For the past two decades, if you were a bright young architect or construction engineer, there was just one place to go for exciting work. Dubai!! In Dubai a seeming endless supply of money and government approval was pushing every imaginable construction project. In what should have been a forgotten corner of the world, every imaginable 21st Century luxury was being built – even man-made islands shaped like a palm tree – or the map of the globe.
Then last week Dubai announced the unthinkable, – they are defaulting on $59 Billion dollars of debt, and working to restructure loans. Loans? Doesn’t Dubai float on oil money?
Not exactly. They pump a little oil – 240,000 barrels / day – one tenth of what violence wracked Iraq pumps. They have a little natural gas, but expect that to be pumped dry in twenty years. So how could tiny Dubai – with a total population barely equal to the city of Houston, Texas run up $59 Billion in bad debts?
The answer is they were spending like drunken Kennedy Democrats. But what were they using for money? Borrowed money! And there is a slightly darker answer. Dubai in the past thirty years has transformed itself to an international trading and money exchange mecca. Anybody could do business with anybody – in Dubai. The reasons “sanctions” against Saddam and Iran never were effective? Dubai! Simply ship your forbidden goods through a Dubai middleman, and they went where they were wanted, – you got paid, and Dubai got a little richer with each transaction.
But they overreached, overbuilt, overextended, and meanwhile everybody else was reigning in and tightening belts [except the US Congress and Obama]. Now the music has stopped, and the piper needs to be paid. Dubai’s pockets are empty.
Dubai: $80 billion total debt ÷ 2,262,000 = $35,367/ person
USA: $12 Trillion total debt ÷ 307,372,942 = $39,111/ person
Bookmark this: http://www.usdebtclock.org/
Do you think we can keep spending like Dubai – pretending there is no tomorrow? Why are the Dems and Socialists in Congress and Obama playing this game – except to deliberately bankrupt us?
Please ask your liberal friends to explain their economic theory to you. See if it involves them “spreading your wealth around”, and possibly being forced to use Euros to do it. How many of your rich liberal Obama-worshiping friends are buying gold – just in case? Ask them!!
/s/ Iron Mike
Old Soldier, – Still Good for Parts!