Bush of Arabia -- What the Talk Shows Missed
For late-night talk show hosts, yukking up George W. Bush's visit to the Middle East was like shooting fish in a barrel. Supposedly on a mission promoting peace (between Israel and the Palestinians) the President spent most of his trip rattling sabers against Iran. He spoke glowingly in Abu Dhabi of democracy, but spent most of his trip brandishing swords and holding hands with dictators who are the U.S.'s allies across the region.
One flagrant incongruity, however, seems to have gone unnoticed: Bush's timid request to Saudi King Abdullah and other rulers in the Gulf to rein in soaring oil prices because, said Bush, they are hurting the U.S. economy.
But the point is that the current economic crisis in America was not triggered by Arab but by American greed: the disastrous mortgage melt down provoked by sub-prime loans. That collapse was the result of the Bush administration and U.S. regulatory agencies refusing to reign in the unscrupulous policies of the mortgage industry, despite repeated warnings of looming calamity.
Second point: while our media was focused on Bush's pitch to the Arabs for lower petroleum prices -- which was politely but firmly turned aside by a Saudi official -- at the same time, hugely wealthy Arab investors were helping to bail out some of America's largest financial institutions, staggering in the wake of the sub-prime crisis.
For instance, as Bush was dancing with King Abdullah, the King's nephew, Prince Alwaleed bin Talal, was increasing his stake in Citigroup. This was not the first time the Prince had invested in the stricken company. In fact, he was already Citigroup's largest individual shareholder: Kingdom Holding, which he controls, owns 3.6% of Citirgoup.
Meanwhile, the Kuwait Investment Authority, another sovereign wealth fund, with at least $225 billion in assets, announced it would invest $3 billion in Citigroup and $2 billion in a very grateful Merrill Lynch.
Those were just the latest investments by Middle Eastern sovereign funds in ailing U.S. financial institutions. Last November, the Abu Dhabi Investment Authority paid 7.5 billion dollars for a 4.9% interest in Citigroup.
The Arab investors are not acting out of altruism. As Harvard University economics professor Kenneth Rogoff put it last fall, "some people might view Abu Dhabi as buying Citigroup at a "fire-sale price."
Add up the percentages that those different sovereign funds hold in key institutions like Citigroup and they start looking impressive -- as does their influence over management.
Back in 2006 Prince Alwaleed bin Talal declared that shareholder patience was wearing thin over rising costs at the bank.
"We have to take draconian, and I say draconian, measures to control the costs," he announced.
What additional policies of major U.S. financial institutions could be influenced by the Prince and other immensely wealthy investors from the Gulf?
The ultimate irony: Those huge sovereign funds riding to America's rescue are, of course, fueled by the rampant petroleum prices that Americans (among others) are paying.
At what point does all this become a major U.S. political issue?
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"At what point does all this become a major U.S. political issue?"
I would venture that the answer lies in who wins the election of 2008, and would further make an educated guess that if a Republican - whether it is a traditional one or a Clintonian "Republican Lite" version - wins, it won't be an issue until 2012.
Assuming, of course, that the United States hasn't been broken up and sold off to satisfy its debtors by then.
Great question!
When will America start to end its addiction to oil and Arab dictators?
George W. is like the little dutch boy who stuck his fingers in the dyke to stop the water flooding thru!
Only trouble is, George hasn't got enough fingers, so he had to go a-begging to the rulers of the developing democracy that is Saudi Arabia.
I just love to see a warmonger grovelling in the morning!
As Bush dances with swords and asks very politely for Saudis to open the oil spigots, the Middle Eastern sovereign wealth funds (gotten from oil revenues) buy America wholesale. Soon Bush will have to call our investors for approval when contemplating military policy and national defense.
Everything Bush tries to accomplish, i.e., exporting democracy, he achieves directly the opposite. He is the opposite man!
Every one who has posted on any topic here crying about "Islamo-fascists", this Bud's for you.
When you hear a feller like Prince Alwaleed bin (bin?) Talal making statements about the need to make "...draconian measures to control the costs..." at Citigroup, and then you see that idiot BOOOsh kissing, hand-holding and cavorting with the Saudi Roilty while they all dance around waving long, sharp swords...
The big boys at Citigroup may want to give that old expression, "heads will roll" some serious thought.
heh heh
We are being SOLD down the river by these clowns.
http://www.impeachbush.org
http://www.wexlerwantshearings.com
Forensic economist and reporter for the BBC, Greg Palast, has an article dated January 16, 2008, entitled "George of Arabia: Better Kiss your Abe 'Goodbye'" at Greg Palast - http://www.gregpalast.com -
Bush has doubled the federal debt to more than 5 trillion and foreign investors have purchased close to 100% of that debt. That's 3 trillion borrowed from the Saudis, the Chinese, and the Japanese and others.
The Bush administration, rather than tax Americans to cover our deficits or make the banks suffer the consequences of their predatory lending practices, is allowing the Saudis to charge us big time at the pump with the understanding that they will lend it all back to us - so the party never has to stop.
7% will be charged on the Citibank and 9% on the Merril-Lynch loans. The hefty interest bill then pushes the adjustable rate mortgages up and pushes manufacturing into China by making borrowing and energy costs impossible to overcome.
The Arabs have taken billions of dollars out of this country, and now they must put it back...It is ebb and flow, tidal gravity...There are no nations, there are no peoples...there is only one vast and immense, interwoven, multi-national dominion of petro- dollars...There is no 'democracy.' The world is a business, one vast and ecumenical holding company, for whom all men work.
Hmm - Citigroup -the same one that former Clinton Treasury Secretary Robert Rubin left Washington and after turing down the job offer from Enron, took a high paing position on the board of Citigroup. Of course Citigroup held most of Enron's commercial paper, and according to Wikipedia:
He sparked controversy in 2001 when he contacted an acquaintance at the Treasury Department and asked if the department could convince bond-rating agencies not to downgrade the corporate debt of Enron, a debtor of Citigroup. Rubin wanted Enron creditors to lend money to the troubled company for a restructuring of its debt; a collapse of the energy giant might have serious consequences for financial markets and energy distribution. The Treasury official refused.
end of excerpt
Go to Lake Shore Drive in Chicago any weekday morning at rush hour. Count how many people are waiting for a bus that isn't already too crammed full to get on. Then count the number of SUVs or other oversized vehicles with one occupant (the driver) in them as they wizz on by.
Then ask the question at the end of this post again, but don't ask me, because as I always say: Oil is for bicycle chains!
We usually reserve phrases like "king of kings and lord of lords" for capital letters and church services, but there are men among men who have that same stature, and King Abdullah is one of them.
What George Bush actually did, while staring greedily at the riches he does not and cannot own, was to once again swear fealty and obesiance to his king, and to cast down the golden crown of the United States before him, and promise that this nation would continue to pursue the king's enemies as it has done before. For this, the king will give George a little gold and thereby stuff his eyes and ears. George will be pleased with himself.
As an oil billionaire himself, George well knows that Abdullah could, by his command, cause the Arab nations to no longer accept the American Dollar as payment for oil, and that without that support the dollar would swiftly collapse. He also knows that American banks are bankrupt and that were it not for the king's command, there would be crowds in every street in a run on every bank.
And so, little George obeys his master. And we with him.
Unfortunately our dollars that are sent abroad for oil and other merchandise come back, however it is in the form of loans or buying into our companies. The zenith of America as we have known it is "history". Oil producing countries have us by the short-hairs. This could have been averted beginning decades ago. For those who disliked the Carter Administration, re-read his "Malaise Speech". He sounded the alarm of the coming energy crisis and our need to adjust and instead the country sent him packing and elected Reagan. Then Reagan through a "party" with borrowed money and alternative-energy and conservation became a distant afterthought. We need a leader that will slow down the borrowing and "firesales" that will ruin the America we have known.
One thing we could learn from the Saudis is how to make heads roll.
There is simply no excuse for this greedy money grab in a post-Enron world.
Is it time to expand capital punishment's criteria?
It's not 'reign in' unless that's a crazy pun. It's 'rein in' as in a horse! Oy vey.
Keep voting republican and you'll keep the "America is the world's Whore" policy in practice.
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