Nobody, anywhere, could have predicted what we are now witnessing: in a matter of only a few weeks the accumulated collapse of global supply chains, aggregate demand, consumption, investment, exports, mobility.
Nobody is betting on an L-shaped recovery anymore – not to mention a V-shaped one. Any projection of global gross domestic product (GDP) in 2020 gets into falling-off-a-cliff territory.
In industrialized economies, where roughly 70% of the workforce is in services, countless businesses in myriad industries will fail in a rolling financial collapse that will eclipse the Great Depression.
That spans the whole spectrum of possibly 47 million US workers soon to be laid off – with the unemployment rate skyrocketing to 32% – all the way to Oxfam’s warning that by the time the pandemic is over half of the world’s population of 7.8 billion people could be living in poverty.
Some may laugh and call it inappropriate comment but I am forced to say it. It is a prov en fact that Prophet of Islam (Peace be Upon Him) was a messenger of God and Holy book Quran was revealed to Him. This holy book claims to be complete book for mankind until current human race diminishes. True it is, large part of mankind does not recognise it. But I take it a routine matter as was the case with Moses a.s. and Jesus a.s. In Holy Quran the concept of Interest has strictly been forbidden. God the Creator of this universe clearly warns the mankind not to resort to Interest based financial system. Unfortunately the current fiance system is completely interest oriented as bigger part of mankind either does not believe in God of Islam or does not consider this command of Holy Quran worth following.
No one was expecting the COVID-19 to come. With this unexpectedly very long and global pandemic, now all finance experts are worried about the failure of current financial system and are talking about a new system. I am not a learnt man on financial systems but my sixth sense tells me probably the time is arriving where God is going to force the mankind to examine seriously an interest free financial system so each human being can enjoy a respectable life which has been given to him/her by God Almighty.
It is actually worse than that. Not only is the present finance system ‘interest-based’, it is actually to a large extent based on ‘nothing’. Currencies are printed without any backup. Loans are given – created – of funds that do not exist.