Recently there has been some tension in the financial market related to the inability of a financial group in Dubai to cover their payments. Specifically a stand still in $4 billion of debt has been requested.
Here is an interesting Independent article about the dark side of Dubai. I had seen these expats from the United States in other countries, giving terribly bad financial advice for their own short term profit. You can count the countries that followed this advice and the misery now for these poor people and their new governments. There really is a global mess related to very, very poor leadership from the United States. I expect similar melt-downs in the future. The Great Depression started by financial collapse in Europe. We’ll see if we can escape another, deeper, depression. I’m tracking this closely.
As is often the case with financial meltdowns, the World Bank is in the middle of this. You can track where the least competent people in the previous political administration went to, the World Bank, to get a sense of the political outlook of this group. Here one of these clowns quits because of scandal and a description of the mess he left.
You might remember the very strong political push to have US ports managed by a Dubai company for big profits by an off-shore company (this nonsense strongly supported by editorials from the usual clowns; Wall Street Journal, LA Times, Washington Post, Friedman, Limbaugh, O’Reilly etc, etc.). Here is an excellent review and article from Hullabaloo.
There have been some excellent books written that explain in detail what is happening; I recommend this book (The Wrecking Crew), and this book (The Shock Doctrine), to gain important perspectives. Individual states are now following closely the scenarios outlined in The Shock Doctrine). Naomi Klein explains it for Californians here.
This all started in California when the Republicans discovered “double Santa Claus“. This is worth reading carefully. I remember understanding that we were burning through the accumulated wealth of the richest nation in the world to support, for the short term, the greediest generation. That’s over now.
As usual Bob Herbert of the New York Times has an excellent editorial.
“The American economy is broken, ruined by the greed and irresponsibility of fabulously wealthy corporate chieftains and their shabby acolytes and enablers in government. While Wall Street is handing out billions in bonuses, American families are struggling with joblessness, home foreclosures and rampant debt. The economic woes are exacting a fierce toll on family life, and children are taking a big hit — emotionally, psychologically and otherwise.”
Here is his editorial. He understands.