He said that the alternative finance system would help in resolving present day economic crisis world over.
“The debt crisis engulfing USA and European countries is a major cause of concern for the economy of the world and it gives us an opportunity to rethink about the prevalent financial and monetary system and corrective steps wherever required, including structural changes, otherwise the situation may further worsen”, Jamaat Amir said in statement.
Maulana Omari explained that the prevalent financial and monetary system is fraught with structural weaknesses wherein deficit financing is covered with printing of bank notes and interest based debts.
The effects are cascading and the economy would further deteriorate.
“The case of USA is more dangerous because sovereign bonds, documents purchased by foreign governments, considering its economy to be stable are more than 50 per cent of its total bonds. Any failure of the financial system of the US government will badly affect a number of other countries including India” he said.
He said that the lavish living standards in USA far beyond its means, its huge financial commitments to Israel.
“The various wars including those in Iraq and Afghanistan it has involved itself, and similar factors have eroded its capital base leading to the present situation” Umari said adding that it was a natural consequence of interest based capitalist system and it calls for consideration of an alternative economic system. He contended that Islam offers the ethical interest free economic system which is an option for the world to rescue it from the impending economic crisis.