- Mar 13, 2006
- 10,140
- 819
- 126
Abu Dhabi government buys 8% of AMD
- Thread starter Phynaz
- Start date
dajeepster
Golden Member
- Apr 15, 2001
- 1,974
- 16
- 81
Wow, Abu Dhabi is really asserting their wealth. Who are these guys? They became the main sponsor of the World Rally Championship recently, if I remember correctly.
cubeless
Diamond Member
- Sep 17, 2001
- 4,295
- 1
- 81
this is your petrodollars at work...
can't wait to see what the artwork on the next gen of gpu boxes looks like... i wonder how that chick will look in a burqa probably illegal link to hot babe in burqa...
can't wait to see what the artwork on the next gen of gpu boxes looks like... i wonder how that chick will look in a burqa probably illegal link to hot babe in burqa...
Warren Buffett, generally recognized to be a pretty bright guy, wrote this in 2003:
http://www.fhsu.edu/econ/rterry/Trade%20Deficit.pdf
More important, however, is that foreign ownership of our assets will grow at about $500
billion per year at the present trade-deficit level, which means that the deficit will be
adding about one percentage point annually to foreigners' net ownership of our national
wealth.
As that ownership grows, so will the annual net investment income flowing out of
this country. That will leave us paying ever-increasing dividends and interest to the world
rather than being a net receiver of them, as in the past. We have entered the world of
negative compounding?goodbye pleasure, hello pain.
We were taught in Economics 101 that countries could not for long sustain large, evergrowing trade deficits. At a point, so it was claimed, the spree of the consumption-happy nation would be braked by currency-rate adjustments and by the unwillingness of creditor countries to accept an endless flow of IOUs from the big spenders.
And that's the way it has indeed worked for the rest of the world, as we can see by the abrupt shutoffs of credit that many profligate nations have suffered in recent decades.
The U.S., however, enjoys special status. In effect, we can behave today as we wish
because our past financial behavior was so exemplary?and because we are so rich.
Neither our capacity nor our intention to pay is questioned, and we continue to have a
mountain of desirable assets to trade for consumables. In other words, our national credit
card allows us to charge truly breathtaking amounts. But that card's credit line is not
limitless.
....
But I believe that in the trade deficit we also have a problem that is going to test all of our
abilities to find a solution. A gently declining dollar will not provide the answer.
True, it would reduce our trade deficit to a degree, but not by enough to halt the outflow of our country's net worth and the resulting growth in our investment-income deficit.
Perhaps there are other solutions that make more sense than mine. However, wishful
thinking?and its usual companion, thumb sucking?is not among them. From what I
now see, action to halt the rapid outflow of our national wealth is called for, and ICs
seem the least painful and most certain way to get the job done.
Just keep remembering that this is not a small problem: For example, at the rate at which the rest of the world is now making net investments in the U.S., it could annually buy and sock away nearly 4% of our publicly traded stocks.
.....
It's a symptom of a bigger issue.
Trade deficits
http://www.census.gov/foreign-...s/historical/goods.txt
2000 $454.7 billion
2001 $429.5 billion
2002 $485 billion
2003 $550.9 billion
2004 $669.6 billion
2005 $787.1 billion
2006 $838.2 billion
So, trade deficit is up about 50% since Mr. Buffett' article in 2003.....and, with higher oil prices, trade deficit goes up......
Makes sense for them to buy corporations, and land, rather than keep dollars in the bank--as Buffett article points out.
Last trade surplus was in 1975.
VirtualLarry
No Lifer
- Aug 25, 2001
- 56,327
- 10,036
- 126
I was in a company that did that. They were between a rock and a hard place. Without infusion of capital, the stock (and company) would have been worthless. But with the investment, the existing investors get slightly screwed. It's not a good situation to be in.
Sure it is. At least Arab Micro Devices can live another 3-6 months. Maybe they won't have to sell that Fab to TSCM.
TRENDING THREADS
-
Discussion Intel current and future Lakes & Rapids thread- Started by TheF34RChannel
- Replies: 23K
-
Discussion Zen 5 Speculation (EPYC Turin and Strix Point/Granite Ridge - Ryzen 9000)- Started by DisEnchantment
- Replies: 9K
-
-
Discussion Intel Meteor, Arrow, Lunar & Panther Lakes Discussion Threads
- Started by Tigerick
- Replies: 7K
-
Facebook
Twitter