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1...Globalization Trap and Signs of Crack in the Foundation of the Scheme (March 14, 2006)


Recently Dubai Ports World, a company controlled by the government of Dubai that is an entity of The United Arab Emirates, has tried to buy a UK company that owns many terminals in the eastern ports of USA. This transaction has enraged US public opinion, spearheaded by some US news media and radio talk shows. The anger of US public opinion forced US Congress to move against both the deal and US administration that has approved the deal. On the surface the public anger is due to the national security concerns, but many suspect that the anger is generated partly from the backlash against the globalization scheme itself and partly due to the prejudice against the Muslim world in general. Some analysts suggest that the oil producing middle east countries may slow down of reinvesting petrodollars, a substantial part of trade-deficit-dollars in 2005, to hurt US Dollar. However, those analysts have failed to carry their own suggestion to the conclusion. If US Dollar is hurt substantially by whatever means of oil producing countries, the shrinkage of US trade deficit will occur, a US recession follows, the export industries in Asia will be hit, the global demand of oil will plunge, crude oil prices will collapse, probably heading toward 20 dollars per barrel, and gulf region autocratic governments will fall like dominos Once we understand the inner workings of the globalization trap, we do not believe that oil-producing countries will take any such suicidal steps. In other words oil-producing countries are equally trapped by the globalization scheme and have no choice but to recycle petro-dollars back into US markets, either directly or through European intermediaries.

http://www.forcastglobaleconomy.com/subscribers/CommentsFiles/Comment028.htm


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