upheaval.
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How human should proceed in this life

This will therefore provide him with the understanding of the meaning of his existence, how he should proceed in this life and where his life is leading to. Indeed these are the questions and the Aqeedah has answered these questions with answers that have clarified the path for the human to know the meaning of his existence and how he should proceed. It has explained for him his relationship with what is before the life which provides for him an explanation of what he should do in the life. Therefore the materialist Aqeedah has answered these questions by stating: That there is no creator, that life is matter, matter is eternal and that matter through its proves of evolution is the source of everything. So the Fikr (thought) and ‘Aql (mind/intellect) are a product of matter and as such matter is the source of Tafkeer (thinking). Relationships related to production are specified by the means of production and the means of production are a result of the evolution of matter. In addition the production relationships evolve in line with the material evolution i.e. in line with the means of production.

As such matter (i.e. their Aqeedah) with its continual evolution according to their claim, is the source of the thinking (or thought) and the source of their systems and laws. So the rock, axe, tractor, car, plane and missile are what determine the systems that regulate the relationships between the people. This is according to their claim and what the Aqeedah that they believe in and have embraced dictates. As for the capitalist Aqeedah (I.e. Democracy): Then they have answered these questions through the separation of the Deen from the life and they have declared that the Hukm (rule) is of the people, by the people and for the people. In other words they have made the human being the source of everything, so he is the one who lays down his systems and laws and it is he who defines the path that he proceeds along. So he regulates his relationships, satisfies his hungers and meets his needs in accordance to his wishes and desires. There is no room for infringement or interference in this and as such it is necessary to provide him with his freedom so that he can practise his will. Therefore the individual is the source of the system and the laws and for this reason they stated that the people are the source of the authorities and the people are those who enact the laws and lay down the legislations.

As such the democratic (capitalist) Aqeedah is the source of the system and basis from which it emanates. As for the Islamic Aqeedah then it states: That this universe (or all that exists) has a creator that created it and He is Allah (swt). That this life has a beginning and an end. After it there is accounting for what was earned (i.e. what he did) within the time period that he spent in the life. As such it is then necessary for the regulation of the relationships between the people, the regulation of the human life, the specification of his actions and his behaviours to be built and based upon the commands of this creator and organiser (Mudabbir). So the Wahi (revelation) is the means to convey to the people that which they require from their Rabb (lord) and what their creator intends for them.

This is done by way of the Messengers he sends and this is His Sunnah (swt) (the way that He (swt) has chosen). Therefore the system and the laws that organise the relationships between the people and regulate his conducts and behaviours emanate from the very same Aqeedah. This Aqeedah is: Imaan (belief) in Allah, His angels, His books, His Messengers and the Day of Judgement. So the Messenger (saw) conveyed to the people the Wahi (revelation) that came from Allah (swt). The Qur’aan Al-Kareem and the Ahaadeeth Ash-Shareefah (Noble) (i.e. the Sunnah) was what the Wahi came with and they are a part of the Aqeedah (belief) (His books and his Messengers). And they included within them a complete system and large collection of Shar’iyah rulings to regulate the life of the individual and organise the life of the society. And they came explaining the manner of implementing these solutions and treatments and to establish them within life’s reality in addition to explaining the manner of carrying it to mankind in its entirety. It also provided viable and sound bases in order to derive rulings for all newly occurring problems that the people can possibly face in the course of life.

After making clear what is suitable for the revival of the Ummah (Moslems Society) and to elevate the human upon the steps leading to completion. And after explaining the manner of how to reach that by explaining the the manner of productive thinking which must be an enlightened thought that clears away all obscurities around matters and clarifies the features of things and realities. This is in order to specify for the human the possibility of his moving forward upon a course of action or the possibility of him being reluctant to do so, which is built upon fundamental principles and precise criteria or measures that he must utilise during the thinking process. After having made all of this clear it is then necessary to understand the reality that is desired to be treated and to gain a deep understanding about it until we are able to transform it to what we want or take a suitable stance and position towards it.
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