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High crude oil prices, big trade surplus.
This is primarily a condition faced by the Arab Royalty ruled energy producing states, Asian Trade Route states and China! High Material Consumption Habit in the British Club, USA while commodity short Europe, would mean this regions will|
be the main credit creation regions!
However as continued credit increase mean "reducing rate of returns", we would expect another new megatrend!
(Interest rate of bonds in USA, UK, Europe now is below 5%, reaching rates of 3.5% presently)
The Arabs will find new ways to spend the ENERGY BONANZA financial surplus to counter negative returns on their export profits. The initial response was to invest in USA, UK, and Trade Route states where corporate bourse and real estate are relatively liquid and have relax rules on foreign ownership. However such regions of investment are providing poorer returns as well. We do expect more Arab Consumption spending, such as the DUBAI city development in UAE, EASTERN SEABOARD in Saudi Arabia!
We expect more innovative investments. The first already seen is a US$40 billion nuclear power plant deal with the Koreans to build 3 power plants! As the Europeans, Russian has shown with the challenge of COLD weather during winter,The Arabs would be finding solution to fund lifestyles that would solve the HOT weather, and low water enviroment.
MEGA TREND NO. 6 Arab Energy rich, Royalty controlled states will consume domestically in more innovative lifestyle to prevent negative returns on the foreign investments. We could be see new ECO DOME cities in Arab states! In this lifestyle, huge domes will be build over precincts with low cost cooling system, controlled humidity to make life more comfortable!
That would make it possible to increased consumption besideds the traditional reliance on imports of weapons systems, oversea property, bourse investments to spend the energy export bonanza!