Circle of Life

The current recession has cost the oil producing countries 2.5 trillions dollars. That's more or less equivalent to 40% of the stock market value wiped out. Staggering.

All those money from oil have gone just like that. For all the riches that have been given, not much was spent except to build Dubai, buy weapons from Uncle Sam, and build extravagent palaces and buildings. At one time the best policy was to save and build as much foreign reserves as possible. This is in contrast with most Western countries who just spend, tax the people, spend more, borrow, spend even more until they are deep in debts. But at least the countries have the infrastructure and fast developing. Whereas when the oil producing countries build something, the governments called it developing but in fact they are really doing a catch up.