Post by kaima on May 19, 2008 11:10:23 GMT -7
Beginning at the End
… of the interview with Sheikh Bader al-Saad, head of the Kuwait Investment Authority
Al-Saad: I believe that China and India will continue to lead global growth. Europe, due to an aging population, will lose its global weighting over the long term while United States will remain stable.
Here is the tail end of the interview that concludes with the statement above:
SPIEGEL: Doesn't your interest in Germany and Europe also have something to do with the strong decline of the dollar?
Al-Saad: No, on the contrary. We're concerned about the strength of the euro.
SPIEGEL: Why?
Al-Saad: We believe in cycles in the economy and in currencies. One euro at $1.60 will not be sustainable. That's why we are in fact less interested in investing in Europe at this time, unless there are true values and the price is attractive.
SPIEGEL: Sometimes economies also drop out of the cycles. Take Argentina, for instance. It was once one of the world's wealthiest countries. But more than three decades ago a gradual decline began, which ended in collapse in 2001.
Al-Saad: If you give the example of Argentina, then you have to look at the case of China, which was, at a point in time, the world's largest economy and dominant power. The United States is experiencing the worst crisis I have seen in 28 years in this profession. But it is still the largest economy in the world. The Americans are also more dynamic and flexible than Europe. And, the United States has a much better demographic profile, which can refuel growth.
SPIEGEL: In other words, you don't believe that the United States will lose its dominant economic position.
Al-Saad: I believe that China and India will continue to lead global growth. Europe, due to an aging population, will lose its global weighting over the long term while United States will remain stable.
The full article is to be found, in English, at www.spiegel.de/international/business/0,1518,554042,00.html
For those of us in the USA that may wonder how ‘protectionism’ is viewed in the Arabic world (as demonstrated by US public nervousness when Dubai wished to buy a company actively managing major US ports); Europe has some of the same worries:
SPIEGEL: What do you think the consequences would be?
Al-Saad: We still consider Germany an economic anchor in Europe, even in the world. We still like to invest in Germany. But in the future, any regulations on SWFs <sovereign wealth fund> in Germany could limit our engagement in your country.
SPIEGEL: Does this fear of SWFs exist in other countries, as well?
Al-Saad: Yes, it also exists in France and the United States -- probably even more so than in Germany, even though there has not been a single conflict with an SWF in those countries. Nowhere. The presumed threat is based on "ifs" and "whens" and "assumptions."
SPIEGEL: You feel unfairly treated for this reason.
Al-Saad: No. But we are being punished for something that we haven't done.
… of the interview with Sheikh Bader al-Saad, head of the Kuwait Investment Authority
Al-Saad: I believe that China and India will continue to lead global growth. Europe, due to an aging population, will lose its global weighting over the long term while United States will remain stable.
Here is the tail end of the interview that concludes with the statement above:
SPIEGEL: Doesn't your interest in Germany and Europe also have something to do with the strong decline of the dollar?
Al-Saad: No, on the contrary. We're concerned about the strength of the euro.
SPIEGEL: Why?
Al-Saad: We believe in cycles in the economy and in currencies. One euro at $1.60 will not be sustainable. That's why we are in fact less interested in investing in Europe at this time, unless there are true values and the price is attractive.
SPIEGEL: Sometimes economies also drop out of the cycles. Take Argentina, for instance. It was once one of the world's wealthiest countries. But more than three decades ago a gradual decline began, which ended in collapse in 2001.
Al-Saad: If you give the example of Argentina, then you have to look at the case of China, which was, at a point in time, the world's largest economy and dominant power. The United States is experiencing the worst crisis I have seen in 28 years in this profession. But it is still the largest economy in the world. The Americans are also more dynamic and flexible than Europe. And, the United States has a much better demographic profile, which can refuel growth.
SPIEGEL: In other words, you don't believe that the United States will lose its dominant economic position.
Al-Saad: I believe that China and India will continue to lead global growth. Europe, due to an aging population, will lose its global weighting over the long term while United States will remain stable.
The full article is to be found, in English, at www.spiegel.de/international/business/0,1518,554042,00.html
For those of us in the USA that may wonder how ‘protectionism’ is viewed in the Arabic world (as demonstrated by US public nervousness when Dubai wished to buy a company actively managing major US ports); Europe has some of the same worries:
SPIEGEL: What do you think the consequences would be?
Al-Saad: We still consider Germany an economic anchor in Europe, even in the world. We still like to invest in Germany. But in the future, any regulations on SWFs <sovereign wealth fund> in Germany could limit our engagement in your country.
SPIEGEL: Does this fear of SWFs exist in other countries, as well?
Al-Saad: Yes, it also exists in France and the United States -- probably even more so than in Germany, even though there has not been a single conflict with an SWF in those countries. Nowhere. The presumed threat is based on "ifs" and "whens" and "assumptions."
SPIEGEL: You feel unfairly treated for this reason.
Al-Saad: No. But we are being punished for something that we haven't done.