Saudi Arabia - which was busy playing headline hockey with Russia this morning over a rumored 5% production cut proposal - is running out of money. Yes, we know, that sounds absurd. But believe it or not, the country whose monarch recently rented the entire Four Seasons hotel for a 48 hour stay in Washington DC, is in fact going broke. And at a fairly rapid clip.
Saudi Arabia - that Western-backed bastion of human rights - executed 47 people on Saturday, including a top Shiite cleric whose death sparked protests in Eastern Province and inflamed sectarian tensions across the region.
Two Thousand Fifteen had high hopes at the start, but a sharp selloff in August nearly ripped us apart; Then Draghi and Yellen swore that hope hadn't departed, so we stuttered and sputtered to just get back where we started.... Hoverboards were this season's really, really hot toy; And Bruce Jenner's now Caitlyn - he's no longer a boy
- The Year Nothing Worked: Stocks, Bonds, Cash Go Nowhere (BBG)
- Oil falls toward $37, near 11-year low, as excess supply weighs (Reuters)
- End of easy money for mini-refiners splitting U.S. shale? (Reuters)
- Shale's Running Out of Survival Tricks as OPEC Ramps Up Pressure (Reuters)
- 'Safe’ Puerto Rican Debt Stirs Worries (WSJ)
- These Will Be Wall Street's Most In-Demand Jobs Next Year (BBG)
"...Should you continue your flagrant support of Saudi Arabia by way of foreign aid and weapons sales, you are no longer to be trusted to hold an elected position of influence. You should therefore resign, effective immediately. The question is: Is your allegiance to the people of the United States, or are you beholden to another kingdom?"
It was just a few weeks ago that the International Monetary Fund predicted that Saudi Arabia would likely be bankrupt within the next five years. Saudi Arabia’s financial position is deteriorating rapidly, and the government is burning through cash like a coked-up rock star. The Saudis followed this up with plans now to build the world’s tallest skyscraper, which would stand a full kilometer in height. Seriously, what are these people thinking? What kind of idiot goes out of his way to blow through cash when he’s rapidly going broke? Why, the United States of America of course.
We're beginning to believe the nation will not be unified behind a common cause when the coming financial eruption unleashes molten lava of chaos, punishing economic distress, civil strife, class warfare, race wars, and ultimately global war. As Strauss and Howe foretold, the establishment (aka corporate fascist military industrial surveillance state) has seen a sequential loss of popular trust as their blatant corruption, sociopathic stranglehold on the levers of power, and unrelenting greed have angered the critical thinking aware citizens of this country. The next leg down in this Greater Depression will sever the remaining trust, disintegrating any remaining support for the existing civic order. What comes next will be heavily dependent upon whether the 5% to 10% of liberty minded believers in the Constitution are able to gain the trust of the masses.
Another day, another story highlighting just how completely corrupt and sleazy the U.S. economy has become... The U.S. government is subsidizing the wealthiest developers to build projects for the wealthiest Americans. Someone must have taken a class taught by the Federal Reserve. Just another day in the imperial Banana Republic.
To summarize: in order to get the Saudis to "agree" to the Iran deal, all the US had to do is remind King Salman, that as long as oil is where it is to a big extent as a result of Saudi's own record oil production, crushing countless US oil corporations and leading to the biggest layoffs in Texas since the financial crisis, the country will urgently need access to yield-starved US debt investors. If in the process, US corporations can invest in Saudi Arabia (and use the resulting assets as further collateral against which to take out even more debt), while US military corporations sell billions in weapons and ammo to the Saudi army, so much the better.
"...If the S&P500 were to come down by 50% look at the bright side. The Millennial generation can finally buy into America’s future at a good price. Look at what they are facing right now: very little return on their savings and very lofty prices that they have to pay to invest in their future. So we often forget that these wrenching dislocating financial events, particularly for older generations, can create opportunities for the young, and often create space for something more durable for the times to be built. So I’ll just summarize it with Schumpeter’s phrase: creative destruction. That’s how I prefer to see what happens in a Fourth Turning."
It’s easy to see evil in dead people. Stalin... Hitler... Pol Pot... people who tortured and killed just to feel good. The jaws of Hell must open especially wide to let them in. But who should go to the devil today?
The inability of the linear thinking ruling class to acknowledge the seriousness of our current circumstances and the implications of the era of depression and violence the country is about to experience can be witnessed on a daily basis by listening to mainstream media talking heads or politicians of all stripes who bloviate about economic improvement and progress just ahead. Could there be a better example of myopia, delusion and willful ignorance than the theme and opening line of Obama’s State of the Union speech: "The Shadow Of Crisis Has Passed" Do Obama and his advisors actually believe this Crisis is over? Or is he purposely misleading the American people about the seriousness of our circumstances because he has been instructed to do so by the men who really pull the levers of this country?