Any informed observer, by now, should be fully aware that the Saudis are hurting financially. That is, they are hurting as much as any degenerate hedonistic ruling class of genetic royalty can be. But, while Saudi princes roll around in money and women and unspeakably depraved forms of entertainment and while they oversee a nation of slaves and prisoners, the bank accounts of the Kingdom of Saudi Arabia are now at a low point.
After years of decadence and willingness to lavishly fund terror and propaganda all across the world and after agreeing to work with the United States in asuicidal attempttohurt Russiaat the oil export pump, Saudi Arabia is finally starting to realize that there may actually be abottom to their bankaccounts.
Even as major Saudi corporations begin going belly up (the Bin Laden group is essentially bankrupt), the Saudi government is now openly considering its massive contracting population in IOUs and tradable bonds.
Saudi Arabia has told banks in the country that it is considering giving contractors IOUs to settle some outstanding bills, according to people with knowledge of the discussions.
As payment from the state, contractors would receive bond-like instruments which they could hold until maturity or sell on to banks, the people said, asking not to be identified because the information is private. Companies have received some payments in cash and the rest could come in the “I-owe-you” notes, the people said, adding that no decisions have been made on the measures.
Saudi Arabia has slowedpayments to contractorsand suppliers, tapped foreign reserves and borrowed from local andinternational banksin response to the decline in crude oil, which accounts for the bulk of its revenue.
Even Moody’s the notorious lying agency that gave derivatives in the United States good credit ratings before the collapse, downgraded the Saudi long-term issuing rate from A1 to Aa3.Bloombergreports,
Saudi Arabia’s economic growth is slowing as revenue from oil exports declines. Gross domestic product will likely expand 1.5 percent this year, the slowest pace since the global financial crisis, according to a Bloomberg survey of economists.
“Until there is greater clarity on this situation some negativity and increased speculation from investors and other market participants should be expected,” said Chavan Bhogaita, head of market insight and strategy at National Bank of Abu Dhabi.
This news comes asSaudi Arabia is threateningto sell off hundreds of billions of dollars of U.S. assets if Congress passes a bill that would allow families of the victims of 9/11 to sue the KSA. Although President Obama has already threatened to veto the bill, such threats were most likely hollow to begin with. After the news of the Saudi financial condition, however, it is even less likely that the Saudis would go through with their threat.
Of course, we still expect Obama to veto the bill.
The first foreign fighters to arrive in Ukraine at the start of the war in February, 2022 were Canadians. The first foreign officer arrested by Russian forces on May 3 was a Canadian general. Clearly, Canada, although more than 6,000 kilometers away from Ukraine, has a hidden involvement in this conflict. In this article, I…
The liberal world order, which lasted from the end of World War 2 until today, is rapidly collapsing. The center of gravity is shifting from west to east where China and India are experiencing explosive growth and where a revitalized Russia has restored its former stature as a credible global superpower. These developments, coupled with…
“We could arrive suddenly one night” was the common front-page headline in several Turkish newspapers Sept. 26. In a chorus, the papers were trumpeting the warning of military action that President Recep Tayyip Erdogan had issued to the Iraqi Kurdistan Regional Government (KRG) the day before over its independence referendum. The Turkish army had already…
Any fair judgment about Barack Obama’s presidency must start with the recognition that he inherited a dismal situation from George W. Bush: the U.S. economy was in free-fall and U.S. troops were bogged down in Iraq and Afghanistan. Clearly, these intertwined economic and foreign policy crises colored how Obama viewed his options, realizing that one…
One of the clearest indicators of the legitimacy or otherwise of Western military actions is the coverage that is given to it by the western media. When evidence emerges that the given military action was at best ill-founded and more often blatantly illegal under international law, then the western media is silent as to any…
It’s a positive development that Pakistan’s US-backed post-modern coup authorities aren’t capitulating to their foreign patron’s pressure to distance themselves from the SCO by refusing to participate in October’s anti-terrorist drills in India. This is especially so since they could easily have done that under the pretext of protesting the unresolved Kashmir Conflict and especially…
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.OkPrivacy policy