The term "sick man of Europe" was coined to describe the declining situation of the Ottoman Khilafah by Tsar Nicholas I of Russia in 1853. The Uthmani territories were being swallowed by rival world powers, increasingly falling under the financial control of the European powers and the Ottoman's had lost territory in a series of disastrous wars. The Ottoman Khilafah, who for nearly three hundred years dominated the European geopolitical scene fell heavily into debt, came to be continuously manipulated by rival powers and fumbled in a state of gloom, anarchy and decline eventually losing all independence. Nicholas I of Russia described the Uthmani Khilafah as: ‘a sick man - a very sick man, a man who has fallen into a state of decrepitude, or a sick man ... gravely ill.'
The Economic situation, political prowess, geopolitical maneuverability and independence were all seen as indicators which clearly the Ottoman's had drastically lost over a period of 100 years and declined in. The current global financial crisis has all the hallmarks of the USA being the new ‘sick man'.
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The US is drowning in a sea of debt which the credit crunch crisis has brought to the forefront. The US generated nearly $14 trillion in 2007, however the national debt - this is money the central and federal governments owe to the US public and the world through the bonds they have issued - stands at $10 trillion. The US citizenry have a huge appetite for imports and as a result consumer debt stands at $11.4 trillion. The debts of US companies amounts to $18.4 trillion. This makes the US indebted to the tune of $40 trillion - nearly 75% of what the world economy.
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The US trade deficit continues to balloon, the amount the US imports compared to the amount it exports - in essence the money the US owes to the world is currently in excess of $1 trillion. The financial crisis which began in the US raises a pertinent question about the sustainability of such high levels of consumption and then how the debt that sustained such consumption will be funded.
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Both wars in Afghanistan and Iraq are costing the US $15 billion a month and with Afghanistan now virtually lost to the Taliban after nearly seven years of war and no signs of US victory in Iraq the US faces the very series problem of the continued printing of dollars no longer being a viable strategy.
US spending is not sustainable
The US like the Uthmani's in the past now finds found itself in a precarious situation where foreign nations are actually funding it. The US budget is not sufficient for the nations consumption patterns as a result the US resorts to selling Bonds to the world which it will repay over a period of 10 - 30 years in the hope the US economy will by the time the Bonds mature have generated sufficient wealth to repay them. 66% of US debt is held by foreign entities, whilst 44% of this is held by China and Japan. China has accumulated over $1.2 trillion in dollar reserves due to this. Described as China's "nuclear option" China could trigger a dollar crash if it decided the dollar was not worth holding and switched to Euros at a time when the US currency is no longer the stable currency it once was.
The US attempted to win both the conflicts in Afghanistan and Iraq through propping up initially unpopular governments. The failure to achieve any significant control in both nations has led to the US to throw money at elements within the Sunni faction as well as the bribes it already gives to elements of the Shi'ah establishment. With the US economy teetering on the brink of meltdown the continuity of such a policy of printing money in return for loyalty is questionable and would have huge implications for US future success in these nations.
The US is also facing numerous political challenges in regions of the world which only a decade ago it completely dominated. In the Middle East apart from needing the help of regional surrogates the Middle East is gradually shifting from being a uni-polar region in which the US enjoys uncontested hegemony to a multi-polar region. The US is facing more competition from China and Russia over access to Middle East oil. The US is now increasingly competing with India and Japan as well as the European Union for the lion's share of the regions black gold.
The US is currently suffering from a severe fever, where the remedy continues to be more and more expensive intervention by the nation's doctors who are unable to stem the panic spreading to all. The US has only $1.7 trillion in notes and coins in circulation where the money will come from to repay US debt in the years to come, alongside a falling dollar places the US in a situation where it is now reliant upon foreign nations to bail it out.
Domestically the US is drowning in a sea of misery FBI statistics highlighted in 2005 show that a crime was committed every 22 seconds, with a murder committed every 31 minutes, a rape every 5 minutes and a robbery every minute. US prowess in reality is a farce, in fact all the key geopolitical indicators show the US is faltering and on the verge of a severe fever and the cure seems to be in foreign hospitals.
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Dr Q A
said:
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AA.. The stupid house of Saud also trade in US treasury bonds by selling oil to America... I am just wondering if the Chinese are also as stupid as the Saudi regime by trading their goods with paper? What would happen if China demanded real goods in exchange for the bonds? America can obviously not pay back the Chinese or the Saudis with anything of value? Would it destroy the American economy if either Saudi or China demanded something in exchange for the treasury bonds? Kindly elaborate on this please... One things for sure... No one would be happy to have American treasury bonds after such an action by a state that trades heavily with America... Masalama |
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mak
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Usury will ultimatly annihilate the paramore in middle east and the entire West, both are heading west at blinding speed. InshaAllah.Westoxication is a malignant disease and western ethos lethal poison devoid of Divine mercy. Abundoning God and His Rasool is in itself deserve neither Mercy nor Rahmatul lilalamin.'s shifat. Day of reckoning is upon US let us surrunder to will of God and beg for forgiveness from The Master of Universe and Malik yumiddeen. God bless this nation gone wrong.Ameen |
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Jason Blair
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America is not only falling to it's overwhelming debt. Moral values and religion are on a decline, with the faster growing religion now being atheism... followed closely by Islam. It's only a matter of time before the name of God is taken off of everything in America and that is when the society will fall completely. Only the establishment of Khilafah can save the United States from it's current downward spiral. But most are to ignorant and rebellious to understand that Islam is the true path to freedom and justice for all. Allah knows best! |
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Adnan Khan
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China and the us have a complex relationship. US companies are eager to tap into the 1.5 billion Chinese population, whilst at the same time 70% of Chinese goods end up on US shores. China has benefited more from this relationship than the US by accumulating over $1.2 trillion in dollar reserves. Domestic US companies on the other hand are unable to match Chinese low prices for quality workmanship and this has led the US trade deficit to balloon to nearly $1 trillion. The US funds this by issuing treasury bonds, of which China is the world’s largest purchaser after Japan at $502 billion, 20% of total US foreign debt. Added to this is that the very economic boom America is benefiting from is increasing demand for oil by China. The relationship between the two is interdependent which the US does not have full control over and cannot easily dictate terms and the same goes for China. |
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Zeital
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It is worth noting the phrase 'sick man of Europe' was referring to European Empires (and at times indeed the Ottomans) which underwent severe economic or political problems. Austria-Hungary was a large autocratic multinational empire, which was experiencing many challenges from the other nationalities within its borders. An independent government was established in Hungary, (Hungarians being a large nation within the Austrian Empire). The Austrians received support from the Russian Tsarist Empire which offered military divisions to defeat Hungarian independence, and helped Austrian reassert its authority. What resulted after the conflict was a compromise and the dual monarchy of Austria-Hungary was established. Austria-Hungary was counted as a Great Power; although it bordered the German Empire which was an industrial giant, and the massive Russian Empire. The earlier wars of German Unification under Chancellor Bismarck inflicted crushing defeats on Austria, and the Germans became the pre-eminent power of Central Europe, with Austria as a dependent ally until collapse after World War One. http://www.lib.utexas.edu/maps/historical/shepherd/austria_hungary_1911.jpg |
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Malik
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Assalaamu Alaykum Mag, The Chinese who have adopted the Capitalist Economy sold their real goods for America's paper. If the Chinese dump the US dollar - then they will have sold real goods for truly worthless paper. Therefore, the Chinese are locked into supporting the US dollar. The US fiat standard is burden on the world, not on itself. Only if the Chinese pullout of the Capitalist system and their citizens are prepared to take on the sacrifices that are necessary (i.e. America and the world will likely stop trading with China) to support this decision, can China dump the US dollar. Salaam |
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MAG
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Why would china want to hold onto dollars when they are in melt down? surely selling them would weaken America and strengthen China. Am I missing something? |
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Abdul Mo3ti
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What else do we expect from a kufr regime in the west. the only reliable and system fit for the human being is the islamic state. in california the stateprisons was thinking off leding prisoners go because they dont got money to pay for there food and cell stuff |
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