President H.H. Sheikh Khalifa bin Zayed Al Nahyan confirmed that the UAE economy is strong and sound and that its banking system is solid and efficient following a briefing on the latest developments on the global financial crisis by Vice President and Prime Minister of UAE and Ruler of Dubai H.H. Sheikh Mohammed bin Rashid Al Maktoum, the Emirates News Agency WAM reported.
The UAE Cabinet, headed by Sheikh Mohammed bin Rashid AI Maktoum, approved today a series of internal preventive steps and measures out of keenness to serve national interest, ensure continuity of economic growth and protect national economy.
Among these measures, the Federal Government will ensure that no UAE national bank will be exposed to credit risks, guarantee deposits and savings in all national banks, guarantee all inter-bank lending operations between banks operating in the UAE and inject sufficient liquidity in the financial system if and when necessary.
”We are determined to protect our financial and banking system out of keenness to preserve the interests of our country and people,”Sheikh Mohammed affirmed at the end of the Cabinet session.
The present sub-prime problem is planned and made in USA for the following reasons:
1. To bring down the price of oil.
2. To stop the oil producing countries from becomming cash rich
3. To weedout/merge/buyout upcomming small companies and banks
4. To prop the US dollar.
5. Indirect way of stopping oil producing countries from going nuclear.
If all the above were not true why there is no accountability?. Why the names of persons responsible for this dilemma are not published and why action is not taken against them?.
To counter this scenerio from arising again Oil producing countries should sell oil in their own currency. This will strengthen their own currency at the same time bring down inflation in their respective countries. Its long time that they should know USA dollar is not backed by gold.
More or less, you are right.
For example Iran last year opened it’s own exchange and is trading oil in Euro….not sure how successful..
The Gulf countries are also preparing their move by speeding the implementation of the single currency in 2010. It will be similar to the Euro and tied to a basket of foreign currencies. This is a long and complicated process and takes time.
In the mean time the only measure to keep the oil prices high is to cut the production, which was approved by OPEC in the Middle of September.