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Saudi King Abdullah Has Died; Crude Prices Jump

Tyler Durden's picture




 

After first falling ill  and being hospitalized in December, Saudi Arabia officials have announced:

  • *SAUDI ARABIAN KING ABDULLAH DIES, CROWN PRINCE SALMAN SUCCEEDS: STATE TV

As we noted previously when considering this possibility, "a new King can do (almost) anything he wants, including changing oil policy." 79-year-old Crown Prince Salman has been named succesor (and has his own health issues). Oil prices popped around 80c on the news.

 

 

As we detailed before, Abdullah's 79-year-old half-brother has his own health issues and leaves larger questions over the line of succession in one of the world’s most important oil producers remain unanswered.

 

 

Originally posted at Reuters,

In his annual “state-of-the-kingdom” address on Jan. 6, Saudi Arabia’s King Abdullah hoped to reassure the world that his country is prepared to absorb the economic shock of plummeting oil prices and to deal with the worsening conflict in its two neighbors, Iraq and Yemen. The message might have been more effective had the 90 year-old king delivered it personally, but Abdullah has been hospitalized since Dec. 31 for pneumonia.

 

Instead, Crown Prince Salman delivered the speech on the king’s behalf. That image — of an aging heir with his own health troubles standing in for a nonagenarian king — did little to address concerns about whether Abdullah is still fit to lead. Larger questions over the line of succession in one of the world’s most important oil producers remain unanswered.

 

The 79-year-old Salman, a half brother of the king and his designated successor, has taken on a larger public role in recent months, standing in for Abdullah at a summit meeting of Persian Gulf leaders in Qatar last month. But Salman himself is in poor health, and reportedly suffers from dementia. If Abdullah dies or is incapacitated, and Salman ascends to the throne, he might not be king for long. It’s also unclear who Salman would designate as his crown prince — and that crucial decision could destabilize the royal family.

 

Prince Muqrin, 69, who has served as head of Saudi intelligence and in other senior positions, was installed last year by Abdullah into the newly created post of deputy crown prince, making him second-in-line to the throne. But any new king has the right to choose his own crown prince. If Muqrin is passed over by Salman, that could set off a succession battle within the House of Saud at a time of regional crisis and instability in the global oil markets.

 

Beyond Salman’s expected ascension to the throne, the Saud dynasty faces a larger challenge over succession within its system of hereditary rule. The kingdom was founded in 1932 by Abdulaziz al-Saud, and he left behind a system where the throne is passed from older son to younger son (the king had 35 surviving sons when he died in 1953). With the old generation of Abdulaziz’s sons dying off or passing into senescence, the kingdom has no clear plan to hand power to the “new” generation of royals — Abdulaziz’s grandsons, of which there are at least 30 who could be in line for the throne.

 

Muqrin is the youngest surviving son of Abdulaziz who is still in the running for the throne (he has several older siblings who have been passed over). If Muqrin becomes king, he would have to appoint a crown prince from the third generation of royals. Muqrin does not have strong enough support within the royal family to appoint one of his sons to the post. One theory is that Abdullah positioned Muqrin as second-in-line so that he would be beholden to Abdullah’s sons, one of whom could become king once the generational shift takes place.

Aside from the king’s illness and questions over succession, Saudi Arabia is faced with a series of regional and economic threats.

Most prominently, the kingdom must cope with plunging oil prices. On Jan. 7, Brent crude, the international benchmark, fell below $50 a barrel for the first time since May 2009 — a drop caused in part by Saudi’s refusal to cut high production levels. At the last OPEC meeting in late November, the Saudis led the charge to prevent the cartel from cutting production, which would have driven prices up. Instead, the kingdom is trying to gain more control over the global market, and to drive out U.S. shale oil, which requires higher prices to remain competitive.

 

So far, Saudi leaders have been able to withstand the economic shock by increasing oil production to make up for falling prices, or by accessing some of the kingdom’s $750 billion stashed in foreign reserves. But those are not long-term solutions.

 

The other challenge for Abdullah’s successor will be containing Iran, the kingdom’s regional rival. Saudi Arabia is engaged in proxy battles with Iran in several arenas: Syria, Iraq, Lebanon and Yemen. The kingdom is using oil as a weapon to punish Iran, and Russia, for their support of Bashar al-Assad’s regime in Syria. Facing Western sanctions and economic isolation, the Iranian regime is dependent on oil remaining at $100 a barrel or more to meet its budget commitments.

 

The proxy war has played out most intensely in Syria and Iraq. After the American invasion of Iraq in 2003, neighboring Sunni regimes backed Sunni militants, while Iran supported the Shi’ite-led government and Shi’ite militias. When various Middle Eastern regimes realized that the United States would — in their view — lose its war in Iraq, they began maneuvering to protect their interests and to gain something out of the American withdrawal. Saudi Arabia, which saw Iraq as a bulwark against Iranian influence, tried to destabilize the Shi’ite-led government in Baghdad.

 

The Saud dynasty views itself as the rightful leader of the Muslim world, but Iran has challenged that leadership for several decades. Although Saudi Arabia has a Sunni majority, its rulers fear Iran’s potential influence over a sizable, and sometimes-restive, Shi’ite population concentrated in the kingdom’s oil-rich Eastern Province.

 

Any new leader is unlikely to change the larger contours of Saudi foreign policy — or the kingdom’s use of oil to enforce its interests and try to keep Iran at bay. But the new king and his inner circle will face decisions on succession that could reshape the ruling family and the monarchy’s future for generations to come.

*  *  *

But, given the almost plenipotentiary powers of the King  (see article 44 of the Basic Law), Prince Salman could realistically decide to do almost anything he wants if he deems it in the best interests of Saudi Arabia.

This includes matters of spending, where significant sums are likely to be spent on succession to ensure it goes smoothly and the social contract in Saudi Arabia is maintained and, more pertinently for global markets, on oil.

 

In the oil market Saudi Minister of Petroleum and Mineral Resources Ali al-Naimi has in recent weeks, with the support of King Abdullah, emphasized a shift in Saudi Arabian policy to not cut production and allow the market to determine where the oil price should go, even if it means oil falling further from here.

 

In our opinion, this is not another step in Saudi Arabia “flooding the market” for political reasons as a look at collapsing Saudi exports and premium seasonal differential prices shows, but rather them captalising on a scenario caused by structural factors causing the oil price to fall to try to take out significant amounts of oil investment and ensure a higher price in the future as other producers can no longer rely on a “Saudi put” to stabilize oil prices on the downside.

 

They have significant flexibility in their budget should they choose as we outlined here: http://www.ecstrat.com/research/balancing-budgets/ and there are a number of measures they could take (eliminating subsidies, raising short-term debt for more independent monetary policy) to weather the storm and improve the economy long-term.

However, oil prices are now at levels that cause real concern on the streets of Saudi Arabia, with the prospect of succession the icing on top that has caused retail investors to take the market down another leg.

This policy may not make it through a succession period, where public support and good will is essential, particularly as it has nearly been 20 years since the last change.

The new regent could decide to keep existing policy, change it completely or anything he decides. Similarly he has free reign to realign Saudi Arabia’s foreign policy as he wishes, which is a discussion for another time and place, but could have significant regional impacts.

This uncertainty should normally increase oil prices, but instead we see them down again today, just as Libyan civil war over resource control (as discussed here: http://bit.ly/ecstrat4, p 13) where production looks to be back at year lows of 200kbpd versus the 900kbpd that apparently kicked off this rout, actually saw prices fall again.

It seems that we are in a complete capitulation period now in oil, as the sharp decrease in CTFC in the last report shows and with producers scrambling to try to make up for revenue shortfalls by selling any stock they can now they feel they can no longer rely on the GCC, increasing flow to the market and keeping the curve in backwardation. Consumer demand is elastic, but not instantaneous (they don’t keep spare tankers for storage being mostly just in time), leading to a perilous period of dead space.

Given the lack of availability of credit for anything oil related unless you’re BP, this may continue for a period, but the lack of investment and potential shifts in the Middle East over the next year, coupled with the recent rise in long-dated oil back towards $80 augur for higher prices into 2016 unless we see a significant slowdown in China next year as JP expects, in which case the path will be more painful (JP sees $60 as the new normal for oil, a level he predicted a few years ago)

The Saudi Tadawul stock exchange is likely to stay under pressure, but we have previously seen intervention in the market if it falls too far, something that is likely to be repeated.

With a likely opening to foreign investors in April, the focus must be on “value” stocks above all else, with oil names providing the beta despite their curious earnings profile as unlike global energy names their feedstock is heavily subsidized, so it’s mostly a question of how much profit they will make versus swings from losses to profits.

* * *

 

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Thu, 01/22/2015 - 19:56 | 5694362 sunnyside
sunnyside's picture

Can we rule out the Temple Mount in Jerusalem?

Thu, 01/22/2015 - 20:50 | 5694528 knukles
knukles's picture

O'Pajamas will probably suggest that in place of meeting with Netanyahoo

Thu, 01/22/2015 - 20:49 | 5694534 Wahooo
Wahooo's picture

I would love to piss on that temple. What a symbol of authoritarianism and death.

Thu, 01/22/2015 - 21:20 | 5694654 effendi
effendi's picture

As is the wahabi custom he will be buried in an unmarked grave somewhere out in the desert and nobody will know where the grave is or go to visit the grave.

Thu, 01/22/2015 - 19:55 | 5694355 Yen Cross
Yen Cross's picture

   Texas is "No Fly Zone" until further notice!

 Signed, All the Bushes.

 Notarized, by Dick Cheney

Thu, 01/22/2015 - 19:55 | 5694356 Lolitsa
Lolitsa's picture

This story reminds me of that BMW movie, Ticker.

https://video.search.yahoo.com/video/play;_ylt=AwrTcdtijcFUe6AA0_0nnIlQ;...

Thu, 01/22/2015 - 19:57 | 5694368 seek
seek's picture

Now cue the ISIS false flags, and we'll have troops in S.A. by spring.

Thu, 01/22/2015 - 20:06 | 5694393 cheech_wizard
cheech_wizard's picture

I wonder if this will change the Saudi's plans to build a massive border fence.

Standard Disclaimer: It's for the pilgrimage.

Thu, 01/22/2015 - 20:34 | 5694485 Yen Cross
Yen Cross's picture

 South America? just  kidding

Thu, 01/22/2015 - 20:49 | 5694529 sunnyside
sunnyside's picture

San Antonio

Thu, 01/22/2015 - 19:59 | 5694370 Z_End
Z_End's picture

A black swan event while Davos is in session... should be interesting conversations tonight and in the morning...

Thu, 01/22/2015 - 20:10 | 5694404 knukles
knukles's picture

Fuck Davos

Thu, 01/22/2015 - 20:15 | 5694435 thamnosma
thamnosma's picture

Fuck the fuckers at Davos.

Thu, 01/22/2015 - 20:47 | 5694520 fuu
fuu's picture

Or the perfect time to have all the principles in one room to discuss things while defiling 8 year old slave children over hot chocolates.

Thu, 01/22/2015 - 22:06 | 5694796 williambanzai7
williambanzai7's picture

Avalanche!

Thu, 01/22/2015 - 19:59 | 5694374 NoWayJose
NoWayJose's picture

He probably saw the latest issue of Charlie Hebdo and couldn't handle it

Thu, 01/22/2015 - 20:00 | 5694375 Son of Captain Nemo
Son of Captain Nemo's picture

It doesn't matter and never did!

King Binny bin Netanyahu and Prince "Barry" bin Soetoro got it covered and all their predecessors since 1971 when USD came to town!

Thu, 01/22/2015 - 20:07 | 5694400 Yen Cross
Yen Cross's picture

 On a serious note. I pulled all the usdx charts going back to 1971. The downtrend of the dollars purchasing power is astounding.

 One thing in particular that I noticed was the lack of volatilaty before the gold standard was lifted in 73-74. Inflation pretty closely tracked the $usd purchasing index.

Thu, 01/22/2015 - 20:48 | 5694523 Volkodav
Volkodav's picture

dup   

Thu, 01/22/2015 - 21:34 | 5694684 Yen Cross
Yen Cross's picture

 Thanks for taking the time.

Thu, 01/22/2015 - 23:00 | 5694965 Hulk
Hulk's picture

dup

Thu, 01/22/2015 - 23:27 | 5695036 Yen Cross
Yen Cross's picture

 I luv my Hulk~ Amaniac ;-D

Thu, 01/22/2015 - 23:34 | 5695057 Hulk
Hulk's picture

Face the facts Yen. you are surrounded by dupes !!!

Thu, 01/22/2015 - 23:01 | 5694969 me again
me again's picture

Astounding to you maybe; old news to people who pay attention to the world they live in.

Thu, 01/22/2015 - 20:03 | 5694383 p00k1e
p00k1e's picture

This group of Saud’s came into power when the Bush family came into power.  They’re friends. 

Thu, 01/22/2015 - 20:04 | 5694389 cheech_wizard
cheech_wizard's picture

It's good to be king...

>Abdullah had more than 30 children from around a dozen wives.

Especially when and where you only have to say "I divorce you" three times, and then you can kick the bitch to the curb.


Thu, 01/22/2015 - 20:19 | 5694445 _SILENCER
_SILENCER's picture

Especially when and where you only have to say "I divorce you" three times, and then you can kick the bitch to the curb.

 

Shit on toast, that would have saved me piles of money and years of turmoil.

Thu, 01/22/2015 - 21:21 | 5694576 Bay of Pigs
Bay of Pigs's picture

I thought these Saudi animals just chopped their heads off?

Edit: Oh, I get a junk for speaking the truth. How Zero Headish. Fact is, they lead the world in beheadings and by a wide margin.

Thu, 01/22/2015 - 20:07 | 5694399 Bennie Noakes
Bennie Noakes's picture

Probably the younger princes are doing the real decision making and they just wheel the old guys out for speeches.

I think I read somewhere that King Abdullah actually spent most of his time watching reruns of American Idol. Over and over and over again.

Thu, 01/22/2015 - 20:12 | 5694424 amadeus39
amadeus39's picture

That's not true. He was watching Salaman do what he no longer could do...to his harem.

 

Thu, 01/22/2015 - 20:19 | 5694441 Yen Cross
Yen Cross's picture

In a Milennium he'll be found resting comfortably in his beautiful radioactive 2015 Bentley Mulsanne.

Thu, 01/22/2015 - 20:10 | 5694411 new game
new game's picture

another state to go into turmoil, my prediction. war ineminent! 

Thu, 01/22/2015 - 20:11 | 5694413 youngman
youngman's picture

This is going to make for interesting theatre....I think there are many princes that want to be king over there...and they will do the durty deeds to get into the throne....they are Arabs...they cheat.....and Yes ISIS ..to them this is the big prize....if they can get SA..they have the Muslim world at their feet...SA is the HQ for Muslims...

Thu, 01/22/2015 - 20:53 | 5694556 sunnyside
sunnyside's picture

Why all this hate here for San Antonio.

Thu, 01/22/2015 - 20:55 | 5694562 Ginsengbull
Ginsengbull's picture

South Africa?

Thu, 01/22/2015 - 21:25 | 5694666 effendi
effendi's picture

South Australia?

Thu, 01/22/2015 - 21:39 | 5694689 Yen Cross
Yen Cross's picture

New South Wales or Victoria?

Fri, 01/23/2015 - 07:13 | 5695707 css1971
css1971's picture

The 9/11 attackers were Saudi.

Thu, 01/22/2015 - 20:11 | 5694416 Bobportlandor
Bobportlandor's picture

Puts Obama one step closer.

Thu, 01/22/2015 - 20:31 | 5694478 knukles
knukles's picture

OK....  I'll bite
One step closer to what?

Thu, 01/22/2015 - 20:53 | 5694552 Ginsengbull
Ginsengbull's picture

Eviction

Thu, 01/22/2015 - 20:12 | 5694425 smacker
smacker's picture

"Abdullah's 79-year-old half-brother has his own health issues" and "reportedly suffers from dementia"

ha-ha-ha. What a bunch of nutters.

Thu, 01/22/2015 - 22:20 | 5694846 DaveyJones
DaveyJones's picture

SDTs are a bitch

 

Thu, 01/22/2015 - 20:14 | 5694431 Berspankme
Berspankme's picture

Is this the guy that looks like Barrosso?

Thu, 01/22/2015 - 20:16 | 5694432 IridiumRebel
IridiumRebel's picture

Rot in Hell

Thu, 01/22/2015 - 20:15 | 5694433 Soul Glow
Soul Glow's picture

Remember when he went to the hospitol a few weeks ago?

Thu, 01/22/2015 - 20:31 | 5694480 knukles
knukles's picture

No.
I musta missed it when I was picking at my hemorrhoids

Thu, 01/22/2015 - 20:24 | 5694440 ThroxxOfVron
ThroxxOfVron's picture

There will be blood.

IF Saudi falls to the Wahabbists and/or ISIS the entire region will burn.

Mecca and the richest functioning oil fields on earth are up for grabs.  This is a nightmare for Islamic Peoples all over the World.

This is the greatest treasure, the most exquisite and revered reliegious site anywhere; all wrapped up in one prize..

ISIS/Al-CIA-duh have just seized Yemen and the crown jewel of all Islam is just across the fucking desert...

Thu, 01/22/2015 - 20:43 | 5694513 Volkodav
Volkodav's picture

Wahhabism is main Saudi faith for over two hundred years.

Your last paragraph wrong also...Yemen couped those letter folks...

 

Thu, 01/22/2015 - 21:51 | 5694732 ThroxxOfVron
ThroxxOfVron's picture

".Yemen couped those letter folks... "

YOU are sure that YOU know who has actually taken control of Yemen?

 

"Wahhabism is main Saudi faith for over two hundred years."

IMHO, money was the basis of Saudi faith, prosperity, peace such as it has been , and everything else for at least the last 50 years or so...

Thu, 01/22/2015 - 23:07 | 5694987 me again
me again's picture

You're right; he's nuts; and as you can see is suffering from the delusion that he knows something; there's a lot of that going around. (for Volkadov)

Thu, 01/22/2015 - 20:45 | 5694517 smacker
smacker's picture

"There will be blood."

Let's hope so.

Thu, 01/22/2015 - 20:49 | 5694526 Ginsengbull
Ginsengbull's picture

Muhammad used to bow toward Jerusalem when he prayed.

 

How can any site be revered, except if The Lord is there, incarnate, at the time of prayer?

 

Personally, I believe that the Holy Land exists in Pennsylvania.

Thu, 01/22/2015 - 20:52 | 5694546 IridiumRebel
IridiumRebel's picture

The Karbala

Thu, 01/22/2015 - 20:58 | 5694578 knukles
knukles's picture

Like North Philly right around Broad and Lehigh?

Thu, 01/22/2015 - 21:18 | 5694649 Ginsengbull
Ginsengbull's picture

Wellsboro

 

The Holiest of holes.

Thu, 01/22/2015 - 21:54 | 5694754 Dogbert
Dogbert's picture

Wellsboro ?

Fri, 01/23/2015 - 09:27 | 5695985 Ginsengbull
Ginsengbull's picture

Pennsylvania's grand canyon.

 

A big hole.

Thu, 01/22/2015 - 21:58 | 5694760 Dogbert
Dogbert's picture

Dup, site at fault

Thu, 01/22/2015 - 21:35 | 5694685 me again
me again's picture

Or Transylvania, or Unsylvania, or Ansylvania, ; but i suppose Pennsylvania is as good a guess as any.

Fri, 01/23/2015 - 02:02 | 5694697 r0mulus
r0mulus's picture

I thought Yemen was overthrown by Shia tribesmen, likely aligned with Iran?

Fri, 01/23/2015 - 07:09 | 5695702 css1971
css1971's picture

Free AK47s and RPGs in their breakfast cereal?

Thu, 01/22/2015 - 20:20 | 5694447 eyesofpelosi
eyesofpelosi's picture

I sent the family roses and a case of pork chops.

Thu, 01/22/2015 - 21:37 | 5694688 me again
me again's picture

Damn, thet were real white of yer'all.

Thu, 01/22/2015 - 20:20 | 5694450 mt paul
mt paul's picture

heard that the entire Yemen government 

resigned en mass today ..

 

any one else hear this..?

Thu, 01/22/2015 - 20:24 | 5694462 eyesofpelosi
eyesofpelosi's picture

"We resigned some folks"

Thu, 01/22/2015 - 20:51 | 5694533 Buster Cherry
Buster Cherry's picture

-1 for sounding like obama.

 

Too old, now irritating

Thu, 01/22/2015 - 21:26 | 5694580 knukles
knukles's picture

We irritated some folks

Thu, 01/22/2015 - 21:50 | 5694736 nmewn
nmewn's picture

Little more to it, the Houthi are Zaidi Shia who apparently really didn't appreciate their cleric being killed in 2004? by the Sunni dominated government.

I guess the government should have made the palace a No Go Zone ;-)

Fri, 01/23/2015 - 04:05 | 5695549 smacker
smacker's picture

GOSH! The Shias and Sunnis fighting again. Who'da thunk it (!)

Thu, 01/22/2015 - 21:42 | 5694702 NoWayJose
NoWayJose's picture

Kind of makes it easy to resign when the building you are in is surrounded by angry guys with guns

Fri, 01/23/2015 - 07:08 | 5695700 css1971
css1971's picture

Coincidence.

Nothing to see here. Move along.

Thu, 01/22/2015 - 20:24 | 5694456 TerraHertz
TerraHertz's picture

"Saudi King Abdullah Has Died; Crude Prices Jump"

Dead king bounce?

 

New king has dementia. He'll fit in well with the other freaks. Especially if Hillary becomes Pres.

Thu, 01/22/2015 - 20:44 | 5694519 Wahooo
Wahooo's picture

I can only think of two nations with strong and stable leadership - China and Russia. 21st century America, on the other hand, has been led by a two-term moron and a two-term communist homosexual. The world is looking more and more like the latter days of the Spanish empire.

Thu, 01/22/2015 - 21:40 | 5694700 One of We
One of We's picture

Oh come on now, Slick Willy was a pervert but not a moron and though GW's predilictions are well known I'd consider his record more facist than commie then again I'm not really keeping score.....

Thu, 01/22/2015 - 22:51 | 5694945 zebrasquid
zebrasquid's picture

Slick Willie was a moron, in the same way Bill Cosby was a moron.

Thu, 01/22/2015 - 22:46 | 5694918 me again
me again's picture

The Spanish Empire ? Well, damn me; I thoiught it was looking like the last days of MAD magazine. ?  Does Spain have an empire? aside from Tijuana, I mean.

Thu, 01/22/2015 - 20:29 | 5694472 The Armugalut
The Armugalut's picture

The proverbial bus heading for the cliff just hit 20 mph faster. Have Fun everyone! This is going to be great! faster faster! Weeeeeeeeeee!

Thu, 01/22/2015 - 20:30 | 5694479 steelrules
steelrules's picture

So with his death will there be more beheadings and floggings or less?

Thu, 01/22/2015 - 20:39 | 5694491 knukles
knukles's picture

multiple choice
pass or fail

 

a.)  more beheadings
b.)  less floggings
c.)  better orthodontia
d.)  glorious toilet paper revolution of plenty
e.)  more vacations for whoring, drunken, drug filled blackouts in London
f.)  increased subscriptions to the OWN channel's Martha Stewart re-runs
g.) increased official SA contracts for ecumenically open and permissive catholic churches
h.) not a fucking thing

answers will be published in tomorrow's Just ask Abdul in the Ancient Camel Hearder's Almanac.

Thu, 01/22/2015 - 20:40 | 5694500 new game
new game's picture

i.) american idol goes to saudia arabia

Thu, 01/22/2015 - 22:59 | 5694966 me again
me again's picture

I go all the right answers ! What did I win ! What did I win ! did I win a Teddy Bear ? I really wanted a Teddy Bear !.

Fri, 01/23/2015 - 07:23 | 5695718 HowdyDoody
HowdyDoody's picture

The chance to lead Salman's harem on his inauguration night?

Thu, 01/22/2015 - 20:32 | 5694481 new game
new game's picture

get out the globe- turmoil

Thu, 01/22/2015 - 20:37 | 5694484 NuYawkFrankie
NuYawkFrankie's picture

Tomorrow's New York Times (aka Harlot On The Hudson) Headline:

Fresh from Upsetting Ukraine, Putin Puts Mojo on Mecca

Thu, 01/22/2015 - 20:37 | 5694496 Kalevi
Kalevi's picture

WTF?  No elections!

All democratic AF´s need to bomb something, like Syria.

Thu, 01/22/2015 - 20:41 | 5694507 Who was that ma...
Who was that masked man's picture

The King is dead, long live the King.  What did you say my name was?

Thu, 01/22/2015 - 20:43 | 5694510 Ginsengbull
Ginsengbull's picture

Buck Wheat?

Thu, 01/22/2015 - 21:52 | 5694745 Who was that ma...
Who was that masked man's picture

That's MISTER Buckwheat to you.

Thu, 01/22/2015 - 20:47 | 5694522 jomama
jomama's picture

whoa

Thu, 01/22/2015 - 20:49 | 5694532 Max Cynical
Max Cynical's picture

I take solace knowing John McCain was there over the weekend...

McCain heads US delegation to Saudi Arabia to discuss Syria

http://www.presstv.ir/Detail/2015/01/18/393615/US-sens-talk-Syria-with-Saudi-crown-prince

Thu, 01/22/2015 - 20:50 | 5694538 Ban KKiller
Ban KKiller's picture

One less evil.

Thu, 01/22/2015 - 22:24 | 5694539 samjam7
samjam7's picture

That's what happens when you have rulers the age of average popes. The sauds still have an interest to keep their treasure trove save from ISIS and Shia militia, so I don't see this happening. But internal strive could destabilize the place...

Thu, 01/22/2015 - 22:48 | 5694932 me again
me again's picture

True to God; you gottsa watch that internal strive; specially if she slips outta Park.

Thu, 01/22/2015 - 20:51 | 5694543 Town Crier
Town Crier's picture

At last, an openly demented leader.

Thu, 01/22/2015 - 21:14 | 5694627 czarangelus
czarangelus's picture

Affirmitive Action comes to its logical conclusion.

Thu, 01/22/2015 - 21:19 | 5694648 me again
me again's picture

That;s affirmitive, over.

Fri, 01/23/2015 - 07:25 | 5695719 HowdyDoody
HowdyDoody's picture

Roger over.

Thu, 01/22/2015 - 21:20 | 5694655 me again
me again's picture

What country do you live in ? We just got through with Bush Jr., (the shrub), and Clinton; and they both had more than a few cross-threaded screws in their clockwork.

Thu, 01/22/2015 - 21:24 | 5694664 Bangin7GramRocks
Bangin7GramRocks's picture

Just like second term Reagan!

Thu, 01/22/2015 - 22:35 | 5694887 me again
me again's picture

Agreed. got any pipe flakes you don't need ?

Thu, 01/22/2015 - 22:47 | 5694930 zebrasquid
zebrasquid's picture

or the future term Hillary Ham Hocks..

Thu, 01/22/2015 - 21:00 | 5694584 Bangalore Torpedo
Bangalore Torpedo's picture

Meet the new raghead...same as the old raghead.

Thu, 01/22/2015 - 21:15 | 5694631 Bangalore Torpedo
Bangalore Torpedo's picture

RAGHEAD...please downvote accordingly...raghead!

Thu, 01/22/2015 - 21:05 | 5694589 knukles
knukles's picture

Sheeeit, people.  Nuffin's gonna happen.  The old geezer has been hospitalized for eons and the new geezer has been filling in for the old geezer's incontinent stay in some Swiss nursing home.... the brothers and sisters are all the same and the internal and external enemy and friend dynamics ain't changed a bit. 
No surprise. 

Biggest fight's gonna be over shit like the London real estate, art, jets, jewelry, cars and wine cellars.

Thu, 01/22/2015 - 21:10 | 5694607 Bangalore Torpedo
Bangalore Torpedo's picture

Indeed, it was like this:

Old King: "Remember our agreement, not a barrel of oil less."

New King: "Just remember your agreement - when you get to hell, tell Mohammed I expect a full time position in return for this favor."

Thu, 01/22/2015 - 21:49 | 5694719 Yen Cross
Yen Cross's picture

 I need to start drinking "light sweet crude" . ;-)

 I refuse to pay over 20 Dinar for 50 gallons.

Thu, 01/22/2015 - 21:10 | 5694608 YHC-FTSE
YHC-FTSE's picture

Dementia fits in perfectly with his handlers, but those without dementia are going to be a bit of a problem. 50/50 that there will be a succession struggle in the next few months, but the Saud family tree of succession is a puzzling one. The crown has only been given to the sons of the very first king (Abdulaziz ibn Saud). All of the kings of Saudi Arabia have been brothers (Or whatever the equivalent is in the harem). They are still on the second generation after over a hundred years of this weird faux-kingdom.

Things usually have a way of turning bloody in royal successions and I doubt this is going to be an exception. Oil? We've got the nutjobs in Kazhakstan happy to open the taps for pennies, we've got this easily controlled basket case in Saudi, and the ISIS lot are State Dept sponsored, so I don't see a lot of change for a few months yet in dollar terms. We'll see.

Thu, 01/22/2015 - 23:01 | 5694970 Hulk
Hulk's picture

Some of our best presidents have been demented...

Thu, 01/22/2015 - 21:13 | 5694623 Psquared
Psquared's picture

This might be the black swan event. Salman names his dog as Crown Prince and ISIS moves in before they complete the wall.

Thu, 01/22/2015 - 21:16 | 5694634 Bangalore Torpedo
Bangalore Torpedo's picture

Dood, he's a muzzie. Muzzies hate dogs...but perhaps that's the point!

Fri, 01/23/2015 - 00:16 | 5695201 bilejones
bilejones's picture

could be worse, he could be a yid.

Thu, 01/22/2015 - 21:15 | 5694637 Runs-With_Toast
Runs-With_Toast's picture

Nice to have some young blood on the throne, I hear hes still continent.

Thu, 01/22/2015 - 21:18 | 5694643 ekm1
ekm1's picture

May he Rest in Peace. Great ally guaranteeing oil flow to USA and Europe.

He deserves praise. We live better because of him and Pentagon.

 

May he rest in peace.

Thu, 01/22/2015 - 21:28 | 5694669 Bangin7GramRocks
Bangin7GramRocks's picture

Any fucking dictator that calls himself "King" can burn in hell or whatever else bad can happen to the dead.

Thu, 01/22/2015 - 22:36 | 5694895 walküre
walküre's picture

youi're losing your touch ... with reality

Thu, 01/22/2015 - 22:50 | 5694944 me again
me again's picture

Dude you are fukin loco.

Thu, 01/22/2015 - 21:18 | 5694644 WTFUD
WTFUD's picture

The CiaQda'll be swarming all over the Coffin, or will he get the old Bin Laden escape hatch?

Thu, 01/22/2015 - 21:26 | 5694667 Bangalore Torpedo
Bangalore Torpedo's picture

CIAQda...now that's ripe!  So for some reason, you think that a government agency could pull off the organization of a disorganized coalition of 4GW warriors...friggen please!

Thu, 01/22/2015 - 21:58 | 5694763 WTFUD
WTFUD's picture

Yeah friggenDaJa

The CiaQda ain't NO steenkin .Gov ; it's .BANK Moron.

Thu, 01/22/2015 - 22:28 | 5694871 WTFUD
WTFUD's picture

Next you'll inform me that the Police are Public Servants.

Thu, 01/22/2015 - 22:41 | 5694910 Bangalore Torpedo
Bangalore Torpedo's picture

CIA = Bank....really, what kind of interest rates do they offer?

 

Are they stooges...sure they are.  A Bank...pleez.  They are the keystone kops for the government elite.  Capable of havoc and incapable of real creativity.

Thu, 01/22/2015 - 21:29 | 5694673 grunk
grunk's picture

If you can't make it to the funeral in Saudi Arabia I'm sure there's a half dozen bordellos in Nevada holding memorial services.

Thu, 01/22/2015 - 21:45 | 5694712 Yen Cross
Yen Cross's picture

 And he squeaks in the " Money Shot".  Bitchez

Thu, 01/22/2015 - 21:45 | 5694714 NoWayJose
NoWayJose's picture

If the new Saudi leaders say they want $75 oil and will cut production until it gets there, it would wipe out trillions in oil shorts.

Thu, 01/22/2015 - 22:37 | 5694897 me again
me again's picture

Damn, boy; don't talk that shit; it makes my shorts oily just thinking on it.

Thu, 01/22/2015 - 21:59 | 5694773 22winmag
22winmag's picture

I bet Congress and the Occupant bow their heads in silence and make speeches about what a great man this homophobic head chopper was.

Thu, 01/22/2015 - 23:04 | 5694979 Emergency Ward
Emergency Ward's picture

Obama is already eulogizing the fucker -- he envies them for their Sharia Law.

Fri, 01/23/2015 - 00:36 | 5695266 22winmag
22winmag's picture

Fuck that shit.

 

We don't need no stinkin' Sharia Law.

Thu, 01/22/2015 - 22:06 | 5694790 samsara
samsara's picture

Well,  Time to re-read a great piece of humor...

Sixty Days, Next Year by C. Haynes   You'll have to excuse me, but I don't usually keep a diary. These events began before I understood what was happening, and where it was all headed. It was only later, after it was all going on, that I thought that maybe I should be keeping some sort of record--as if no one else was. We live in The Information Age, or did.

Now it's just The Dim Ages. Welcome to my world.

June 14
It all started (for me) with just a small item on an Internet news page, "Trouble in the Kingdom". I thought they were talking about Disney World (the Magic Kingdom) so I clicked on it. Turns out they were talking about "the repercussions of curtailed social services in Saudi Arabia". (Insert a big yawning noise here.) So their kids don't get free day care? Big whoop. I scanned the article for any mention of M. Mouse and then went on with my life. My mistake. No biggie. Really.

June 15
Yesterday's headlines are still today's news? I guess those folks in the sand are really upset about something--it was in all the papers today. Sounds like the Saudi government is in for a tough time trying to rein in a runaway budget--and the locals don't like it one bit. Now their capital (Riyadh?) is a mess with people getting ugly in the streets. Yeah, yeah, yeah, no more subsidized housing. Deal with it, people. Get a job.

June 16
I saw the news today, oh boy. Three Saudi cities are up in flames, people with big guns are going nuts, and everyone that can find a plane is leaving that country in one big hurry. It's like Saigon in a sand box. (Not that I actually remember Saigon.) Local news guys are talking about what it means to us--and our oil. Maybe I'd better go fill up the car before everyone else does. I hate being stuck in long lines.

June 17
Almost forgot to top off my tank. Would have forgot completely if I hadn't heard the guy talking about it on the radio on the drive home from work. The gas station was busy, but not bad. Of course they'd already raised their prices. The creeps. Some people will try to make a buck off of anything. The radio guy said something about us sending in the Marines. Sure. Why not? How many countries can we invade at once?

June 18
No work today, so it's grocery shopping and errands. Good thing I topped off the car's tank yesterday. The gas station was mobbed this morning when I drove by--and I think the price was even higher today. Geez. Even the grocery store seemed crowded. What's with these people? Is there a storm coming or something? I bought what I needed and headed for home. The errands can wait. Who needs this?

June 19
Ok, ok--I get it now. The Saudis have the oil, we buy the oil. The Saudis get our money, we use their oil. Big circle of life. Yadada, yadada. Huge article on it in the newspaper today, and it was easier to stay home and read the paper than try to go out and fight the crowds. If I'm lucky, this will all blow over before I have to go back to that gas station and deal with it any more. I'm just going to settle in and read the paper.

June 20
Back to work today. Kinda edgy on the drive in this morning. What's up with that? We have Marines all around our embassy in Riyadh now, and everyone else is bailing out of that country like rats from a sinking ship. I guess a bunch of big companies are shutting down and getting out. What's that going to do to the price of gas? Nothing good, I'll bet. Glad I've got a small car, even if it was all I could afford. The evening news is really fixated on this one. Maybe I watch too much TV, but what else is there?

 

<<< read the rest,  very funny... Very real maybe >>>

 

http://www.republibot.com/content/original-fiction-sixty-days-next-year-...

Thu, 01/22/2015 - 22:48 | 5694931 YHC-FTSE
YHC-FTSE's picture

+1 Thanks. I enjoyed reading it. There is no link to part II to the story on the webpage, so here it is:

http://www.republibot.com/content/original-fiction-sixty-days-next-year-...

Thu, 01/22/2015 - 23:11 | 5695004 ForTheWorld
ForTheWorld's picture

The original story, in full, is here: http://www.newcolonist.com/dim_ages.html (although the website has been changed, and you can't browse directly to the link, so just search for Sixty Days on the site).

Thu, 01/22/2015 - 22:47 | 5694837 Victory_Garden
Victory_Garden's picture

One rotschild puppet to be replaced with another. Whoopie doo!

Skip the fanfare and get to the next big act in the banksters shitshow gone wild.

Look towards isreal for the next big rothschid puppet act.

Thu, 01/22/2015 - 22:29 | 5694869 Emergency Ward
Emergency Ward's picture

Last week the Business Channel told me that oil prices were never going back up.  I feel very clever for having topped off my gas tank.

Thu, 01/22/2015 - 22:32 | 5694877 Jackagain
Thu, 01/22/2015 - 22:33 | 5694879 Rikeska
Rikeska's picture

They will still be big pimpin at $20 unlike your average shale miracle man.

Thu, 01/22/2015 - 22:34 | 5694883 esum
esum's picture

isis is capable of operating in a small area.... visualize a wandering herd...... however saudi has its internal problems and the mullahs are the key... if they turn on the "house of saud" the game is over.... they have used the wahabi sect and jihadis and the game is over.... 

AND THEN THE USSA WILL INVADE TO STABILIZE THE SITUATION..... besides the eastern provence's wells are flooding with salt water and the oil is almost GONE....... great deception ... i wont pump oil (because i dont have it).... but the rest of the world is AWASH in oil.... hence the big boys continue capex in mexico and various other places and 25 billion in lng facilities for xom alone.... sorry boys .... and it all started with american standard toilets .... and oil bubbling to the surface ..... cost to recoer = zero.... 

so pack up your scotch, your favorite wives, and board your private jets and off to switzerland or london... for starters....or esmeralda or wherever... casue the muzzie in chief sold you out to teheran.... sukka 

 

Thu, 01/22/2015 - 22:42 | 5694908 Victory_Garden
Victory_Garden's picture

"AND THEN THE USSA WILL INVADE TO STABILIZE THE SITUATION....."

Yup!

Invade.:

http://news.antiwar.com/2015/01/21/pentagon-confirms-us-troops-will-depl...

 

Fri, 01/23/2015 - 00:36 | 5695264 22winmag
22winmag's picture

Thank you sir, may I have another?

 

What's next in the Balkans I wonder...

Thu, 01/22/2015 - 22:36 | 5694889 walküre
walküre's picture

Mr. Sheik was 90 years old. Doubtful he still held any real power and control. Succession is already underway.

Putin is still going strong. Iran exporting more than ever.

Oil price won't shoot up.

Thu, 01/22/2015 - 22:43 | 5694912 AwkwardReader
AwkwardReader's picture

Pussy, pussy, pussy!
Come on in Pussy lovers!
Here at the Titty Twister we’re slashing pussy in half!
Give us an offer on our vast selection of pussy!
This is a pussy blow out!
Alright, we got white pussy, black pussy, spanish pussy, yellow pussy. We got hot pussy, cold pussy. We got wet pussy. We got smelly pussy. We got hairy pussy, bloody pussy. We got snapping pussy. We got silk pussy, velvet pussy, naugahyde pussy. We even got horse pussy, dog pussy, chicken pussy.
C'mon, you want pussy, come on in Pussy Lovers!
If we don’t got it, you don't want it!
Come on in Pussy lovers

Thu, 01/22/2015 - 22:47 | 5694924 AwkwardReader
AwkwardReader's picture

Because you know these Arabic pervs love the Pusssy. Can we stop supporting the worse people on the planet? Because they are. THE WORSE PEOPLE ON THIS ROCK WE CALL EARTH!

Thu, 01/22/2015 - 22:50 | 5694941 Bill of Rights
Bill of Rights's picture

Feel free to take Soros next...

Thu, 01/22/2015 - 23:04 | 5694951 zebrasquid
zebrasquid's picture

Saudi King "Has died"
" He Bedeaded" has a more real Saudi feel to it..

Fri, 01/23/2015 - 02:36 | 5695430 dag
dag's picture

You should only say something good about the dead.

This reactionary king died, Good!!

Thu, 01/22/2015 - 23:55 | 5695126 buzzy_the_pirate_dog
buzzy_the_pirate_dog's picture

Have you looked, what "Jump" in prices.  Silly shit

Thu, 01/22/2015 - 23:56 | 5695132 InanimateCarbonRod
InanimateCarbonRod's picture

And you thought how they select the Pope was complicated...  This is going to turn into a sandstorm. How long will King Salman be around, whether or not he has health issues?  Keep an eye on the #3/#4 guys...and don't go on any unescorted camel rides in the interim.  Is Joaquin Phoenix around?

Fri, 01/23/2015 - 06:41 | 5695671 john milton
john milton's picture

Saudi kings son writing to his dad from German university,
"everything going well here, execpt that i feel a little
ashamed when coming to school with my BMW, others come
with a train."

Dad's response,"stop humiliating your family immediatly,
here's 10billion, go and buy yourself a new train too.."

Fri, 01/23/2015 - 06:51 | 5695679 MickV
MickV's picture

And he will be buried in his best dress, and the Usurper Obama will bow to him.

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