Posted by WARREN MOSLER on May 20th, 2011
So how would the fact that even the world’s largest investors don’t even begin to understand the monetary system
fit into the various theories about markets efficiently allocating capital, etc?
And note that he also did just say on CNBC the Saudi’s objective is $70-80 for crude.
So even though he’s probably not the decision maker, seems he does understand how a monopolist sets price.
By Jeff Cox
May 20 (CNBC) — Saudi Prince Alwaleed bin Talal called on US lawmakers to raise the debt ceiling, while also warning that steps must be taken to control government spending.
The renowned investor and philanthropist, and nephew of King Abdullah, also rejected the notion that the US could delay payments on its bonds for several days as has been suggested by Rep. Paul Ryan and hedge fund manager Stanley Druckenmiller.
“We in the outside world, outside the United States, believe the United States is not giving much care and attention to this time bomb that you have right now here,” bin Talal said in a CNBC interview.
“You need some structural changes in the United States,” he added. “You can’t go forever with $1 trillion in arrears. That’s the thing.”