Saudi Arabia = broke by 2018

Like the title says, at the current prices, production rates and consumption, the Kingdom will burn through their cash reserves by 2018. They will need to borrow money to meet their budget shortfalls.

Their government spending has doubled since 2010.

They gambled and left the spigots open to try and squeeze the lasted marginal producers, namely Russian and shale oil producers, but that didn't work. Shale
Producers are adding capacity and lowering their production costs.

What happens if Saudi Arabia goes broke? What then???

Mark Phone Post 3.0

Source?

Good. They fund terror and Muslim immigration to the west. Fuck them. Phone Post 3.0

IF they go broke, they could round up all of our weapons and resell them back to us.

I thought that estimate was based on 60 dollar oil. Seems like it'll be alot sooner than that with the way prices are dropping. Phone Post 3.0

This sounds far fetched to me.

Gonna be lots of good deals on low mileage camels on eBay. Phone Post 3.0

Who is it exactly that has the crystal clear information as to how much money Saudi Arabia controls.

I would consider shorting check table cloth futures. Phone Post 3.0

Not of someone invents a sand powered car. Phone Post 3.0

Mencken - 


Source?


http://www.zerohedge.com/news/2015-08-25/saudi-arabia-music-just-stopped-scramble-slash-spending-begins-oil-math-reveals-dire

mark1 got this from zerohedge, basically word for word


Mencken -


Source?

It's on the front page of CNBC.com

Mark Phone Post 3.0

hubris - 
Mencken - 


Source?


http://www.zerohedge.com/news/2015-08-25/saudi-arabia-music-just-stopped-scramble-slash-spending-begins-oil-math-reveals-dire

mark1 got this from zerohedge, basically word for word



Zerohedge is a good site. I like going there (although most of the time, I feel like I'm not smart enough :-)

If the country does fall apart, it could be teh catalyst for social change. I think there's a huge undercurrent of the younger generation wanting a change to a more modern world.

Also, there is a HUUUUGEEEE disparity between the rich and poor. The rich in Saudi are crazy extravagant so that could make for the poor to be super resentful.

If the prediction is true, it will be very interesting to see. I bet somehow they end up blaming America :-/

Lol if you think oil will be at $40 long term...

In a year it will be back up. Phone Post 3.0

Zekolas - Lol if you think oil will be at $40 long term...

In a year it will be back up. Phone Post 3.0
Please explain how that's going to happen. Phone Post 3.0

Mencken -


Source?

And it's not really a secret or a new discovery. The Saudis have always been in a possible precarious position. Their economy is almost 100% based on crude oil production.

If that production would slow, or the oil price were to drop significantly, they would be in trouble. This is common knowledge. But it was pretty far-fetched to envision either of these scenarios taking place. That is until the shale boom. Add in the huge spending public spending spree the Kings have started and you have recipe for trouble

Mark Phone Post 3.0

Isn't this the plot for Syriana? Phone Post 3.0

Can't they just print more like the US? They must have pretty good printers.

This doesn't bode well for poor Marta

Cue Matt Serra Phone Post 3.0