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For Saudi Arabia, The Music Just Stopped: Scramble To Slash Spending Begins As Oil Math Reveals Dire Picture
Over the weekend, just as Gulf state stocks were in full-on meltdown mode, we outlined Saudi Arabia’s increasingly precarious financial situation. The problem - which is at least partially of the kingdom’s own making - can be visualized as follows:
As you can see, Saudi Arabia is staring down a fiscal deficit on the order of some 20% of GDP while the country faces its first current account deficit in over a decade.
The culprit, of course, is persistently low crude prices for which Saudi Arabia can partially blame itself. As we’re fond of putting it, the country has "Plaxico’d" both itself and the petrodollar in an epic quest to bankrupt the US shale space, an effort which has been complicated by US drillers’ access to capital markets which are of course quite forgiving thanks to years of ZIRP.
Now, with declining crude revenues clashing head on with the cost of simultaneously financing the state while intervening militarily in Yemen, the Saudis are looking to tap the bond market (a move which could increase debt-to-GDP by a factor of 10 by the end of next year) and some are speculating that the riyal’s dollar peg could ultimately prove unsustainable.
So that is the backdrop and as Bloomberg reports, it's forcing the Saudis to consider ways to cut the critical 2016 budget. Here's the story:
Saudi Arabia is seeking to cut billions of dollars from next year’s budget because of the slump in crude prices, according to two people familiar with the matter.
The government is working with advisers on a review of capital spending plans and may delay or shrink some infrastructure projects to save money, the people said, asking not to be identified as the information is private. The government is in the early stages of the review and could look at cutting investment spending, estimated to be about 382 billion riyals ($102 billion) this year, by about 10 percent or more, the people said. Current spending on areas such as public sector salaries wouldn’t be affected, the people said.
The Arab world’s largest economy is expected to post a budget deficit of almost 20 percent of gross domestic product this year, according to the International Monetary Fund. With income from oil accounting for about 90 percent of revenue, a more than 50 percent drop in prices in the past 12 months has put pressure on the nation’s finances. The country has raised at least 35 billion riyals from local bond markets this year, the first time it has issued securities with a maturity of over 12 months since 2007.
Capital investment accounts for less than half the government’s outgoings, with current spending estimated at 854 billion riyals, according to a report issued by Samba Financial Group on Aug. 18. Saudi Arabia needs “comprehensive energy price reforms, firm control of the public sector wage bill, greater efficiency in public sector investment,” the IMF said this month. “The sharp drop in oil revenues and continued expenditure growth would result in a very large fiscal deficit this year and over the medium term, eroding the fiscal buffers built up over the past decade.”
The Ministry of Finance declined to comment.
So while we're not sure if the Saudis are open to taking advice from outside their circle of "advisers", we offer the following observations free of charge:
- deliberately undermining a system that has worked to your benefit for years (and helped create a vast store of FX reserves) in a spiteful attempt to undercut high cost producers an ocean away might not have been the best idea
- using crude prices to achieve "ancillary diplomatic benefits" (to quote The New York Times) like forcing the Kremlin to give up Assad, is now costing a whole lot of money
- getting involved in regional proxy wars is expensive
* * *
Bonus: this is what a dual deficit problem looks like
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Oh, woe is me...I feel so sorry for the Sauds. /sarc
The Saudi Regime relies on dole to keep the population quiet. Things may get very interesting. A full Saudi Spring?
Its more of a mixture of dole and slavery.
Dole for the locals and slavery for the immigrants who operate the oil production machinery. Two different groups with different interests. Immigrants will high tail it back to their home countries at the first sign of trouble.
Putin, shirtless ,is laughing hysterically in the Kremlin righ about now.
He is too busy watching the T50 do its stuff at MAKS 2015. And it works (unlike the F35).
The low Ruble versus USD is making Russian military equipment look very attractive.
IT also looks good since it was designed to protect the homeland, not protect the bottom line of the private corporation making it.
There goes the Petrodollar standard, along with the House of Saud, just like the Dodo bird, into extinction... I wonder how Henry Kissinger feels about this course of events, considering it was he and Tricky Dick that made the arabs fabulously wealthy at the expense of their own citizens...
you're assuming probably incorrectly that they'd be allowed to leave.
F the Saudis. How many Syrian Christians and non-Christians have the Saudis, Gulf States, McCain-NeoCons and Neo Libs murdered? McCain's ISIS Army. McCain is just a lackey for the dual shit-i-Zens like Soros and the Crown-Krinsky family aka AIPAC, PNAC,NWO,ZWO,ZATO gang.
Ha! More like A Saudi Fall
A full helping of Wahhabi with wasabi!
Probably why the be-heading rate has gone up to record levels. Remind the subjects who is boss.
Can't allow ISIS to hold the fundamentalist high ground.
The idea of cutting spending is aburd in this modern era.
Well, they can't print crude oil...
Just like we can't mine FRN's.
I recall being called a wang about 9 months ago when I suggested that the Saudis were probably the least able country in the world to handle this - given that they are a bunch of welfare queens who export only 3 things, Oil, Terrorism, and AIDS.
Full disclosure - I am a wang but not because of my statements.
Their "flood the market" model to regain market share worked well in the 80's when interest rates were running in the high-teens. That put exploration companies on a VERY short leash. Today, with ZIRP, the Saudi's are going to have a much harder time making this plan works...there's still lots of cheap money out there for the exploration companies to sustain themselves on.
I don't think its over for a bit yet, but I am pretty sure the Saudi's are going to lose this one...which is a good thing.
There are several sanctamonious a-holes here that will call you a wang one day, then go hide when that exact scenario happens.
Seems like only yesterday that most were cheerleading the BRICS bank takeover of the world and the imminent death of the Petro-Dollar. China's ascendancy to world domination and Russia's plans to skool us in front of the world.
Where are those kids now?
I don't like to make a lot of predictions about the future, I just like to sit back and watch it all unfold.
Gonna need a lot more popcorn.
Got some ERY and FAZ that are getting REAL interesting this week. Esp. the ERY.
I don't know about cheerleading, but this seems to be what's going on ...
Seems like only yesterday that most were cheerleading the BRICS bank takeover of the world and the imminent death of the Petro-Dollar. China's ascendancy to world domination and Russia's plans to skool us in front of the world.
So, what's your point?
Yeah, time to break out the World's smallest violin.
So you're saying we should bomb Iran?
Cue up the social unrest/Arab spring 2.0. Where will spoiled Saudi college boys with free educations turn? CIASIS of course. The house of Saud will be history in 3 years, place your bets gentleman. "We need your oil, sorry Achmed"
It might take only 60 days:
http://www.resilience.org/stories/2003-12-31/fiction-sixty-days-next-year
GREAT piece by Chip. I posted here at least 3 times on articles on SA.
His other one "Gawar is Dying" is great also. (I even have the bumber sticker that was sold at the time)
"Ghawar is dying. If you whisper it quietly, maybe people will listen. If not, the approaching silence will get their attention soon enough."
Ghawar is not dying. Abiotic oil is a virtually unlimited resource.
The house of Saud on the other hand is probably already dead.
Unlimited in your mind perhaps.
Fun read cougar_w. Thanks!
Yep, we hit peak oil! Gawar is dead, the GOM is dead, and THAT is why the shit's $38-$40 per BBL now. Yet, the piss still runs down people's backs, as they're still being told that it's raining...
No. We should bomb Canada
Start with Montreal. The rest of Canada will thank you.
As I was telling a new Canadian acquaitance on Saturday over beers, the problem with our two countries is that the border runs East and West. It should run North and South. He totally agreed.
If that means less tax money flowing from California to the other states, I'm all for it. Eastern Canada is welcome to have DC.
No, Chile.
Start with Chile.
Fuck the corrupt, cruel, criminal Saudi monarchy. They deserve all the bad news they get. And a lot more.
I hate those dress wearing blonde bitch lovin (nothing against blondes) mother fuckers...
They would even be alive were it not for Kissinger engineering the PetroDollar in exchange for protecting them against everyone else in the area that would have slaughtered their asses a long time ago....
fuck em......
Wasn't Lawrence of Arabia really an Mi6 stooge working for the Red Shield out of London? He then gets some tribe members to pretend they are Arabs to run the place.
The very bad news will be, having to get into your armour plated Bentley get to your Private Jet fly to London (with US air support) hole up in your $150 mill mansion and fuck those blonde bitches ( and their little brothers ) up the arse until the hundreds of billions stashed in swiss bank accounts runs out. Sounds rough I hope for the sake of their great great great grandchildren the money lasts or they might cop it!
The oil price drop is designed to crush Russia and Iran. It has nothing to with market share. It has everything to do with Dollar, Inc.
Remember 1986 when the Soviets collapsed under $13 oil?
@cornflakesdisease: You're absolutely right, but I love the idea that the Saudi are shooting themselves in the foot as well. This is going to be fun to watch.
They don't see this as a shot in the foot. This is a long game. They know the costs invovled.
Does Zion covet the Saudi oil wells (less the pesky natives of course)?
Yes.
http://www.ahavat-israel.com/eretz/future.php
The Royal Saudi Arabian Beheaders Association announced a strike come O'sama bin Ladden's anniversary next week if they do not get that long-awaited for wage increase.
The NAASP (Natioanl Association for the Advnacement of Stoning People) has already walked out twice this month leaving the disappointed victim standing against the wall, unstoned.
They came out in sympathy with the "US Kill 'em Painlessy With Plenty Of Agony Party".
Hip O Crit
These are the nazis you are looking for.
They own the Saudis or are the Saudis. The Saudis are from bagdad and they are tribe members not Arab muslims.
As well they might. The Arabs are squatters on Jewish land. And what wonders the Jewish people might have worked with the oil wealth the House of Saud have squandered on luxury and bankrolling revolutionary Islam simply staggers the imagination.
Unfortunately, our masters, in their tradition of only letting the meek inherit the earth when there's nothing left on it worth inheriting, will only cede the Jews their full birthright in the Middle East when they're quite sure the oil is gone---leaving Israel (and her new ally Russia) to clean up the mess.
Jewish Land?
leaving aside the shell game of Jewish identity, the Jews lived in large numbers outside what is now Israel for centuries before Christ. And they never lived alone in Palestine.
Indeed, they were all over the Mediterranean before anyone had ever heard of a Christian, following the Greeks. There were likely more Jews in Alexandria in the century before Jesus than in Jerusalem. The language was Aramaic, not Hebrew, and later it was Greek. The "Jews" thrived the most under Roman rule, which they rebelled against mostly because the Romans restricted their financial practices.
Funny how the ancient Greeks and Romans seem to have levelled the same charges against Jews as 9th century Latinate clerics and 17th Century Poles... just all "anti-Semitism," right?
And who told you the Ashkenazi were related to them?
And what other people claim a right to land they never set foot in, while also happily living as a wealthy elite in the West?
Most of what is in the Bible regarding some powerful ancient Jewish kingdom is complete myth, with no evidence in Egyptian or Assyyrian records, and little more than a stele that proves precisely nothing.
Meanwhile, your assine comment betrays a typical lack of understanding history and race. Few places on earth have been ruled by more Empires than the Levant. The Normans conquered England and Wales with around 10,000 soldiers - not much of a dent in the gene pool. The Anglo-Saxons had come in larger numbers, but were a drop in the bucket of the existing Celtic and pre-Celtic genome.
A geneticist couldn't tell you if DNA he was looking at were Palestinian Muslim or Christian or Mizrahi - but the Ashkenazi are European martrilinieally, and show lots of evidence of non-Levantine DNA otherwise. Cherry-picking a marker or two common to most of any group is a form of the Texas Sharpshooter Fallacy. It proves nothing.
The land belongs to the people who have lived there the longest. That means the Palestinians {who are largely pre-Arab, and a mix of other peoples, including ancient Canaanite} and the Mizrahi, whom no one argues don't belong.
The interlopers are the European Jews who figured no one else had rights to land they had never set foot on because of remote ethnic origin. It is as reasonable as the Irish claiming to own France because it was Celtic land.
You surely aren't an Irish Gael. My guess is you're an idiot Ulster Protestant stealing from the history of the people your people stole from.
Dick.
Ben Gurion: “We Must Expel the Arabs and Take Their Place”
A Century of Deceit: Iraq, the World Wars, Holocaust and Zionist MilitarismHopefully the Saudis will blow their foot off with a Javelin missile the ones they send to NUSRA, ISIS and ISIL thanks to Uncle Sham.
Freddie, have you seen this? The Saudis are having a bad time in Yemen.
http://www.moonofalabama.org/2015/08/how-the-saudiuae-invasion-of-yemen-fails.html
Some video of an attack on an armored engineering column inside SA. Around Jizan in SA
Finally a smart post on here. Don't forget meant to crush US oil industry too beings we sided with Iran.
And 3,000 innocent folks died in 9/11, and many more in Pearl Harbor, the Maine explosion, the Lusitania. Etc etc.
I pledge allegiance to the false flag of the...
winter is coming...
shipping 'lng' via qatar ain't gonna cut it,..last i checked
Winning.....
What problem? A deficit? When the fuck has a deficit been a problem for anyone?
'specially with oil reserves as collateral. ;)
I thought Slash was lead guitar player in a formation called "Guns 'n Roses".
WOW, who would of ever thought that Tyler Durden was Mickey Bloomberg?
[facing four gunmen at once]
Snake Plissken: I'm gonna give you assholes a chance. What do you say we play a little Bangkok Rules?
[picks up a tin can. The four gunmen back up and get ready]
Snake Plissken: Nobody draws until this hits the ground.
[throws the can high into the air, then pulls his revolvers and kills all four gunmen before the can lands. Can hits the ground]
Snake Plissken: Draw.
This is what the Saudis said a little while ago....just like the Swiss did 4 days before their depegging? ! :)
Saudi Arabia committed to dollar peg - senior c.bank official on TV Or, is this the case of ...that there is no smoke without fire? Only time will tell!How's that Keynesian War strategy treating you King What's Your Name
They haven't shown all of their cards yet. There's plenty more false flags and war to go around. If they can't recoup their money in oil they can sure as shit recoup it with arms deals & hedging both sides of a war.
House of Saud is a historical accident that has outlasted it's expiry date.
They have spread their Wahhabist poison far and wide - your date with destiny has arrived.
Good riddence motherfuckers and the gay camels your rode in on.
Although what follows will probably be even worse.
Dang those A-rabs are smart.
I'm sure the house of Saud will do the right thing and share their portion of the burden of pain that the proles will feel from the budget cuts.
I am 100% positive the Chief Shieks will not miss one 7-course fine filet of camel dinners with vintage wine, classy dancing harem babes, and some good hooka.
Translation: Death of the petro dollar.
for which Saudi Arabia can partially blame itself
Partially blame??? How about completely to blame. These inbred, retarded, mutherfockers (perhaps in conjuction with big oil) wanted to bring the fracking industry to its knees. Well, mission accomplished. Problem is that without $80 oil their socialistic society falls apart. If the situation doesn't change, it's only a matter of time until you see some prince's head being used as a soccer ball in the streets of Riyadh.
They were doomed already by the collapse in global demand. But it's okay, we'll still be buying their crude (at any price) until Kingdom come.
"They were doomed already by the collapse in global demand."
Which led to their inability to control the price via OPEC, whose members are hurting badly and will simply sell more to make up any shortfall brought about by cuts in Saudi production. In short, SA is no longer the swing producer, but just another over-leveraged one trick pony.
You don't need all these "get Russia" or "kill fracking" theories to explain what's going on. It's actually much simpler. Given a once in a lifetime chance to lead the Arab world to independence and prosperity, instead they threw it all away playing power politics, thinking they had a winning hand.
That window of opportunity has now closed, and the ball is now in Iran's court, as evidenced by the recent rapprochement between Iran and the USA. Meanwhile, SA becomes increasingly irrelevant, as does their partner in crime, Israel - another demagogue that over-played its hand.
Dont forget the subsequent distruction of the entire world. The notion of us becoming "energy independent", is the longest running joke ever. Its not that we dont know how, its because we wont. The Saudi states are the epitome of a welfare nation and they exist only because we buy their oil. Can you imagine the the entire middle east caving in? Dont worry, we will be buying their oil until kingdom come.
What happened here is clear. John Kerry went to meet with them. The idea was along the lines of: Let's push the price of crude way down and everyone will have some much money the economy will be great. Well, that didn't work out. So now either the US will have to compensate the Saudi's, or for sure they will reverse course.
"Let's push the price of crude way down and everyone will have some much money the economy will be great"
We're at the end of a long wave credit cycle - 50 to 70 years depending on whose numbers you use. Two things have to happen before we can recover:
1. outstanding debt has to be written off.
2. capital has to be rebuilt through real productive investment and savings.
This will take longer than most people expect, given the excesses of the previous cycle and the fact that TPTB are doing everything possible to avoid #1.
Under these conditions, I wouldn't expect a recovery in oil or commodity prices any time soon.
seven years of plenty and seven years of famine. in your 7 years of plenty, save 20% for 5 years so you willh ave food for your people and neighboring nations.
it's just that simple.. but we're men and we're morons : /
We are greedy.
why should they cut while the us is pumping like it's going out of style being supported by free money?
Ding dong, the myth of oil scarcity is dead!
Yeah. Who was pumping that story for so many years anyway?
Over the long haul, the "myth" of oil scarcity just had a wiffle ball thrown at it, underhand, by an anemic little girl.
Keep telling yourself that.
Cougar, first great to see you back posting.
Second, don't confuse them, geology and the earth sciences were not
good to them.
Don't try to tell them the BIG fields were all found 40 years ago, and there aren't any Gawars, Etc to be found.
https://www.youtube.com/watch?v=vdSjyvIHVLw
Brought to you by the control freaks who lie to you every day about everything.
https://www.youtube.com/watch?v=B8TDhpYBu0o
Because they have too...
So this was a bad idea?
The New Saudi King Is Kicking Off His Reign With a $32 Billion Gift to His People
http://mic.com/articles/111056/the-new-saudi-king-is-kicking-off-his-reign-with-a-32-billion-gift-to-his-people
Solution, free of charge: Cut production by 25% today; revenues increase 50% by early September.
I'm reasonably certain they thought of that one.
So why didn't they do it? And given that they did not, what does that tell you about their situation?
You have to read between the lines.
Then countries/people/oil companies will buy American shale oil and/or Russian and Iranian oil. This puts the whole Iranian nuke deal in a whole new perspective. Geopolitical games being played here.
Deficits don't matter.
~ Dick Cheese Cheney
};{D>
Its problem now comes from itself,it has been so obsessed with controling everything from a centralised colonial perspective, it has little to no viable paralleles to support it.
People on this site are morons....Saudis are simply protecting market share just like the US does all the time...wipe out your competitor especially if they were stupid enough to overleverage their debt on an unsustainable business model called fracking...which was always from the onset a real estate play and not a viable oil producing strategy....
Now the saudis are simply creating the political conditions for dumping the US dollar as the sole currency for oil exchange...they will open this up shortly to the Yen, Euro, and the Yuan for direct trade eliminated the scum western bankers.....
As well, now that they are running deficits in the fiscal accounts time to start dumping US treasuries in a big way....
Still think the Saudis are dumb? Back to trailer park boys.....
And then the US comes out with a 911 report saying the Saudi's were in on it. Paves the way to get the populace on board to bomb them.
There largest oil field Ghawar is 60+ years old and has been pumped and pumped plus they use seawater to pump more. It has been damaged over the years.
The pivot to Iran is becaus ethe Suaids oil wells are drying up.
Nope its because the neo-con neurotic, paranoid legacy is drying up.
Having spawned Al Qaeda it now spawns ISIS. Some double dip-shit strategy to shoot yourself in the foot twice over.
But hey, we did it a first time in Nam. We shot the west's liberal dream in its nuts of "peace and love" morphing it into the dystopian "the apocalypse now" sham denier.
From what I've heard, the water cut on some older wells is at 50%. Also of note is the increase in offshore drilling. You don't go offshore unless you have to.
A good article from 2003 on the subject.
http://tinyurl.com/oua74gm
"As well, now that they are running deficits in the fiscal accounts time to start dumping US treasuries in a big way...."
I keep hearing how everyone and their dog are about to dump US treasuries, but I just don't see it. Where are they going to go? Japan? Europe? They're in far worse shape than the USA. Oh wait... I know! They're all gonna buy gold which will go to $5000/oz.
Yeah, there's some morons on this site. You got that part right.
In a saner world, US, Iranian, and Russian troops would have invaded and overthrown the House of Sand 20 years ago.
should have been over in 24 hours!
It would have choked the Bush neo-cons to early death ! And distended the Bin Laden alliance.
Imagine, no Halliburton, no Enron and Carlyle. No new American century with the Kagans and Rumsfeld and Pearl.
It would have choked the Bush neo-cons to early death !
Put up or shut up, bitch.
lol, which world do YOU live in?
Those guys lived off Saudi Oil to get rich and powerful.
They represented the Seven Sister Oil legacy since FDR shook Saud's hand.
You some neo-con, neo fascist disguised like a false nosed libertarian?
The trolls run wild here at the Hedge.
Arrest the Saudis. We don't need no stinking primitive savages running around in our civilization. Arrest all decadent elite scum.
Hahaha, the fear of mathematical God overwhelms the fear of obscurantist God.
2+2 = 4 not 5 or 6 !
Now the Sauds, having distended their ties to Pax Americana, in their ire to checkmate shale's arrogant challenge, realise in the wake of Iran RISING, the NEW Western Norm : they ARE the surrogates not so much of GBW's allaince and re-inforced handshake but of Fibonacci's MATH !
We are now soooo lonesome on our bedouin camels!
Jesus! When Arithmetic checkmates Wahhabist hubris !
Math always wins.
I suspect now that most major religions (certainly the sky-god religions) are a vain attempt to come with a system in which the math does not always win.
Dumb asses. Math always wins.
Homer Simpson: Doh! Stupid math!
Fuck the House of Saud. They have been funding ISIS and every other Islamist nutcase willing to take up arms in Syria and Iraq and have thereby destroyed
a country. If they have the money to finance these terrorists then they, together with the other Gulf monarchies funding them, can pay to cloth, house and feed
the millions of refugees they have created and pay to rebuild the infastructure of the country they are destroying.
They will---when the oil runs out and the only way they can survive is as the Nauru of the Near East. Plenty of room for the civilized world's unwanted Muslims in the Empty Quarter.
nukes will fly before the .gov/fed/banksters let the saudi dollar backers fall (unless they have another alternative)
If the story being peddled is true it couldn't happen to a nicer bunch of bought and paid for Zionist owned and operated whores!...
They've been an oil powerhouse for the better part of 60 years and the Anglo-American trio have screwed them in every orifice with the kiss of death being the "no way out" BUT the Petrodollar on the front and back of every Saudi Royal family member!...
Hope it hurts!!!
USA should tell Israel they are going to nuke Iran for them and then miss Iran and hit Israel , vapourizing them. The world would rejoice and peace would be established in the region.
At the same time hunt down all ZioNazis in USA govt and media and send them to Madagascar and tell them they can start another 'chosenite'' nation down there.
The dutch should go to Iran, build windmills, and stay there.
Saudi like all countries that have oil export centered economies are corrupt. Think of an exception. None. All such governments become adicted to a lifestyle that does not actually involve work or producing real products. Then something happens like shale oil, or world economic downturn, etc. and they can not adapt.
But remember kids, they're the catspaw of the Jews. Never mind that no real Jew would be this stupid.
(The Empty Quarter will make a useful dumping ground for the Arabs of Greater Israel once the oil money runs out, with plenty of room left over for Europe's surplus Muslims. But the House of Saud would have to recognize the State of Israel's right to exist before becoming the Nauru of the Near East. They're not quite that desperate yet.)
apropos of little - "Mike Tyson Mysteries" on adult swim is pretty damn funny. Dunno if they're making more than the 8 or so available.
I posted this on ZH last April
The invasion of Yemen will result in the fall of the House of Saud
https://www.youtube.com/watch?v=JYTfT49imqM
Secretary General of Hezbollah
Wait...don't slash budgets yet...have the Saudi's contacted Allah?...wait...maybe they have and he told them that oil prices are going lower...policy decision needed...batten down the spigots!
as nutty as the Christers contacting the bearded guy in the sky they call ''god''
LOL, it's back to goat harems for you Saudi bastards!
Grimaldus
So does this mean they'll stop buying weapons from US MIC companies? Or will they stop funding the ISIS yahoos that are cutting Iraqi oil production?
Getting very false flag-y
It really was a dumb move for Saudi Arabia to try and destroy the oil markets.
The oil under the ground and our technology to extract it isn't going anywhere. It might have a different name on the drilling rig, that's it, but you're not going to kill US oil forever. Just more consolidation. If prices go up, the oil comes back online while you were selling yours at firesale prices.
They should have just kept doing what they were doing and been fat and happy.
"hoist by one's own petard"
how deliciously appro...
Global Austerity...
Europe Set the Tone...
Latin America & Greece show what tight credit, associating with Socialism/Communism gets you, and many other lessons about Conservative Budgeting, Conservative Auditing, Conservative Financial Ratings, Conservative Financial Instruments, and Conservative Accounting...
Banks Move from Liberal Loans to Tight Credit Policies and Calling in the Early repayments.
If we reform the Banks... then they have to tighten credit and financial ratings for your city, state, and country... or go after your Industries and companies who are getting away with Liberal Debt & Credit and Accounting Policies.
Global Austerity is coming.
Saudi Arabian people make like $1 a day or maybe $500 a month... well that was Yesterday.
The Saudi’s may have miscalculated what the effect of increasing oil production would do to oil prices, during a period of worldwide economic stagnation/decline, coupled with weakening demand for energy. KSA is spending $ billions, serving as US proxy for their one-sided war against the people of Yemen. Despite the fact that revenues from oil sales continue falling, the war must go on. As you state “getting involved in regional proxy wars is expensive”.
Opec wants to run Canadian tar sands and USA shale oil out of business. Thats the only thing they are after. They don't care about the peasants.
Saudi low oil price problem is linked to Russian Putin low oil price problems that it makes Putin's support of Iran as they ship even more oil now to a glutted oil market rather confusing. Does't Putin realize that demand and supply push the price of oil down, and by correlation the Ruble and the RUssian economy as Iran is allowed to ship more oil under the new agreements?
Maybe they can cut back on the kingdom's "allowance" for some of the "minor" princes, which runs from $100K to $10M a MONTH!
An ever increasing size of a so-called Royal Family is turning out to be one of the biggest scams going there.Try several thousand on the payroll.
Let them pound, nay, eat sand.
Ultimately, everything the Saudis do is dictated to them by the Tribe - hell they may be members of the Tribe. So don't go hating the poor Saudis in their gilded cages.
Do people STILL not believe that Saudi Arabia was the target of the bankers dropping oil prices? Hear anything about Russia suffering with low oil prices? Russia is laughing.
The betrayal is so ugly and yet so well deserved.
Not so, the Ruble is droping like a rock. Quit making shit up.
This may not be good for the GOLD price if they start dumping their gold. I'm thinking it might keep a lid on the paper price. _JOHNLGALT. By the way WHO IS JOHN GALT?
.
Its a dogs life for Saudi Arabia
They have to listen to their master's voice (HMV Hah ha)
"Lower the rate"; whine ok
Lowering the rate is like suicide for OPEC (but they have to listen to USA and USA wants to kill Russia)
Btw , their own king died from the oil shock and soon the entire kingdom will be in tatters.
Saudi Arabia is stooge of USA & Israel , it is fooling the ENTIRE muslim community because if it doesn't do that , USA would release forces like Al-Queda & ISIS which would capture, mutilitate and kill the entire ruling class
USA would declare Saudi Arabia as a threat to humanity because of its laws & policies (beheadings etc) , apply sanctions so that people go hungry when nothing gets traded , force regime change , split the kingdom like Soviet union and the small parts would go to small parties which would lease the oil production to USA companies.
So remain coy & whiiiiiinnnnnnnnneeeeeeee saudi arabia , good boy