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Three Reasons Why Saudi Arabia Flip-Flopped On Iran. And Now Supports The US "Nuclear Deal"
Back in April, when the first outline of the Iran nuclear deal first appeared, Saudi Arabia (together with Israel) would have none of it. As the Atlantic Council summarized back then, "Saudi Arabia and Israel find themselves in the same camp as opponents of a nuclear deal with Iran, but the Sunni kingdom and Jewish state have very different reasons for their opposition. Israelis are concerned mainly with a nuclear-armed Iran, while the Saudis worry more about Iran’s growing regional influence, analysts said March 16 at the Atlantic Council.... for the Saudis … it’s been a traditional concern about Iran’s intentions in the Gulf."
One month later, the Saudi snub was heard around the globe when King Salman skipped a summit of Gulf Arab leaders at Camp David, which was widely interpreted as the latest embarrassment for the US president by a long-time mid-east US ally.
And then, a few months later, just as the new Saudi KJng Salman arrived in the US for his first trip since assuming the throne in January (and rented out all 222 rooms at the Washington D.C. Four Seasons hotel), something unexpected happened: Saudi Arabia gave its blessings for the Iran deal. This is what Deutsche Welle reported on Friday:
Saudi Foreign Minister Adel al-Jubeir said on Friday that President Barack Obama had assured the Saudi king that the deal agreed in July with Iran prevents Tehran from acquiring nuclear weapons, includes inspections of military and suspected sites and has a provision for re-imposing sanctions should Iran violate the agreement.
Al-Jubeir said that under those conditions, Saudi Arabia would support the deal.
"Now we have one less problem for the time being to deal with, with regards to Iran," al-Jubeir said after a meeting between the king and Obama on Friday. "We can now focus more intensely on the nefarious activities that Iran is engaged in in the region.
As BBC confirmed, "Saudi Arabia has said it is happy with President Obama's assurances that the recent nuclear deal with Iran will not imperil the Gulf states. Saudi Foreign Minister Adel al-Jubeir said his country was satisfied that the deal would contribute to security and stability in the Middle East."
So what prompted the Saudis to change their mind in such a short time frame? There were three main reasons.
First, as we reported some time ago, since the primary driver behind the Iran "deal" is not the Obama State Department but the US military-industrial complex, which is hoping for yet another regional flash point to capitalize on selling weapons into yet another war, one of the side deals cut with the Saudis to make the Iran deal more appetizing was a $1bn arms agreement, which senior US officials told the NYT would provide weapons for the Saudi military for the campaign against the jihadist group Islamic State and the Houthi rebel movement in Yemen. The deal primarily comprised missiles for US-made F-15 fighter jets, the officials said. More importantly, it boosts US GDP at a time when the US is desperate for any incremental growth.
Second, as Al Arabiya reported yesterday, Saudi Arabia unveiled a giant raft of investment and partnership potential opportunities in sectors including oil and gas, civil infrastructure, and banking as part of a 21st century vision of the cooperation between the two long-term allies, sources told Al Arabiya News on Saturday. The vision was presented by Saudi Deputy Crown Prince and Defense Minister Mohammad bin Salman, who also heads the kingdom’s economic and development council.
The list of proposals includes the kingdom’s state-run oil giant Saudi Aramco rolling out new projects in refining, distribution and support over a five-year period.
Mining was also mentioned as a “promising” sector, with plans to work with U.S. companies to extract vast deposits of phosphate, bauxite and silica.
In the healthcare sector, Saudi authorities seeking to double the clinical capacity in the next five years are slated to work with U.S. health insurers to set in place a new national program.
Foreign direct investment - which so far has been a rarity in the kingdom - is also mentioned as being among the plans, with major U.S. retailers expected to be invited to set up shop.
Who will benefit the most from all of this? Why the US again:
U.S. banks and finance firms are also to be invited to enter Saudi, with retail and commercial institutions mentioned by sources. American lenders are also suggested to tap in to the kingdom’s lucrative mortgage market.
With the Saudi government ramping up investment in free zones, roads, and communication networks, the kingdom will soon “aim to employ and rely completely on U.S. construction companies,” sources told Al Arabiya News.
The proposals were based on studies conducted by leading business and technology consultants, including Booz Allen Hamilton and BCG.
On Friday, during Saudi King Salman’s visit to Washington, the king told reporters that his country must allow more opportunities for U.S. and the kingdom to do business.
Because if the US can't growth from within, and it the domestic US oil industry is now in shambles with mass shale defaults just over the horizon, what better place to invest money than the country whose oil production policies are among the key drivers for collapsing oil prices.
Third, and perhaps most important, is that with oil at $50 and lower, Saudi Arabia is in dire financial straits as we have been covering extensively over the past month, leading to fear not only about the record Saudi budget deficit, but also concerns that the Saudi Riyal could be the next currency to lose its USD peg and devalue.Which means that just like US shale companies, Saudi Arabia is suddenly all too reliant on capital markets access, and the generosity of creditors to fund its record budget deficit, which is only set to rise (as we previews back in November 2014). AFP with the explanation:
Saudi Arabia will cut spending and issue more bonds as it faces a record budget shortfall due to falling oil prices, the finance minister said on Sunday. The kingdom -- the biggest Arab economy and the world's largest oil exporter -- is facing an unprecedented budget crunch after crude prices dropped by more than half in a year to below $50 a barrel.
"We are working... to cut unnecessary expenditure," Assaf told Dubai-based CNBC Arabia in Washington, where he is accompanying King Salman on a visit.
He said the government would issue more conventional treasury bonds and Islamic sukuk bonds to "finance the budget deficit" -- which is projected by the International Monetary Fund at a record $130 billion (117 billion euros) for this year.
The kingdom has so far issued bonds worth "less than 100 billion riyals ($27 billion/24 billion euros)" to help with the shortfall, he said, without providing an exact figure. "We intend to issue more bonds and could issue sukuk for certain projects... before the end of 2015," Assaf said.
Recall that in addition to China and the rest of the EMs and petro-exporters, Saudi too has been burning through US reserves (i.e., mostly Treasurys): "Jadwa said that by the end of July the government had withdrawn $82 billion from its reserves, reducing the assets to $650 billion. The reserves are expected to drop to $629 billion by the end of the year, Jadwa said." We'll take the under.
To summarize: in order to get the Saudis to "agree" to the Iran deal, all the US had to do is remind King Salman, that as long as oil is where it is to a big extent as a result of Saudi's own record oil production, crushing countless US oil corporations and leading to the biggest layoffs in Texas since the financial crisis, the country will urgently need access to yield-starved US debt investors.
If in the process, US corporations can invest in Saudi Arabia (and use the resulting assets as further collateral against which to take out even more debt), while US military corporations sell billions in weapons and ammo to the Saudi army, so much the better.
And that is why Saudi King Salman flipflopped on short notice.
And then, there is Donald Trump...
I will be in Washington D.C. on Wednesday,1 P.M.,in front of the Capitol, to protest the horrible and incompetent deal being made with Iran.
— Donald J. Trump (@realDonaldTrump) September 6, 2015
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Provide the citizens with "OPEN THREAD" or suffer the consequences.
Only one future American policy is importnt....disband the Fed.
Betcha Bammy grilled Salman
The US and SA are gonna split the Iranian gold.
israel is going to war.
The US is so hypocritical -- criticizing and setting trade sanctions against China for human rights violations while cuddling up to the Saudi regime which has one of the worst records on the planet for human rights with arbitrary arrests, trials, convictions and executions of peaceful dissidents and egregious discrimination against Saudi women. I tell ya, I'm starting to think Trump doesn't look so bad. At least he the balls to call out the Saudis:
http://thehill.com/blogs/ballot-box/presidential-races/251227-trump-saudi-arabia-should-pay-us
Well there are things said to a public and things discussed behind the doors. And in most of the time these things are not really related.
So my point is not everything is told and not everything is 100% true.
I like the tapes with Nixon's opinions on people from the Middle East, there's some truthiness for ya, as long as you're "behind doors".
There's only one thing to say to a voter what would contemplate electing an idiot who would say,
and that's, "YOU'RE FIRED!"
I wonder how long they'd laugh with Trump, from home, with no way to get to work, which would be fine, because they wouldn't actually have any, and no way to see Trump, once the power went out.
Jep just recently 600 PAC3 http://www.rt.com/usa/311111-saudi-arabia-patriot-missiles/
That sale will bite USA in the ass some day soon.
Ghawar has maybe another 20 years.
Rumour is Ghawar is pumping 90% salt water already. If true, 20 years would be more like a pipe dream, pardon the pun...
SA is getting into fracking.
obola must have really corn-holed the king good
Might be the other way around.
this is all Ouroboros shit.
yay,...Saudi Arabia gets access to US debt investors.
And where do US debt investors get their money?
Oh yeah.
Saudis to change their mind in such a short time frame?
The Saudi rulers are American serfs. The corrupt, cruel, crony monarchy would not survive a day without US support.
The Saudi government cannot really survive and operate and extend its power in the region or act as a regional power without strong United States support.
Let us remember that about 40 percent of the American taxpayers’ budget for the US defense is spent protecting the [Persian] Gulf monarchies. So the American citizenry is paying over 255 billion dollars a year to protect the Saudi and other [Persian] Gulf monarchies.
And the Saudis have been dependent on the United States for their internal and external security if you take back the issue from the 1980s when the Carter Doctrine was established to defend these absolute monarchies from mostly internal threats more so than the external threats. So yes, the Saudis depend on United States for security and their survival.
http://www.presstv.com/Detail/2015/07/22/421411/Saudi-Arabia-US-Ashton-C...
Carter's successor, Ronald Reagan, extended the Carter Doctrine in October 1981 with what is sometimes called the "Reagan Corollary to the Carter Doctrine", which proclaimed that the United States would intervene to protect Saudi Arabia, whose security was threatened after the Iran–Iraq War's outbreak. Thus, while the Carter Doctrine warned away outsideforces from the region, the Reagan Corollary pledged to secure internal stability
(Wiki)
" The corrupt, cruel, crony monarchy would not survive a day without US support."
Time to increase our fee to Saudi Arabia:
From now on 80% of any oil or gas that Saudi Arabia sells IS OURS!
As for the rest of our MIDDLE EAST FRIENDS, your fee just went up to 90%.
If you don't like it, defend your selves. Hint: you have to shoot back and not run in panic.
"The reserves are expected to drop to $629 billion by the end of the year"
Good gawd, there isn't going to be enough profit in selling Saudi weapons. This is insanity can't wait to see China's open they will probably dump another 400 billion in UST before too long. What a joke.
Saudi seems really serious about going into tangibles, that's like red flag #85, time to go get some more beans and rice.
Diplomatic cables leaked during the United States diplomatic cables leak in 2011 revealed that Sadad al Husseini, former vice president of Saudi Arabia's oil monopoly, warned the US that the oil reserves in Saudi Arabia might in fact be 40% (300 billion barrels) lower than claimed.
There will be changes.
VERY simple solution to the entire islamic cult & middle east endless problems:
Eradicate the islamic cult,
Repopulate withcivilized humans.
They are just saying nice doggy while they buy their own nukes.
"Diplomacy is art of saying Nice Doggy while you find a rock. - Will Rodgers
It amazes me how many middle [ME] east countries (actully all of them... sum?, moar than thrice!) have been strange-bedfellows with Israel!?!
Emphasis on Saudi Arabia's luv of the Empress Shekel..[?]
"If Saudia Arabia likes their Kingdom, they can keep their Kingdom." -- BHO
"Three Reasons Why Saudi Arabia Flip-Flopped On Iran. And Now Supports The US "Nuclear Deal"
They are backing the Iran "deal" for the same reasons they dropped the price of oil from around $110 a barrel to $50 over the last year since John Kohn's little visit in the Summer of 2014.
Zion is a scheme, not an ethnicity..
Oh, when and where will the Dancing Mossads dance again?!
Put that tin-foil hat back on and check under you bed. Then take your medication.
As shocking as Russia saving Assad so Russia's military industrial complex can harvest its share of ME petro-dollars. Not to mention supporting Iran's terrorism activities.
This article is hilarious on so many levels.
Probably my favorite is that "Saudi Foreign Minister Adel al-Jubeir said...Saudi Arabia ... is happy with President Obama's assurances that the recent nuclear deal with Iran will not imperil the Gulf states." Well, at least our 'Bammer is effectively reasurring some of our allies. "Open your mouth when you bow next time!"
"major U.S. retailers expected to be invited to set up shop." SERIOUSLY?!? I'd love to see a Macy'sPenney'sNordstromBloomiesBalhBlahBlah move to Camel Jockey heaven. You'd need marines in every aisle just to keep the peace.
The whole thing reminds me of the story John Perkins told in "Confessions of an Economic Hitman" about the deal of the century that Nixon's people made with the Saudis. Recommended reading.
The Saudis are in collusion with the USSA.
Remember this: USSR dissolution 12/26/91 {!1992!}. That's how many years?,... til present?
Brzezinski gave Pakistans 'A Q Khan' , May 28, 1998 the Abomb as a trade-off ([price paid for AfPak/ USSR War [1979-89] ) and the obvious spoils from post Soviet Communist satellites. This was a gift to quiet the 'little Budda' blossomng {think Kashir]?} -- between PIG[Muslim?] grease and COW [Hindu?]grease.
Religion is just mind-control today as is atheism, agnostics, and crusading fanatics [all with their designated jihad?], long hijacked by Mullahs, Popes, and David's Star.
?QUESTION RELIGION? and you'll find that whomever contols the KORAN, BIBLE, or TORAH rules the world!
and, i'm a catholic...[?]
The Pope too? Say it isn't so.
Funny though. He doesn't look Jewish.
three days later, but certainly muckety fodder for geo-politics concerning are greatest allies... nought
"US concerned as Saudi Arabia, Israel team up against common foe Iran" 9/9/15 by Salman Rafi @ Atimes
http://atimes.com/2015/09/us-concerned-as-saudi-arabia-israel-move-closer-to-thwart-iran/
The "other" reason the House of Saud flipped-flopped, Droogies,
For some unknown reason, your Zebra-in-Chief knows that the Saudi men are known to fancy and then fuck purebred Hijazi goats.
Your Zebra –in-Chief threatened to send Bill Clinton to the Kingdom of Saudi Arabia to defile and procreate a new race of Satyrs with Arkansas accents, that play the saxaphone and where sunglasses.
The Saudis were horrified as anyone would be under these circumstances. So, the very clever Saudis backed off, for a while, agreed to the Iran deal in public and hid their Hijazis from harm.
King Salmon; however, will get even.
What would Muhammad say?
Love,
Alexa
LMAO! Makes sense to me, prettier than Carlos Danger's.
https://pictureofday.files.wordpress.com/2010/07/goat.jpg
http://voices.washingtonpost.com/reliable-source/abedin-weiner2.JPG
All I know about the Saudi men is that they look like Mel Brooks fucked Frank Zappa and if I can save but one Hijazi goat from that fate...
https://www.youtube.com/watch?v=deiviXjkshg
The nuke arms race is on, thanks to Russia. Russia gives the bomb to Iran, now Saudi Arabia must have it. And Egypt, must have it now. Next Jordan than, well anyone with a few billion whatever in their pocket. The Saudis changed their tune because Obama agreed to sell tham a bomb or two. A matter of time.
The nuke arms race is on, thanks to Russia.
Thanks to Russia? You must be joking!
A derivatives trader and here for under three weeks?
We know whom the Enemy is and recognise their Minnions. Please don't breed.
Worked out great in Kashmir, why not?
Are you suggesting that Obama promised the Fed would buy up all these Saudi suck bonds?
CAN Obama promise that? Can the administrative branch have Treasury do it? Can the administrative branch coerce US and world banksters to buy such bonds, and then the Fed buys newly issued specific bankster bonds? Um, the later, methinks. But the Fed has to agree, don't they, and I'm not really certain why they should. OK I figured it out - because then all they do is pass the deal through and take their 5%.
The FED can monitized a brown paper bag with a dictators signature on it saying "IOU".
So the price for Saudi support was $1 billion worth of weapons huh?
Of course by "weapons to fight ISIS and the Houthi in Yemen" we mean "weapons to destabilize Yemen while pretending to fight ISIS."
$1 bn is rouding error. Even for the MIC.
So the Saudis support a deal that strengthens Iran allowing Iran to funnel more $$ and arms to the opposition in Yemen who are currently in conflict with the Saudis because supporting the deal will give Saudis more arms to fight the proxy of the stregthened Iranians after the deal?
Fuck me.
4) SA's army is getting ass fucked in Yemen and needs an honourable exit.
So the House of Saud quietly just took delivery of their nukes from Pakistan?
ARAMCO=Terror=MIC=profits=war=racket=curruption=refugees=cheap labor=profits=slave labor=MORE USURY=NO CHANGE
"First Rule of the Fight Club"
I may be a dummy but all this shit going on in the middle east is for ONLY one reason-- SPREADING ISLAMIC RELIGION--then, others jump on the bandwagon to support their own agenda (oil, military dominance, currency preservation). The Sunni/Shia fight to the death and spreading of the Muslim faith is primary in the minds of the middle-easterners. Europe and the Americas are falling for this and accepting these refugees not thinking about THEIR OWN futures. Why hasnt NATO created safe zones IN THE MIDDLE EAST to let them settle and INSTEAD pushed refugee status. Satan is at work here!! How many refugees are China and Russia accepting? We will be conquered from within (no need for fancy weapons)
FOR EXAMPLE--RECENT ARTICLE
The German government will spend an extra €6bn (£4.4bn) to cope with this year’s record influx of refugees, the ruling coalition has said.
State and local governments will receive €3bn to help them house the 800,000 refugees heading for Germany while central government is planning to free up another €3bn to fund its own expenses, such as paying benefits for asylum seekers.
Related: Refugee crisis: east and west split as leaders resent Germany for waiving rules
After a meeting in Berlin lasting more than five hours, leaders from chancellor Angela Merkel’s governing coalition also agreed on a series of other measures, such as speeding up asylum procedures and facilitating the construction of asylum shelters.
Germany expects to take in by far the most refugees of any nation in the European Union. In August, more than 100,000 asylum seekers were registered in Europe’s largest economy.
Merkel described the number of people crossing the border into Germany over the weekend as “breathtaking”, and said Germans should be proud of their response.
Bavarian authorities, which have so far accepted two-thirds of the 18,000 refugees who arrived in Munich via Austria over the weekend, have said they are at breaking point.
“We’re right at our limit,” said Christoph Hillenbrand, the president of the Upper Bavarian government. He called for better communication across borders after authorities were taken by surprise at the number who arrived on Sunday. Hillenbrand said he was expecting a further 10,000 refugees to come in by train in Munich on Monday.