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Something Is Very Wrong In Saudi Arabia...
Ever since Kazakhstan stormed onto the radar of market participants who, prior to last week, didn’t know the country existed, the world has awoken to the fact that a sharp and persistent decline in oil, that most financialized of commodities, comes with very real and far-reaching consequences.
For producers, crude’s slide strains budgets and pressures FX reserves and as we documented at length on Sunday in "Saudi Arabia Faces Another 'Very Scary Moment' As Economy, FX Regime Face Crude Reality," nowhere is this more apparent than in Saudi Arabia where the country faces a fiscal deficit on the order of 20% and the first current account deficit in a decade.
The situation has some betting that Saudi Arabia will not be willing (or able) to retain the riyal’s peg to the dollar and as you can see from the 12-month forwards, it might be time for sellside FX strategists to reconsider their position that the currency regime isn’t likely to change anytime soon.
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Karmic payback for being the focus of corruption and criminality for decades. The Western media is ignoring Saudi Arabia's war in Yemen.
Here is a partial list of Saudi Arabia's crimes in Yemen:
At least 3,500 have been killed as a result of the Saudi-led war, launched on March 26 of this year. Some 1,700 of these have been confirmed as civilians, according to the UN, with some 3,800 more civilians confirmed wounded.
Nearly 80 percent of the Yemeni population faces conditions of starvation, near starvation, and/or lack of reliable access to drinking water.
More than 1.2 million Yemenis have been forced to flee their homes by the war. At least 50,000 of the displaced have fled the country entirely, seeking refuge in neighboring countries of Oman, Djibouti, Somalia and Sudan.
Responsibility for the bloodshed and humanitarian disaster in Yemen lies squarely with Saudi Arabia, the other Gulf monarchies and their backers in Washington. While technically headed by the Saudi monarchy, the military onslaught against Yemen is a direct outgrowth of US imperial policy in the Middle East.
https://www.wsws.org/en/articles/2015/07/20/yeme-j20.html
Those gaudy Saudi's... hmmm
Mecca and Riyadh will be sacked and plundered in less than 2 years.
Probably by US-backed "Moderate Muslim Freedom Fighters".
And bombed into glass in 2.5
It is a crisis of their own making. Saud started and is maintaining the oil price war. This is all by design
The Fed is the one that started the oil price war. Looks like the House of Saud is merely trying to keep their place in the pecking order.
As I tell everyone, no producer can compete with people who can leverage free money. Saud's are ramping up production in desperation, trying not to be the weakest hand.
@ NotApplicable
What free money? The Fed's low interest rate? That's hurting the US more than helping. Less ROI for all the people saving and drawing on retirement money is actually putting less money into the hands of those who spend it. The corporate welfare enabled by the low interest rate is the result of the Feds capture by Banksters and Financialization....which is also hurting our economy.
As far as the House of Saud and Saudi Arabia. Or should I say the largest underwriter of Islamic terrorism?
Remember World Trade Center 1993 bombing? 9/11; British bombing, Spain.....? Ring a bell yet?
We have shifted towards Iran as a counter to the Saudi dream of a World Islamic Caliphate.
"We will return the mid east to the stone age..." (the cabal)
...after the 'moderates' are replaced by ISIS seeking to establish the Caliphate in Mecca.
Alan's Snackbar!!!
So Turkey and Saudi Arabia have been sucked into the maelstrom. Who borders these guys? They're probably next.
Gonna need a bigger blender.
The headline is stating the obvious, but not to worry, the Saudi's have the best friends that money can buy.......
We're NOBODY'S friend any more. Anyone depending on us for support or defense is in for a rude awakening.
President Zippy is now BFF's with Iran now, so no worries......
The people of Yemen are being abandoned by everyone. Except maybe the govt of Iran.
Putin voted for the sanctions and naval blockade of Yemen. By giving Russia's consent for the sanctions and thus cooperating with Washington and the Saudis the people of Yemen face a bleak future.
Overopulation is Islam, it's a religion designed for human husbandry, farming humans-like cattle, and newsflash without the Syria MENA wars there'd still be a firehose of Muslims at Europe's door, wars actually kill off population, mitigate overpopulation.
Coming soon to a nation without borders, starvation and water shortages, suppose our food import credit is cut?
Couldn't happen to a nicer group of autocrats.
Good! Those fuckers have had it too easy for to long...
Seriously. Once all our oil is pumped, it will go back to a shitty sand box. Oh, and with pissed off nutcases.
pods
I'd like to know how they got all our oil in the first place.
How can you say that? The Sawdees are our friends. Best of freinds with the Bushes too.
Their camels will now have revenge...
Don't joke; camel meat is soaring in price. It's almost becoming impossible to have a nice camel-dog-on-a-bun snack before a stoning or beheading these days. Takes the fun out of the event.
The cocky Ayrabs are being brought to heel.
Ending of the Petrodollar is at hand. HAHAHAHHAHAHAHHHA
<- To be replaced by global digital currency
<- To be replaced by barter
Yuan
Saudi has only one commodity export and the world is currently oversupplied with it. In this case even a devaluation won't help. Better luck next time.
It is oversupplied because the Saudis have purposely started a price war. Look at their oil production numbers. THis is by their design to maintain market share by crushing Canadian Oil Sands and U.S. shale producers
The Saudis are betting that they have enough of a dollar stockpile to ride out the storm until they can push our shale producers out of the picture and 6 feet under. They might be selling under production costs, but its at a rate that is still less than everyone else.
Its a risky gambit, but the fact that they are willing to take the gamble makes you realize they think they have no other cards to play.
none of this is very funny, though expected in the runup...
There are times when laughing is the only response left to us. The humor is black or red...
"Benevolent Dictators"
Sheik Faisal has put his maid's 767 up on Craig's list..
The slow death of King Dollar. The DXY has lost almost is down from 97 to 93 in four days- as the US stock market followed with it. In QE1 and 2 the DXY fell as stocks rose. In QE3 the DXY more-or-less flatlined as stocks rose. Then the DXY appreciated by 25%, stocks meandered, and I just knew something really nasty was going to happen later.
Now, in the last 4-5 days, every time the DXY is going down so are US stock markets. Let's not forget the DXY flash crash this morning which perfectly coincided with the few thousand other flash crashes in various stocks. The classic thing of investors rushing to buy the US dollar in times of crisis is not happening.
So what pray tell shall happen when the Fed becomes more dovish, or does not raise interest rates or even (probably pretty likely) initiates QE4? Perhaps for the first time a depreciating dollar is not the magic cure for everything.
p.s. What a soap opera this day has been. Chinese Black Monday, flash-crash 2.0, it is insane.
Its telling me that stock sellers are NOT dominant USD holders, most likely foreign investment.
Correct -- massive global carry trades being unwound
What if...the Chinese begin to SELL Dollars?
They will
They've already burned through $60 Billion in reserves.
http://banksterbubble.com/saudi-arabia-needs-cash-issues-5-billion-in-bo...
Again, chump change...
I'm short on the House of Saud lol. Time for a regime change anyway....USSA will need to invade to ensure a puppet regime to maintain petrodollars and oust China from cheap oil.
The USSA will use proxies to invade you mean, right? like ISIS. The relationship between the USSA and Saudi is very strained, just look at the Iran deal. Things could be very messy. The reason the Saudis joined with the US in the first place is because they are beset on all sides by enemies. I think the Sauds are back on the market, looking for a protector, and in the mean time they will pump oil with no regard for anything.
"Something is very wrong in Saudi Arabia"
Yeah, it's ruled by a corrupt regime who'se lived well off of the wealth of the nation while the rest of the country has paid the price and their day has come.
Just wait till you see the next regime.
I have a hard time fighting the desire to see that whole place turned into a sheet of glass.
When forced to compete...they can't!
saudi has a metric shitload of reserves
It's their turn to burn.
They already are...GDP-boosting Saudi tank trashing
Video 1
Video 2
Video 3
Video 4
They will.
Sawdee stawk market down;
Sawdee beheadings up.
Stonings up.
Bullish!
I can see toilet paper becoming very expensive in Saudi Arabia at some point in time.
This is what happens to all economies that are one trick ponies that are reliant on commodities.
Pretty much. Saudi is an overgrown Nauru.
Good news about that is that when the Saudi oil runs out the Eurasian Union and Greater Israel will have somewhere to dump all those Muslim "refugees." The Sauds, or whatever replaces them, will have plenty of storage space in the Empty Quarter.
Don't they just wipe with the left hand?
Now that they can't export enough black liquid to feed themselves, they should now consider exporting their stone age beliefs full-time. Oh wait, the world is oversupplied with that too!
Saudis are Jews wearing teatowels. Saudi/Israel buddies
You mean wahabees mothers are central bankers?
No shit.
I been sayin it for years...controlled opposition.
RIPS
Netanyahu caught in kitchen store beng fitted for tea towels.
New realization! If gold drops here it's because the contracts are worthless!!! Holy snap! The paper-phys price is about to go completely opposite. This is it! The paper is worthless and the paper price of gold and silver are about to crash! markets down 3%! Dollar down 2-3% and gold down would only mean that all paper has crashed. If true. Watch closely at yuan/gold and dollar/gold price and if they diverge it's true. Dollar gold will go down because the futures paper is worthless. This should mean nearly all paper is soon to be worthless! Shimitah!
I just shitimahpants
If all paper crashes, how can gold go down? Bitcoin?
Um, mebbe they decide to raise oil prices back to $60/bbl?
Fuck , I just losts 75 bucks on the exchange rate on drawing my SS from $$$ to Euros
Hope it changes before the 3rd of the month.
Dow back up over 18,000 on Fridays closing.
Any bets?
I'll take it.
I betcha 2 hail marys and 1, "at this point, what difference does it make".
It's a no brainer for the Sauds.
Cut the allowances of the 55,000 princes, cease financial support of Hamas, Hezbollah, Alqueda, and Turkey.
Saudis don't fund Hamas, Hezbollah .... wish they would
......
Saudis don't fund Hamas, Hezbollah .... wish they would
I don't think Saudi would fund Christians. Many Palestinians and Lebanese are Christians.
The zionists will destroy the Saudi regime with debt.
More likely that the Shia will destroy Saudi Arabia -- people, infrastructure, wells.
Rothschild called Saudi King '''We got this , don' worry''
The saudi brokers are getting as desperate as merrytrade and iwilltrade; they now offer two free pre-owened camels and 1 virgin with every stawk account opened with over 250k Riyals.
Something is very wrong with Saud : Wahhabism and the Saud dynasty that funds its use all over Sunni world since mid 70s spreading radical belief like wildfire.
Those who shook hands with FDR after Saint John Philby let Chevron into Saud land and it became Aramco bonanza. The US owned it from then on and Saud became rich as Cressus riding piggy back under US big stick umbrella. "Our oil your money and we invest it in US."
Haha; the world belonged to Seven Sisters and their Oligarchy political class (Rockafella/Ford/Chase/Mellon paid for Wasps skull n boners of the 50/60s).
Now they, the Sauds, feel betrayed by the US and are both Scared and MAD !
Being scared and mad is a very toxic combination when you are also drunk on obscurantist "cut off his head" dogma since centuries and now have the power to put it into practice in a huge swathe from Indonesia to Senegal over 50 years.
Having the Oil pump of world economy is such hands can be the Gordian knot of Pax Americana's conundrum.
ANd No Alexander...to cut it.
GWB was no Alexander; he was Saint Louis's messianic son and also a slimy Oil digger (along with Dick C), crazier than Captain Ahab looking for Moby Dick.
He loved to lose wars and pretend he won them just like Saint Louis did. "God will never fail those who fight in his name. Manifest destiny!"...Guess what, he did!
Manifest destiny got a bruised, bloodied nose from Nam to Iraq.
Ahab got his comeuppence...Moby Dick was no piece of cake. Neither is the Kraken of Oil.
The stuff that dreams and made of and for which we lose all by riding off the cliff!
O Moby you just ripped off my Oil...derrick!
Jeb and Trump now looking desperately for a trump card in Saud's oily rump and China's dump. Something Obama seems to have given up on...
In the meantime that other Leviathan, the financial Squid, suffocates the world.
A game in the Knossos maze. With the financial bull looking for the next sacrificial victim.
Civilization obliteration is now an option for the fossil age Westerners as it was for the Minoans of the Bronze age.
Atlantis!
Darling, your analysis is spot-on, but your history is spotty. Mycenae and Krete were provincial capitals when Atlantis was the equivalent of London. And Atlantean civilization was not obliterated by either political or economic failure, but a technical glitch at the power plant being run off of the volcanic vents. Our civilization was NOT the first to experience a Chernobyl-like event, but theirs wasn't radioactive; it merely turned the largest city in the Western world into a very pretty salt-water bay encircled by enchanting islands.
Saudi Arabia is in trouble, big trouble. Westerners for the most part know almost nothing of its domestic politics, but the fact that they continue to pump oil at ridiculously low prices while going to war with several of their neighbors at once suggests that the Saud royal family is under extreme pressure from the Wahabi fundamentalists. Don't confuse the two. The first Ibn Saud used the religious nutters as shock troops to seize power starting in 1912. He then double-crossed them and put them down in 1929, when they started to interfere with larger concerns. The family has been walking a tightrope between the Salafi medieval fundamentalists and the ability to negotiate with infidel Westerners with modern technology ever since.
I suspect that the current oil pumpout is an act of desperation needed to straddle the opposing demands of these factions with Money. And I wouldn't be at all surprised if it ends up with something nobody seems to be considering: the abrupt end of the Saudi monarchy at the hands of an internal revolt. Such a revolt would not come from religious liberals. It would probably lead to an abrupt cutoff of Saudi oil for a year or two, followed by a slow return of limited production prioritized to other Islamic states. So the current state of affairs is one in which to be exceedingly wary.
What is unsustainable, WILL NOT BE SUSTAINED.
Course there is something wrong in Saudi,
Its an auto-cratic fucking hovel of a sand pit, ruled by wankers with more oil than sense, and a subdued population kept in check by dickheads that wander around cutting folks parts off for insulting a fucking 'Religion'.
'Religious Police'? You have to be fucking shitting me, but they aint.
The very definition of a shithole, is this stain on the face of earth.
:-)
The Saudis are awesome ...
(everything is awesome)
You forgot to say they are ''amazing and epic'' Those words are used today for the most MUNDANE things.
They have lost all their meaning.
Saying things twice is the new way of emphasis.
Other than that, I agree with your observation.
You forgot to say they are ''amazing and epic'' Those words are used today for the most MUNDANE things.
They have lost all their meaning.
Saudis are sucking Jew cock now wanting Israel to nuke Iran.
Beavis: Yeah! Yeah! Do it! Do it!
Butthead: Huh Huh. Huh Huh Huh Huh Huh.
Saudi has plenty of cash on reserve
Number 3 here just above my country of NL
https://www.cia.gov/library/publications/the-world-factbook/rankorder/21...
Saudi has plenty of cash on reserve
Number 3 here just above my country of NL
https://www.cia.gov/library/publications/the-world-factbook/rankorder/21...
Another Dutch Boy sighting. It's like a herd of UFOs.
oil, that most financialized of commodities.
Bingo! Oil has a long trail of secondary effects coming with it's decline. Financialized to the hilt.
The answer is simple, raise the price of oil.
Noone except western expats uses toilet paper in sa.
They use WATER . far more hygienic than toilet paper. Bet you didn't know that.
Depends on the water they use. Bet you didn't know that.
Did you work in Saudi? I worked 2 years in Libya. all hotels and homes have a hose by the toilet. Used to clean your ass after taking a dump
They consider toilet paper UNhygienic and I agree.
Did you work in Saudi? I worked 2 years in Libya. all hotels and homes have a hose by the toilet. Used to clean your ass after taking a dump
They consider toilet paper UNhygienic and I agree.
I think the Useless Snakes told the Saudis. stop doing oil trades in anything other than dollars and you get the Ghaddaffi, Saddam treatment.
"I pity the fool" that believes the Saudi's dumped crude on the market. It was the US! The stratigic oil supply has flipped from Texas tea to shale. The timing is brilliant. Here are a couple of reasons.
1 Show the BRICS how far were willing to go by blaming Russia for everything but the Spanish flu while killing there oil exports. Now were picking on China. Rots of ruck.
2 Since we only calculate CPI on finished products from Countries who we have paid off to turn peeps into slave labor,we need to go deeper and kill the main commidites especially oil by products which account for all the plastic and sooo many other products while keeping energy low for the factories so we can pretend this deflation B.S.
Notice how energy prices don't reflect costs of fuel in the US? Not counted in CPI either.
Shale is the New Stratigic Reserve. Not Texas Tea!
They buy alot of western Defense equipment which is parked in the desert sun to bake and rust.If not for arms exports the western taxpayer would have to pick up the slack.They fund many Universities around the planet.But again it is done with our cash.The Turks are much nicer people.I have had the shits with the Saudis ever since the Khobar towers blast fiasco.
Bake, ok. Rust? If you mean age, with sand in every crevice, ok. Rust in the desert? That iron can sit for years without a single spot of corrosion.
Yemen rebels invade Saudi Arabia
https://youtu.be/a2GR-g9777k
Tank that is hit in the first section of the video is just to the East of this building, inside Saudi territory
https://www.google.co.uk/maps/place/16°46'48.9"N+43°13'31.9"E/@16.780235,43.225516,245m/data=!3m2!1e3!4b1!4m2!3m1!1s0x0:0x0?hl=en
What does the chart in the article show ? The price of the Riyal over the last 12 months in what units?