Islamic economy restrictions to overcome the current financial crisis.

1- system of interest (usury) on deposits and the system of interest on loans.

2- Debt trading system, taking and giving.

3- Scheduling the debt with the interest rate is raised against an increase in term.

4- System for the sale of debt.

5- Derivates system which is based on the probability and luck.

As shown by the concepts and rules and controls financial and economic system and Islamic financial institutions, prohibits all of these systems that were the cause in the presence of crisis and conflict with human nature and purposes of legitimacy.

Islamic Sharia has prohibited the interests system on the loans, credit, and transmitting finance and investment systems based on participation and interaction of capital and labor within the framework of a gain and loss. The call for the repeal of usury in the economy is not today, saying calls for astonishment or ridicule as some Supporters of secularism still believe and the opponents of religion in Muslim countries and other, especially after the devastating cyclone that hit the capitalist world which based entirely on the interest rate system. It is not a slogan broadly inapplicable after the unprecedented success witnessed by the experience of Islamic banks in the multi-country of the world and has become a model for the real economy which is based on ethics and noble human values, and racing in its direction all banks and financial capital institutions which decayed by speculation and illusion transactions.

In return for this call to annul the usury and the abolition of interest, Islam calls for establishment of system to participate in the profit and loss between labor and capital, which is based on the basis of losses and gaining instead of interest prior (interet ex- anté) prohibited by the principle of interest Accessories (interet post-anté) that inspired by a rate of profit based on the fair and acceptable.

Usurious interest has been forbidden in all religions and by most philosophers and thinkers in human history. However, the complicity of some Christian clergy who Islamic Economy Restrictions to Overcome the Current Financial Crisis……….…..Dr. Abdelhak Hamiche Revue des Sciences Économiques et de Gestion N°12 (2012)44 tolerated to justify the legislation which is changed the whole world from a position of denial and to confront the interest rate system to a convert and defend and employed in laying the foundations of contemporary capitalism.

Nonetheless, many economists and writers defend from within the system of capitalism itself against interest rate and consider it the source of instability, crisis and structural imbalances faced by all economies today, led by Paork, Fisher and Keynes and others, and the interest usury is still one of the most problems in the economics of modern political.

Prohibition of gambling, such as the illegal sale of debt and speculative practices and others: what happened during this financial crisis we are facing, is sufficient alone to eliminate all that is related to the symbolic economy such as the sale of debt illegally those that are not based on the assets in kind and to prevent speculative practices on which based most activities of stock exchanges and financial markets of capitalism.

This behavior has led to growing schism between the real and symbolic economy default between productive capital and financial capital, its seriously development that reflects on the nature of the parasite of the capitalist system, which is now feeding on speculation rather than investment and the proceeds of securities does not profit from productive projects and became a stock market mirror of capitalism Financial sees it self every morning.

The development of symbolic economy is correlated with trade and productive work dramatically in the last few years until it the volume of financial flows associated with speculation on the stock exchange and financial markets reached forty times the real economy-related investment, production and international trade. And the unemployment expanded widespread, indebtedness has escalated, even in the Center on Capitalism and USA become the largest country in debt in the world and the people surrendered to the rule of one rank in all societies, without exception, and the world economy became on the edge of a volcanic unemployment and indebtedness.

Therefore no longer before the human face of this grave situation, except the immediate elimination of a symbolic economy and put a rapid end to stop the bleeding caused by the speculative practices in the financial markets to impose severe restrictions against the manipulators of the fate of human beings and the conditions of communities. And this will not happen except by preventing the sales of corrupt and illegal set by Islam. Islamic Sharia has prohibited all forms of prejudice, ignorance, gambling, fraud, lies, rumors, exploitation and eating the people's wealth unjustly Islamic Economy Restrictions to Overcome the Current Financial Crisis……….…..Dr. Abdelhak Hamiche Revue des Sciences Économiques et de Gestion N°12 (2012)44 and stressed the commitment to honesty, trust, demonstration and transparency, and should be re-organized markets according to the approach that takes into account the values and ethics and develop human interest above all else.

Finally: What is the treatment to void the world a global, and great depression, its burden falls inevitably on the poor ranks and poor countries? Despite the difficulty of this question but the answer revolves around the following theme (9) -Stop the speculation: gambling, and in particular derivatives.

- Call to account those responsible for this crisis in the banking devices.

- Tightening control of the central bank to banking in general and to pump credit in particular. To intervene governments through monetary institutions and central banks of effective control over the actions of financial institutions such as banks and mortgage companies, stock exchanges and so on to prevent all forms of speculation and gambling, trade with debt and financial derivatives delusional till stop the evils of the actions of financial capitalism which cause damage to all people in the world according to the legitimacy rules: The damage is removed; bear the lesser of two damages.

-Activating the banking policies with severity and firmness, especially in relation to the management of liquidity and revenue, and credit risk and capital adequacy.

- Continue to pump liquidity into the economy so as not to break down the basics of the productive base.

- Re-consider mechanism of interest system on loans and credits and replace them with systems of Islamic finance and investment based on participation, sales and actual transactions, which restore security and stability and the preservation of the rights of justice and equity, according to the base of legitimacy: gaining and losses sharing.

-Liberalization of the monetary transactions from the hegemony of a single currency which is the dollar and find a replacement where it does not lead the collapse of certain currency to the damage in all major currencies because this domination is a form of monopoly that is forbidden religiously, - Re-examined in the mechanism of economic institutions and the global financial and monetary, such as the International Monetary Fund and the World Bank for reconstruction and the global trading system, and the like, especially U.S. hegemony so that it may proceed with its activities in the framework of justice, freedom and achieve the international public interest, particularly poorer developing countries.

- Placing standardized code of ethics for financial transactions in the world in the context of divine messages adjust adequately by all States and to impose international Islamic Economy Restrictions to Overcome the Current Financial Crisis……….…..Dr. Abdelhak Hamiche Revue des Sciences Économiques et de Gestion N°12 (2012)44 sanctions on countries and financial institutions and monetary violation of this Charter until the circulation of money and cash in right and justice, to achieve the good of mankind and the reduction of the evils of financial capitalism there is no economy without morality.

And last but not least, it should think seriously to study the application of the Islamic system; away from the interest rate(Riba); which is based on the rate of profit as a tool for effective management of economic activity today, and which is based on real invest; to expand the productive base, and not on the basis of financial investment strength speculation: gamble, exploitation, and corruption, and theorists of the capitalist economy should remember what the U.S. economy, "Simmons": that a global recession in the thirties of the last century due to "changes in confidence arising from the credit system is unstable, and that "the risk of economic disruption can be avoided to a large extent If it can avoid the borrowing, and if all investments were in the form of self-financing and participation.

It's a great "usury" behind all the economic ills that afflict humanity;, therefore, to the eternal knowledge of whom He created; announced the Almighty and His Messenger, peace be upon him a war against the perpetrator; until the human societies becomes pure by staying away from it; as Allah Almighty says:" O you who believe! Be afraid of Allah and give up what remains from usury if you are believers. And if you do not do it, then take a notice of war from Allah and His Messenger but if you repent you shall have your capital sums. Deal not unjustly, and you shall not be dealt with unjustly. And if the debtor is a hard time, then grant him time till it is easy for him to repay, but if you remit it by way of charity, that is better for you if you did but know" (2: 278-280).

Conclusion This crisis revealed many faults of the capitalist economic system, which dominates the world for more than three centuries. The crisis can be analyzed from an Islamic perspective through the following main factors: the subject of a mortgage, re-sale or mortgage of real estate, interest rate system, the deification of the market, monetary derivatives, methods of speculative short-term, inflation financial economics, and the dichotomy between it and the real economy, the absence of control.

The financial system and the Islamic economic based first on the system of values, ideals and morals such as honesty and credibility, transparency and evidence, facilitation, cooperation, integration and solidarity, not an Islamic economy without Islamic Economy Restrictions to Overcome the Current Financial Crisis……….…..Dr. Abdelhak Hamiche Revue des Sciences Économiques et de Gestion N°12 (2012)44 morality, This system is consider as safeguards that meet the security and stability for all clients.

Second: The financial system and the Islamic economic based on principle of sharing profits and losses and on the actual trading of funds and assets.

Third: The Islamic Sharia has prohibited financial derivatives which are based on delusive transactions prevail prejudice, ignorance.

Fourth: The Islamic Sharia has prohibited all forms of sale debt by debt.

Fifth: The Superintendence over banks.

Sixth: The financial system and the Islamic economic based on the principle of facilitation on the borrower.

To escape some of the effects of this crisis must:- - Call to account those responsible for this crisis in the banking devices.

- Stop the speculation: gambling, and in particular derivatives.

- Tightening control of the central bank to banking in general and to pump credit in particular.

-Activating the banking policies with severity and firmness, especially in relation to the management of liquidity and revenue, and credit risk and capital adequacy.

- Continue to pump liquidity into the economy so as not to break down the basics of the productive base.

- Re-consider mechanism of interest system on loans and credits and replace them with systems of Islamic finance and investment based on participation, sales and actual transactions.

-Liberalization of the monetary transactions from the hegemony of a single currency which is the dollar.

- Re-examined in the mechanism of economic institutions and the global financial and monetary, such as the International Monetary Fund and the World Bank.

- Placing standardized code of ethics for financial transactions in the world in the context of divine messages.

In short: the rules and regulations of Islamic economics is the rescue of the crisis, when compliance with the rules and regulations of Islamic economy can get out of the crisis, Allah Almighty said:" Then if there comes to you guidance from Me, then whoever follows My Guidance he shall neither go astray, nor shall be Distressed. But whosoever turns away from My Reminder verily, for him is a life of hardship, and We shall raise him up blind on the Day of Resurrection" (20:123-124).

Islamic Economy Restrictions to Overcome the Current Financial Crisis……….…..Dr. Abdelhak Hamiche Revue des Sciences Économiques et de Gestion N°12 (2012)45 And:" Allah will destroy usury and will give increase for charity. And Allah likes not the disbelievers, sinners" (2:276).

-The dollar has continued its downward trend against other major currencies, despite lingering risks associated with sovereign debt levels in some European economies, the euro appreciated against the dollar in the first quarter of 2011, buttressed by the expectation of faster monetary tightening in the euro area. This trend is expected to continue until late 2011, when the United States Federal Reserve (Fed) may raise interest rates. The dollar/euro exchange rate is assumed to be 1.38 in 2011 and 1.28 in 2012.

- Adrian Blundell-Wignall, Paul Atkinson and Se Hoon Lee, “The Current Financial Crisis: Causes and Policy Issues”, Financial Market Trends, OECD 2008, 26 papers.

www.oecd.org/finance/financialmarkets/4194287.

- The percentage of new lower-quality subprime mortgages rose from the historical 8% or lower range to approximately 20% from 2004 to 2006, with much higher ratios in some parts of the U.S. A high percentage of these subprime mortgages, over 90% in 2006 for example, were adjustable-rate mortgages. These two changes were part of a broader trend of lowered lending standards and higher- risk mortgage products.

http://www.imf.org/external/pubs/ft/GFSR/2004/02/pdf/glossary.pdf Islamic Reading of the global financial crisis: Dr. Mohamed Abdel Halim Omar.

Legal ways : ibn alqayi aljawzia p 24 Global financial crisis, causes and solutions from an Islamic perspective: Dr. Rafik al-Masri.

Ethical Dimensions of the Global Financial Crisis: Dr. Hussein Shehata (in a series of research and studies in Islamic economics / Dar Almashora) (9) The global financial crisis. Diagnosis and director: Dr.Abdul Hamid Al Ghazali