Dubai could become a major Geopolitical Event!Submitted by Ralph Waldo on Sat, 11/28/2009 - 12:56
There are many reasons middle eastern countries have for revenge against the west. Invading Iraq, treatment of the Palestinians, the collapse of oil prices and a few hundred years of oppression by European overlords. The recent announcement that Dubai was calling for "at least" a 6 month stand still of their debt has many strange characteristics that smell of revenge and a major geopolitical event.
1. Why make a public announcement to the world? Most of these types of business negotiations are handled behind the scenes through mail and meetings. Holding an international press conference is not only highly unusual but more in keeping with sending a message!
2. Dubai is basically a family run dictatorship, they are the law, judge and jury. Many foreign companies and banks are reading the fine print of their agreements and learning that contract law in Dubai is pretty much "whatever they want it to be".
3. An unofficial statement came out this morning (Nov. 29 their time) saying that they were going to negotiate the debt on a case by case basis. I can assure you that sent chills up the spins of many wanting to get paid.
Many analyst believe that because of the higher return offered for construction projects, that many US banks are more involved than they are telling. If this turns into a situation of revenge where Dubai basically says, "Yea we got your stuff and your money - What you going to do about it"? This could turn into a shot across the bow and escalate into a major geopolitical event!