Is Saudi Arabia Going Broke?

1032424469By Brandon Turbeville

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 a suicidal attempt to hurt Russia at the oil export pump, Saudi Arabia is finally starting to realize that there may actually be a bottom to their bank accounts.

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.

As Bloomberg reports,

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 slowed payments to contractors and suppliers, tapped foreign reserves and borrowed from local and international banks in 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. Bloomberg reports,

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 as Saudi Arabia is threatening to 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.

Image Credit

Brandon Turbeville – article archive here – is the author of seven books, Codex Alimentarius — The End of Health Freedom, 7 Real Conspiracies, Five Sense Solutions and Dispatches From a Dissident, volume 1 and volume 2, The Road to Damascus: The Anglo-American Assault on Syria, and The Difference it Makes: 36 Reasons Why Hillary Clinton Should Never Be President. Turbeville has published over 650 articles on a wide variety of subjects including health, economics, government corruption, and civil liberties. Brandon Turbeville’s radio show Truth on The Tracks can be found every Monday night 9 pm EST at UCYTV. His website is BrandonTurbeville.com He is available for radio and TV interviews. Please contact activistpost (at) gmail.com.

This article may be freely shared in part or in full with author attribution and source link.


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13 Comments on "Is Saudi Arabia Going Broke?"

  1. UnderTheBedMonster | May 23, 2016 at 5:50 pm | Reply

    He can’t approve that bill as it would hurt his fellow mussies……no way!!!!

  2. Rick Miller | May 23, 2016 at 6:33 pm | Reply

    Is Venezuela the new Saudi Arabia?
    Why are so many Zionists buying land in Latin America?

    • Choice properties at real bargains. The1%’ers can scoop up land deal all through the latin american countries. Especially deal that might end up as cash cows once everything starts turning around. It always turns around…

  3. Oil has been decoupled from the market and the price plummet was the globalists manipulating production and price to counter the inflationary effects of helicopter money (debt spending and QE) in US, Europe, China, etc – which eventually has big ripple effects. In the first round, the big bank bailout printing press $$$ was balanced by income deflation, squeezing the middle classes. In round two oil prices were the most efficient target.

  4. Aren’t all nations going broke by design?

  5. I just love the way Turbeville throws out words, if they sell off US bonds then “After the news of the Saudi financial condition, however, it is even less likely that the Saudis would go through with their threat.”.
    How would swopping US bonds for KSA imports and debt in any way hurt the Saudis?

  6. This is the reason the military,government,industrial perpetual oil war machine rolls on.
    The Sauds want to keep their oil prices above the $30 dollar a barrel price.
    Middle east countries flood the market with cheaper oil the Sauds have no other options left but to play it out and prevent alternative energies from gaining ground, such as the electric automobiles and wind turbines and solar panels.
    Apparently solar panels are getting cheaper.

    • Solar panels may be getting cheaper but you can bet when the maintenance cost start catching up with their users there’s really going to bey out cries of misinformed rip-offs and hidden cost not reflected by the pushers of this green energy wonder. You will notice there is never any discussions or printed articles about the cost of storing this ‘green energy’ to be used when the charging source is not available. Like where does the power come from when the wind isn’t strong enough to spin the windmills fast enough or the solar panels aren’t putting out what’s needed because the sun’s been behind the clouds for a week.
      I’ve lived where we had to rely on energy produced from alternate sources and stored in very expensive batteries when production was way down. Believe me, you’ll think about it a lot more than you do if you’re behind on your payment to the power company.

      • berrybestfarm | May 24, 2016 at 5:40 pm | Reply

        You are right about the hidden costs. I have been off-grid for 5 years and my power costs are the same as if I was on the grid. The plus is that I don’t have to deal with the power company or ever worry about getting behind on a bill. Off grid is definitely pay as you go.

  7. Maybe they’re following the path of Venezuela, and for very similar reasons!

    • Venezuela is in real bad shape according to the news coming from latin american news sources. Why aren’t they collecting on the US dept they are holding?

  8. Maybe the reservoirs are slowly drying up?

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