Posted on 11/27/2009 5:41:16 AM PST by danielmryan
Dubai was doomed to fail and that should be a lesson for "service economies" everywhere. Unlike its neighbors, Dubai is oil-poor. They bought prosperity by borrowing excessive sums of money and enticing unlucky poor neighbors to become slaves and enticing the world's rich to spend vast sums of money there as tourists.
The thing that should be, but probably isn't, scary to most of the people here is that Dubai is the last remaining secular middle eastern nation. If or when the government falls, it will be replaced with a religious one.
I wasn't allowed to post this as a regular article, but please read The Dark Side of Dubai.
The yen is looking awfully good right now. So is the Euro. The kicker is what will happen at Copenhagen next month. Any nation that signs on to the global warming fraud is going down if there are any bastions of sanity remaining.
I think Dubai has no oil. It is in Abu Dhabi.
I must be on some other planet. Maybe they can move their skyscrapers and man made islands to Abu Dhabi so they can have some oil.
If Dubai isn't oil money, what is it?
If this works out, maybe we here in Texas can cut the oil off to the rest of Amerika and keep the money for ourselves..
Their central banks start playing the same sort of games that ours does. In Vietnam’s case, they’re devaluing their currency (the dong) at the same time they’re raising interest rates to contain inflation. Their government is changing their “dollar reference ratio” (which is sorta like a peg). They were forced to do this by a trade deficit, increasing gold prices and declining dollar reserves.
I’m happy to answer what questions I can. NB that I’m not a “financial professional” with a Series ‘n’ license - I trade only my own account, with my own money. That said, in the last 10 years, I (a supposed “dumb money” investor) have outperformed the supposed “professionals” I had paid to invest some of our money - to the ultimate extent that I’ll never pay supposed “professionals” to touch it again.
If I want someone else to manage our money, I’ll give it to a bunch of crack-smoking monkeys, who would doubtless have more impressive results.
Why would The UAE NOT try to help if many more nations need to sell oil for their problems.
IMHO, oil, is going DOWN, the dollar UP, and the foot on America's neck may loosen. All we need now is Republicans to take over and drill drill drill, and we may save ourselves from certain collapse. The Ruskies want war with Iran to drive up oil prices to $200 a bbl. This could even help there.
BTW, the UAE exists just for this reason. They are small fish in a big pond and have to stick together or be eaten. If they start to pick sides amongst themselves, there is no UAE. Some guy used to say "Divided we fall".
Dubai has roughly the same relationship to the UAE that California has to the United States, only weaker. Dubai proper has very little oil. The rest of the UAE is going to be as enthusiastic about a Dubai bailout that the rest of the US has for a California bailout.
Where do you think they got the money in the first place? Selling sand?
Yes. That is exactly what they have done. They put a lot of fancy buildings on top of it, but it's still just sand.
http://www.cnbc.com/id/34153730
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