Goodbye Dubai!

As most of you already know Black Friday takes its name from that day of the year when America’s retailers traditionally turn profitable. But this year may be very different after European and Asian stock markets collapsed in response to the suspension of interest payments by two of Dubai’s state-owned conglomerates. 

The 2009 Black Friday might take on a rather different meaning when Wall Street reopens on Friday and could drive down stock prices sharply. So we thought that, like retailers, we’d have a limited time sale of our own by offering our most loyal readers a one-off chance to subscribe to Global Resources Alert for half off. Details on this offer are at the end of today’s update.

The global economy hardly stops and even while America was celebrating Thanksgiving Day yesterday events were unfolding at a fast and furious pace in the Mid-East. According to Reuters, “Dubai said on Wednesday it was asking creditors of Dubai World and property group Nakheel to agree a debt standstill as it restructures Dubai World, the conglomerate that spearheaded the emirate's breakneck growth.”

Once again the health of the world’s financial system is coming under strain. And once more the intertwined nature of capitalism is magnifying the cracks. European stocks fell sharply after Dubai announced it would halt interest repayments on billions of dollars of debt. Debt that it had used to expand its economy when times were good and inflated oil revenues allowed them to do so.

During the boom years oil-rich nations around the region were stuffing their coffers full of dollars imported from America. Those dollars when recycled to buy shares in some of the western world’s best-run companies. The result is the emergence of so-called ‘sovereign wealth funds.’ These funds have plowed literally billions of dollars to get a substantial stake in Britain’s Barclays Bank (where shares fell 4%) and Germany’s premier carmaker, Porsche, whose share price took a 7% beating. Meanwhile Daimler’s shares fell almost 5% on Thursday.

But the shell-shocking news on Thursday sent London’s FTSE reeling by 4% as investors reacted to the potential fallout from the deterioration of the Mid-East’s stance in the world. Shares at banks thought to be exposed fell, while investors wasted no time discounting liquidation of shares in automakers where wealth funds have built a stake. The fear is that in order to raise cash those wealthy Arab nations might ditch their holdings at any cost.

Energy and mining stocks took a beating as commodity prices fell in response to the possible weakening global environment. Yet the dollar failed to react positively to any large degree despite its traditional role as a safe haven.

We continue to see opportunities for readers to our Global Resources Alert arising from this unfolding situation. And so we’re having a 48-hour Black Friday special just for our Daily Jurojin readers.

But you’ll have to act within the next 48 hours to take advantage of our 50% off sale.

The usual membership to our flagship publication is already a bargain at $189 per year.

But just for you we’ll discount that price by a half to just $94.50. Just click on the link to our subscription page and enter the code BLACK when prompted for the special discount code to receive your twelve monthly issues and full access to the Global Resources Alert archive AND our FOUR FREE bonus reports packed with valuable information about commodities, bonds, forex and futures.

But remember you only have 48-hours to take advantage of this special pricing.

The Supreme Council of the Secret Order of Jurojin

Tyche Research

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