Adam Smith on its behalf produced to us from its brain a system called capitalism. Lets we see what he got for us.
The trades must be consistent with capital-basis. Meaning, neither the trader is our enemy nor friends, just enough if they can proof that they will profit us.
The loan banking must be in ‘subprima’ principle. He doesn’t mention the capacity of the borrower. Resulting many loan unpaid because not all borrower were in ability position to pay back the ‘subprima’ loan.
Federal Reserve of the country is build of capitals and profits for the country. But what is the answer if politics body gets interfered to the state’s economy system.
The interest bases loan will profit a lot to a bank. But how if a company which is borrowing the loan and the company cannot pay back to the bank until the interest of the loan was too high and flying over the assets of that company? That time if the bank wanted to mortgage the company it is too late because the assets cannot pay back the loan and interests.
Lastly, we can see this system is facing to a destiny. The destiny is destruction. World cannot stay with this economic system anymore.
The real example is as happened in US.
As we know a long time ago, US was too depending on this system but what the systems pay to US?
US have to face many bankrupt companies in its state. They have to find other market to make them survive economically. That’s why they trying to order for another war.
Unfortunately, the problem is in the system. You change your system meaning you change your destiny.
Honestly, I am attracted with Islamic economic system. Now I am making a research about it.
On my first impression towards this system seems to be an answer to all the problems in economy world.
There are some principles that guide us to the right path on economic system in this world.