Saudi Arabia is Running Out of Money



CNN Money: “While the world’s attention is focused on Saudi Arabia’s latest flare up with Iran, many Saudis are concerned about the “economic bomb” at home. The government is slashing a plethora of perks for its citizens.

The cash crunch is so dire that the Saudi government just hiked the price of gasoline by 50%. Saudis lined up at gas stations Monday to fill up before the higher prices kicked in.

“They have announced cutbacks in subsidies that will hurt every single Saudi in their pocketbook,” says Robert Jordan, a former U.S. ambassador to Saudi Arabia and author of “Desert Diplomat: Inside Saudi Arabia Following 9/11.”

Opinion: How do governments distract the public when the economy is crumbling? Start a war.

Since the invention of extracting oil from rock, the US has become the world’s largest oil producer of expensive oil. And since the Saudis know how expensive it is, they are overproducing oil to force US shale oil producers out of business.

In effect, our friends the Saudis, are anything but.

On August 14, 2015 Saudi Arabia issued its first government bonds since 2007 to cover a growing budget deficit, and its neighbor, the United Arab Emirates, has scrapped fuel subsidies in an effort to deal with sharply lower crude prices.

Bottom line, the Saudis are in a cash crunch, while the Iranians are about to get a $150 billion windfall thanks to the US president.

A war will do just fine.

See Headline “Britain must side with the Saudis against Iran” @