03-15-2009, 04:30 PM
TorontoBoy.
I slightly disagree with the notion of CONSUMPTION BASED ECONOMY. Although my analysis are not as insightful as yours and you seem to have a better grip over the fundamentals than I do. I see a pattern in Dubai economy that resembles that of US. Spend, spend, spend and go broke one day. Even if Dubai retains its foreign population it doesn't have much to offer them in return for their services. Yeah it could boost tourism, which is an INDUSTRY by definition but that won't happen until people in other countries start to have some disposable income. Dubai was just like an OASIS in desert with massive construction projects. I wonder why were they doing so much construction. Geographically there is nothing there except oil. They would rather have spent that money to develop some industry, some R&D or anything that could sustain their growth and people's jobs. I am not aware of any.
Secondly, US has still something to fall back on, let's say, BIOTECH can be one of them just for instance.
I am not a big fan of Arab countries in terms of their unjust and cruel policies toward poor foreign workers. Holding foreigners passports, not recognizing their residence status and so forth. It is an extremely hypocritical society where on one side you deny any rights to labor society, and on the other hand invest all money from oil exports or whatever lavish, stupid projects they were running to attract foreign investment, in foreign countries whom they constantly blame as being the champions of usuary and then blowing the trumpet of Islamic banking. Why haven't we seen India or China spending billions on making NEW EXOTIC ISLANDS THE STRETCH MILES FROM OCEAN LINE? I haven't heard lately any country ordering as many new BOEINGS as them. The fact is smart countries invest in their own countries in order to make infrastructure strong and to fall back on something that can sustain their growth in hard times. On the top of all these novel ideas they come up with about bringing foreign investments they invested in US treasuries from where is no hope of getting the investment back.
The party is over for everybody.
I slightly disagree with the notion of CONSUMPTION BASED ECONOMY. Although my analysis are not as insightful as yours and you seem to have a better grip over the fundamentals than I do. I see a pattern in Dubai economy that resembles that of US. Spend, spend, spend and go broke one day. Even if Dubai retains its foreign population it doesn't have much to offer them in return for their services. Yeah it could boost tourism, which is an INDUSTRY by definition but that won't happen until people in other countries start to have some disposable income. Dubai was just like an OASIS in desert with massive construction projects. I wonder why were they doing so much construction. Geographically there is nothing there except oil. They would rather have spent that money to develop some industry, some R&D or anything that could sustain their growth and people's jobs. I am not aware of any.
Secondly, US has still something to fall back on, let's say, BIOTECH can be one of them just for instance.
I am not a big fan of Arab countries in terms of their unjust and cruel policies toward poor foreign workers. Holding foreigners passports, not recognizing their residence status and so forth. It is an extremely hypocritical society where on one side you deny any rights to labor society, and on the other hand invest all money from oil exports or whatever lavish, stupid projects they were running to attract foreign investment, in foreign countries whom they constantly blame as being the champions of usuary and then blowing the trumpet of Islamic banking. Why haven't we seen India or China spending billions on making NEW EXOTIC ISLANDS THE STRETCH MILES FROM OCEAN LINE? I haven't heard lately any country ordering as many new BOEINGS as them. The fact is smart countries invest in their own countries in order to make infrastructure strong and to fall back on something that can sustain their growth in hard times. On the top of all these novel ideas they come up with about bringing foreign investments they invested in US treasuries from where is no hope of getting the investment back.
The party is over for everybody.
