petrodollars

Yet in spite of this and the sea of petrodollars sloshing around the Middle East, Dubai is only halfway towards its ambition (see article).

Jen argues that this flood of petrodollars will depress global interest rates and support the price for risky assets over time.

These petrodollars, as they used to be called, create what are now called global imbalances.

The flow of petrodollars has created a sense of stability, masked economic woes and given Russia more clout on the world stage.

Fortunately for Saudi Arabia, it has stashed a cushion of petrodollars to manage this. It also has other factors to consider.

Vying for countless billions of Arab petrodollars, unexpected champions of "Islamic finance" have emerged in unlikely places.

Until now, Tehran's theocrats have thumbed their nose at the world, knowing their petrodollars have been beyond reach.

Record flows of petrodollars have enabled governments in the area to spend billions on infrastructure projects and development.

At the center of Russia's economic recovery is the flow of petrodollars.

The surplus petrodollars of the Gulf states have been flowing into east Africa.

Between a fifth and a quarter of all petrodollars are owned by very wealthy individuals.

At present, the petrodollars are converted into local money at a fixed rate and doled out as governments see fit.

The region's economies are struggling to absorb petrodollars, accumulating like glucose in the bloodstream.

In addition, the recycling of petrodollars is driving down interest rates providing an unsustainable boost to US private consumption.

At the same time the recycling of petrodollars was left to the money center banks.

A classic example came in the 1970s, when petrodollars flooded the international capital market and drove interest rates down.

a large chunk of the Gulf's petrodollars are also being spent on gleaming skyscrapers and new airports.

In 1999 the oil price started to climb and petrodollars gushed into Russia, changing the mindset of the political class.

They continue to throw petrodollars at both fuel subsidies and big projects that consume oil.

WHEN the petrodollars stopped gushing, Mr. Graff looked beyond the Middle East.

This is because if the Gulf is to absorb its petrodollars, the price mechanism has work to do.

A restive Iran and plenty of petrodollars should ensure that the Gulf states continue to buy lots of weapons.

So why so little worry about recycling petrodollars?

A lesson of the recycling of petrodollars in the 1970s is that equity investments are more sustainable than debt.

The reinvestment of "petrodollars" created the Latin American economic boom in the 1970s and then the third world debt crisis of the 1980s.

Middle East petrodollars are pouring into countries such as China and Singapore.

Meanwhile, many other developing countries (even those without petrodollars) have received the red-carpet treatment from investors.