Dubai's Financial Crisis

For those of you unaware, late last week Dubai surprised the financial markets when it asked creditors of Dubai World to agree to a six-month standstill on debt payments for debt totaling > $80 Billion.

In a world of bailouts totaling many tens of trillions thus far, $80 billion certainly seems like a pittance, but many believe this is a black swan event that will parallel the panicked collapse of Lehman Bros - where the contagion spread like a fast moving virus, stoking global credit market fears and paralysing the world economy...



If that is indeed the case, get ready for global economic crisis phase 2 (remember March 2009?). I suggest you keep your eye on the markets in the coming days and weeks, get conservative if you haven't already done so and prepare yourself for the worst...

Bottom line: That light at the end of the tunnel - the one our political and corporate controlled media system keep harping about - may certainly be near, but unfortunately it's not what they had anticipated - it's actually a high speed, fully ladened, out of control freight train coming right at us... Are you ready??

DUBAI, United Arab Emirates Just a year after the global downturn derailed Dubai's explosive growth, the city is now so swamped in debt that it's asking for a six-month reprieve on paying its bills —causing a drop on world markets Thursday and raising questions about Dubai's reputation as a magnet for international investment.

The fallout came swiftly and was felt globally after Wednesday statement that Dubai's main development engine, Dubai World, would ask creditors for a "standstill" on paying back its $60 billion debt until at least May. The company's real estate arm, Nakheel — whose projects include the palm-shaped island in the Gulf — shoulders the bulk of money due to banks, investment houses and outside development contractors.

In total, the state-backed networks nicknamed Dubai Inc. are $80 billion in the red and the emirate needed a bailout earlier this year from its oil-rich neighbor Abu Dhabi, the capital of the United Arab Emirates.

Weekend Funnies 21 Nov 09

Click on any image to enlarge - hope you enjoy these as much as I did!

Great Quote

With the dollar falling further each day and gold continually breaking new records, one might ask why. Well, this short quote sums it up nicely:

"Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves."

While the millions of debt slaves struggle just to survive and keep food on the table, their debt goes unpaid - creating defaults... The Gvt can't allow this "deflation" to happen so it tries to pick up the Debt slave's slack - with their monetary printing presses. This action however creates a whole new "inflation" dynamic (and potential currency crisis) which forces the kings and gentlemen around the globe to run scared - looking for ways to quickly divest themselves of the cratering paper nightmare called the US dollar - and into something that will save their purchasing power - Gold and Silver!






Keep your eyes on 72/71 folks, because when (not if) the dollar falls through it, you will see unprecedented gold and silver fireworks

2010 GM

The new GM (Government Motors) would like to proudly introduce the 2010 Obama. This car runs on hot air and broken promises and has three wheels to help speed the vehicle through tight left turns. It comes complete with two TelePrompters programmed to help occupants talk their way out of any violations and the transparent canopy reveals the plastic smiles still on the faces of all the happy owners. Better get one while you can still afford it - they come in S, M, L, XL and 2XL... It won't get you to work, but hey, there aren't any jobs anyway!

Weekend Funnies - Nov 14