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Low oil prices shock saudi middle class

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posted on Sep, 23 2016 @ 09:38 AM
Saudi Arabia has built an economy on oil and it has come around and bitten them in the butt.
They are cutting subsidies on water, fuel and electricity because of huge deficits in oil income. That is hitting the middle class hard.

Here is a clip from the article.

"Lower revenue hurts economy, prompting government to withdraw some benefits; as cost of living rises, consumers cut back on spending"

"Mohammed Idrees used to travel to London once or twice a year, but these days the Saudi civil servant is asking his wife and children to cut back on using the family car to save fuel and has installed a solar panel for the kitchen to reduce electricity costs.

For decades, Saudi nationals such as Mr. Idrees enjoyed a cozy lifestyle in the desert kingdom as its rulers spent hundreds of billions of dollars of its oil revenue to subsidize essentials such as fuel, water and electricity."

This is what happens when you "pull" all your eggs from one basket. Eventually the basket is empty.

Don't for one minute think that a saudi collapse will not effect the rest of us big time. Keep an eye on this situation.

edit on 23-9-2016 by Bluntone22 because: spelling

edit on Fri Sep 23 2016 by DontTreadOnMe because: EXTERNAL QUOTE TAGS ADDED

posted on Sep, 23 2016 @ 09:54 AM
a reply to: Bluntone22

I may be a cold hearted person, but when you spend years and hears having the Oil Barons manipulating the market to fund their lavish lifestyles, and suddenly have to realize that their cash crop is failing, makes me feel a bit vindicated. They can't grow much more than dirt and rocks over there, and the opulence has been so in your face it's a bit disgusting. So please forgive me if my tear ducts remain dry this time.

Perhaps Dubai can build a giant indoor garden instead of another indoor ski resort.

eta: the oil prices have been manipulated by our government this time, and to what end, I don't know. I rather doubt it's to make the middle class Americans feel warm and fuzzy, but while it lasts, I'll smile.
edit on 23-9-2016 by network dude because: added thought

posted on Sep, 23 2016 @ 09:58 AM
How about the Saudi royal's pull out all the money they've been squirreling away:
Saudi King, UAE President at the Center of the Panama Papers
They have plenty of of it considering their hands in the global drug trade:

posted on Sep, 23 2016 @ 10:11 AM
a reply to: Bluntone22

If they cut back on production the price of oil would go up but because they are walking the Washington plan to weaken Russia with the oil prices they are going to pay a bigger price then the Russians .On to of that becoming a proxy for the US against Yemen they also cause a security problem they didn't have before . They are basically swapping bread for bullets .

posted on Sep, 23 2016 @ 10:17 AM
It's just a precursor to what's coming to America. We allow the government to print money that's not there, and spend money it doesn't have. The next step is the same as Saudi and several European nations. When the government realizes that it has already surpassed the point of sustainability and has to pull back its subsidies and other welfare programs.

posted on Sep, 23 2016 @ 10:25 AM
a reply to: Bluntone22

Time to invest into oil me thinks.
Company's that mainly refine gas and diesel are losing big time. But company's that make other petroleum products are going to be fine. We need plastics, steel, etc. Don't really need gasoline if you think about.
Rockefeller dropping ExxonMobil, Toyota going emission free by 2030, gigafactory, something is up.
I think they will be hurt a bit till the market climbs back up.

posted on Sep, 23 2016 @ 12:44 PM
a reply to: network dude

Me thinks America dropped the oil prices not to make Americans feel fuzzy, but to make the Russians regret Crimea. After the oil drop and sanctions, the ruble turned to rubble.

posted on Sep, 23 2016 @ 01:02 PM
a reply to: CriticalStinker

OPEC sets oil prices. Saudi Arabia is a member.

posted on Sep, 23 2016 @ 01:29 PM
a reply to: Bluntone22

Yea, I worded that wrong. Obviously we don't set the price but I'm sure we can have influence with Saudia Arabia. Whether that be our military assistance or protecting them in the eyes of the world since it is an oppressive regime.

The other school of thought is Saudia Arabia is taking the hit to gain control in the future. Houston is hurting, some companies will be wedged out giving Saudi Arabia more room to gouge when oil is less available.

Either way the price is artificially low

posted on Sep, 23 2016 @ 03:43 PM
Ummmmm don't care, did they worry about me when gas was $3.80 a gallon.

posted on Sep, 23 2016 @ 03:53 PM
Plus the Saudi's bought one of the biggest if not the biggest oil refineries in th e U.S. i believe it was last year. Located in Texas. Som3thing tekls me it was a strategic move for the future prices whatever they may become..

posted on Sep, 25 2016 @ 10:54 AM
Alteration of oil prices based on speculation has been done already for many years now. It started roughly in 2001 after 9-11. Rampant inflation in the Euro area brought the EU to react in an unconventional and confused way. The EU through the London Stock Exchange, has manipulated the oil price up at least 5 folds in a very short time, to absorb such inflation for the benefit of the Eurogarchs. Such measures have hidden inflation that didn't account for increase in oil price. That's because inflation is calculated from a basket of goods, that does not contain oil and derivatives of oil (Gasoline, Diesel etc..)

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