Gulf Arabs attack dollar regime in its bases
Posted by Ivo Cerckel on July 18th, 2009
The dollar regime has two pillars or legs:
one in Washington (and/or New York),
the other in London.
The Arab conglomerates of Algosaibi and Saad group are now attacking the dollar regime in both of these pillars. (1)
If, as the Financial Times said,
it is only in rare cases that Arabs make their disputes public (2),
why should they bring their disputes to both pillars of the dollar regime?
Something does not square.
It is impossible to be and not to be at the same time and in the same respect, said Aristotle in his “Metaphysics”.
This is known as the Principle of Non-Contradiction.
Contrary to what many authors ague, this is a law of thought and not a law of reality.
Reality is not submitted to the Principle. Only thought is submitted to the Principle. (3)
And the conclusion of this blogger’s thought is … developing …
Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/
NOTES
(1)
Banks’ lawsuits aimed at Saudi debtors
By Michael Peel in London and Andrew England in Abu Dhabi
Published: July 18 2009 03:00 | Last updated: July 18 2009 03:00
http://www.ft.com/cms/s/0/7d94c4e8-7333-11de-ad98-00144feabdc0.html
SNIP
At least four banks have launched lawsuits to recover debts allegedly owed to them by two warring prominent Saudi Arabian companies hit by financial problems, in a move that has shocked investors in the oil-rich Gulf.
Three claims have been filed at the High Court in LONDON since last month against businesses from the Saad and Algosaibi conglomerates, suggesting some financial institutions are taking matters into their own hands even as the Saudi companies grapple to restructure their large debts.
News of the cases, which comes after the emergence of a US lawsuit brought by the Algosaibi group over an alleged “massive fraud” of up to $10bn by Maan Al Sanea, Saad’s billionaire owner, is likely to add to concerns about international and regional bank exposure to Gulf companies.
(2)
Algosaibi sues Saad Group owner in rare public dispute for Gulf
By Andrew England in Abu Dhabi
Published: July 17 2009 03:00 | Last updated: July 17 2009 03:00
http://www.ft.com/cms/s/0/3ea18ede-726a-11de-ba94-00144feabdc0.html
(3)
Fernand Van Steenberghen, (F-X De Guibert, éd.), “Philosophie fondamentale”, Longueuil, Québec, Editions du Préambule, 1989, p. 296 note
Contrairement à ce qu’affirment beaucoup d’auteurs, ces principes [principle of non-contradiction, law of identity and law of excluded middle] sont des lois logiques ou des lois de pensée comme telle ET NON des lois de l’ordre réel.
No related posts.
July 19th, 2009 at 05:34
It’s all being done from London …
Saad Group ‘making progress’ with debt restructuring
(AP) By Vicky Kapur on Sunday, July 19, 2009
http://www.business24-7.ae/Articles/2009/7/Pages/18072009/07192009_f0eae5c1f2354e2e994344e1889242ec.aspx
SNIP
Saudi Arabia’s troubled Saad Group is making headway in restructuring its debt portfolio and is in talks with affected parties, Emirates Business has learnt.
“Saad is making progress with its restructuring programme and will make further announcements on this as appropriate,” a London-based spokesperson of the group told this newspaper in an e-mailed statement. UNSNIP
Vorsicht Bürgerkrieg!: Was lange gärt, wird endlich Wut
http://www.amazon.de/gp/product/3938516941/ref=s9_newr_gw_tr03?pf_rd_m=A3JWKAKR8XB7XF&pf_rd_s=center-1&pf_rd_r=0PX924W256WH5FKBDJ2E&pf_rd_t=101&pf_rd_p=463375193&pf_rd_i=301128
July 19th, 2009 at 16:54
Now I have at least an indication from Reuters as to why the case was filed abroad:
“What is scaring international lenders is (that) it’s very murky. There’s zero information flow,” one restructuring banker at a global investment bank said.
“Literally (with) any phone call into the company (you’ll hear) we can’t comment,” the banker said.
+
Saudi firms sometimes file lawsuits ABROAD because there is no consistent application of law, and verdicts in its domestic courts vary widely. The courts are based on an austere interpretation of Islam and overseen by clerics.
“Rulings between courts often differ sometimes to the point that it embarrasses the government which wants to overhaul the legislation,” said a western diplomat in Riyadh. King Abdullah has tried to reform the legal system as part of plans to open up the country for investment. He removed two hardline clerics in a cabinet reshuffle in February, among them the president of the supreme court.
+
But the Saudi fiasco has underscored the need for better rules and exposed a lack of cooperation and a common regulatory framework within the six-state Gulf Cooperation Council.
One of the problems in the Gulf is the lack of transparency. No regulator or research house has fixed a definitive price tag on the Saudi fiasco yet, leaving investors to speculate based on dated lending data or hearsay.
Banks are reluctant to share borrower information and there is a lack of any major credit bureau in the region that would help lenders assess liabilities.
The two regulators placed in the harshest light are the Saudi Arabian Monetary Authority and the Central Bank of Bahrain. The CBB has said little and SAMA nothing about the scope of the crisis or measures taken to contain it. (Additional reporting by Ulf Laessing in Riyadh and
(RPT-Saad debt tussle, family row sour investors
LONDON, Reuters, Fri Jul 17, 2009 1:17pm EDT
By Douwe Miedema
http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSLH28528420090717