[wisconsin_cur]

A very good, detailed article,

The Economist

$this->bbcode_second_pass_quote('', 'D')iabetes is a useful metaphor for the Gulf's present problems. The region's economies are struggling to absorb petrodollars, accumulating like glucose in the bloodstream. The risk they face is the economic equivalent of renal failure: inflation, a hollowing-out of the non-oil sector, and a young, growing workforce in chronic need of outside labour to supplement it.

The six nations of the GCC, which also includes Qatar and Oman, earned $381 billion from their exports of oil in 2007 and another $26 billion from gas, according to the Institute of International Finance (IIF). If the oil price remains at about $100 a barrel, they will reap a cumulative windfall of almost $9 trillion by 2020, reckons the McKinsey Global Institute: a vast number relative to the size of the GCC economies, which had a combined GDP of $800 billion in 2007.

Not all these riches are ingested, of course. The Gulf added $215 billion to its stock of foreign assets in 2007, the IIF calculates. This hoard is divided between the region's central banks, its sovereign-wealth funds and its wealthy sovereigns. It added up to $1.8 trillion by the end of last year, by the IIF's estimates, and more like $2.4 trillion, according to Brad Setser of the Council on Foreign Relations and Rachel Ziemba of RGE Monitor.

[dissident]

The Economist is a monetarist rag. It's one note tune about oil producers "drowning" in oil revenues is hilarious given that it does not make a squeak about the borrow and spend US economy. The Gulf economies are actually growing which reflects in the increased domestic demand for fossil fuels. The Economist wishes they did not grow and instead siphoned all of their revenues back to the USA and other consumer nations. Heaven forbid they might have inflation from high growth rates. Everybody knows inflation is much more important than real income growth. LOL.

[mkwin]

$this->bbcode_second_pass_quote('dissident', 'T')he Economist is a monetarist rag. It's one note tune about oil producers "drowning" in oil revenues is hilarious given that it does not make a squeak about the borrow and spend US economy. .

[scienceteacher]

Here's where those dollars are going. Some unbeleivable photos:

http://www.tutztutz.com/2008/02/dubai-w ... ver-there/

[wisconsin_cur]

And with that desert heat and lack of humidity it will be the greatest ruins ever. Imagine how future generations will try to put it all together. It will look like it was the center of civilization.

I guess maybe it is.

Of course most of that won't get built but enough has been built already to leave an impression.

[Homesteader]

What are they supposed to do with all their money? Not build infrastructure? At least they aren't building suburbs and automotive plants!

[Tyler_JC]

I can't imagine what the air conditioning bill for all of this unsustainable development will be.

Do they plan on adding a dozen nuclear power plants as well?

If not, what exactly is going to stop these 50 story greenhouses from cooking the inhabitants?

What about the water bills? How many public fountains and swimming pools need to be filled with desalinated ocean water?

I saw at the bottom of the page that they want to build a space port. A SPACE PORT?

WTF ARE THEY GOING TO DO WITH A SPACE PORT...

The architects of these projects need to be smacked over the head with the cold, hard crowbar of reality.

[Johnston]

$this->bbcode_second_pass_quote('Tyler_JC', 'I') can't imagine what the air conditioning bill for all of this unsustainable development will be.

Do they plan on adding a dozen nuclear power plants as well?

If not, what exactly is going to stop these 50 story greenhouses from cooking the inhabitants?

What about the water bills? How many public fountains and swimming pools need to be filled with desalinated ocean water?

I saw at the bottom of the page that they want to build a space port. A SPACE PORT?

WTF ARE THEY GOING TO DO WITH A SPACE PORT...

The architects of these projects need to be smacked over the head with the cold, hard crowbar of reality.

[Tyler_JC]

In theory, they plan on catering only to the high end market.

But the high end market is shrinking...

How many Bear Stearns fund managers are taking a trip to Dubai this year?

[cube]

$this->bbcode_second_pass_quote('', 'T')here are more construction workers in Dubai than there are actual citizens.

[mkwin]

well they have awesome CSP and general solar resources, which I am sure would power their air conditioning and water plants at a reasonable cost.

[dorlomin]

A rather fetching example of the export land model in action there.

However the inflationary pressures and social unrest are not a joke. They will have to spend alot of money on keeping food prices down to stop social unrest in there populations. It will be an insane treadmill they will be on.

[BigTex]

$this->bbcode_second_pass_quote('scienceteacher', 'H')ere's where those dollars are going. Some unbeleivable photos:

http://www.tutztutz.com/2008/02/dubai-w ... ver-there/

[Tyler_JC]

$this->bbcode_second_pass_quote('BigTex', '')$this->bbcode_second_pass_quote('scienceteacher', 'H')ere's where those dollars are going. Some unbeleivable photos:

http://www.tutztutz.com/2008/02/dubai-w ... ver-there/

[dorlomin]

Irony of ironies I do believe the Bin Ladens are heavily involved in the construction of them.

[BigTex]

$this->bbcode_second_pass_quote('Tyler_JC', '')$this->bbcode_second_pass_quote('BigTex', '')$this->bbcode_second_pass_quote('scienceteacher', 'H')ere's where those dollars are going. Some unbeleivable photos:

http://www.tutztutz.com/2008/02/dubai-w ... ver-there/

[Tanada]

$this->bbcode_second_pass_quote('Tyler_JC', 'I') can't imagine what the air conditioning bill for all of this unsustainable development will be.

Do they plan on adding a dozen nuclear power plants as well?

If not, what exactly is going to stop these 50 story greenhouses from cooking the inhabitants?

What about the water bills? How many public fountains and swimming pools need to be filled with desalinated ocean water?

[outcast]

At least Dubai has had the foresight to do SOMETHING to diversify their economy away from oil, unlike their neighbors.

[Tyler_JC]

Fair enough, Tanada.

I'm just thinking about the water waste of Las Vegas where thousands of gallons of potable water evaporate out of mega-fountains in front of mega-casinos.

Regardless, those new buildings (and the people who will live and work in them) in Dubai will consume a lot of water. Also, the landscaping isn't just cactus. I see plenty of golf courses under construction in those photos and no one is going to golf on 18 holes of sand traps.

I supposed they could "plant" astroturf...