Dabdoub: no alternative to the dollar and U.S. bonds
Reduced, CEO of NBK Group Ibrahim Dabdoub, the impact of a step and the credit rating agency «Standard & Poor's» in reducing the credit rating of the United States of America on the economies of the region, said in an interview with the «Arab» The rating agencies are no longer taken very seriously in the last two years Before the recent global financial crisis, there were securities rated AAA, but «not settled fils».He said Dabdoub said step downgrade not a surprise, but there were signs and information has long been the possibility of reduction, the impact of the economic situation is declining in the United States and rising debt, and because of the nature of the economic system the U.S. itself, where the government and individuals spend levels over production levels, the state is owed 14.6 trillion dollars, and every American owes too, felt that it might be an opportunity to reduce re-calculations, the government decided to control expenditures and «tighten the belt».Dabdoub, but considered that there is exaggeration in the reduction reaction, and that America is still the great powers are still the dollar the reserve currency of the world's first and still the U.S. economy represents 25% to 30% of the global economy, which is the strongest economy in the world.Asked about the impact on the future of the U.S. bond and investment, and its impact on investment from the Gulf and Arab with these bonds, Dabdoub said he is not supposed to have a significant impact, and considered that the effect myself, and that he could have any effect on the price of oil will decline slightly, But there are developing nations such as Brazil, China and India could offset the decline in oil consumption in the event of a decline in developed countries, and through his vision for the future Dabdoub said: «I am not pessimistic».Dabdoub said that the problem in the Gulf states is not external but internal, public spending has is the main driver for any Gulf Arab economy, this spending is still modest.In response to a question «Arab» the existence of large-scale projects advertised in Saudi Arabia, Qatar and Kuwait, he replied, Dabdoub said there are a lot of projects announced, but implementation is slow because of bureaucracy.But despite that, Dabdoub predicted to be the second half «much better» after the start of projects, he said.And his expectations for the future of U.S. currency and a link to the region's currencies, Dabdoub said that «no fear on the dollar, because no alternative global reserve currency, just as is the case for the U.S. bond». He added: «the dollar may fall slightly, and this is true, but at the same time, will increase interest rates on bonds, investors will receive higher interest on their investments in bonds».Dabdoub and agreed with what the international investor and billionaire Warren Buffett said he would have a rating agency to give the U.S. economy rating «Any» Quad AAAA, saying that the rating agencies are no longer taken seriously. On the possibility of entering the world in a new wave of recession, he said that discipline in the expenses, may lead us in a temporary recession, but that is better than continuing to accumulate debt to no end.
Reduced, CEO of NBK Group Ibrahim Dabdoub, the impact of a step and the credit rating agency «Standard & Poor's» in reducing the credit rating of the United States of America on the economies of the region, said in an interview with the «Arab» The rating agencies are no longer taken very seriously in the last two years Before the recent global financial crisis, there were securities rated AAA, but «not settled fils».He said Dabdoub said step downgrade not a surprise, but there were signs and information has long been the possibility of reduction, the impact of the economic situation is declining in the United States and rising debt, and because of the nature of the economic system the U.S. itself, where the government and individuals spend levels over production levels, the state is owed 14.6 trillion dollars, and every American owes too, felt that it might be an opportunity to reduce re-calculations, the government decided to control expenditures and «tighten the belt».Dabdoub, but considered that there is exaggeration in the reduction reaction, and that America is still the great powers are still the dollar the reserve currency of the world's first and still the U.S. economy represents 25% to 30% of the global economy, which is the strongest economy in the world.Asked about the impact on the future of the U.S. bond and investment, and its impact on investment from the Gulf and Arab with these bonds, Dabdoub said he is not supposed to have a significant impact, and considered that the effect myself, and that he could have any effect on the price of oil will decline slightly, But there are developing nations such as Brazil, China and India could offset the decline in oil consumption in the event of a decline in developed countries, and through his vision for the future Dabdoub said: «I am not pessimistic».Dabdoub said that the problem in the Gulf states is not external but internal, public spending has is the main driver for any Gulf Arab economy, this spending is still modest.In response to a question «Arab» the existence of large-scale projects advertised in Saudi Arabia, Qatar and Kuwait, he replied, Dabdoub said there are a lot of projects announced, but implementation is slow because of bureaucracy.But despite that, Dabdoub predicted to be the second half «much better» after the start of projects, he said.And his expectations for the future of U.S. currency and a link to the region's currencies, Dabdoub said that «no fear on the dollar, because no alternative global reserve currency, just as is the case for the U.S. bond». He added: «the dollar may fall slightly, and this is true, but at the same time, will increase interest rates on bonds, investors will receive higher interest on their investments in bonds».Dabdoub and agreed with what the international investor and billionaire Warren Buffett said he would have a rating agency to give the U.S. economy rating «Any» Quad AAAA, saying that the rating agencies are no longer taken seriously. On the possibility of entering the world in a new wave of recession, he said that discipline in the expenses, may lead us in a temporary recession, but that is better than continuing to accumulate debt to no end.
