What Are You Doing Right Now? (193 Viewers)
- Thread starter ßöмßäяðîëя
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Two matters here. First off, much of the wealth is generated from the production of a resource that is finite in abundance. Whenever Peak Oil is reached, then a steady decline in profit streams for OPEC nations will occur despite rising prices as focus will shift towards other types of energy production. Since you cannot start producing widgets, or anything else, with the equipment used to produce and refine crude, then you'll be left with idle equipment and a major hit to GDP. Secondly, much of the financial service industry is based on oil profits and real estate. Money shifting hands on electronic exchanges and building mansions does not constitute a real economy. You actually have to produce goods.
So in short, an economy like that of the UAE is basically one big bubble based off of oil which created a secondary bubble in real estate and tourism. We already saw the effects of crude being driven down to 35USD per barrel, causing problems for all OPEC nations. You simply can't have an economy based on a single, finite resource.
So in short, an economy like that of the UAE is basically one big bubble based off of oil which created a secondary bubble in real estate and tourism. We already saw the effects of crude being driven down to 35USD per barrel, causing problems for all OPEC nations. You simply can't have an economy based on a single, finite resource.
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