Saudi Arabia Admits To A Full-Blown Liquidity Crisis

Zerohedge ^ | 5/18/2016 | Tyler Durden

[Braak]

Previously we documented that as a result of the still low oil prices, largely a result of Saudi Arabian strategy to put high cost producers out of business and to remove excess supply, none other than Saudi Arabia has been substantially impacted, with the result being dramatic state budget, a sharp economic slowdown and mass worker layoffs.

Just three weeks ago we reported that the biggest construction conglomerate in the middle east, the Saudi Binladin Group had announced it would layoff 50,000 workers ot a quarter of its workforce, slammed by the weak economy.

Now, Saudi Arabia has admitted that in addition to acute economic problems, which will manifest themselves most directly in a soaring Saudi debt load...

[Steely Tom]

Previously we documented that as a result of the still low oil prices, largely a result of Saudi Arabian strategy to put high cost producers out of business and to remove excess supply, none other than Saudi Arabia has been substantially impacted, with the result being dramatic state budget, a sharp economic slowdown and mass worker layoffs.

Some might call that "a stupid move."

I wonder if that has anything to do with the big shakeup in the Saudi royal family we've recently read about.

[PGR88]

They deserve to collapse.

And when they do, there will be the Mother of All Chaos in Islam-world.

Better get used to the idea of a near total travel ban with the Mid-East, North Africa and South Asia, because it will become clear - there is no other choice.

[miss marmelstein]

Oh, dear. Just think of how the Filipino Maid Rape Industry is going to be impacted...

[Nifster]

Ah too bad

[rdl6989]

I like some of the comments at the source.

[IronJack]

I’ve prayed for the day when those unwashed Bedouins are forced to retreat into the desert that spawned them.

[Braak]

Of course, but the 9/11 families who plan on suing the Saudis? They might want to hurry...

[Cicero]

Oh, dear. The bin Ladins are losing big bucks!

[BenLurkin]

They can drink their oil and eat their sand

[KittenClaws]

Of course, but the 9/11 families who plan on suing the Saudis? They might want to hurry...
_________________________________________

This is the reason Saudi “admits to the crisis”. Its like selling your bass boat to your best friend to keep your soon-to-be ex-wife from getting it in the divorce settlement.

[Jenny217]

Couldn’t happen to a more deserving country.

[blueplum]

any hopes of a production freeze by...OPEC - are hereby snuffed for the indefinite future.

will this be of help to drawing manufacturing back to the USA?

[WilliamofCarmichael]

It's time to end Islamism and sharia law. That's what WW III is about.

Muslims Sew Mouth and Eye Shut of Christian Girl as Punishment for Beliefs

Image source is google images.

[Braak]

Agreed. Methinks we might be seeing a second “Arab Spring” hit shortly. And, with the looks of Venezuela...it probably won’t be limited to the Arab World..in short, if you are a member of OPEC, life is going to suck for a while.

[exit82]

I’ve prayed for the day when those unwashed Bedouins are forced to retreat into the desert that spawned them.

What a wonderful expression. Kudos.

[MuttTheHoople]

Back into the desert you go.

[Braak]

Me hell, I am enjoying the impending collapse of the Saudis and their willing accomplices..pass the popcorn..just surprised it is happening this fast...

[null and void]

ping

[clearcarbon]

I suppose if your main income source is oil and you have a lot of bills to pay, if the price of oil is not bringing in enough money than you might have to lower the oil price to sell more. Of course your competitors might do the same. Where does it end?