Here’s a potentially interesting item from today’s Arab News:
The Kingdom's computer market has collapsed as sales of personal computers, laptops, diskettes and network accessories and other spare parts declined by 80 percent during the past six months.
Salah Al-Shuhail, director of computer section at Arasoft Company, one of the largest computer firms in the Gulf, said fall in demand was the main reason for the market collapse as many companies and individuals had slashed purchases.
But what does it mean? I could hazard a guess, but it would be merely that – a guess. What I’d like to see are broader numbers regarding Saudi investment and capital improvements spending on all goods, not just computers. If those numbers were to reflect the same downward trend, it would give us some excellent insight as to the future health of the Saudi state.
Remember what I said yesterday reagarding oil prices/Middle East instability, gold prices/inflation, and the stock market/US GDP. Market indicators reveal more than just yesterday's news -- they can also help us figure out what's going to happen tomorrow.
So – can anyone give me the numbers?
Please?
Stephen, check out Wednesday, Aug 21 edition of the Financial Times (UK) or look at www.ft.com for its big story about big Saudi shifts out of U.S. asset markets post 9/11. Various reasons are given but one of them is the feeling by many Saudis, apparently, that their assets could be seized if the U.S. really decided to crack down on Saudi's alleged backing of terror.
Regards,
Tom Burroughes
London
The quote mentions that individuals, as well as companies, have curtailed their computer purchases. I wonder if a crackdown on Internet access might have something to do with this. What do you need a computer for if all you can use it to do is log onto www.deathtotheinfidels.com and the like?
Here's the link for Tom's story...
http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1028185908113&p=1012571727088
Hey! Even Reuters reads VodkaPundit!
It's the Intelfada. Watch for Hamas to call for the destruction of Intel and demand AMD chipsets.
Stephen, some of the data you need is on the IMF website. See http://www.imf.org/external/np/sec/pn/2001/pn01119.htm . I had no idea before reading this that their debt/GDP ratio was as high as it was. Private investment in general is way down. They have had to open up to foreign investment, and government investment is up on the strength of better oil revenues from 2000 on.
The Saudis are in debt up to their (bloodshot) eyeballs and have been for years (besides, what do THEY produce? Not much.) If they don't invest their money in the USA, where are they gonna put it? And Europe doesn't want it.
I think gas prices are up here because OPEC keeps tinkering with supply to see how much the market will bear. They don't dare embargo us, because they need the money!
The other indicators of *our* economy are fine--CPI, home sales, retail, car sales, etc.
Gold is up some, but so?...post 9/11 and Wartime that's no big suprise.
Plus, I think the fluctuations in the stock market were Arabs and Euro-weenies signally their lack of confidence in we American "cowboys" and our rash War.
There are people all over--some of them our own citizens--who are counting America out and pointing to the economy. Don't believe it!
America is in fine shape and ready to kick some Islamist butt!
