Simply put, the Gulf states are relying on their wealth to ward off revolution.

(b) The right of peoples and nations to permanent sovereignty over their natural wealth and resources

(b) The right of peoples and nations to permanent sovereignty over their natural wealth and resources

(b) The right of peoples and nations to permanent sovereignty over their natural wealth and resources

Asia, with its huge population and increasing affluence, is driving demand.

Nigeria and Angola are other glaring examples of countries that have failed to use their oil wealth for the benefit of their people.

Just as banks are hoarding cash, households will try to preserve wealth by increasing their saving.

On one hand, Pakistan is seeking large investments from China to improve its physical infrastructure and exploit its considerable mineral wealth.

But these Rentiers have not been able to translate the rents of their natural resource wealth into sustained economic growth.

The usual assumption is that household consumption falls by around 0.05 for each 1 decline in household wealth.

Households will gradually save enough to restore their wealth, and household consumption will gradually recover as well.

China was already accustomed to rapacious Western powers squabbling over its riches, but had remained self confident in the knowledge of these powers irrelevance.

In today s competitive global marketplace, countries need to upgrade and diversify their industries continuously according to their changing endowments.

The first is unbearable for the more stable EU countries, because it would deprive them of their wealth and suck them into a dangerous fiscal maelstrom.

The socialism that they practiced was a peculiar form of Swiss bank socialism, which allowed the heads of states and the ministers to rape and plunder Africa's treasuries for deposit in Switzerland.

In my book New Structural Economics, I propose shifting the focus to areas where developing countries can do well (their comparative advantages) based on what they have (their endowments).

Economists have also found that in the world s poorest regions (Africa and the Indian sub continent), areas that have experienced higher population growth have also lost wealth per capita at a faster rate.

It was the huge loss of households net worth that brought down the real economy (with an assist from the credit squeeze on smaller businesses).

And, because of the country s comparative lack of soft power social, cultural, and economic attractiveness it stands ready touse the competitive advantages (i.e., its resource wealth) available to it.

And then we discovered these things gold and oil and fishing and timber and it became, you know, a trillion dollar economy, and now we take our honeymoons there. The same thing will happen in space.

Unlike the many Irish households that lost jobs and part of their wealth, the banks were deemed to be too big to fail, so Ireland s political elites intervened with state funding.

Simply put, the Gulf states are relying on their wealth to ward off revolution. After all, the majority of their population has benefited immensely from decades of rapid, natural resource based economic growth.

In our globalized world, a country s optimal industrial structure in which all industries are consistent with the country s comparative advantages and are competitive in domestic and international markets is determined by its endowment structure.

This will fuel more global deflation and private and public debt defaults in debtor countries, which will ultimately undermine creditor countries growth and wealth.

Moreover, Muslims in these mostly patron client states have been forced to identify more with atomistic parochial ethnic nationalism in order to enjoy the fruits of independence and thus acquire whatever political representation they have.

Second, political paranoia is rising on the German right everybody supposedly just wants Germany s money our Anglo Saxon partners' real aim is to weaken us and the financial markets will not rest until Germany has invested all of its wealth and has thus endangered its economic success.

In my book New Structural Economics, I propose shifting the focus to areas where developing countries can do well (their comparative advantages) based on what they have (their endowments). With dynamic structural change starting from there, success will breed success.

Economies can learn faster than they can invent, so less developed countries can achieve much faster growth than was experienced by today s industrialized countries when they were becoming wealthy.

With improved corporate and public governance and clear transfer pricing policies, resource rich countries could shore up their capacity to negotiate fair contracts with extractive industries, balance revenues and expenditures over time, and manage their natural endowments more transparently.

The usual assumption is that household consumption falls by around 0.05 for each 1 decline in household wealth. This would mean a direct negative shock to household spending in the US of around 5 of national income, and of around 3.5 in Europe and Asia.

Households need to rebuild wealth, and the lack of access to credit, implies that the saving rate could continue to rise from the 6.4 recorded in June (the most recent month for which data are available) to the 9 rate that America averaged in the decades before 1985.