People forget the reason Adolph Hitler came into power was due to the Great Depression. People forget the political consequences of economic greed, corruption and bubble creation is always the rise of a strong man to deal with the chaos.
The question is: Should Dubai borrowed money to Creditor build projects and money raised from investors to build projects, and suddenly it was announced that neither the draft nor the money is there, then where did the money go? Was it all paid consultants incompetent, executives, managers, experts from Western countries who designed this scam and appear to be the only winners in this debacle?
Dubai Goes Down
November 27, 2009 By Douglas McIntosh
One wonders what the whore press will make of Dubai’s effective default on some $60 Billion in debt. I imagine they will try and spin it in their usual fashion. Unfortunately for the spin meisters, some things are simply to big to spin. Economic centrifugal force comes into play, as does the second law of thermodynamics called entropy. Entropy is the tendency towards disorder or chaos. It is the economic version of a teenager and his room and it will eventually undermine the $600 TRILLION derivatives market. Synergy is another fact of nature that comes into play with the Dubai debt default. And let me be very clear here: DUBAI HAS DEFAULTED. The politicians and economists may claim this is not the case. They may use weasel words like “debt standstill” or a six month breather to reorganize the debt for repayment. Again, this is an effective default, whatever the powers that be call it.
I would also remind my readers that is was none other than Alan GreenSpan a.k.a. Mr Magoo who several years ago assured us that the derivative market needed no regulation. The vile beast called the Federal Reserve solemnly assured government officials, the shill media and the global populace that the derivative markets were safe. Warren Buffet’s famous statement defining derivatives as “economic weapons of mass destruction” was ignored. The government regulators, flush from lowering interest rates to near zero after 9-11 allowed several bubbles to form. One of these bubbles was in real estate. The unwinding of the real estate bubble, created by Mr. Magoo has been hammering the US economy for several years now. I expect no real estate recovery until 2011 at the earliest. Further, the decline in real estate prices is still continuing and will do so for the foreseeable future. Once a bubble, or balloon pops, it takes a while for the air to escape.
As bad as the utterly incompetent Mr. Magoo screwed us with his creation of the real estate bubble, he has outdone himself with his failure to regulate the derivative market. Mr. Magoo, along with Braying Bernie have doomed the global economy to years of pain and suffering by allowing the mother of all bubbles to be created. Many years ago over at www.gold-eagle.com I wrote an essay called “Mr. Magoo’s Name will Rot.” And it will. Oh it will. Alan GreenSpan will share the fate of US President Herbert Hoover and his permanent linkage to the Great Depression in the United States. Such is fate. Such is the judgment of economic history. It is a well deserved judgment in my view. For it is upon the hands of Mr. Magoo, he who once admired Ayn Rand and was a gold bug, the economic blood will coagulate. Nor will Mr. Magoo be able to wash his hands clean, however many books he writes and shill media interviews he does. Mr. Magoo should be in jail, but instead is allowed to wander around pontificating like some elder economic statesman. How pathetic Mr. Magoo truly is. The way life works, one should get wiser the older he gets, but in Mr. Magoo’s case he gets stupider. And Mr. Magoo’s stupidity will be the economic doom of all of us. Woe unto the shepherd who allows the economic wolves to savage the widows and orphans. Woe unto the shepherd who allowed open greed and corruption to flourish during his twenty year reign of economic terror. Woe unto us all for his arrogance, stupidity and desire for the acclaim of the media, the politicians and the masses. Mr. Magoo has brought us to the this place of economic desolation. For that the judgment of history will be savage and brutal, just as his policies have created savagery and brutality for the rest of us.
You can read the rest of Doug McIntosh’s posting here.
Dubai debt move ‘carefully planned’: top official
Nov 26 03:21 PM US/Eastern By Associated Press
DUBAI, United Arab Emirates — A top Dubai finance official said the emirate fully expected fallout from its debt problems and assured foreign creditors that Dubai World’s request to postpone payment on some of its $60 billion in debt was “carefully planned.”
The comments by Sheik Ahmed bin Saeed Al-Maktoum, the chairman of Dubai’s Supreme Fiscal Committee, came as world markets reacted in shock to what some analysts indicated amounted to a default Dubai World, the city-state’s key engine of growth with interests ranging from ports to real estate.
Ahmed said the emirate’s leadership thought long and hard, weighing creditors’ interests, before announcing they were seeking a “standstill” on Dubai World’s debt until at least May.
“Our intervention in Dubai World was carefully planned,” Ahmed said in the statement released late Thursday. “The government is spearheading the restructuring of this commercial operation in the full knowledge of how the markets would react.”
The Dubai government, in a brief statement issued Wednesday — on the eve of a three-day Islamic feast — said it would request the delay in Dubai World’s debts, as well as those of real estate arm Nakheel, which has a roughly $3.5 billion Islamic bond coming due in December.
You can read the rest from Fox News