It Begins

Mr.Fitnah

Dreamcrusher
Jul 14, 2009
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Paradise.
The Global economic collapse due to unmanageable debt has begun


Dubai in deep water as ripples from debt crisis spread - Times Online

Fears of a dangerous new phase in the economic crisis swept around the globe yesterday as traders responded to the shock announcement that a debt-laden Dubai state corporation was unable to meet its interest bill.

Shares plunged, weak currencies were battered and more than £14 billion was wiped from the value of British banks on fears that they would be left nursing new losses.

Nervous traders transferred the focus of their anxieties from the risk of companies failing to the risk of nation states defaulting. Investors owed money by Mexico, Russia and Greece saw the price of insuring themselves against default rocket.

Although the scale of Dubai’s debts is comparatively modest at $80 billion (£48 billion), the uncertainty spooked the markets, with no one sure who its creditors are. Several banks rushed out statements to reassure investors that their exposure was small.

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this will pass quickly. its 80 billion across a moderate range of investors.
 
It Begins

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The Global economic collapse due to unmanageable debt has begun


Somewhat overdramatic aren't we????
 
Ahh the beacon of Capitalism in the middle east falters....

80 billiion so far....

They will recover all of it from the 'sheep' in a few days, not to worry about their fate.
I still haven't gotten my .950 silver Rolls Royce yet, ya think they would eBay at least one of them, maybe some of those 24 carat gold bathroom fixtures. :lol:

I wonder if they worry about us, as much as some worry about them? If I can get my Paypal working, I'll send them some US Dollars, if it's still worth anything. In the meantime............... :eusa_boohoo:
 
Ahh the beacon of Capitalism in the middle east falters....

80 billiion so far....
With the blessings of capitalism, come the curses. The curses are made only worse by governmental interference, and the blessings made feebler.

I'm not convinced... yet... that this is the weak pillar in the mine. I think this is more the canary. There is still time, but it is short and the chances of it all coming down quickly is growing all the stronger.
 
hey. At least HE'S living high on the hog.

It's sort of the same way that everyone's cold because my mother is cold. He's doing well, therefore everyone must be doing well. :rolleyes:
 
Makes you wonder what will happen when the world discovers that the US can't pay its much larger debt.

No country can pay its debt. The question is can it pay the interest on the debt as it becomes due. Dubai can't, but the US can. In fact, as a percentage of gdp, the US debt is not extraordinarily large as compared with other developed countries. For example, Japan's debt as a percentage of gdp is nearly three times larger than our's, and Germany, Canada, France and Belgium have debt to gdp ratios as high or higher than our's. Of course, Obama seems set on changing all of that, and as he oversees the decline of the US economy and our military strength, he seems set on moving our debt to gdp ratio to the top of the list.

List of countries by public debt - Wikipedia, the free encyclopedia
 
Makes you wonder what will happen when the world discovers that the US can't pay its much larger debt.

No country can pay its debt. The question is can it pay the interest on the debt as it becomes due. Dubai can't, but the US can. In fact, as a percentage of gdp, the US debt is not extraordinarily large as compared with other developed countries. For example, Japan's debt as a percentage of gdp is nearly three times larger than our's, and Germany, Canada, France and Belgium have debt to gdp ratios as high or higher than our's. Of course, Obama seems set on changing all of that, and as he oversees the decline of the US economy and our military strength, he seems set on moving our debt to gdp ratio to the top of the list.

List of countries by public debt - Wikipedia, the free encyclopedia

Chart and graph all you want friend. We are going down. All too soon our interest rates are going up big time. You also need to consider that the US government will respond to all of this with...ta da...spending our way out even faster.
 
Chart and graph all you want friend...... We are going down. All too soon our interest rates are going up big time. You also need to consider that the US government will respond to all of this with...ta da...spending our way out even faster.

Exponential national debt, collapsing US dollar, raising interest rates to protect the dollar, cap+trade kicks in, UHC kicks in, personal spending drops off a cliff, and then we get to vote in 2012....
 
Maybe Oprah will buy Dubai and open a theme park.

Dubai is just one of seven emirates making up the UAE. Why does not the oil-rich emirate of Abu Dhabi pump some money to its sister Dubai? They are members of the United Arab Emirates. Why do they let one emirate suffer while another is iced with money to burn?
 
Isn't Dubai the place that Captain Chimptastic wanted to run US ports?

Thankfully thatw as one time Bush didn't get his way.
 
Watch out. This may be just the beginning. In the scale of things, the debt problems of Dubai are little more than a flea bite. Dubai’s sovereign debts total “just” $80bn, which counts for nothing against the trillions being raised by advanced economies to plug fiscal deficits.

Dubai has been a one-way ticket of economic expansion until recently
Small wonder, though, that this minor tremor has sent such shock waves around the wider capital markets. The fear is that threatened default in this tiny desert kingdom is just a harginger of things to come for government debt markets as a whole. According to new estimates by Moody’s, the credit rating agency, the total stock of sovereign debt worldwide will have risen by nearly 50 per cent between 2007 and 2010 to $15.3 trillion. The great bulk of this increase comes not from irrelevant little states like Dubai, but from the big advanced economies – America, Europe, and Japan.
Perversely, they are for the time being beneficiaries of the “flight to safety” that trouble in Dubai has sparked. Government bond yields in the major advanced economies have fallen in response to the crisis in the Gulf. If experience of the banking crisis, when investors removed their money from one bank only to find that the one they had put it into looked just as dodgy, is anything to go by, this effect will not last.
Up until now, markets have assumed that the ruinous fiscal cost of addressing the financial and economic crisis was probably just about affordable to the major economies. That view may be about to be challenged.
I’m going to be writing more about the fallout for Dubai and its implications for the advanced economies in tomorrow’s paper

Dubai is just a harbinger of things to come for sovereign debt – Telegraph Blogs
 
Maybe Oprah will buy Dubai and open a theme park.

Dubai is just one of seven emirates making up the UAE. Why does not the oil-rich emirate of Abu Dhabi pump some money to its sister Dubai?
That's essentially what happened earlier. Whether or not they'll be willing to do it again remains uncertain.

Abu Dhabi wants stake in Emirates for bailout cash - Times Online
That deal amounted only to a pittance and Abu Dhabi was only trying to buy an airline that the pompous government of Dubai didn't want to sell.

I mean why don't they "pump some cash" into their allied neighbor?...maybe 80billion or so to keep the rest of the world from suffering so much from what the United Arab Emirates screwed up. They don't seem significantly united to me. What is actually shared among the Emirates?
 

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