Morgan Stanley: A Petrodollar Tsunami Is Coming [View article]
Longer refutation: The article makes assumptions on the financial infrastructure of third world nations predicated on the assumption that these nations have no present asset structures to spend the moneys we are transferring to them (true), so they will simply slap it back in banks in the West (false).
A spike in funds based on a spike in oil prices results in a wave of money coming back to London, Zurich, NY, etc. However, long term flows of money to oil producing countries will inevitably lead to the desire in those countries to develop asset structures which can absorb and multiply those moneys.
Morgan Stanley: A Petrodollar Tsunami Is Coming [View article]
A spike in funds based on a spike in oil prices results in a wave of money coming back to London, Zurich, NY, etc. However, long term flows of money to oil producing countries will inevitably lead to the desire in those countries to develop asset structures which can absorb and multiply those moneys.
Again, a one word illustration: Dubai.
Morgan Stanley: A Petrodollar Tsunami Is Coming [View article]