1 00:00:10,500 --> 00:00:15,300 The American property market started its downfall towards the end of 2007 2 00:00:15,500 --> 00:00:18,100 and continued to go down for two years 3 00:00:18,529 --> 00:00:21,800 This represented a risk for the world economy as a whole. 4 00:00:22,000 --> 00:00:17,600 In the first year alone 2.6 million people lost their jobs in the United States 5 00:00:27,677 --> 00:00:34,200  but this figure continued to rise until the number of those who losttheir jobs reached 8.8 million 6 00:00:34,267 --> 00:00:37,800 ,according to the figures published by the US Bureau of Labour Statistics 7 00:00:38,000 --> 00:00:39,700 which is a federal agency 8 00:00:39,841 --> 00:00:43,100 The great majority of these losses were among the people 9 00:00:43,300 --> 00:00:46,300 whose wages are 14-21 US dollars per hour 10 00:00:46,500 --> 00:00:49,200 When the economy had recovered in 2012 11 00:00:49,502 --> 00:00:52,500 only one quarter of these were back in employment. 12 00:00:53,003 --> 00:00:56,400 Apart from this,one million people lost their jobs in Britain 13 00:00:56,600 --> 00:00:59,000 and the adverse effects spread throughout Europe 14 00:00:59,400 --> 00:01:01,600 and generally speaking throughout the world. 15 00:01:01,800 --> 00:01:06,100 Let us not dwell long on this,because everyone knows this tragedy 16 00:01:06,315 --> 00:01:09,599 Some,however,wonder whether it was avoidable 17 00:01:09,799 --> 00:01:14,800 The realistic answer is that it could not have happened under an Islamic system 18 00:01:14,900 --> 00:01:20,120 but unfortunately finance ministers and American economic professors did not hear of this 19 00:01:20,400 --> 00:01:23,300 or they might have heard of it when it was already too late. 20 00:01:23,389 --> 00:01:26,000 Some may wonder,what is the relationship 21 00:01:26,338 --> 00:01:28,800  between prayer,fasting on the one hand  22 00:01:28,828 --> 00:01:31,400 and mortgaging property assets on the other? 23 00:01:31,600 --> 00:01:37,200 What people do not know is that Islam has put in place certain economic principles 24 00:01:37,282 --> 00:01:39,500 that apply to all transactions 25 00:01:39,700 --> 00:01:44,000 These could have prevented the collapse of the American property market. 26 00:01:44,057 --> 00:01:45,400 Explained simply 27 00:01:45,600 --> 00:01:49,800 Islam prohibits securitization banking 28 00:01:50,000 --> 00:01:53,600 because usury is clearly forbidden according to the Qur'an 29 00:01:53,800 --> 00:01:58,200 Believers,do not gorge yourselves on usury 30 00:01:58,400 --> 00:02:02,200 doubling [your money]again and again 31 00:02:02,300 --> 00:02:06,950 Likewise,Islam prohibits ‘selling loans in return for loans’ 32 00:02:07,100 --> 00:02:11,200 These two transactions were the underlying cause leading to nearly 33 00:02:11,300 --> 00:02:15,200 nine million Americans losing their jobs in the twenty-first century 34 00:02:15,237 --> 00:02:18,050 Was this a coincidence?Perhaps 35 00:02:18,200 --> 00:02:24,000 What we need to understand is that Islamic economy is based on principles that are completely different  36 00:02:24,200 --> 00:02:26,200 from the basis of the world market 37 00:02:26,300 --> 00:02:29,400 The world money market is based on profit 38 00:02:29,600 --> 00:02:34,600 while Islamic economy aims at ensuring and maintaining man’s progress 39 00:02:34,800 --> 00:02:41,600 Islam wants the economic system to complement the social and political systems in aiming at social progress 40 00:02:41,800 --> 00:02:47,200 A basic principle is that of profit and loss sharing.This is very different 41 00:02:47,300 --> 00:02:49,500 from making borrowing an essential rule 42 00:02:49,591 --> 00:02:55,700 particularly when rates of interest become too high to render full repayment impossible 43 00:02:55,900 --> 00:02:58,200 and lead to the repossession of the borrower’s home 44 00:02:58,400 --> 00:03:03,600 Islamic economy is based on real exchange of money and goods 45 00:03:03,800 --> 00:03:10,500 not on any virtual dealings or speculation that resells a commodity without being received by its first buyer 46 00:03:10,750 --> 00:03:14,200 Thus,speculation may lead to the price rising very high 47 00:03:14,400 --> 00:03:17,100 regardless of the real price in shops 48 00:03:17,200 --> 00:03:21,700 Islam forbids monopoly,selling loans and usury 49 00:03:21,800 --> 00:03:24,300 It establishes truth and honesty as 50 00:03:24,500 --> 00:03:27,800 the two pillars upon which financial transactions are based 51 00:03:27,900 --> 00:03:32,000 Therefore,nothing is surprising in the fact that the greater number 52 00:03:32,198 --> 00:03:37,800 of Muslims in South East Asia and Europe embraced Islam through dealing with Muslims in business. 53 00:03:38,000 --> 00:03:40,300 An interesting point of information 54 00:03:40,500 --> 00:03:44,050 twenty years ago,Maurice Allais,the 1988 55 00:03:44,200 --> 00:03:45,865 Nobel Prize winner for economics 56 00:03:46,000 --> 00:03:51,350 undertook a study of the serious structural problem of the liberal world economy 57 00:03:51,400 --> 00:03:53,600 He suggested two remedies 58 00:03:53,800 --> 00:03:59,000 the first is to bring the rate of interest down so that it is close to zero 59 00:03:59,200 --> 00:04:01,700 Isn’t this consistent with the Islamic system? 60 00:04:01,800 --> 00:04:07,120 The other remedy is to bring income tax down to around 2%. 61 00:04:07,250 --> 00:04:10,900 Does this remind us of the zakat system in Islam?