Where some of our gas money went

Discussion in 'Economy' started by CA95380, Oct 9, 2008.

  1. CA95380
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    CA95380 USMB Member

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  2. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    WOW! Looks like they did a great job. Maybe I'll vacation there someday, looks like Vegas. I wonder what tourist attractions they have? Do they allow gambling and alcohol in Dubai?







    (I realize that wasn't the answer you were looking for.) :D
     
  3. CA95380
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    CA95380 USMB Member

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    I think you should move there permanently. Have a nice trip.
     
  4. PeterS
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    PeterS Active Member

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  5. AVG-JOE
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    AVG-JOE American Mutt Staff Member Gold Supporting Member

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    ...And hookers and everything else your lil' heard desires - Vegas on steroids... Bring a SHIP-LOAD of $$$$$$$$.:lol:

    -Joe
     
    Last edited: Oct 9, 2008
  6. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    In your original post you claimed that we'd been "sending our gas money" there. Well looky here what I read in the WSJ today:
    Dubai's Heavy Debt Load Stirs Concern - WSJ.com
    Care to restate your argument about "our gas money" and Dubai?
     
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    Last edited: Oct 10, 2008
  7. Zoomie1980
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    Zoomie1980 Senior Member

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    YOu should. It really is a pretty cool place to go. And unlike Europe, they really like Americans....
     
  8. BaronVonBigmeat
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    BaronVonBigmeat Senior Member

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    I read this thread a few days ago but didn't post. I was going to ask whether or not all this stuff was government-funded, or some kind of government-private partnership, seeing as how mineral rights are owned by governments in most countries. I suspected that all was not well; that government spending had resulted in misallocated funds or malinvestments or some such thing.

    Turns out my hunch was right.

    Bloomberg.com: Worldwide
     
  9. BaronVonBigmeat
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    BaronVonBigmeat Senior Member

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    Mark Thornton of the Mises Institute examined the connection between the completion of the next tallest-building and the business cycle in "Skyscrapers And Business Cycles" which appeared in the Spring 2005 edition of The Quarterly Journal of Austrian Economics. Using economist Andrew Lawrence’s skyscraper index, combined with Austrian Business Cycle Theory, Thornton finds that the skyscraper index is a good predictor of economic crisis and "that both the cause of skyscrapers reaching new heights and severe business cycles are related to instability in debt financing…"

    The first skyscraper cycle began in 1904 in New York when the 47-story Singer Building and 50-story Metropolitan Life buildings began construction. This building boom was quickly followed by the Panic of 1907. In the late 1920’s with Wall Street booming three record-setting towers – 40 Wall Street, Chrysler Building, and the Empire State Building – were started, only to be completed after the stock market crash of 1929 and the onset of the Great Depression.

    The third cycle began with the commencement of construction of the Sears Tower in Chicago in 1970 and the World Trade Center in New York, which broke ground in 1966. By the time these projects were completed the US economy was mired in stagflation.

    The 88-story Petronas Tower in Kuala Lumpur, features twin "cosmic pillars" spiraling endlessly towards the heavens. Petronas was completed in 1997, the same year as the Asian Financial Crisis.

    These four cycles, Thornton points out, share common characteristics: A period of cheap, easy money, leading to stock market booms and increases in capital expenditures. This new capital leads to technological advances and employment growth. During the booms, the next tallest building is planned and construction begins. But, prior to completion, negative information leads to market panics and the value of capital goods falls.

    The coordinated and constant creation of liquidity by the world’s central banks, especially since the Greenspan era, has led to not only more contenders for the tallest building title all over the world, but also frenzied high-rise construction everywhere.

    Thornton’s work shows us that before the construction party ends, the economy wakes up with a bad hangover. Better stock up on aspirin, there is a lot of pain coming.


    Booms, Busts, and Construction Cranes by Doug French
     
  10. dilloduck
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    dilloduck Diamond Member

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    Thank you, world central banks !
     

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