Saudi Arabia Bans Demonstrations As Its Plunge Protection Team Sends Stocks Surging

Tyler Durden's picture

Proving that Saudi Arabia is a fast learner from both China's and America's experience, today Saudi's interior minister announced he is banning all protests, marches and strikes following the world's realization courtesy of the clip posted on Zero Hedge yesterday, showing that not all is well in the kingdom in which protests are banned. Dow Jones reports: "Top oil exporter Saudi Arabia has banned all protests, marches and strikes in the kingdom after small protests continued over the weekend in the oil-rich Eastern province towns of al-Ahsa and Qatif, interior ministry said Saturday, according to state-owned channel al Ekhbariyah.  These activities don't conform with the Islamic laws and harm the interests of the nation and the society, the Saudi channel quoted the ministry as saying." What does, however, comply with Islamic law is openly using your plunge protection team to bid up the market: "Saudi stocks rose for the first time in three weeks, rallying the most in more than two years, after the finance minister said the Arab world’s largest economy is benefitting from higher oil prices and in “excellent” shape... The state-run General Organization for Social Insurance also purchased stocks, according to Ajeej Capital’s Fuad Aghabi." Not letting a crisis go to waste, Saudi has quickly learned Econ 101 and is now advising its citizens that America's massive economic contraction is its personal gain. And if that doesn't work, it will just use its pension fund to bid up stocks, as a massively Marked to Myth market is apparently in everyone's interest: just ask the Chairsatan.

More on the demonstration ban from Dow Jones:

[The interior ministry] said any attempt to cause public disorder will be prevented by security forces.

Saudi Arabia's authorities on Thursday night detained 22 people in Qatif, the main Shi'ite town in the Eastern Province, after they staged a demonstration demanding the release of prisoners they say are being held without trial.

"About 200 people took to the streets in Qatif on Thursday night. The protests were peaceful, but still the authorities interfered, they tried to stop them and arrested 22 people," according to Human Rights First, an independent human rights group.

Look for a kind but firm request for all foreign journalists to depart the country next week ahead of the planned days of rage, as Saudi confirms it had also learned from the USSR in dealing with social discontent.

And while Saudi Arabia is now openly using its pension fund to bid up stocks, thereby setting its own Plunge Protection Team loose to stabilize the market, this time learning from the US, we wonder just how widely the same scheme has been used in the US, as various pension funds receive a command from the New York Fed to do just that... or else mutual assured destruction. Not only that, but Finance Minister Ibrahim al-Assaf pulled an Obama, and told the general population "stocks are attractive now, the economy is in “excellent” shape" and that "with my trust in this economy and this country, I also
seized the opportunity” and bought shares, Finance Minister Al
Assaf said. “I am a long term investor." Poor guy doesn't realize nobody is a long-term investor any more, especially not the GETCOs of the world, whose only job is to stabilize the market from plunging (alas, it didn't work too well for GM).

From Bloomberg:

Saudi stocks rose for the first time in three weeks, rallying the most in more than two years, after the finance minister said the Arab world’s largest economy is benefitting from higher oil prices and in “excellent” shape.

The rise in oil prices will boost the “strong condition” of the kingdom, Finance Minister Ibrahim al-Assaf told Al Arabiya TV. Stock prices in Saudi Arabia, which holds about 20 percent of the world’s proven oil reserves, are attractive now and the Saudi Public Pension Agency bought shares last week, he said. The state-run General Organization for Social Insurance also purchased stocks, according to Ajeej Capital’s Fuad Aghabi.

“Assaf’s comments have had the biggest impact on the market,” said Aghabi, Ajeej Capital’s investment director in Riyadh.

Stocks tumbled across the region last week, sending the Bloomberg GCC 200 Index of Persian Gulf shares to the lowest level since 2009 and propelling the Saudi benchmark down the most in two years, on concern the turmoil in Libya will spread through the Middle East.

“With my trust in this economy and this country, I also seized the opportunity” and bought shares, Finance Minister Al Assaf said. “I am a long term investor.”

Stocks are “attractively valued and the moves by government agencies signal continued confidence,” said Asim Bukhtiar, an equity analyst at Riyad Capital in Riyadh.

How much this latest bout of totalitarian market control (so welcome by market overlords such as Larry Fink) and centrallized planning calms people ahead of next week's days of rage is unknown.  After all Saudi Arabia is quite a few months behind in spinning the "wealth effect" to its citizenry.

 

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Threeggg's picture

"it will just use its pension fund to bid up stocks"

Is that what they are doing for GM ?

from wikihedgez ........................

Union member: A person that gets paid by his/her affiliation, not his/her production.

Sounds like our banking system ?

jmc8888's picture

Union member: someone who is tired of being screwed, and rightfully pools his power with others in an attempt to make sure that isn't

Union head: that's another question

As for their 'prodcution', that's looked at very wrong.

That's right, they are not paid piecemeal like the Hawthorne Studies. (i.e. the most rudimentary of wage pricing 'motivation').

ROFL

The union worker DOES create something, depending on job.  cars, boats, planes, etc.

A bankster? paper, or tells some monkey to enter a few keystrokes into a computer.

Besides, if a person creates 157 widgets, is it really necessary to say they don't get paid for their production? Of course they get paid for their production, it's just not tied to each piece.

Talk about not understanding something, and using that to make an idiot's argument.

 

As for the house of saud: banning protests will make it even more likely to happen, if recent history shows anything

Propping up stocks sure leads to outflows (as ZH has noted a hundred times)

 

Threeggg's picture


"Besides, if a person creates 157 widgets, is it really necessary to say they don't get paid for their production? Of course they get paid for their production; it's just not tied to each piece"

I want to make sure I understand you.

So, if said union member creates 157 widgets and a non-union member creates 257 widgets, in the same time period, fuck the non union member because he has no affiliation. ?

You "assume" all non-union members do piece work. ?

With our Gov sending all of our "production" jobs overseas and this attitude can everyone see why we as a country are fucked. ?

It's not that I’m against unions; I am against what and how they instill.

 

Rudimentary ?

 

 

Dr. Porkchop's picture

I think that Unions served a purpose at one time, and people fought, sometimes paying with their lives, for things that all workers have today. They became something else, something not necessarily working in the best interests of its members. I think that's just the lifecycle of these things. Once a beauracracy erects itself in any movement, it becomes more about the justification for its own existence, and the original aims of the movement are discplaced by the leadership, who now have their own agenda.

The only unions left with any teeth are the public sector unions, as far as I know. There are many places now, where you could unionize all you want, but in the long run, trade agreements have removed most union's main bargaining chip, which is work stoppage. For a long time now, they've had the ability to simply ship the jobs elsewhere.

 

cranky-old-geezer's picture

Union head: that's another question

We on the outside of said unions see no difference between union members and union bosses.  They look the same to us.

Not to worry, Obama's our favorite banker boy union buster, he'll solve the issue, we're confident of it.

PulauHantu29's picture

I'm sure President Obama will come out in support of the pro-democracy protestors in Saudi Arabia just as he is supporting (with troops) the protestors in Libya.

Right?

Atomizer's picture

Do I need to translate this for you or can you use google Arabic? The entire regime is misguiding the peasants thru the use of talking points aka. Democracy. Meanwhile, Cap & Trade programs are so very active. The Banana Republic King strongly believes implimentation is only a stone throw away.

http://www.kuwaitwikileaks.org/PublisherWord.aspx

buzzsaw99's picture

My people love me. lulz

glenlloyd's picture

Hoover said similar things in '32 about basing stock prices on PE ratios was bad. Hoover thought people ought to invest based on the future of the US, a somewhat unquantifiable measure at that time.

If there hadn't been wwii just how long would the US have been in depression?

tradewithdave's picture

Now, I get it.  It's been bugging me all day that whole Secretary of State Hillary Clinton Al Jazeera thing.  This is what it was about.  The White House plan is to let Al Jazeera call for free speech and peaceful assembly in Saudi Arabia.  Why not?  Didn't the Secretary provide them with a priceless endorsement and introduce them to the West.  That's a small price to pay in return for the Al Jazeera editors to be the promoters of "democracy... Sharia sty.e." 

Dave Harrison

www.tradewithdave.com

karzai_luver's picture

sad to have to tell you this, but she is trying to tell you that the U.S. msm is so bought and in the tank that anything is of more value than their pity-full bleatings.

 

Talk about on the reservation, it's a sick pile of crap that is dumped on the sheeple in the u.s.

Atomizer's picture

You referring to this?

Hillary Clinton: Al Jazeera is real news

Sort of, mainly the translation is Hillary needs more taxpayer's monies to outwit the general public in believing half truths. When government propaganda gets derailed, funding dries up quickly.

Mae Kadoodie's picture
The eastern world, it is exploding
Violence flarin', bullets loadin'
You're old enough to kill, but not for votin'
You don't believe in war, but what's that gun you're totin'
And even the Jordan River has bodies floatin'
But you tell me
Over and over and over again, my friend
Ah, you don't believe
We're on the eve
of destruction.
malek's picture

Next up:

Saudi Arabia Bans Revolutions
JW n FL's picture

Up Next!! America learns how to Free themselves by watching all of these other Countries First!!!

 

Honestly, my money was on the Irish.. but Egypt came rolling thru with a win and then yesterday told the "Bankers Part Deux" to Fuck Off and rushed the Government Buildings! God Bless them and may God allow them to be Free!!!

JW n FL's picture

 

FREE!! SAUDI!!! ARABIA!!!!

 

Free!! America!!!

 

FrankIvy's picture

As Saudi Arabia goes, so we all go.

 

Mere unrest in the KSA will mean 150 a barrel.

Open conflict will mean 200.

bugs_'s picture

Sharia compliant protesting only.

New_Meat's picture

I went to a double header in Riyadh one weekend.

SashaBelov's picture

what do you think? does it mean oil will rise on monday? how much - 2,3,4$/bbl? banning of protests means confirmation that something is not ok in the kingdom which was belived will calm world's fears abouth hypotetical oil crisis.

Waterfallsparkles's picture

The Saudis are right they are draining the US and its Citizens of all of its Capital, to their benefit.  We become Poorer and they become Richer.

As if it wasn't bad enough the Fed Chairman Bernanie was draining the US Citizens to bail out his precious Banks, now we have Saudi Arabia draining our Capital as well.

But the true irony of this is that the Bankers and Wall Street are the ones that are perpetuating this thru their bidding up Oil prices in the first place.  First they take down the Market and Crashed Banks and now send a substancial amount of Americas Money over to the Saudi's and other Countries that really are not our friends.

buzzsaw99's picture

We get the oil, they get the clownbux, you think that is a bad deal for us?

Dr. Porkchop's picture

I think they have been exhanging the clownbux quietly for a long time for gold. They have a different view of gold than the west. If gold is going moonward, and clownbux to zero, then they have been getting a preserve of wealth in exchange for a resource that goes up in smoke. Perhaps they are getting the deal after all.

Waterfallsparkles's picture

Time Compression.  Things are happening faster and faster.  With TV and the Internet things spread at lightning speed.  Just look at HFT as an example.

TradingJoe's picture

Oil..the latest:

As recently as last evening I had a nice pizza with a friend I haven't seen in a while, according to him, (he works for a hot hotel in Manhattan), some big shot 4* general just checked in and guess who is picking up the tab for El General and his cohorts...non else then good ol' JPMourge! Well I guess now we have Madam B's SLV hedge, eh?!

irishlink's picture

Has anyone wondered what will happen the world when the Islamic Fundalisimists run the show in the Middle East. This is where this is all going. OK! these crazy leaders lost the total run of themselves and did not treat their people with respect and raped the nations of their wealth.BUT are we in danger of throwing the baby out with the dishwater? What will these dictators be replaced with?  All the old adages seem to apply at the moment. FROM the frying pan into the FIRE,

New_Meat's picture

search for 'jcs long war' and click on this link:

turcopolier.typepad.com/sic_semper_tyrannis/files/?jcslongwar...j5.ppt

and for a good explanation/other background

http://www.blackfive.net/main/2006/08/the_long_war_th.html

"BUT are we in danger of throwing the baby out with the dishwater?"

Not sure we are in control of much here.  Certainly not in the longer run.

- Ned

{generally, we didn't put the baby in the dishwater ;-) }

 

CustomersMan's picture

         Why Saudi Arabia is Next On The List,...And No Escape for the Others Either.

 

        The Most Interesting and `Dead-On` Article I've read on the real causes of the un-rest throughout the world, now primarily centered in the Middle East and North Africa.

 

        But consider what it also says about the un-rest that's coming to a location near you. EXCELLENT WORK.

 

         I was reluctant to post the whole article, except that it is so central to our economic destiny and offers an explanation that matches what is unfolding.

 

************************************

   

Roots of the Arab Revolts and Premature Celebrations

By James Petras

March 04, 2011 "Information Clearing House" -- Most accounts of the Arab revolts from Egypt, Tunisia, Libya, Morocco, Yemen, Jordan, Bahrain, Iraq and elsewhere have focused on the most immediate causes: political dictatorships, unemployment, repression and the wounding and killing of protestors. They have given most attention to the “middle class”, young, educated activists, their communication via the internet, (Los Angeles Times, Feb. 16, 2011) and, in the case of Israel and its Zionists conspiracy theorists, “the hidden hand” of Islamic extremists (Daily Alert Feb. 25, 2011).

What is lacking is any attempt to provide a framework for the revolt which takes account of the large scale, long and medium term socio-economic structures as well as the immediate ‘detonators’ of political action. The scope and depth of the popular uprisings, as well as the diverse political and social forces which have entered into the conflicts, preclude any explanations which look at one dimension of the struggles.

The best approach involves a ‘funnel framework’ in which, at the wide end (the long-term, large-scale structures), stands the nature of the economic, class and political system; the middle-term is defined by the dynamic cumulative effects of these structures on changes in political, social and economic relations; the short-term causes, which precipitate the socio-political-psychological responses, or social consciousness leading to political action.

The Nature of the Arab Economies

With the exception of Jordan, most of the Arab economies where the revolts are taking place are based on ‘rents’ from oil, gas, minerals and tourism, which provide most of the export earnings and state revenues (Financial Times, Feb. 22, 2011, p. 14). These economic sectors are, in effect, export enclaves employing a tiny fraction of the labor force and define a highly specialized economy (World Bank Annual Report 2009). These export sectors do not have links to a diversified productive domestic economy: oil is exported and finished manufactured goods as well as financial and high tech services are all imported and controlled by foreign multi-nationals and ex-pats linked to the ruling class (Economic and Political Weekly, Feb. 12, 2011, p. 11). Tourism reinforces ‘rental’ income, as the sector, which provides ‘foreign exchange’ and tax revenues to the class – clan state. The latter relies on state-subsidized foreign capital and local politically connected ‘real estate’ developers for investment and imported foreign construction laborers.

Rent-based income may generate great wealth, especially as energy prices soar, but the funds accrue to a class of “rentiers” who have no vocation or inclination for deepening and extending the process of economic development and innovation. The rentiers “specialize” in financial speculation, overseas investments via private equity firms, extravagant consumption of high-end luxury goods and billion-dollar and billion-euro secret private accounts in overseas banks.

The rentier economy provides few jobs in modern productive activity; the high end is controlled by extended family-clan members and foreign financial corporations via ex-pat experts; technical and low-end employment is taken up by contract foreign labor, at income levels and working conditions below what the skilled local labor force is willing to accept.

The enclave rentier economy results in a clan-based ruling class which ‘confounds’ public and private ownership: what’s ‘state’ is actually absolutist monarchs and their extended families at the top and their client tribal leader, political entourage and technocrats in the middle.

These are “closed ruling classes”. Entry is confined to select members of the clan or family dynasties and a small number of “entrepreneurial” individuals who might accumulate wealth servicing the ruling clan-class. The ‘inner circle’ lives off of rental income, secures payoffs from partnerships in real estate where they provide no skills, but only official permits, land grants, import licenses and tax holidays.

Beyond pillaging the public treasury, the ruling clan-class promotes ‘free trade’, i.e. importing cheap finished products, thus undermining any indigenous domestic start-ups in the ‘productive’ manufacturing, agricultural or technical sector.

As a result there is no entrepreneurial national capitalist or ‘middle class’. What passes for a middle class are largely public sector employees (teachers, health professionals, functionaries, firemen, police officials, military officers) who depend on their salaries, which, in turn, depend on their subservience to absolutist power. They have no chance of advancing to the higher echelons or of opening economic opportunities for their educated offspring.

The concentration of economic, social and political power in a closed clan-class controlled system leads to an enormous concentration of wealth. Given the social distance between rulers and ruled, the wealth generated by high commodity prices produces a highly distorted image of per-capital “wealth”; adding billionaires and millionaires on top of a mass of low-income and underemployed youth provides a deceptively high average income (Washington Blog, 2/24/11).

Rentier Rule: By Arms and Handouts

To compensate for these great disparities in society and to protect the position of the parasitical rentier ruling class, the latter pursues alliances with, multi-billion dollar arms corporations, and military protection from the dominant (USA) imperial power. The rulers engage in “neo-colonization by invitation”, offering land for military bases and airfields, ports for naval operations, collusion in financing proxy mercenaries against anti-imperial adversaries and submission to Zionist hegemony in the region (despite occasional inconsequential criticisms).

In the middle term, rule by force is complemented by paternalistic handouts to the rural poor and tribal clans; food subsidies for the urban poor; and dead-end make-work employment for the educated unemployed (Financial Times, 2/25/11, p. 1). Both costly arms purchases and paternalistic subsidies reflect the lack of any capacity for productive investments. Billions are spent on arms rather than diversifying the economy. Hundreds of millions are spent on one-shot paternalistic handouts, rather than long-term investments generating productive employment.

The ‘glue’ holding this system together is the combination of modern pillage of public wealth and natural energy resources and the use of traditional clan and neo-colonial recruits and mercenary contractors to control and repress the population. US modern armaments are at the service of anachronistic absolutist monarchies and dictatorships, based on the principles of 18th century dynastic rule.

The introduction and extension of the most up-to-date communication systems and ultra-modern architecture shopping centers cater to an elite strata of luxury consumers and provides a stark contrast to the vast majority of unemployed educated youth, excluded from the top and pressured from below by low-paid overseas contract workers.
Neo-Liberal Destabilization

The rentier class-clans are pressured by the international financial institutions and local bankers to ‘reform’ their economies: ‘open’ the domestic market and public enterprises to foreign investors (among the same group of Bandits we always see(my comment))and reduce deficits resulting from the global crises by introducing neo-liberal reforms (Economic and Political Weekly, 2/12/11, p. 11).

As a result of “economic reforms” food subsidies for the poor have been lowered or eliminated and state employment has been reduced, closing off one of the few opportunities for educated youth. Taxes on consumers and salaried/wage workers are increased while the real estate developers, financial speculators and importers receive tax exonerations. De-regulation has exacerbated massive corruption, not only among the rentier ruling class-clan, but also by their immediate business entourage.

The paternalistic ‘bonds’ tying the lower and middle class to the ruling class have been eroded by foreign-induced neo-liberal “reforms”, which combine ‘modern’ foreign exploitation with the existing “traditional” forms of domestic private pillage. The class-clan regimes no longer can rely on the clan, tribal, clerical and clientelistic loyalties to isolate urban trade unions, student, small business and low paid public sector movements.
The Street against the Palace

The ‘immediate causes’ of the Arab revolts are centered in the huge demographic-class contradictions of the clan-class ruled rentier economy. The ruling oligarchy rules over a mass of unemployed and underemployed young workers; the latter involves between 50% to 65% of the population under 25 years of age (Washington Blog, 2/24/11). The dynamic “modern” rentier economy does not incorporate the newly educated young into modern employment; it relegates them into the low-paid unprotected “informal economy” of the street as venders, transport and contract workers and in personal services. The ultra- modern oil, gas, real estate, tourism and shopping-mall sectors are dependent on the political and military support of backward traditional clerical, tribal and clan leaders, who are subsidized but never ‘incorporated’ into the sphere of modern production. The modern urban industrial working class with small, independent trade unions is banned. Middle class civic associations are either under state control or confined to petitioning the absolutist state.

The ‘underdevelopment’ of social organizations, linked to social classes engaged in modern productive activity, means that the pivot of social and political action is the street. Unemployed and underemployed part-time youth engaged in the informal sector are found in the plazas, at kiosks, cafes, street corner society, and markets, moving around and about and outside the centers of absolutist administrative power. The urban mass does not occupy strategic positions in the economic system; but it is available for mass mobilizations capable of paralyzing the streets and plazas through which goods and services are transported out and profits are realized. Equally important, mass movements launched by the unemployed youth provide an opportunity for oppressed professionals, public sector employees, small business people and the self-employed to engage in protests without being subject to reprisals at their place of employment – dispelling the “fear factor” of losing one’s job.

The political and social confrontation revolves around the opposite poles: clientelistic oligarchies and de clasé masses (the Arab Street). The former depends directly on the state (military/police apparatus) and the latter on amorphous local, informal, face-to-face improvised organizations. The exception is the minority of university students who move via the internet. Organized industrial trade unions come into the struggle late and largely focus on sectoral economic demands, with some exceptions - especially in public enterprises, controlled by cronies of the oligarchs, where workers demand changes in management.

As a result of the social particularities of the rentier states, the uprisings do not take the form of class struggles between wage labor and industrial capitalists. They emerge as mass political revolts against the oligarchical state. Street-based social movements demonstrate their capacity to delegitimize state authority, paralyze the economy, and can lead up to the ousting of the ruling autocrats. But it is the nature of mass street movements to fill the squares with relative ease, but also to be dispersed when the symbols of oppression are ousted. Street-based movements lack the organization and leadership to project, let alone impose a new political or social order. Their power is found in their ability to pressure existing elites and institutions, not to replace the state and economy. Hence the surprising ease with which the US, Israeli and EU backed Egyptian military were able to seize power and protect the entire rentier state and economic structure while sustaining their ties with their imperial mentors.

Converging Conditions and the “Demonstration Effect”

The spread of the Arab revolts across North Africa, the Middle East and Gulf States is, in the first instance, a product of similar historical and social conditions: rentier states ruled by family-clan oligarchs dependent on “rents” from capital intensive oil and energy exports, which confine the vast majority of youth to marginal informal ‘street-based’ economic activities.

The “power of example” or the “demonstration effect” can only be understood by recognizing the same socio-political conditions in each country. Street power – mass urban movements – presumes the street as the economic locus of the principal actors and the takeover of the plazas as the place to exert political power and project social demands. No doubt the partial successes in Egypt and Tunisia did detonate the movements elsewhere. But they did so only in countries with the same historical legacy, the same social polarities between rentier – clan rulers and marginal street labor and especially where the rulers were deeply integrated and subordinated to imperial economic and military networks.

Conclusion

Rentier rulers govern via their ties to the US and EU military and financial institutions. They modernize their affluent enclaves and marginalize recently educated youth, who are confined to low paid jobs, especially in the insecure informal sector, centered in the streets of the capital cities. Neo-liberal privatizations, reductions in public subsidies (for food, unemployment subsidies, cooking oil, gas, transport, health, and education) shattered the paternalistic ties through which the rulers contained the discontent of the young and poor, as well as clerical elites and tribal chiefs. The confluence of classes and masses, modern and traditional, was a direct result of a process of neo-liberalization from above and exclusion from below. The neo-liberal “reformers” promise that the ‘market’ would substitute well-paying jobs for the loss of state paternalistic subsidies was false. The neo-liberal polices reinforced the concentration of wealth while weakening state controls over the masses.

The world capitalist economic crises led Europe and the US to tighten their immigration controls, eliminating one of the escape valves of the regimes – the massive flight of unemployed educated youth seeking jobs abroad. Out-migration was no longer an option; the choices narrowed to struggle or suffer. Studies show that those who emigrate tend to be the most ambitious, better educated (within their class) and greatest risk takers. Now, confined to their home country, with few illusions of overseas opportunities, they are forced to struggle for individual mobility at home through collective social and political action.

Equally important among the political youth, is the fact that the US, as guarantor of the rentier regimes, is seen as a declining imperial power: challenged economically in the world market by China; facing defeat as an occupying colonial ruler in Iraq and Afghanistan; and humiliated as a subservient and mendacious servant of an increasingly discredited Israel via its Zionist agents in the Obama regime and Congress. All of these elements of US imperial decay and discredit, encourage the pro-democracy movements to move forward against the US clients and lessen their fears that the US military would intervene and face a third military front. The mass movements view their oligarchies as “third tier” regimes: rentier states under US hegemony, which, in turn, is under Israeli – Zionist tutelage. With 130 countries in the UN General Assembly and the entire Security Council, minus the US, condemning Israeli colonial expansion; with Lebanon, Egypt, Tunisia and the forthcoming new regimes in Yemen and Bahrain promising democratic foreign policies, the mass movements realize that all of Israel’s modern arms and 680,000 soldiers are of no avail in the face of its total diplomatic isolation, its loss of regional rentier clients, and the utter discredit of its bombastic militarist rulers and their Zionist agents in the US diplomatic corps (Financial Times 2/24/11, p. 7) {.

The very socio-economic structures and political conditions which detonated the pro-democracy mass movements, the unemployed and underemployed youth organized from “the street”, now present the greatest challenge: can the amorphous and diverse mass becomes an organized social and political force which can take state power, democratize the regime and, at the same time, create a new productive economy to provide stable well- paying employment, so far lacking in the rentier economy? The political outcome to date is indeterminate: democrats and socialists compete with clerical, monarchist, and neoliberal forces bankrolled by the U.S.

It is premature to celebrate a popular democratic revolution….

James Petras is a retired Bartle Professor (Emeritus) of Sociology at Binghamton University, SUNY, New York, U.S., and adjunct professor at Saint Mary's University, Halifax, Nova Scotia, Canada who has published prolifically on Latin American and Middle Eastern political issues. Petras received his B.A. from Boston University and Ph.D. from the University of California at Berkeley.

 

cosmictrainwreck's picture

well, maybe it's "time" for the House of Saud. who knows? I recall speculation on their vulnerability years ago... way pre-2007-08 "crash". Maybe they were prescient and took this long to ripen, or maybe the family's got a few more tricks up their oily sleeves. Or maybe a coup & some other bullshit regime takes over (not to the exclusion of some parts of the royalty), or who knows? It will be interesting, for sure

CustomersMan's picture

 

 

        So when you read the tripe about Islamic Fundamentalism,know its BULLSHIT aimed at twisting your mind toward a US vs. Them Paradigm.


                             Its NOT.

Bansters-in-my- feces's picture

Dat peshky democracy trying to get a foot in da door.

A little oil on the floor should slip dem peshky protesters off their feet for a while.

Milton Waddams's picture

Since international corporate interests have dumped the haggard American consumer to nurture a younger, sexier replacement consumer in emerging markets, Ben likely welcomes the elevated energy prices. In fact he recently gave a speech describing how in 2004 oil money in part played a prominent role in depressing longer term Treasury rates below what Fed models forecasted. In other words, as long as the sheiks use the windfall to at least partially supplement QE, the rest of you feeders can suck it up and cope.

kevinearick's picture

p { margin-bottom: 0.08in; }

So, the legacy families assumed that all humans were replaceable, except themselves. Bad assumption. They also assumed that they had time on their side. Bad assumption.

Despite cascading dominoes falling in their direction, the government unions assumed that promises of future payments, in return for transferring assets from those who earned them to those who did not, would continue indefinitely. Bad assumption.

Governments assumed that they could float the difference indefinitely. Bad assumption. The agents assumed they could hide their looting behind non-profits indefinitely. Bad assumption. The churches assumed that indoctrinating the masses with propaganda from birth would shield their property indefinitely. Bad assumption.

These black holes have now intersected and joined, to become the globally replicating virus, which has hit the wall. Funny, no matter where you go, you will find the masses offering each other help out of the black hole, for a fee, slavery to consumption anxiety.

Simply disconnect whatever anxiety algorithm that ails you from the nexus consumption algorithm and reconnect it to your own investment algorithm. If at first you do not succeed, move to another location, get another angle, and try again, peeling off the layers of non-productive anxiety, and their associated assets, as you go.

Without enterprise architects, the legacy families may only implode. The entire foundation of the American Enterprise System is now spider-cracked. Simply take your unique crow bar and lift out the piece it fits, while the legacy families re-paste, re-organize, and re-sell in vain.

No foundation, no economy. Below the old foundation, you will find the new foundation, already installed. Add recursion to quantum physics, with the three point structure, and off you go.

I am now at the border, with my crow bar. Where are you?

Voxifera's picture

BTFD

Ban The Freaken Demonstrators

locinvestor's picture

Keep this in mind. Legally, right now Obama can declare martial law at any time. All he has to do is site "a threat to the security of the United States". Either outside or within.

Thomas Sabo Bracelet's picture

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