Black Friday and Trade in An Outsourced Economy- The Joy of A Middle East Oligarchy During a Financial Crisis


 
Whose Black Friday:
Black Friday retail sales were up this year 3% over 2007. But who made almost all those goodies that were bought on credit? Why all the excitement about the sales anywhere outside China, India, and Taiwan- and major retailer corporate headquarters? The US consumer borrows and spends on these goods, he/she does not make them- not many more domestic people will be hired because of those sales. Some will be hired, but these will be limited to a service economy type of employment: temporary sales clerks and transport personnel- it is somewhat hard to outsource delivery trucks and sales clerks to Asia, n'est-ce pas?
Black Friday should be celebrated more in those exporting countries than in the United States- even though it may be a form of therapy for the US consumer, this spending and charging during uncertain times. When Bush said his silly statement after 9/11 to the effect that: "go shop in order to defeat the terrorists", he could have said: "go shop in order to reward outsourcing and in the process screw up the balance of trade with Asia, driving it further into deficit. What we send out through the trade account we get back through the capital account, for now."
The November jobs (and unemployment) figures next week will show this to be the case.

Obama, McCain, and Leakey: This week officials and supporters of the Popular Movement for the Liberation of Sudan, let's call it PMLS and let's not forget the L, celebrated the election of Barack Obama. This is a Southern Sudanese movement that had been battling the various Islamist dictators who have ruled in Khartoum for decades- they are now part of a governing coalition, for now. The belated celebration comes after someone in the movement claimed to have 'discovered' that Obama's paternal family had originally, somewhere in the distant past, emigrated from southern Sudan to Kenya. So now the southern Sudanese are laying a claim to him as well. As if Dick Cheney wasn't enough. Everybody wants a winner: that's why no tribe in Africa seems to want to claim any part of John McCain.

I would still paraphrase Louis Leakey and say "We are all originally Kenyans, or maybe Tanzanians, baby".

Iraq: the Shi'a clerics insist on a national referendum on the Security Agreement with the USA just passed by Iraq's parliament. Iraqi media note that a referendum will be held to ratify (or not) the modified agreement. Most likely it will be approved by voters. The agreement basically adopts the Democratic (Party) position on Iraq as suggested by Barack Obama and others during the campaign.

Joys of Oligarchy:

"The Saudi stock market index bounced back by 9.5% after a statement by the Custodian of the Two Holy Shrines asserting that the Saudi economy is strong and that Saudis should feel confident, and that the market crisis was caused by panic and it will disappear like a summer cloud." Alarbiya. (I don't know about the summer cloud part, precipitation from summer clouds around here can be as wet as winter clouds. Of course oil prices are still less than half of what they were a few months ago.)

"An important fact we must realize and let it influence us, so that we are not attached to the economic worries and political weakness of the Middle East. This fact was announced by King Abdullah Bin Abdulaziz, not as a promise, but but as facts of an existence that is capable and confident in its economy and its rare exception from international instabilities, not from the environment of continuous worry of the Middle East but from those who are capable culturally, civilazationally (?), and economically. Put your mind close to King Abdullah and listen to him, and you will not worry, you will not worry, you will not worry, you will......" Turkey al-Sudairi, alRiyadh, Nov 30. Clearly he is no lame duck, it wouldn't be kingly, but he needs an advocate who can write better. Or maybe someone who can translate better than yours truly.

"Saudi stock market declines by 2.2% in profit taking..." Alarabiya, Nov. 30.

"Prince Sultan Bin Fahd, Head of the Saudi Youth authority, has said that the Saudi Football (Soccer, not NFL!) Association will not accept any Asian referees for its remaining games in the qualifying rounds for the 2010 World Cup. We will demand only European referees." Alarabiya.
Cheers
mhg


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