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Saudi Arabia Will Be Broke In 5 Years, IMF Predicts
As crazy as it sounds, the Saudis are going broke.
Of course you wouldn’t know it if you read the account of King Salman’s latest visit to Washington which included booking the entire DC Four Seasons and procuring a veritable fleet of Mercedes S-Class sedans.

You’d also be inclined to think that everything is fine if you simply looked at SAMA holdings (i.e. FX reserves) which still total nearly $700 billion.
The problem however, is the outlook.
Fighting wars costs money and so does bribing the citizenry to ensure you don’t get some kind of Arab Spring-type uprising. When you endeavor to artificially suppress the price of the export that is the source for your wealth and international prestige (all in an epic attempt to bankrupt the competition and secure geopolitical “ancillary benefits”) you don’t do yourself any favors from a financial perspective and now, the Saudis are staring down a massive budget deficit and a current account that’s in the red for the first time in ages.
So while things may look on the up and up from an FX reserve perspective (even as the cushion is at its lowest level since 2013) and while the kingdom has plenty of capacity to borrow with a debt-to-GDP ratio of just a little over 2%, things are about to get ugly very quickly going forward and if Riyadh decides to plunge headlong into Syria’s civil war, it will only get worse. Note that while debt levels are likely to stay low relative to a world where countries like Japan are borrowing so much that the number of decimal places won't even fit into a title, going from basically 0% to ~16% of GDP in the space of just 24 months isn't exactly a good sign:

The situation is in fact so dire that the Saudis have begun delaying payments to contractors in an effort to preserve cash.
On Wednesday, the IMF is out with a new report on the economic outlook for the Mid-East and the picture for the Saudis is not pretty. In short, Riyadh will burn through its cushion in less than 5 years under current conditions. Here’s more:
Sharply lower oil prices have significantly affected the fiscal prospects of oil exporters across MENA and the CCA.1 The Brent oil price is projected to average $53 a barrel in 2015, down from almost $110 a barrel in the first half of last year. Exporters’ fiscal balances have turned from sizable surpluses to large deficits, with MENA and CCA export revenues dropping by $360 billion and $45 billion, respectively, this year alone.
For oil exporters, the main policy issue is fiscal adjustment and rebuilding buffers over the medium term. The Brent oil price is projected to recover only modestly to about $66 a barrel by the end of the decade, with MENA and CCA export receipts remaining $345 billion and $30 billion, respectively, below the 2014 level, even in 2020. In the absence of adjustment, fiscal balances will remain in deep deficit in most countries, with public debt ratios rising rapidly (red lines in Figure 4.2).
Even under the IMF baseline scenario, however, public debt ratios will continue to rise in many GCC and CCA exporters (blue lines in Figure 4.2). In a number of countries, mediumterm fiscal balances will fall well short of the levels needed to ensure that an adequate portion of the income from exhaustible oil and gas reserves is saved for future generations (Figure 4.3). Bahrain, Oman, and Saudi Arabia have medium-term fiscal gaps of some 15–25 percentage points of non-oil GDP, while conflict-torn Libya has a gap of more than 50 percent of non-oil GDP.
The large and sustained drop in oil prices has increased fiscal vulnerabilities in MENA and CCA oil-exporting countries. The issue of fiscal space has become critical as oil exporters decide how quickly to adjust their fiscal policies to the new reality of persistently lower oil prices. This box considers several alternative measures of fiscal space. A good starting point is the size of governments’ financial assets—commonly referred to as “fiscal buffers.” In general, countries with larger buffers can afford to maintain fiscal deficits further into the future, so as to reduce the impact of lower oil prices on growth. On current trends, however, all non-GCC MENA oil exporters are already projected to run out of liquid financial assets in the next three years (see Chapter 1). In, contrast, CCA oil exporters have at least 15 years’ worth of available financial savings,1 while GCC countries are split evenly between countries with relatively large buffers (Kuwait, Qatar, and the United Arab Emirates—more than 20 years remaining) and countries with relatively smaller buffers (Bahrain, Oman, and Saudi Arabia—less than five years).
As a refresher, here's BofAML's sensitivity analysis which shows how long Riyadh's SAMA reserves will last under various scenarios for crude prices and debt issuance:
One important takeaway from the above is that if the Saudis were to burn through their reserves it would represent a nearly $700 billion global liquidity drain as Riyadh dumps its USD-denominated assets. That would amount to a complete reversal of the petrodollar virtuous circle that's underwritten decades of dollar dominance and which has served to underpin the global economic order for as far back as most market participants can remember.
And while it's by no means a foregone conclusion that oil prices will remain "lower for longer" as the Saudis are to a certain extent the masters of their own destiny in that regard, one thing worth noting is that not only is Iranian supply set to come back online, but Tehran seems determined to supplant Riyadh as regional power broker. Both of those eventualities will have very real consequences for crude prices and thus for the future of The House of Saud.
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back to camel fucking
IMF’s forecasts are as good as Dennis Gartman’s.
Speaking of the devil… ;-)
It looks like our new Chairman of the Joint Chiefs of Staff, General Dunford, is a disciple of Dennis Gartman.
Just yesterday, he said: “Iraq is not planning to turn to Russia for airstrikes and other military assistance in its fight against Islamic State militants”.
And today, according to FarsNews:
Iraq Moves to Exclude US from Anti-ISIL Campaign
Wed Oct 21, 2015 TEHRAN (FNA)- Deputy Secretary General of Iraq's Badr Organization Abdolkarim al-Ansari blasted the US-led Anti-ISIL Coalition's poor performance in fighting the Takfiri terrorists, and said his country does no more want Washington's help in the war against the militant group.
I suspect that both, Syria and Iraq, had requested Russia’s assistance IN WRITING before the first Russian plane landed in Latakia. Iraq’s request hasn’t been announced yet. I think? ;-)
Looney
http://english.farsnews.com/newstext.aspx?nn=13940729001252
What I'm getting out of this is that SA either isn't going to go broke at all, or they have 6-12 months.
Wait for "BOGO Camel" sales on FleaBay. You'll get some real bargains there.
Be sure to to ask for one that's not been too abused. Some of those "preowned" camels are pretty worn out.
Ohyeah, make sure that clearly state, "Free Shipping."
The Saudis look at how long the US has been "operating" in the red and say...
"We're doing just fine."
Saudi's can't print USD.
Talk about shooting yourself in the face.
No worries, they'll annex Yemen and offset the shortfall.
"Each camel comes with a FREE box of vaseline!"
Now that's a bargain!
THIS SOUNDS LIKE A COUNT DOWN TO WW3. T-MINUS 5 YEARS AND COUNTING. COUNTING FAST.
Nah. No reason to fight over Saudi Arabia now, just let it degenerate back into a tribal nation full of camel rapists like it was before WWI. There is plenty of oil now and they are not needed as manipulators of the financial system any longer.
Not to mention I really would like to get rid of the Islamofacist program of Rent-A-US Bankster and Rent-A-US Politician and try to get some normal, sane, real Americans looking out for our own nation for once.
the scene is kinda backwards, but...I'm sure you all get the meaning. Even if the rag-heads won't. LOL ;-)
Well...Bye!
Doc and Joynny Ringo
Why Saudi Fuck...Whatever do you mean???? LOL
i suppose as long as somali foot soldiers are willing to be sent to fight in yemen, the saudis can continue an air war with token ground troops. if i hadn't been king for a year yet i'd be careful how many body bags i shipped home though.
however saudi pilots flying u.s. planes will have a considerably tougher time in syria, should they be so bold and foolish. sometimes it just comes down to who is really willing to fight, not just offer money.
if iran truly does get the sanctions lifted and starts selling oil in quantity, the current u.s. policy in syria and iraq looks untenable.
next stop an iranian/russian protectorate from the afghanistan border to the med.
The pot calling the kettle black
Far too slow!
"Saudi's can't print USD."
Wanna bet?
"Saudi's can't print USD."
They can if Jeb "bin Abdulaziz Al Saud" Bush gets installed into the oval office...
this goes with what I have been saying for a long time - the house of saud will not make it past 2020.
Wait, shit, the IMF is always wrong, so I guess Id better re think that hypothesis. This probably means they'll be fine.
well the imf said broke in five years. if it were three they'd also be wrong, wouldn't they?
when's the last time the saudis fought a war? i think their new guy is getting in over his head.
kings come and go. so do royal families.
It's more along the lines of not being wiped off the map and with President Zippy and Ketchup-Boy helping things along, their doomed.....
I wonder if it bothers SA that, if they were to quit exporting oil, we'd probably happily turn a blind eye as Russia shit-stomped the fuck out of them?
If they quit exporting oil, the Russians wouldn't have to bother.
You do have a point.
The IMF sees every set of data points as a straight line with some fixed slope. Their modeling systems can't fit data to curves.
What is this "non-linearity" thing that you speak of? Unpossible!
"With inflation currently at 0.5%, according to our models we can be confident hyper-inflation won't hit the US ever"
They say in the headline "5 years". Whenever, couldn't happen to a nicer people. But they've still got their tourism business. They could figure out a way to extend that tourism business over a longer time than just a week per year, have fewer deaths, and bingo, they don't even need to pump any oil.
islamoland?
muslimworld?
Wait until they have to turn off the A/C! Talk about deaths!
What's the matter with debt? I mean everyone else is broke already. Might as well join the party. The waters cold, come on in...
yeah, but did you see the teats on that thing!
Ever wonder why they force their women to wear a fucking burqa in the middle east? Nobody wants to look at that shit, and if you do, that drooling camel standing by the tent starts looking pretty damn fine...
sorry, but youre dead wrong on that. I have seen some absolutely beautiful saudi, kuwaiti, and bahraini women.
Ditto. I've seen countless hot saudi, iraqi, kuwaiti, and bahraini camels.
and, specifically, the head scarves and cover up clothes are because all the men (supposedly but hey they would know best) really do get so turned on by the sight of these women that the men must be protected from themselves.
there have been incidents on the riviera, but that is a pretty tempting place.
When this thought construct was put together, they were living in tents in the Arabian desert. It made perfect sense to cover your hair and face to avoid getting all that sand blown in, given the situation that the tents were not equipped with a hot shower. All religious commandments have a practical reason from the time when they were invented.
Something from the OLD TESTAMENT for them:
Job 4:8As I have seen, those who plow iniquity and sow trouble reap the same
Lord A. Tennyson once said that the Book of Job is the world's finest piece of literature...ever. i don't know if i'd go quite that far, but it remains one of my all-time favs.
and so, BullyBearish, please forgive janus for appending instead a quote from said book i think a tad more apropos:
it comes from the scene where satan has come before the Heavenly Host, making his regular visit to accuse and condemn the children of men. God says to satan, "where have you been?" satan replies, "roaming to and fro about the face of the earth." God says, "have you considered my servant Job?" at this point, they go back and forth and God almost boasts over the righteousness of this, the richest man in the east. in a pique of contempt, satan shoots back a great line:
"skin for skin; a man will give all that he has to save his life."
and then, God gave satan permission to torment Job, take all that he has and test the fortitude of his faith...with one small rejoiner, "you cannot touch him." (meaning, you must spare his life).
and so it was that job was left bereft of all that he had. servant after servant came to him saying that his entire estate and all his hard-partying children had been consumed in calamity. all he had at this point remaining was a nagging wife who encourgaed him to curse God, a body pocked with turgid boils and a few friends who sought to blame him for his misfortune.
if you'd like to learn more about the story of Job, go check out a book called The Bible.
other than that, it think it's interesting that Job, much like saud, was the richest in the east...and, on balance, when it comes to the flesh-trade, the saud account is far over-due...and their hard-partying children have been raping and drugging and sodomizing their way across the planet.
and so the question must be posed to the custodians of the shrines, when it comes to skin for skin, how much of your hide are you willing to spare to save your life?
all this, and we haven't even gotten to the missing 28 pages from the 9-11 report, the soon-coming 'revelation' about obama's past (and his connections to rhyiad), and a host of other sensational accounts detailing various secret accounts used to fund much of the world's mischief and their associated misprisons.
for Job, there was a happy-ending...for saud, i don't see such a rosy finale.
but, saud, i'm sure tel aviv will be a loyal and longstanding supporter in gratitude for all your cooperation...they have a peerless reputation for dependability and honor, after all.
janus
As if there was any justice left in this world...
The show will go on and if the royal family is put to the sword the next leader will come along and start the circle of raping and pillaging anew.
Your piece of shit bible was only written to ensnare and enslave the masses, and those in charge of this crime are the closest thing to satan you will ever get.
What a beautiful piece of shit world this is, where fanatics kill each other over the interpretation of a worthless and fraudulent "book" they call holy.
simmer-down, kaervek. do not for one moment pretend that you understand the nature of my thinking nor the purpose in my citing The Bible.
whether or not that book be True (in the platonic sense), it does have within it a 'truth' that governs this world we both inhabit. that may not be comfortable for you; and it's not a pleasant thing for me, at times, either. be that as it may, and whatsoever of it may or may not be 'true', every word of it is going to come to pass...all the tumblers are falling into place, and you are witnessing the 'forging of Fate' -- right before your very eyes. the inertia of it all seems unstoppable.
https://www.youtube.com/watch?v=_IIZPURwTK8
after all, is it 'prophesy' or is it 'projection'. now, this is a disturbing question crippling every instinct as it relates to existentialism...but it's quite a thing to consider.
the masses, by and large, seek unto slavery -- by instinct. they like to plate themselves with the veneer of 'independence' and 'freedom'; but most are simply sheep seeking out the shelter of the most accommodating protection...knowing, somewhere in the back of their minds, that due to such submission they'll be their whole life sheared and herded by nasty hounds, and their little ewes will oft be sliced and roasted -- but at least it beats the predations of wolves.
p.s. people will kill each other for whatever reason is most compelling and expedient. did the commies kill in the name of this book? and what of the killing that preceeded books?
janus
You sir are a gentleman and a scholar. I commend your logic and write of verse
i hope you're right janus. particularly on "the soon-coming 'revelation' about obama's past (and his connections to rhyiad), and a host of other sensational accounts detailing various secret accounts used to fund much of the world's mischief and their associated misprisons."
while we're at it, don't forget
https://www.youtube.com/watch?v=OsoY3AIRUGA
https://www.youtube.com/watch?v=YW6mJOqRDI4
https://www.youtube.com/watch?v=mhROd7Jt3-w
https://www.youtube.com/watch?v=dgM6hjNedE0
https://www.youtube.com/watch?v=Rj_AL4OlmHc&feature=iv&src_vid=rnbMjAN7B...
http://www.luogocomune.net/site/modules/sections/index.php?op=viewarticl...
https://www.youtube.com/watch?v=EVHstSrC1CQ
https://www.youtube.com/watch?v=gORu-68SHpE
Very nice Janus...thank you
Always enjoy reading your posts Janus. Glad your still posting from time to time.
thanks, Centerline...same here.
shame is, i'm very much in the 'starving' phase of my starving-artist phase.
been working too much.
My plan B actually made some money last weekend. Finally got some customers who wanted some logs turned into lumber. Since I'm working out of state, had the stepson do some Saturday labor at the homestead. Charged $45/hr to run the sawmill for 5 hours. My stepson finally gets it. Offer a service that people are willing to pay you more than minimum wage for, and make some fiat in the process.
His immediate thoughts: That was damn good money for 5 hours worth of work, so over e-mail he and I designed a flyer for him to stick up. He's been running all over the neighboring towns putting them up. He is an ex-Navy corpsman and trained phlebotomist and can't find a job that pays more than $10/hr in the area.
Standard Disclaimer: The underground economy will continue to grow.
It's a MATH problem, pure and simple.
SA is experiencing what becomes of growth. Perpetual growth on a finite planet isn't possible. DUH!
"Go forth and multiply." We were doomed to fail math from pretty early on...
Seer, i agree...but it isn't so much math that dooms us, it's biology. all that lives ends in death. and whether that be from old age, disease, warfare, or CO2 poisoning, over-crowding...the result is the same.
the world will keep on spinning, and we won't be here to see most of it (and we've already missed a lot).
a greater doom, i believe, lies in the attempt to manage the expansion of mankind by sliderules and spreadsheets...for my part, an obsession with infinite abstractions in the minds of finite beings should lead to an overwhelming question, which is always present -- in our struggle to overcome death, we inevitably prove its grim constrictions. the fate of an individual life we know; but is life itself eternal? and what of consciousness and sentience? and can the concept of infinity even be a concept without a consciousness to grasp it? so if consciousness disappears, does infinity go along with it?
i'm sorry, i still say to my sons -- go forth and multiply...damn the torpedoes...do not worry about tomorrow, the day's trouble is sufficient of itself...the gift of life is a miracle, and we are blessed to have it -- no matter in what share. most importantly, may the best man win. like the spark of Divinity and darwinism all rolled into one; not pitted against itself, but working in synthesis.
the only option, my friend, is to turn the world over to those who breed in squalor and have no interest in the nobility of mankind.
planet earth does not need any help in stabilizing its population...it's been doing a damn fine job of it for eons and eons.
janus
reminds me of that george carlin line
It boils down for me to "Bloom where you are planted"
Who can believe such nonsense? A prediction of events 5 years in the future? When has the IMF gotten its own budget right
F those sand niggers.
'back to camel fucking'
They never stopped, it's the national sport.
They'll stop eventually. Or maybe not.
Camels are suspected to be the main vector in MERS (Middle East Respiratory Syndrome) or MERS CoV (corona virus). Causes severe respiratory distress, fever and eventually renal failure. Mortality rate around 40%, depends on age and co-morbidities. Most of the people who have become ill have had contact with camels/camel products or are secondary or tertiary contacts of the ill (family members, healthcare workers). Bats were thought to be vectors as well because a certain type tests positive for antibodies but too few of the sick and dead had any contact with them. Probably just a reservoir.
I believe the diaper heads aka sand niggas refer to "it" as humping, fucking sounds so rude.
i'm going with it's called a word, written in a script, neither of us will ever undestand.
Going back to camel fucking will be a major fall from grace from some of the current intramural activities:
Sitting, high as a kite in a multi million dollar mansion, having your face farted in by sycophants, while sexually harrassing / assaulting the female help and male members of the entourage.
http://nypost.com/2015/10/21/saudi-prince-accused-of-gay-sex-threats-and...
Although... it is in the same sphere, so either way prince doo doo still gets his nut.
p.s downvoters, I didn't write the story, or ask a paramour to fart in my face.
i wish our rulers spent more time this way than as they do.
The Royal Beheaders become the royally beheaded, and that USD as global reserve currency begins to look rather precarious. . . .
Recommended reading:
The Devil's Chessboard, by David Talbot
http://www.jfkessentials.com/forum/index.php?topic=220.0
they never stopped...
Outhouse of Saud
Did someone say nice, come on man http://www.youtube.com/watch?v=tAGnKpE4NCI
... https://www.youtube.com/watch?v=JUJARoQ_1y8&list=PLIvFYRI3GhfVWKA-_8sopB... mofos
Its of lack or sence
https://www.youtube.com/watch?v=3Ynm6qo6svM&index=27&list=PLIvFYRI3GhfVW...
Camels bite too
thats hard
some ppl die
Hah ha
like that really matters these days
Exactly... I don't know anyone else that's going to make it 5 years! Does this mean they win?
And the US will be broke in either two weeks or next March -
Globalist Agenda Watch 2015: Updates 78-79 – The one-two punch that will knock down the dollar & Will the big shock be in two weeks or in March? (+ a P.S.)If the switch is planned...then there is nothing to benefit the common man in it.
the sky fell during the shemita nonsense also...
So that's what all those blue gobs of goo all over the ground were.
Naw, that was just the mess left after the great Smurf gangbang of Smurfette. She'll be walking as bowlegged as a Saudi camel.
triple boggie, Is that how its said? Cant believe i didnt pay my light bill! thank gawd for extensions.... credit -13 futures x 3 days... -10 today.
https://www.youtube.com/playlist?list=PLPq020WpDngpl9FBU40a4R6kHQ-LVx13n
bitchezzz
Technically speaking, the US is broke now. If everyone were to redeem their chits at the same time, we go tits up.
The US is perpetually broke. As are most modern governments.
Maybe they can stretch it out to six years if they stop funding terrorists. Die motherfuckers.
big whoop. america and euroland are already there. join the club. maybe they should buy some digital printers.
And only months ago the world was declaring how Saudi 'Deep Pockets' could sustain the energy price war for 20 years or more!!!
Alternatively, they've been predicting Russia's financial collapse for months!
Methinks there is something wrong with their analytical methods.
Methinks there is something wrong with their analytical methods.
That's not what I heard on CNN, FOX and CNBS!! According to them everything is groovy man . . . .
Would be nice.
4 years and 364 days too long to wait for the corrupt, cruel cabal that runs Saudi Arabia to meet its karma.
Payback for the petrodollar.
Are you trying to say they'll renig on building those 22,000 mosques for the muzzies in Deutschland?
PS: "Deutschland" means Germany for those of you who don't speak German.
I thought Deutschland meant white women available for raping.
Wait until Heidi gets a look at Mohammed's wmd:
http://img.izismile.com/img/img5/20120815/640/the_hottest_german_girls_o...
who can hate patriotic bunny ears?
Yogi - Meet the new boss, same as the old boss.
Janus is correct on his post, the tumblers have been locked into place. But remember, there is an other side to these.times that is promised also.
this must be the reason why the Dow just did this...
http://www.marketwatch.com/investing/index/DJIA
fuck off.
Fuck on.
Fuck off.
How to get the clap from her.
Nice, over the Caspian Sea
No it Wont, Goodbye IMF
Following a bankrupt country like the US and you end up bankrupt.
Back to camel herding then...
If you want to call it "herding" that's up to you. But we don't require polite company here at ZH.
I figured the height difference would probably make that a little more difficult, and I thought that's what Arabs used goats for.
Something tells me that this is a topic best not overthought.
If you want to call it "herding" that's up to you. But we don't require polite company here at ZH.
That's right . . . and let's call a spade a spade here. It's camel humping the bastards are expert at. Where else in the world would drinking camel piss be considered an aphrodisiac?? Don't believe me? Google it . . . . .
Nothing personal but fuck 'em.
WWIII long before the house of saud goes broke.
Well, bye.
Cry me a fucking river. Anybody, or group of somebodies who lives that ostentatiously why the rest of their society lives in poverty needs to be fucking hung. The sooner the better.
Are you talking about Obama flying his dogs to Hawaii for his monthy vacations or the Saudi's?
Broke in 5 years.
Not too surprising considering that Saudi "princes" apparently get off when people fart in their faces.
http://nypost.com/2015/10/21/saudi-prince-accused-of-gay-sex-threats-and...
When you're used to smelling camel ass all the time you kinda need someone to fart in your face to help relive the memories.
Russia under criminal putin regime - in 2 years!
You zios are losing it -you see dreams of Greater Israel slipping away - a small immoral nation surrounded by powerful enemies-all allied together under the protection of the Russian Bear- your main ally -your puppet -the US -bankrupt, losing all moral authority among the entire world -soon to be embroiled in the Battle for America as the Patriots lead the sheeple into their great awakening from the comfort of the Matrix-- Working together to take our country back from the Luciferian elites who have raped, pillaged and corrupted America.
Has your cranial fluid been replaced with potato vodka?
I think he is one of those people that Putin suggested have oatmeal for brains.
I think he is one of those people that Putin suggested have oatmeal for brains.
Digested oatmeal (i.e. shit) is more like it . . . .
Now that would be quite an improvement!!!!!
Russia under criminal putin regime - in 2 years!
Puleasssse!
Message - Haven't you gotten the "message" by now?? Every comment you make draws more downvotes than flies on shit! By unanimous vote of all coherent ZHr's we demand you go back to your day job and get out of mommy's basement in Tel Aviv or Kiev or where ever the hell you post your garbage from.
Maybe Israel will hold a bake sale for them?
Pretty soon, whether by de facto control or by outright takeover, we'll need to change the name of Saudi Arabia to Russo-Arabia anyway....
Then it will be set on a path of economic and financial health and stability. I hope the Russians take the Saudi 'royal' familiy out back for some long-overdue executions....
Let's see an analysis using oil between $15-$25 for those five years.
New Saudi chain soon to open: "Goats R Us"...
Their goats are defective. They get stuck in fences all the time and need "help" getting through.
If that timeline is roughyl correct, then the Saudis will experience difficult economic measures and possibly violent demonstrations - well before 4 years. That means that the Saudi family will certainly attempt another coup or power play within its ranks. And the kingdom will become much more violent and oppressive in its efforts to maintain control over its own citizens.
You want to go LONG on Saudi beheadings ... there are a lot more coming.
This one's easy. Check with California consultants, they'll write it up for you. "How to solve regular problems with ridiculous solutions".
Don't kid yourself, they would never have crushed oil prices last year, unless the US Fed was underwriting it.
President Trump will have to send in ground troops to prop them up.
so the IMF is making a decleragiton of war with the saudis..................do they own any tall towers
Oil producing countries have been stable because they have no taxes and they give subsidies to their people.
Subsidies have finished. Taxes are coming.
Broke in five years? haha, Putin says he can speed that up considerably...
One important takeaway from the above is that if the Saudis were to burn through their reserves it would represent a nearly $700 billion global liquidity drain as Riyadh dumps its USD-denominated assets.
This doesn't make sense to me. No dollars are being destroyed; they're being diverted to Saudi Arabia, which in turn will use them to purchase goods and services. Why is this a liquidity drain?
Same thing goes for China dumping Treasuries. The only entity that can inject or withdraw liquidity is the central bank.
Couldn't happen to a nicer bunch of degenerate, head chopping, lunatics . . .
Oh, and BTW . . . . their published information on their proven oil reserves is complete bullshit. Right now most of their wells are pumping out 97% water and only 3% crude.
That's pretty obvious illustrated by their grab for Yemen and control of Syrian reserves - Putin has recently offered the Saudi's some joint venture opportunities - likely as a trade off to stop the slaughter in Yemen - smart guy is Mr Putin !
. . . . smart guy is Mr Putin !
Damn straight he is! I'm no Putin worshiper but it sure is refreshing to see a world leader with some balls for a change. Especially one that is willing to stand up to the "western" powers and is unwilling to back down . . . . it's about fucking time.
that okay...the US was broke 10 years ago....only they are too stupid and conceited to understand or acknowledge it.....
The saudis may be broke in 5 years. Or not. Lots of things can happen.
This IMF analysis is crap.
So where will that $700 billion wind up? Who will purchase the US Treasuries that make up the bulk of that reserve amount? How big can the Fed's balance sheet get?
go houthies
This is absurd. Perhaps the Saudis are being "subsidized" under the table. Gee, I wonder who would do that? And probably on the taxpayers dime. Or there's a huge new oil find, pretty, but very remote possibility. Their oil fields are old and damaged. Plus they've been taking lessons in "modern" banking, statistics and lies. The US allies are "losing" and the US still gets some 17% of its oil from the Mid East. OPEC as it stands now is talking about price banding in oil, around $88. Oil prices are about to go up as Saudi will have to buy yet more US armament, Iran is coming online and the remanents of OPEC are going to return to more profitable levels as the people are getting restless and guillotones and axes are being sharpened.
My Daddy called this "nigger rich". Flush on Friday, broke on Monday.
World Bank Revises Down Forecasts for Oil Prices, Other Key Commodities in 2015 and 2016
20 October 2015, Washington (World Bank)
http://www.worldbank.org/en/news/press-release/2015/10/20/world-bank-revises-down-forecasts-for-oil-prices-other-key-commodities-in-2015-and-2016
Maybe they should cut down on those Paris hookers.
My fart goes out to them.
saudi arabia is technically broke today.....if you owe more than you make...YOU ARE BROKE...!
You know having 15,000 Royals is a big drain on the exchequer
The Saudi regime , that was preserved in the form established in 1920-ties by the British is on a verge of collapse with huge uncertainty of what's next.
And here is why:
https://contrarianopinion.wordpress.com/short-opinionlets-of-current-eve...
They should model after the ussa government that just prints up the money to invade or bomb the crap out of some little nation and could give a rats butt less what its citizens think.
"Of course you wouldn’t know it if you read the account of King Salman’s latest visit to Washington which included booking the entire DC Four Seasons and procuring a veritable fleet of Mercedes S-Class sedans."
Umm, that's EXACTLY why I believe it.
Couldn't happen to a nicer bunch of pederasts. FU S.A.
Couldn't happen to a nicer coterie of WahabiNazi twinkle-toed goat fucking accident-of-birth head chopping skyscraper targeting maid molesting do-nothing rat-faced beak-nosed Bush befriending useless eaters.
You forgot sandal-wearing.
When the times get rough ....time to go to Allah...
Probably not.
They can cut production, start a War with IRN, buy up Wall Street Bank Shares, and/or open major offices in Wall Street and other Financial Districts in the West to make $$$.
I think Saudi Arabia will go down the tubes a way faster. To understand why one doesn’t need to look at complicated charts or economic data. Thing are really simple. The Kissinger deal with SA was to sell Saudi oil for dollar, which became petro-dollar and recycle portion of their profits to US debt obligations. In plain English it means that US owes Saudis a lot of money. One way to avoid paying it back is to eliminate the creditor-Arab springs or colour revolution is a good choice of weapons. So, it is coming to SA and a way faster than the article predicts.
The United States dollar has been prop up by the dollars for oil scheme that the Saudi's have been the backbone of for many decades now. With more and more countries dropping out of the dollars for oil scheme the U.S. becomes weaker and weaker each day. Just like Saudi Arabia becomes weaker and weaker each day.
The Saudi Regime will be lucky to last another year, let alone five. Especially if its true they're pulling 97% water out of those huge depleted wells of theirs.