US Economy Effects Arab Economies - Political Forum

CHUQ · 02-05-2007, 07:54 AM

Any thoughts on this article? I found it intersting reading.

It will come as no revelation to anyone that the American economy, ever present on the international scene, is of major importance to the international economy, in general, and for the economic indicators of the Arab World, in particular. The key indicators that must be followed from an Arab and Gulf perspective are: the dollar exchange rate, the record for stock exchange (NASDAQ, Dow Jones, among others), consumer confidence and, of course, its external balance as represented by the trade balance (the difference between the imports and exports of commodities), and the internal balance as represented by the deficit of governmental expenses against revenues. The indicators point to the fact that these facts and figures portray a contradictory picture, something that will not sit well with the analyst who adores simple, final, clear-cut results. This is like consumer confidence in the US, for instance, which is still high, while people are continuing to pounce on immediate consumption at a high degree.

Dar Al Hayat

Of course, you would have to live under a rock not to realize that the US economy effects a large part of the world.

Brother Oz · 02-05-2007, 10:54 AM

It affects some places more than others. The Arab oil states are heavily dependant on US oil consumption, so it affects them a lot more than other similar countries.

Daewoo · 02-05-2007, 02:40 PM

Quote:

Originally Posted by Brother Oz

It affects some places more than others. The Arab oil states are heavily dependant on US oil consumption, so it affects them a lot more than other similar countries.

Especially since those dirty europeans are not cooperating with them and paying for their oil in freshly minted Euros, but instead are using their oil purchases to dump dollars.

Brother Oz · 02-05-2007, 03:25 PM

I know! He, he, he! And there ain't nothing they can do about it.

Daewoo · 02-05-2007, 04:17 PM

Quote:

Originally Posted by Brother Oz

I know! He, he, he! And there ain't nothing they can do about it.

In the end it will be the biggest US allies (think "Saudi Arabia) and our sattelite states (Kuwait) that take the hardest hit. The iranians have dumped all their dollars now and are simply insisting on Euros for oil payment. I heard an interesting rumor the other day from a usually reliable source that they were going to let the chinese pay in yuan.

Countries like Iran don't care about the US and frankly would probably be willing to take the hit that comes with a dollar crash just for the sheer joy of seeing Americans starving in the streets on TV. Places like Saudi Arabia, which has EVERYTHING to loose, has got to more or less hold out as long as they can. If we learned tomorrow that the sauds were starting to dump dollars, it would start a panic. In holding out, though, they lose. Bad spot to be in.

Dollar turnaround in Europe (how long it takes dollars to come in and go right back out) is down to somethign like 30 days. The Europeans get them, convert them, then immediatly either shove them off on the Arabs or Japanese. The British use them to buy inflation protected bonds which is nice and all since it gives uncle sam more money to blow...er...uh...spend...but I wish they would stop because I don't WANT my kids to be indentured servants. I think it is a nefarious plot by the british to rekindle the empire. Keep the US going on our spending orgy until we are well and surely screwed, then buy the whole place up for roughly half what they lost in the saltwater tea incident

Brother Oz · 02-05-2007, 04:29 PM

Quote:

I think it is a nefarious plot by the british to rekindle the empire. Keep the US going on our spending orgy until we are well and surely screwed, then buy the whole place up for roughly half what they lost in the saltwater tea incident

Sounds good to me.

But to be honest it's more because we've got a lot of extra money, and we've found that we can't increase the quality of public services much by sticking more money in, we've pumped them full of money already. That's why Gordon Brown (the chancellor of the exchequer who'll be Prime Minister within the year) has paid off a huge amount of our national debt, including our war debt to America which we didn't even have to pay interest on.

Daewoo · 02-05-2007, 08:05 PM

Quote:

Originally Posted by Brother Oz

Sounds good to me.

But to be honest it's more because we've got a lot of extra money, and we've found that we can't increase the quality of public services much by sticking more money in, we've pumped them full of money already. That's why Gordon Brown (the chancellor of the exchequer who'll be Prime Minister within the year) has paid off a huge amount of our national debt, including our war debt to America which we didn't even have to pay interest on.

If you guys have all that extra money, you could donate it. We have a war that needs to be paid for

Brother Oz · 02-06-2007, 01:01 AM

Thanks, but no thanks. There's no way Gordon Brown is going to make the government more associated with America than it already is.

Daewoo · 02-06-2007, 10:10 AM

Quote:

Originally Posted by Brother Oz

Thanks, but no thanks. There's no way Gordon Brown is going to make the government more associated with America than it already is.

Thats just not fair. Blair went to such lengths to show that the British are GOOD US lapdogs and now Brown wants to send an opposing picture.