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Dubai ports blowback: UAE, Saudi considering to move reserves out of dollar
Posted by: Refurbvirgin
Date: March 21, 2006 11:35PM
"The United Arab Emirates said it was considering moving one-tenth of its dollar reserves to the euro, while the governor of the Saudi Arabian central bank condemned the decision by the United States to force Dubai Ports World to transfer its ownership to a ‘US entity,’ the UK Independent reported.
“Is it protectionism or discrimination? Is it okay for US companies to buy everywhere but it is not okay for other companies to buy the US?” said Hamad Saud Al Sayyari, the governor of the Saudi Arabian monetary authority."

Cue sound of house of cards collapsing.
[www.middleeastforex.com]
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Re: Dubai ports blowback: UAE, Saudi considering to move reserves out of dollar
Posted by: RgrF
Date: March 22, 2006 01:53AM
What house of cards would that be anyway. Don't confuse rhetoric with action.

Seems the Dubai operating partnership decided that they'd better divest their honestly bought contract. It was a political move created by political moves from others.

They (the Dubies) decided that a good side investment might be The Carlyle Group, they decided this to the tune of about 6-8 billion.

Guess where they are offloading this contract and who is on the receiving end of their largess? (Think former presidents and assorted others, the ones NOT out building homes for those in need). Seems Carlyle will end up with all those port contracts, whatta shock!

For more on Carlyle ----> [tinyurl.com]



Edited 1 time(s). Last edit at 03/22/2006 01:59AM by RgrF.
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Re: Dubai ports blowback: UAE, Saudi considering to move reserves out of dollar
Posted by: Refurbvirgin
Date: March 22, 2006 08:02AM
The dollar is worth the paper it is printed on. If other nations stop bankrolling us because they realize we aren't going to be able to repay that massive debt the house of cards analogy is apt. Asian leaders have been highly critical of us for having increased world terrorism, and Chinese and Japanese banks hold the majority of our debt. We finance our spending spree with sales of debt documents, such as T-bills, whose attractiveness is based on interest rates and perceived stability and security.

Bush is already selling off our national forests. Next will it be the infrastructure of highways, with toll-roads returning? If T-bills are viewed as less secure investments interest rates will have to rise to keep sales up and our profligate spending going, and that will slow what economy we've got left in building McMansions to sell each other.

That's my limited understanding of the shakiness of our lifestyle. Feel free to jump in and trash this theory. I would be happy to hear that things are hunky-dory.
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Re: Dubai ports blowback: UAE, Saudi considering to move reserves out of dollar
Posted by: Effin Haole
Date: March 24, 2006 09:41PM
Don't forget arms and technolgy sales to other countries in that mix. They bring in big $'s.

The Euro has a long way to go to be considered a stable long term currency.

With the constant shift in interests within the EU, it will be long time before they agree enough on anything before ti becomes a stable region.
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Re: Dubai ports blowback: UAE, Saudi considering to move reserves out of dollar
Posted by: Refurbvirgin
Date: March 25, 2006 11:43AM
Effin Haole Wrote:
-------------------------------------------------------
> Don't forget arms and technolgy sales to other
> countries in that mix. They bring in big $'s.

Arms are the only thing we build better than the rest of the world, but many nations are deciding they get (wait for it) more bang for the ruble buying Russian (or Chinese). Boeing is beginning to transfer manufacturing jobs to China, too.

> The Euro has a long way to go to be considered a
> stable long term currency.

Everything is relative. The dollar has nothing but faith to back it up, and if the world decides there's no way we can repay our massive debt, Euros may look relatively safe, or some other currency, such as China's for that matter. We've kept our economy going by continuing to print worthless dollars.

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Re: Dubai ports blowback: UAE, Saudi considering to move reserves out of dollar
Posted by: Effin Haole
Date: March 25, 2006 06:14PM
Almost all countries print money with little or no real backing.

Faith, as you put it, is what keeps the world/folks going, and I am not talking about a religious faith.
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Re: Dubai ports blowback: UAE, Saudi considering to move reserves out of dollar
Posted by: RgrF
Date: March 25, 2006 08:48PM
The Treasury Department arbitrarily decided to stop issuing M3 reports. These reports measure the amount of money issued by the Treasury.

M3. Measure of the U.S. money stock that consists of M2 plus large-denomination time deposits (in amounts of $100,000 or more), balances in institutional money funds, RP liabilities (overnight and term) issued by all depository institutions, and Eurodollars (overnight and term) held by U.S. residents at foreign branches of U.S. banks worldwide and at all banking offices in the United Kingdom and Canada. Excludes amounts held by depository institutions, the U.S. government, money funds, and foreign banks and official institutions.

These figures are primarily used by dealers in money markets to get a handle on inflationary spikes. Seems there might be a spike on the way and they'd prefer the political hit for it be defered as long as possible.

Play it right and the next administration will pay the political price.

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