Say Anything Blog

Dubai can’t put aa their $70@barrel money under their bed.
They have no interest in destroying the global monetary system.
They have the money and probably own a piece of most everything through their banks and holdings.
They want stability.

Since this is sure to bring in the Google hits of those interested in the building boom of Dubai, I will list a few websites that may interest…

* Metroblogging Dubai

* Photos by Brian McMorrow

* SkyscraperCity HOT! Just check out the supertall category. They nearly own it.

* Dubai Megaprojects

* DUBAI IS NUTS!!! - all kinds of pics.

The dollar no longer exists. What we trade in now are actually Federal Reserve notes. Their value is directly related to how many of them exist in relation to the perceived value of the U.S. economy.

If a company has 1 billion shares of stock outstanding and the value of the company is $1 Billion, each stock is worth $1. If the company issues 1 billion more stocks, each stock is now worth $.50.

Every time Congress borrows more notes to spend from the FRB and the FRB prints and issues more notes without an equal increase in the value of the U.S. economy, the value of the notes in circulation drops.

When the DOW climbs 1% to hit a new high and the notes decline 3%, every one has lost money. This is what has been happening. The U.S. economy growth rate is not keeping up with spending and is projected to continue on this path for some time in anticipation of Congress increasing the U.S. dept.

The value of a company is not always reflected internationally by the shrinking dollar. While U.S. corporate stocks are priced relative to FR notes, a company’s value is also looked at relative to foreign currency. The dollar may have dropped while a company’s actual value has increased. A stock that used to cost a Canadian $1.17 now cost them $1.12 while the actual value of the company has stayed the same. This is what has been happening and is why Dubai wants to invest in Nasdaq. The price has dropped relative to their currency and it costs them fewer Durhams. They will be getting a bargain.

It is not about investing in the U.S. economy. It’s about investing in Dubai.

What we trade in now are actually Federal Reserve notes. Their value is directly related to how many of them exist in relation to the perceived value of the U.S. economy…

Every time Congress borrows more notes to spend from the FRB and the FRB prints and issues more notes without an equal increase in the value of the U.S. economy, the value of the notes in circulation drops.

Ews48,

So far, so good.  But if what you say is true, then how could any modestly knowledgeable individual countenance increased federal spending, higher rates of taxation, or any other economic or fiscal policy which does not have as its sole objective an increase in the country’s economic growth?

You have managed to detail about half the equation, albeit without explaining any of the underlying principles, the comprehension of which would lead to true understanding.  But in the process, you have also managed to effectively argue against virtually every economic, fiscal, and tax policy offered by the left.  If the value of the total money supply is to track the value of the total economy, as you have stated, then either the money supply should be reduced (recession, and likely depression and panic as witnessed in the 1930’s and several times previous), or our economic, fiscal, and tax policies must all focus on increasing economic growth.  There are, after all, only two sides to your own equation.

“Poverty of goods is easily cured; poverty of the mind is irreparable.”

Do you think those loons realize that it’s the hostility towards foreign investment that’s hurting the dollar?

Good one.
Lets see your reaction if or when an Arab nation or China wants a big chunk of Betchel, Lockheed Martin Raytheon, Boeing or General Dynamics just to name a few.

Why else should the dollar be in decline?

Hmmmmm lets see, the fed lowering the funds rate and the rate at the drive up window I’m sure had nothing to do with it.
When dubya & co took office the fed rate was 6%.
Dollar index was at 120
and for those who say they lowered it coz of 9/11.....
9/1/2001 it was 3%.
Today the dollar is at 78.48
oil went from $22 a barrel to $84 a barrel
oil is priced in USD. The less the USD is worth, the more it takes to buy.
It’s a FREE market.

“We have a dollar that’s adjusting and I am for a strong dollar.....
Our dollar doesn’t buy as many barrels of oil as it used to and so therefore it’s more expensive for the American people”..... Bush 3/12/08

The less the USD is worth, the more it takes to buy. Only if the supply/demand relationship stays constant.
It’s a FREE market. I don’t think you know what that means.  I recommend a basic econ course.

If you don’t know by now, don’t mess with it.

The deficit is very low as compared to our GDP

You quack me up
Don’t we have to borrow(print)more money to cover this?
The more we borrow the more it takes away from the purchasing power(value) of our currency resulting in a weak dollar.
It’s a FREE market manipulated by Goldman and JP

“We have a dollar that’s adjusting and I am for a strong dollar.....
Our dollar doesn’t buy as many barrels of oil as it used to and so therefore it’s more expensive for the American people”..... Bush 3/12/08

An interesting thought: When it comes to fighting terrorism in Iraq, Afghanistan and elsewhere, terrorism is “just a bumper sticker”, according to the lefties.  However, when it comes to doing peaceful business with that part of the world, they sound the alarm.  Interesting hypocrisy.

If you don’t know by now, don’t mess with it.

And of course, the lefties go after anything that can be spun into bad economic news for America like flies on poop.
What’s bad for America is good for the Dems/lefties.

If you don’t know by now, don’t mess with it.

That should be: “like flies on MarkD’s head”.

If you don’t know by now, don’t mess with it.

Only if the supply/demand relationship stays constant.

Then why is oil $84
Oil is priced in $$$$
If demand goes down don’t you think they will cut production?

“We have a dollar that’s adjusting and I am for a strong dollar.....
Our dollar doesn’t buy as many barrels of oil as it used to and so therefore it’s more expensive for the American people”..... Bush 3/12/08

r108
terrorism?
I was asking TW if it would be OK to sell part of those publicly traded companies to China or the Saudi’s in order to save the USD.
It’s a FREE market.

“We have a dollar that’s adjusting and I am for a strong dollar.....
Our dollar doesn’t buy as many barrels of oil as it used to and so therefore it’s more expensive for the American people”..... Bush 3/12/08

r108

when it comes to doing peaceful business with that part of the world, they sound the alarm.  Interesting hypocrisy.

So you have no problem if they want to buy into any of those companies.....right? After all it would be a peaceful business transaction.

“We have a dollar that’s adjusting and I am for a strong dollar.....
Our dollar doesn’t buy as many barrels of oil as it used to and so therefore it’s more expensive for the American people”..... Bush 3/12/08

If demand goes down don’t you think they will cut production?

Then they will also cut their cash flow.

My point had to do with the supply side of the situation, specifically us bringing our own supply to the market.  Try to stay focused.

So you have no problem if they want to buy into any of those companies.....right? After all it would be a peaceful business transaction.

Never generalize; it shows your ignorance.  I commented on this transaction, and the Ports deal; what are you trying to invent?  We should always use good judgment in any international transaction.  Duh.

If you don’t know by now, don’t mess with it.

I was asking TW if it would be OK to sell part of those publicly traded companies to China or the Saudi’s in order to save the USD.

What does this have to do with the NASDAQ deal?  Changing the subject again?  The dollar doesn’t need “saving”, btw.

If you don’t know by now, don’t mess with it.

The more we borrow the more it takes away from the purchasing power(value) of our currency resulting in a weak dollar.

When we decide to strengthen the dollar, all we have to do is to cut social(unproductive) spending and cut foreign aid.  Make them sell us stuff to get our dollars.

If you don’t know by now, don’t mess with it.

MarkD: Despite your illusions to the contrary, the crude oil market is not a “free market”.  The supply and price is controlled by a virtual monopoly called “OPEC”.  How do you not know that?  This virtual monopoly is enabled by the enviroextremists in this country, who have so far been successful in crippling both our domestic oil industry, our refining industry, our electrical generation industry and our nuclear power industry.  The result of this politically-directed activity is to make us artificially dependent on foreign sources of oil, where we could be much less dependent or independent if the envirocrazies were eliminated from having power over our domestic energy industry in general.
You seem to be under the illusion that our economy is dependent on the rest of the world, when the truth is exactly the opposite.  Even in the Twenties, the crash of the US economy brought down the rest of the world, and nothing has happened that would change that result today, should it happen.

If you don’t know by now, don’t mess with it.

Then they will also cut their cash flow

???
Hmmmm. if they cut production will that raise or lower the price of oil?

bringing our own supply to the market

from where? How much do we pay for a barrel of oil from the gulf or Alaska? $20? $30? $80?

We should always use good judgment in any international transaction.  Duh.

Tell TW

What does this have to do with the NASDAQ deal?  Changing the subject again?  The dollar doesn’t need “saving”, btw.

TW said “Big Deal” So if UAE wanted to buy Boeing or Haliburton would he feel the same? Of course the USD doesn’t need saving.....it’s a free market after all.

When we decide to strengthen the dollar, all we have to do is to cut social(unproductive) spending and cut foreign aid.

Yes and we can cut taxes too.
Should we cut foreign aid to our largest recipient?

“We have a dollar that’s adjusting and I am for a strong dollar.....
Our dollar doesn’t buy as many barrels of oil as it used to and so therefore it’s more expensive for the American people”..... Bush 3/12/08

The supply and price is controlled by a virtual monopoly called “OPEC”.

Is Exxon/Mobil part of OPEC?
Why do we pay their prices for oil in the gulf and Alaska?
How much oil flows through the pipeline now?

“We have a dollar that’s adjusting and I am for a strong dollar.....
Our dollar doesn’t buy as many barrels of oil as it used to and so therefore it’s more expensive for the American people”..... Bush 3/12/08

You seem to be under the illusion that our economy is dependent on the rest of the world, when the truth is exactly the opposite

Hmmmmmmm again.
So our economy is not dependent on foreign oil?
foreign investment?
foreign products?

“We have a dollar that’s adjusting and I am for a strong dollar.....
Our dollar doesn’t buy as many barrels of oil as it used to and so therefore it’s more expensive for the American people”..... Bush 3/12/08

So our economy is not dependent on foreign oil?
foreign investment?
foreign products?

Since you seem to lack basic econ knowledge, let me ‘splain it to you.

We are “dependent” on foreign oil only in the sense that we choose to buy it elsewhere(the majority from Canada, btw) at this time.
In general, no one makes a transaction unless they perceive that it’s beneficial to them.  So far, allowing foreign investment and buying products from outside the country is mutually beneficial.
You obviously need the word “dependence” to make your fantasies of a weak US economy come true.  Silly leftie.

If you don’t know by now, don’t mess with it.

Why do we pay their prices for oil in the gulf and Alaska? The price is competitive; do you know nothing about business?
How much oil flows through the pipeline now? Why is this relevant to the subject?

It’s not my job to furnish you with a knowledge of basic econ, Mark, and your questions indicate a lack of that knowledge.  Your worldview seems to be conditioned by Marxist beliefs or something akin to those, so get back to me when you know something.

If you don’t know by now, don’t mess with it.

We are “dependent” on foreign oil only in the sense that we choose to buy it elsewhere

Ahhh I see. we choose to pay $84 a barrel.
But if we wanted we could pump more oil out of Alaska and the Gulf .......but that’s only if we really really wanted to. But that oil would be $84 a barrel too coz it’s a FREE market.

How much oil flows through the pipeline now? Why is this relevant to the subject?

I guess coz we choose to pump only 715,000 barrels a day instead of 2,088,000 a day like we did back in 1988, but then again like you said, we choose to buy it elsewhere.

“We have a dollar that’s adjusting and I am for a strong dollar.....
Our dollar doesn’t buy as many barrels of oil as it used to and so therefore it’s more expensive for the American people”..... Bush 3/12/08

...but then again like you said, we
choose to buy it elsewhere.

You seem to have trouble grasping the obvious.  I recommend a basic econ course.

Our present situation vis a vis oil is not a matter of economics, it’s all about politics, which is why we are paying more than we should.  Socialism always makes things more expensive, along with shortages.
All central govt is socialistic, to answer your next ignorant question.  It’s simply a matter of degree, and how individually independent the population is.

If you don’t know by now, don’t mess with it.