Will The $40 Billion Saudi Infrastructure Gift Influence Trump?

Tyler Durden's picture

Authored by Zainab Calcuttawala via OilPrice.com,

It’s “Infrastructure Week” in Washington, and foreign powers are taking note.

Ahead of President Donald Trump’s upcoming visit to the Middle East, Saudi Arabia has promised to make $40 billion of its sovereign wealth fund available to the United States to bankroll part of the roughly $1 trillion in infrastructure improvements that Trump promised on the campaign trail.

The move is reminiscent of the KSA’s strategy amongst its allies in the Gulf Cooperation Council (GCC), as well as Morocco and Jordan. This GCC + 2 group of kingdoms is regularly showered with billions of dollars in gifts from its wealthiest members, earmarked for similar construction projects, allowing the most stable Arab countries to remain intimately connected through financial obligations. The monarchial structure of these countries allows the lead executive to accept the sizeable donations without much fuss from the public. It’s just the way things are done there, and citizens of those regions generally accept.

But using foreign funds, especially those from a country such as Saudi Arabia - which only garnered favorable reactions from 31 percent of Americans polled by Gallup in February 2017 – could be another political trap for Trump.

The KSA had gone all-in on Hillary Clinton before the election, expecting her to continue to tweak policies put in place by Barack Obama. Contributions from GCC nations, especially Saudi Arabia, to the Clinton Foundation total in the millions. Reports of the serial grand donations made voters question Clinton’s allegiances in the 2016 elections. Trump could suffer a similar loss in faith if he begins accepting funding from monarchies willy-nilly – though censuring the new commander-in-chief in the media for any questionable action has led to fierce resistance from the White House and far right.

Riyadh’s most recent $40 billion gift is an effort to court support in the Trump administration, especially as the Saudi Aramco IPO approaches next year. Deputy Crown Prince Mohammed Bin Salman met Trump at the White House in the early days of the new administration. Local media took to labelling the trip a “historic turning point” in bilateral relations – a marked shift from rumors regarding friction between the two countries during Obama’s tenure. Nonetheless, the Department of Defense continued to approve the KSA’s weapons orders for use in Yemen and other regional squabbles, and Trump will likely continue that legacy.

The new president has already declared his support for a new U.S.-Saudi program with $200 billion in direct and indirect investments over the course of his presidency for use in technical development in the energy sector and other advancements in financial relationships between the two countries. As Zero Hedge pointed out earlier this week, it would be ironic if the Saudi funds used for energy research end up discovering new ways to lower shale extraction costs for American producers.

Saudi Arabia, the largest producer in the Organization of Petroleum Exporting Countries (OPEC), has led a vociferous effort to deter additional shale production, particularly from the Permian Basin. The modest jump in oil prices seen after OPEC agreed on a 1.2 million bpd cut allowed hundreds of rigs in the U.S. to reactivate, causing barrel rates to tumble as Libya and Nigeria also tallied rising outputs. Riyadh needs a strong barrel price to guarantee a hefty valuation for Aramco ahead of the IPO, which is why it announced that the nation would extend its cuts through March 2018. Saudi Arabian clout in the oil community would take a hit if the plan to rebalance supply fails over the next few months.

There’s nothing Trump can really do about shale production. Unlike oil-rich countries in the Gulf, Africa, and South America, where nationalized oil companies are the norm, the U.S. oil sector is highly privatized. The CEOs of ExxonMobil, Chevron, and the hundreds of other oil companies active in the country reserve the right to decide when to drill and when not to drill. On top of that, Trump’s campaign vow of unleashing exploration and extraction prospects in the U.S. makes it unlikely that the White House would use regulatory power to curtail future fossil fuel development. Carving out a niche in the new administration looks to be an uphill battle for Saudi Arabia.

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Megaton Jim's picture

Trump used his losing property to launder Jew mob money, maybe he'll do the same thing for the Saudi's!

barndoor's picture

$40 billion is a pretty sweet gift.  

I figured that they would just have every prince in the kingdom stay at Trump hotels everywhere they went for the duration of the administration (i.e. the next couple of months).

thesonandheir's picture

Only got to find another 960 billion dollars.

 

Down the back of the sofa maybe?

Erek's picture

The Berner Zeitung (Swiss) is reporting that Sweden has stopped the legal persecution of Assange, and is dropping the charges of rape.

http://www.msn.com/de-de/nachrichten/politik/schweden-stellt-verfahren-g...

caconhma's picture

Jared Kushner personally asked the CEO of Lockheed Martin (LMT) to lower the price of a radar system so Saudi Arabia could afford to include it in an arms deal, according to a report by the NYT.

This toxic Yellow Orange MUST GO ASAP!

hootowl's picture

The Kushner WH Trump-handler and the Khazarian MIC CEOs are all members of the same tribe which owns and controls all the big central banks of the world and, of course, the major core American weapon and munitions suppliers.  If you don't understand that, you are not paying attention.

 

Anyone who steps out of line in that coven/cabal will soon be eliminated.

meta-trader's picture

you can add an extra 1500/USD week after week in your income just working on the internet for a couple of hours each day... check this link... http://bit.ly/2jdTzrM

Uchtdorf's picture

Who knew that there was a swamp in the middle of the Arabian desert?

barndoor's picture

I hope the the Saudis don't kill any "beautiful babies" in Yemen with all the arms that Trump is going to sell them.

I'm just kidding.  Dying in a gas attack is terrible, but dying from a cluster bomb is actually pretty cool.  I'm sure the babies wont mind.

earleflorida's picture

"Why Saudi Arabia would pay Ransom to Trump rather than Support its own People?"

http://www.middleeasteye.net/columns/king-s-ransom-460884023

GodHelpAmerica's picture

It's a good thing the US is here to fight terrorism by allying and arming the number one sponsor of it...

hootowl's picture

We must better arm them so the "peaceful" wahhabis, Turks, and sunnies can kill the "terrorist" Turks and Syrians and shia more efficiently and the zionist-US permawarriors can further enrich themselves by providing weapons to all sides.

 

YEEHAAAA,.....More War!!!!

Anteater's picture

And he took a $35,000,000 loan from NJ taxpayers, then declared bankruptcy as soon as the check cleared. But what really galls is hid Trump Steaks 'scheme', over-reporting Mexican and Brazilian meat deliveries from the mob on his losing casinos books, then high-grading whatever they didn't need, freezing it, and selling it on QVC as 'prime beef', 'the best'. Guy's a mobster.

Anyonev who gushes over a loser con-man mobster like Trump is a fap boy.

Mark Urbo's picture

You sound like another butthurt leftist

Suggest you get some butt cream and aplly it several times a day for next 8 yrs

new game's picture

40 billion, yeah, enuf to get my attention. same for deep state billionaires. arm the bitchez to the hilt and game on. kill, kill, moar, moar...

kwc's picture

The author sounded smart up to the point of referring to oil as fossil fuel.  Zero scientific basis for oil from fossils.

barndoor's picture

What is oil then? Where dos it comes from?

Is your comment some sort of Christian orthodoxy (i.e. world is only 6,000 years old)?

willspeaks's picture

Google "Abiotic Oil". There are real scientists on both sides of the argument. I tend to agree with the Abiotic side.

A. Boaty's picture

If abiotic exists, that would make fracking unnecessary. Why scrape the bottom of the barrel if the Earth simply makes more? The fact that we have already picked the low hanging fruit and have to go into deep water and shale/tar sands proves we have a finite amount of petroleum.

hootowl's picture

Oil is the waste/excretion from critters in the deep, hot, biosphere.  Educate yourself.  The truth is out there, but the stubborn, historical, anachronistic, lies and deceptions promulgated by academia and agenda-driven wealthy elitists are more prevalent.

barndoor's picture

Okay, please help to "educate" me:

(1) where is the "deep, hot, biosphere"?

(2) what are the "critters"?

(3) what do the "critters" eat prior to their "excretion"?

 

WTFUD's picture

Does the Pope piss & shit on little boys and girls in the woods?

earleflorida's picture

the 'Golden Triangle' or seeing eye of the pyrimid is a 'Christian/Jew/Muslim-Trinity' that can't be broken?

visits to the Pope, is the signing of death warrant...[!]

El_Puerco's picture

HEY!...People! GOOD NEWS and James Brien "Jim" Comey Jr. has a JOB offer!

: BREAKING NEWS - Julian Assange is a free man: Sweden DROPS rape probe against WikiLeaks founder - but will he now fly to Ecuador to avoid extradition to the US?

See you Man!..

Saludos...

jet20's picture

Bought by the Goldmans CHECK

Bought by the Neocons CHECK

Bought by the Deep State CHECK

Bought by the Saudis CHECK

 

Trump, you idiot! Just because your name card says "President", that does not mean you are in charge...

 

nevertheless's picture

And what do they all have in common, Zionist "Jews". 

highwaytoserfdom's picture

12 of the 911 hostages were from Saudi Arabia

 

 

Free Mecca

Last of the Middle Class's picture

Democrats make no bones about their desire for massive government and complete socialism down to what bathroom you piss in. Republicans need "infrastructure" improvements to accomplish the same thing. Ultimately its about massive, unresponsive, complete irresponsible government by the elite for the elite. We have a new two part system in the US. The elites on either coast and fly over America, who rudely cling to traditional American conservative values. The truth hurts.

nevertheless's picture

The first step is understanding there is no such thing as dems or republicans, they are just actors in a play, to set one American against another. 

But I certainly agree with your primary message, governemnt by and for the "elites", who I call them Zionist Jews, because that is exactly what the vast majority of them are. 

willspeaks's picture

Yes, but look on the bright side. They are going to re pave the road to serfdom.

sister tika's picture

40 billion could build a wall, couldn't it. A big one. Or maybe fix a few bridges and/or interstates in bad repair.

WinstonSmith1984's picture

Crony Capitalism. It's the Trump way.

nevertheless's picture

the show never ends...if the saudis give anything, it was decided long ago how much and when they would offer it to make ZioTrump look good, like a "deal maker".

 

One thing the ZioMofia knows is how to make a good story. 

 

It seems like only yesterday the ZioMedia told the story of a young black President, who was the most liberal in history. Of course even the most basic review of Obama's actions would prove he was anything but liberal, like Clinton, and Trump, they were slaves to the globalist, Zionist war mongers, who allow expansion of Israhell, bomb the hell out of Muslim nations, support globalization, mass migration, and spying on Americans, all the while the media just keeps saying, "he is liberal". 

What this does of course is make open borders, war and globalism "liberal ideals, THEY ARE NOT. Sadly, Americans have no memories, and no convictions. 

The dems did not and now the republicans show they don't either. Trump's reversal of a campaign promise to put Clinton in jail, should have bee a clarion call, a first sign of things to come, but only silence was heard. Like every time before the ZioMedia dictated reality, and they painted Trump as "forgiving".

http://www.cnn.com/2016/11/22/politics/conway-no-clinton-charges-donald-...

 

If you remember, it was all email all the time before the election, but as soon as the election was over, the media dropped the narrative, the distraction was no longer needed. Now it's the lie about Russia, and to be sure, it's the ZioMedia that dictates how long this distraction will go on. People need to stop watching the media, it is nothing but lies. I only read, that way I am not subject to their obvious manipulation. 

 

Everything we see/hear on from the media/Washington is choreographed, a movie produced in Hollywood, paid for by Wall Street and Israel, to paint a picture that is part of their plan. Americans are by far the most manipulated people on the planet, this is just more part of that over obvious manipulation. 

 

shimmy's picture

Maybe most of the 1 trillion will be financed by foreign governments in a quid pro quo type of scenario. I guess that's how you make murica great again.

ThanksIwillHaveAnother's picture

Now need for Congress anymore.  

Ban KKiller's picture

Islamic, that right there tells you how soundly ignorant the Saudis are, camel lovers. Ha ha ha ha.Their cult is dangerous and should be destroyed with logic and science, two things they hate.

Hemiskull's picture

 

Fuck the Axis of Evil (KSA, Israel, Vatican)

ToSoft4Truth's picture

Money from the people who toppled the WTC buildings is an insult.

 

 

sheikurbootie's picture

If Saudi invests in "the wall", then I'm in.  We'll pay them back with Mexican interest too.

Swamp Yankee's picture

A box of cubans is a gift.

 

40B is half of a major transaction.

 

I want to see the other half.

 

Long on pothole repairs.

sheikurbootie's picture

Only blue States have potholes, everyone else has great roads.  The liberals have run out of everyone elses money. 

NYC roads are WORSE than most 3rd world capitals.

barysenter's picture

Blue states rip up perfectly good roads and replace them with shitty ones.

HalinCA's picture

You should see the roads in Detroit ...  even the pot holes have pot holes ...

earleflorida's picture

think about  a 'Three Seas Alliance' being 'RAM`sea'`d down the MENA's energy pipehole?!?

'Red/Arabian/Mediterranean' Seas Treaty?

its a coming,...[?]  so sayeth 'Ramsee's thy Great Pharaoh

just can't figure a '4Seas' name for it--- but[t] 'RAMS' sounds appropiate for now?!?

earleflorida's picture

***#4***   <Galilee Sea>  The 'Four Seas' MENA Allinace

'GARM`seas NA(Indian [IO] OceanTO Alliance (4C)

G  Galilee Sea

A   Arabian Sea

R   Red Sea

M   Mediterranean Sea

GARM (norwegian origin: Guards the Gates of Hell) 

mary mary's picture

It's a fee, nothing, fee, nothing, fee, nothing more.

Flash44's picture

Truly a third world country now.

Conax's picture

Trump off to Saudi Arabia- I hope he remembered his shoeshine box.

William Dorritt's picture

The Infrastructure plan is to sell off all of the recurring revenue assets still owned by the public to private investors so the Govt can fill pot holes one time.

This is a scam.