So how would a bankrupt Saudi Arabia play out?
The IMF just confirmed Breitbart News' October 5 warning that Saudi Arabia's cash reserves are in free-fall, with a new estimate that the world's richest kingdom may be bankrupt by 2020.
Each October, the International Monetary Exchange issues its World Economic and Financial Regional Surveys. For the first time since the 1960s, the region set to suffer the worst financial agony over the next five years is the Middle East. Ground Zero for that pain is Saudi Arabia.
The reason for Saudi Arabia's reluctance to balance its budget is that the 15,000 members of the six branches of the Saudi royal family buy national support through massive social welfare spending that requires a crude oil price of $103 a barrel to balance their budget.
The vast majority of the 30 million residents enjoy their standard of living due to government handouts. Saudi citizens tend to lack employable skills and are culturally not inclined to work. Of the 5.5 million that do have jobs, 3 million work directly for the government. The small private sector tends only to employ foreigners.
http://www.breitbart.com/national-security/2015/10/22/imf-predicts-saudi-arabia-bankrupt-2020/
Quote from: Solar on October 22, 2015, 08:46:37 AM
So how would a bankrupt Saudi Arabia play out?
The IMF just confirmed Breitbart News' October 5 warning that Saudi Arabia's cash reserves are in free-fall, with a new estimate that the world's richest kingdom may be bankrupt by 2020.
Each October, the International Monetary Exchange issues its World Economic and Financial Regional Surveys. For the first time since the 1960s, the region set to suffer the worst financial agony over the next five years is the Middle East. Ground Zero for that pain is Saudi Arabia.
The reason for Saudi Arabia's reluctance to balance its budget is that the 15,000 members of the six branches of the Saudi royal family buy national support through massive social welfare spending that requires a crude oil price of $103 a barrel to balance their budget.
The vast majority of the 30 million residents enjoy their standard of living due to government handouts. Saudi citizens tend to lack employable skills and are culturally not inclined to work. Of the 5.5 million that do have jobs, 3 million work directly for the government. The small private sector tends only to employ foreigners.
http://www.breitbart.com/national-security/2015/10/22/imf-predicts-saudi-arabia-bankrupt-2020/
Quote3 million work directly for the government.
Sounds like a liberal paradise.
Quote from: walkstall on October 22, 2015, 10:44:10 AM
Sounds like a liberal paradise.
We could ship them our welfare people and our liberals. That would solve a huge problem for us.
Quote from: Solar on October 22, 2015, 08:46:37 AM
So how would a bankrupt Saudi Arabia play out?
The IMF just confirmed Breitbart News' October 5 warning that Saudi Arabia's cash reserves are in free-fall, with a new estimate that the world's richest kingdom may be bankrupt by 2020.
Each October, the International Monetary Exchange issues its World Economic and Financial Regional Surveys. For the first time since the 1960s, the region set to suffer the worst financial agony over the next five years is the Middle East. Ground Zero for that pain is Saudi Arabia.
The reason for Saudi Arabia's reluctance to balance its budget is that the 15,000 members of the six branches of the Saudi royal family buy national support through massive social welfare spending that requires a crude oil price of $103 a barrel to balance their budget.
The vast majority of the 30 million residents enjoy their standard of living due to government handouts. Saudi citizens tend to lack employable skills and are culturally not inclined to work. Of the 5.5 million that do have jobs, 3 million work directly for the government. The small private sector tends only to employ foreigners.
http://www.breitbart.com/national-security/2015/10/22/imf-predicts-saudi-arabia-bankrupt-2020/
Boy, is that an understatement!!!!! We use to say that it took 300 Saudi workers to equal one American woman! :ohmy:
That is the laziest culture I have ever seen!!!
Quote from: kroz on October 23, 2015, 06:52:18 AM
Boy, is that an understatement!!!!! We use to say that it took 300 Saudi workers to equal one American woman! :ohmy:
That is the laziest culture I have ever seen!!!
Yep, I remember reading an argument between a Saudi and Kuwaiti, claiming their country had more people doing nothing, as if it were a badge of honor because of oil wealth, that they were so rich, they had to import people to do the work. :glare: :lol:
Quote from: Solar on October 23, 2015, 07:08:24 AM
Yep, I remember reading an argument between a Saudi and Kuwaiti, claiming their country had more people doing nothing, as if it were a badge of honor because of oil wealth, that they were so rich, they had to import people to do the work. :glare: :lol:
That is true. They imported a ton of Yemeni and Pakistani workers to do the physical work required. Yemeni were street sweepers and trash collectors... lowest level jobs. Pakistani were low level clerks and gophers. Saudis only wanted "important" jobs with "titles". Invariably they screwed up! Every Ramadan there was a major disaster! It was a three ring circus!!! :ohmy:
You mean Saudi Arabia will no longer have the money to manipulate American politics and fund an Islamic agenda (ahem THE CLINTON FOUNDATION) without alienating their lazy, unskilled, socialist population?
THAT IS TRAGIC!!!!!!!
:biggrin:
Quote from: Solar on October 22, 2015, 08:46:37 AM
So how would a bankrupt Saudi Arabia play out?
The IMF just confirmed Breitbart News' October 5 warning that Saudi Arabia's cash reserves are in free-fall, with a new estimate that the world's richest kingdom may be bankrupt by 2020.
It won't play-out, with all due respect... The IMF and Breitbart are wobbling like poorly-mounted ion-thrusters on this one. The House Of Saud is worth 1.4-trillion.
Divided by 15,000, the family will just move money around.
The nation is an investment-magnet. I'd lend 'em cash out of my pocket now, on a
handshake... knowing it'll likely quadruple. They own almost half of
Twitter, as one example.
They just announced they're building the tallest structure in the world... and a surrounding support-city, to keep with sharia law, which somehow dictates how islamic bank-funds are handled.
http://www.msn.com/en-us/money/markets/saudi-arabia-developer-plans-worlds-tallest-building/ar-AAfP0eC?li=AA4Zjn
Quote from: kit saginaw on December 01, 2015, 03:38:45 PM
It won't play-out, with all due respect... The IMF and Breitbart are wobbling like poorly-mounted ion-thrusters on this one. The House Of Saud is worth 1.4-trillion. Divided by 15,000, the family will just move money around.
The nation is an investment-magnet. I'd lend 'em cash out of my pocket now, on a handshake... knowing it'll likely quadruple. They own almost half of Twitter, as one example.
They just announced they're building the tallest structure in the world... and a surrounding support-city, to keep with sharia law, which somehow dictates how islamic bank-funds are handled.
http://www.msn.com/en-us/money/markets/saudi-arabia-developer-plans-worlds-tallest-building/ar-AAfP0eC?li=AA4Zjn
You would lend them cash on a handshake??!! :scared:
I sure wouldn't!!!
Quote from: kit saginaw on December 01, 2015, 03:38:45 PM
It won't play-out, with all due respect... The IMF and Breitbart are wobbling like poorly-mounted ion-thrusters on this one. The House Of Saud is worth 1.4-trillion. Divided by 15,000, the family will just move money around.
The nation is an investment-magnet. I'd lend 'em cash out of my pocket now, on a handshake... knowing it'll likely quadruple. They own almost half of Twitter, as one example.
They just announced they're building the tallest structure in the world... and a surrounding support-city, to keep with sharia law, which somehow dictates how islamic bank-funds are handled.
http://www.msn.com/en-us/money/markets/saudi-arabia-developer-plans-worlds-tallest-building/ar-AAfP0eC?li=AA4Zjn
I think a lot of what the IMF based their calculations on, is our ability in cornering the mkt on oil, and yes, this has the commie IMF scared to death.
It's why they are supporting Chinese currency. Just IMO....
Quote from: kroz on December 01, 2015, 03:53:55 PM
You would lend them cash on a handshake??!! :scared:
I sure wouldn't!!!
In a hypothetical situation without obama, the ME on fire, the family behaving itself, etc., in a market-fantasy sense to prove a point... :wink:
Of course I wouldn't really lend them money. They're putz's.
Quote from: kit saginaw on December 01, 2015, 11:53:58 PM
In a hypothetical situation without obama, the ME on fire, the family behaving itself, etc., in a market-fantasy sense to prove a point... :wink:
Of course I wouldn't really lend them money. They're putz's.
:lol: :lol: That's what I thought!
Quote from: kit saginaw on December 01, 2015, 11:53:58 PM
In a hypothetical situation without obama, the ME on fire, the family behaving itself, etc., in a market-fantasy sense to prove a point... :wink:
Of course I wouldn't really lend them money. They're putz's.
:lol: :lol: :lol:
Quote from: Solar on October 22, 2015, 08:46:37 AM
So how would a bankrupt Saudi Arabia play out?
The IMF just confirmed Breitbart News' October 5 warning that Saudi Arabia's cash reserves are in free-fall, with a new estimate that the world's richest kingdom may be bankrupt by 2020.
Each October, the International Monetary Exchange issues its World Economic and Financial Regional Surveys. For the first time since the 1960s, the region set to suffer the worst financial agony over the next five years is the Middle East. Ground Zero for that pain is Saudi Arabia.
There was a guy on radio several nights ago saying that
Saudi Arabia is buying derivatives from Citicorp
as a hedge against the low oil prices the Saudis are using
to inflict pain on Russia and Iran.
The deal was arranged by Sec. of State John Kerry
(who served in Vietnam, in case you hadn't heard).
In other words, the Obama administration is bailing out the Saudis -
at OUR expense, of course!
Quote from: je_freedom on January 09, 2016, 03:35:41 PM
There was a guy on radio several nights ago saying that
Saudi Arabia is buying derivatives from Citicorp
as a hedge against the low oil prices the Saudis are using
to inflict pain on Russia and Iran.
The deal was arranged by Sec. of State John Kerry
(who served in Vietnam, in case you hadn't heard).
In other words, the Obama administration is bailing out the Saudis -
at OUR expense, of course!
If Saudi Arabia is near bankruptcy can we imagine the shape Russia is in.
Quote from: supsalemgr on January 10, 2016, 05:06:21 AM
If Saudi Arabia is near bankruptcy can we imagine the shape Russia is in.
Makes you wonder about Putin's end-game for being in Syria and propping up Iran.
Quote from: Dori on January 10, 2016, 10:01:15 AM
Makes you wonder about Putin's end-game for being in Syria and propping up Iran.
Distraction. By fanning the flames of nationalism he is hoping to take the Russian people's minds off of how bad the economy is.
Obama is doing the same thing with other things like gun control and climate change.
Quote from: supsalemgr on January 10, 2016, 10:52:07 AM
Distraction. By fanning the flames of nationalism he is hoping to take the Russian people's minds off of how bad the economy is.
Obama is doing the same thing with other things like gun control and climate change.
Or maybe Putin's involvement in Syria is meant to distract us from what he's doing elsewhere.
Quote from: Dori on January 10, 2016, 11:19:45 AM
Or maybe Putin's involvement in Syria is meant to distract us from what he's doing elsewhere.
I think has figured out he does not need to distract Obama as Obama is not going to do anything anyway.
Quote from: supsalemgr on January 10, 2016, 05:06:21 AM
If Saudi Arabia is near bankruptcy can we imagine the shape Russia is in.
http://www.foxbusiness.com/markets/2016/01/12/u-s-oil-prices-dip-below-30-barrel-first-time-since-03.html
The bad news for SA, Russia, Iran and ISIS keeps coming. The article says the heavy oil from Iraq and Canada is nearer to $20 per barrel. Agreed, this is not good for the US oil industry, but our oil people have learned how to deal with these conditions. They can cap wells and come back when the market is better. These other countries need the cash now to pay the light and water bills.
Quote from: supsalemgr on January 12, 2016, 12:48:37 PM
http://www.foxbusiness.com/markets/2016/01/12/u-s-oil-prices-dip-below-30-barrel-first-time-since-03.html
The bad news for SA, Russia, Iran and ISIS keeps coming. The article says the heavy oil from Iraq and Canada is nearer to $20 per barrel. Agreed, this is not good for the US oil industry, but our oil people have learned how to deal with these conditions. They can cap wells and come back when the market is better. These other countries need the cash now to pay the light and water bills.
Sorry sup, but it is not as easy as you imply.
The main difference between our oil production and theirs is that their oil is nationalized. We have publicly owned companies. Low oil prices directly hit the government coffers in the other countries. It hits the pocketbooks of all investors in America.
Plus, it is not as easy as just capping off the wells and returning to them later. There are massive layoffs, massive reduction in production assets (you cannot pay for leases when you have no production), and a huge loss in overall assets. It is very difficult to stop the downward spiral. You lose your ability to attract top tier management. Everything goes to hell in a handbasket..... and the government is virtually untouched by this disaster. Only the largest of oil companies can survive. And that is because of their overseas assets.
American production is very expensive because of the cost of fracking, injection, and shale production. Internationally there are still fields that produce the old fashioned way. And the cost of labor is sustainable. That will literally keep some companies hanging on. Smaller companies won't make it.
The difference between us and OPEC is that we are capitalists! It hurts the "little people" here but the "elitists" there!
Quote from: kroz on January 12, 2016, 03:00:27 PM
Sorry sup, but it is not as easy as you imply.
The main difference between our oil production and theirs is that their oil is nationalized. We have publicly owned companies. Low oil prices directly hit the government coffers in the other countries. It hits the pocketbooks of all investors in America.
Plus, it is not as easy as just capping off the wells and returning to them later. There are massive layoffs, massive reduction in production assets (you cannot pay for leases when you have no production), and a huge loss in overall assets. It is very difficult to stop the downward spiral. You lose your ability to attract top tier management. Everything goes to hell in a handbasket..... and the government is virtually untouched by this disaster. Only the largest of oil companies can survive. And that is because of their overseas assets.
American production is very expensive because of the cost of fracking, injection, and shale production. Internationally there are still fields that produce the old fashioned way. And the cost of labor is sustainable. That will literally keep some companies hanging on. Smaller companies won't make it.
The difference between us and OPEC is that we are capitalists! It hurts the "little people" here but the "elitists" there!
I am well aware of the boom or bust nature of the oil business in the US I lived in MS during the 70's and witnessed first hand how the boom and then the bust then affected the business in LA and MS. My point is the independents know the risk and most plan for the downturn. Yes, people get laid off, but they chose to be roughnecks and work 7 on/7 0ff on rigs with excellent pay. We are so much better off because our oil industry is private. My main point is these nationalistic oil companies become too dependent on oil revenues for their national revenues.