The real capitulation

[phirang]

Re: The real capitulation

The old story during oil busts is that resources producers sees their profits squeezed an being starved for cash the begin to extract more and more (cartel cheating becomes pretty common). I think GRG55 can explain this better than me.

Wait, those stupid islands in the UAE aren't going to magically "create" wealth?

You know, you can judge the strength of an economy by how tall their empty buildings are.

[GRG55]

Re: The real capitulation

Wait, those stupid islands in the UAE aren't going to magically "create" wealth?

Of course those islands created wealth. You just had to be one of the few "right people" to receive it.

You know, you can judge the strength of an economy by how tall their empty buildings are.

Actually you judge the strength of a kleptocracy by that measure. It's pretty straight forward 3 step process:

1. extract the oil [it pays better than dates]; sell it; send the money to a Swiss bank account.
2. since you can't take the land with you when the revolution happens, partition the desert; commission a wild and crazy development promotion [world's biggest mall, water park, or 7-star hotel]; sell it; send the money to a Swiss bank account.
3. since everyone wants coastline, and the interior desert is worthless, dredge the shzt out of your inshore and make more coastal land; commission a wild and crazy development promotion; sell it; ... ;)