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Welcome to AUSTERITY Saudi Arabia: Crashing oil prices sends economy into meltdown

All oil and gas production in the United States, is controlled by private companies and I am sure, if they are not profitable they will be shut or idled.
only in the case of shale. since per day production is very low as compared to conventional oil/gas production.
 
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What problem? Cheap oil is good for consumers. :D

Indeed. The other day I was filling at the pump and thought to myself, the gas is now cheaper than mineral water.

Economically speaking the cars nowadays are running on water. :lol:
 
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Indeed. The other day I was filling at the pump and thought to myself, the gas is now cheaper than mineral water.

Economically speaking the cars nowadays are running on water. :lol:

Who doesn't love cheap gasoline? :D
 
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It will be a matter of time before all the cashes melts away. Thinking in the lines of how rash they spend their money . It will be civil war for them . If they dont diversify their economy
Ofcourse diversifying is their only option.

But UAE will survive since they have a smaller population and they have Dubai, which is a conduit for business in the region. In fact Dubai is very happy with sanctions removed on Iran since they will make huge amount of money by doing business with Iran
Remember in recession of 2010 Dubai was among the worst hit cities of ME, back then Abudhabi had backed it by pumping money. Now since Abudhabi is an oil dependent emirate, I am not sure how would UAE fare this time.
 
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Remember in recession of 2010 Dubai was among the worst hit cities of ME, back then Abudhabi had backed it by pumping money. Now since Abudhabi is an oil dependent emirate, I am not how would UAE fare this time.

Well, this time around Dubai will back AbuDhabi.

Dubai was waiting for this moment for a long time and is going to make most of it:

 
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Mate, Food supply is a very serious issue. India is currently self sufficient wrt food to large extent. But as the population increases that will be very much challenged. Even now occasionally there is spike in prices of food items like pulses or essentials like vegetables that sends shivers down the govt & politicians.

Any disruption in food supply to masses has only one definite outcome , La Revolución.:enjoy:
India is completely self sufficient with food. Only the supply chain and commodity speculation push our prices seasonally. Otherwise, if we plan ahead and import a few tens tonnes of pulses(we probably don't even need to actually import, the mere news is enough) in the season, we would be good for the year.
 
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Well, this time around Dubai will back AbuDhabi
Why do you think so?
Expo 2020 was Dubai's only hope, infact it IS the only hope. I do not think the tiny emirate has the capability to be self sufficient like Abudhabi. JMHO! :)
 
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Why do you think so?
Expo 2020 was Dubai's only hope, infact it IS the only hope. I do not think the tiny emirate has the capability to be self sufficient like Abudhabi. JMHO! :)

Maybe because it is supposed to be part of a single fiefdom :D.

But anyways, I personally don't care. I am just quoting the projections of IMF and WB. These are saying the low oil prices will not impact UAE, Qatar, Kuwait, Iran and Iraq as much it will impact Saudi Arabia and Bahrain. In fact IMF is saying now that Saudis will go bankrupt. They have not said such a thing about UAE or Iran. Besides as I had alluded to you above, you will have to look at what private investors do, since no sane person would put his own money into a sinking ship except if that private person is running a vulture fund designed to enslave a nation forever.

So what private investment story tells us:

Big money is betting against Saudi Arabia

.... a growing chorus of investors are speculating that the crash in oil prices may force Saudi Arabia to break its dollar peg. This trend will no doubt continue given the country's current precarious fiscal situation which shows no signs of reverting, given oil's decade low levels," Simon Colvin, research analyst at Markit wrote in a recent report. Saudi Arabia has been forced to slash spending by 14% to improve its fiscal situation. All of this is raising concerns about the threat of social unrest that could further destabilize the situation in the Middle East. Low oil prices could make it impossible for the Saudis to keep their own country stable, much less the rest of the region," says Brad McMillan, chief investment officer at Commonwealth Financial Network.

saudi-440436.jpg


chart.aspx


Of course, only time will tell at the end. But it does not look good what is coming to Saudis.
 
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Haha, everyone knew the day was going to come when the Gulf's reliance on oil would come back to bite them but most didn't expect it so soon. Now the Saudis are going to either massively downsize their outlays or somehow get its lazy citizens off their backsides and into doing something productive.
 
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Haha, everyone knew the day was going to come when the Gulf's reliance on oil would come back to bite them but most didn't expect it so soon. Now the Saudis are going to either massively downsize their outlays or somehow get its lazy citizens off their backsides and into doing something productive.

In a conservative kingdom, such social change would cause instability, and that is the danger the analysts are professing.
 
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Speculators are responsible for worst economic disaster around the world..from German Pre-WW2 collapse to greece and euro zone crisis..speculators function by spreading rumors to take something artificially high up...and collapse it at very fast pace..

Same speculation is working against Saudi but because saudi is not a market too open to speculators they dont understand the dynamics of its working..there are two things Saudis wont do...reduce oil production..and break the peg..the speculators will be curbed automatically once US of A interest start to get hurt...


Maybe because it is supposed to be part of a single fiefdom :D.

But anyways, I personally don't care. I am just quoting the projections of IMF and WB. These are saying the low oil prices will not impact UAE, Qatar, Kuwait, Iran and Iraq as much it will impact Saudi Arabia and Bahrain. In fact IMF is saying now that Saudis will go bankrupt. They have not said such a thing about UAE or Iran. Besides as I had alluded to you above, you will have to look at what private investors do, since no sane person would put his own money into a sinking ship except if that private person is running a vulture fund designed to enslave a nation forever.

So what private investment story tells us:

Big money is betting against Saudi Arabia



saudi-440436.jpg


chart.aspx


Of course, only time will tell at the end. But it does not look good what is coming to Saudis.
 
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