Mike Pouraryan
Abu Dhabi Thinking About Ending Its' Link w/the Dollar
The Financial Times reported recently that that "..The United Arab Emirates may berak its fixed peg to the US Dollar." This is a worrisome development for the United States. The UAE is reportedly one of the main holders of dollar-denominated assets. The Abu Dhabi Planning department has talked about developing a tracking system of a basket of curencies. There is also a planned currency union of the Gulf Cooperation Council.
When I talked about the balance of power changing as a virtue of the increased financial power of the oil producers and the emerging economic superpowers (Brazil, India, China), this is one signifcant development that will occupy a major part of the new U.S. President's agenda. Now, of course, the debate between the candidates is on who is more patriotic than others. Beyond that, there was a focused discussions by Senator Obama on Faith-based programs. I submit that such issues underscore social stability. But, long-term economic health is also crucial. That is not being discussed in as vibrant a way as possible. The only visible solution is to either tax the super rich or cut taxes again. Some sacrifices must be made. It will take leadership and courage.
When I talked about the balance of power changing as a virtue of the increased financial power of the oil producers and the emerging economic superpowers (Brazil, India, China), this is one signifcant development that will occupy a major part of the new U.S. President's agenda. Now, of course, the debate between the candidates is on who is more patriotic than others. Beyond that, there was a focused discussions by Senator Obama on Faith-based programs. I submit that such issues underscore social stability. But, long-term economic health is also crucial. That is not being discussed in as vibrant a way as possible. The only visible solution is to either tax the super rich or cut taxes again. Some sacrifices must be made. It will take leadership and courage.
