Capital controls are a foregone conclusion

So much for BMW's run-flat tires. Believe it or not, I'm actually sitting on the side of the A3 motorway in central Germany, about halfway between Frankfurt and Munich, waiting for the tow-truck to arrive. 

Apparently you're supposed to be able to drive on these tires even when they're flat... and with such confidence in their country's manufacturing capabilities, the German rental car company didn't bother providing me with a spare.  Call me old-fashioned,[...] Click here to continue reading

Some things you haven’t heard about Dubai’s crisis

The ticking time bomb in Dubai finally exploded late last week.

On the eve of their most important Muslim holiday, which happened to coincide with the eve of Thanksgiving in the west, Dubai authorities made two statements spaced a few hours apart.

The first-- that the heavily indebted, government-owned flagship holding company Dubai World had successfully raised a few billion dollars.  Investors collectively exhaled, temporarily relieved that the company would be able to[...] Click here to continue reading

Why Islam can save your wealth

Long ago, physical commodities were used as a mediums of exchange... gold and silver were quite popular because they were scarce, divisible, durable, and hard to replicate.

If you had a few extra ounces laying around and wanted to store it securely, you would seek out the people who dealt with precious metals all the time and had the right equipment and staff to keep it safe.  At the time, those were goldsmiths.

[...] Click here to continue reading

Dubai is struggling, but rising (a bit)

Dubai is looking something like Rocky Balboa late in his first fight with Apollo...bruised, battered, struggling to his feet-- but still fighting. Of course, if you remember the movie, Rocky didn't win that fight. He was all heart, no belt. I think the analogy fits.

To be clear, I think Dubai is great... I have done a lot of business there and I enjoy it; it's fun, safe, diverse, historic, and cosmopolitan. For the[...] Click here to continue reading