Virtually un-constrained credit (money) creation and the ballooning of the “over the counter” derivatives market in many ways are natural consequences of capitalism. There is nothing illegal in this phenomenon and until very recently these were seen as good and key factors in the growing economies of those countries that emphatically embraced them. With the benefit of recent hindsight the belief in this aspect of the free market has been fatally shaken. It is equally perplexing that the solutions now espoused are progressing with little debate and seem to owe more to trying not to repeat the mistakes made in the early 1930’s. Governments are throwing fiat money at the problem and will create a problem potentially greater than the problem they seek to solve, that of out of control money supply and the horrors of inflation or even hyperinflation. A further deterioration in confidence in the system is likely as the recession/depression deepens.

Can stimulus packages work when there is no real change to the hegemonic role of banks, and the sheer scale of the problem is so vast? Can there be an artificial upturn in investment and growth in the economy when all around are retrenching/deleveraging, laying off staff, and banks shutting up their lending shops? If ever there was a time for consideration of alternative ideas it is now. Yet Muslim voices are not prominent in the debate. The emphasis to date, in the Muslim world, has been on raising cash to fuel bank bailouts from cash rich Gulf countries. UK Prime Minister Gordon Brown stressed this role as he toured the Middle East seeking money for bailout purposes29.

Yet the Muslim world which has been operating under secular capitalist rule is as much a victim of the crisis as any country, and is facing the loss of resources as aggressive nations seek capital to fund their losses from resource rich regions. Several misguided Gulf countries even maintain a US dollar peg. It is of the utmost regret that the Islamic economic system in operation within the Caliphate system of governance is not in evidence today to offer the alternative leadership so needed. Regardless of this, the Muslim world is now moving strongly for a return to the stability that the Caliphate system provided historically for the longest period in its history (623 to 1924). World public opinion.org reported after an extensive survey throughout several large Muslim countries strong support for the re-establishment of the Caliphate via non-violent means in the Muslim world: “Two-thirds would even like to "unify all Islamic countries into a single Islamic state or Caliphate.” 30.

The sadness is that these aspirations of the Muslims have yet to be fulfilled. Until the day that Islamic society is representative of not only the beliefs of the people but also the rules and laws of Islam including those of the economy, the frustrations of a dying and corrupt system will dominate. Only then can the Muslims hope to live up to the description that Allah has given those that implement and call for justice.

[Translated Meaning of Quran Al Imran 3:110]

29 British PM tours Gulf for bailout fund help, 1 November 2008, International Herald Tribune, http://www.iht.com/articles/ap/2008/11/01/business/EU-Britain-Brown-Gulf.php.

30 Muslims Believe US Seeks to Undermine Islam, 24 April 2007, World Public Opinion: Global Public Opinion on International Affairs, http://www.worldpublicopinion.org/pipa/articles/brmiddleeastnafricara/346.php