Saudi Arabia to run out of cash in less than 5 years

money.cnn.com ^ | October 25, 2015 | Matt Egan

[Berlin_Freeper]

If oil stays around $50 a barrel, most countries in the region will run out of cash in five years or less, warned a dire report from the International Monetary Fund this week. That includes OPEC leader Saudi Arabia as well as Oman and Bahrain.

Low oil prices will wipe out an estimated $360 billion from the region this year alone, the IMF said.

[CincyRichieRich]

Good and bad. The proxy war 0Obama is fighting wahabbi vs Sunni vs Shia...all is not clear cut good things like this out here. If house of Saud collapses that just means the Isis boys win and calliphate is formed.

[RockyTx]

al-Queda and al-Exxon
are not happy

[Navy Patriot]

Saudi Arabia to run out of cash in less than 5 years

You mean that the Saudi will no longer be able to fund Islamic terrorist attacks worldwide, in less than five years?

[ChildOfThe60s]

5 years is a long time. A whole lot of change is coming, predictions like this are very speculative.

[Dallas59]

[House Atreides]

Well, if Saudi Arabia runs out of money, I guess Muslims will simply have to rely upon Angela Merkel to fund construction all the needed new mosques where the Islamic invaders have landed around the world.

[Cvengr]

Gold plate?

Only solid gold fixtures were permissible in their 747s designed by Boeing.

[BBell]

[wideawake]

"Price gouging" is a term used only by leftists who do not understand basic economics.

[SVTCobra03]

Do you really want to see the American oil and gas industry destroyed?

[Bellflower]

I don’t remember how but I seem to remember an article about them being secretly subsidized.

[NotQuiteCricket]

Fingers crossed!

[Svartalfiar]

This article makes no sense.. From 1986 through 2004, oil was under $50/bbl, adjusted for inflation. Average maybe $30/bbl. (Ignoring inflation it peaked at $40/bbl in '80, prior to 2005.)

So how did the Sauds make so much money back then, when oil was less than half the price of their 'break-even' point? Unless they suddenly doubled their national spending, or what, there's no way they got crazy rich back then, and yet burn through all their cash in 5 years now.

http://www.macrotrends.net/1369/crude-oil-price-history-chart

[NotQuiteCricket]

Oil is cyclical. “Serious” American oil companies will come out with assets bought on the cheap. There are enough executives that remember the 80s collapse so they didn’t go full on stupid believing, “the price will never go down” which some stock analysts were pushing. Until the “strong” dollar is addressed the oil price will (in my opinion) stay lowish. That also “destroys” profit when oil companies try to repatriate earnings.

[sten]

the US ran out of cash $21 trillion dollars ago.

[SunkenCiv]

"And That Puts Them FAR BEHIND The United States of America! That's Right -- We're Number One! We're So Far Out of Money, We've Plumb Run Out of Serial Numbers!"

[Agamemnon]

"Price gouging" is a term used only by leftists who do not understand basic economics.

President Reagan warned us about this very moment! George Jarkesy | Oct 01, 2013 (Townhall,com)

"From the various price-gouging cartels and guilds that dominate our economy, and decide who can be allowed to do what job irrespective of their skill or ambition...."

Yeah, sure. Townhall.com. Riddled with leftist writers (/sarc)

The Real Culprit Behind Price-Gouging: OPEC - By Ariel Cohen, Ph.D. and William L.T. Schirano, May 31, 2006 (Heritage Foundation)

"If Congress is serious about alleviating the price-gouging that contributes to high gas prices, it ought to begin by allowing the federal government to sue OPEC."

Oh yeah, real leftist Commies over there at the Heritage Foundation.

"Price gouging" describes a state of predatory pricing which results as a consequence of artificial scarcity of an item. Those who have monopolies are commonly inclined to practice price gouging, which is why legislation like the Sherman Antitrust Act was passed.

Learn a little history. OPEC has been practicing international restraint of trade for over 50 years, and some Americans have profited handsomely due to that restraint of trade - a practice which is otherwise banned here inside the US.

Where did you get your economics degree anyway - Monmouth Community College, or some correspondence school you found printed on the back of a match book cover?

[GOPJ]

The United States ran out of cash about thirty years ago.

Well, someone had to fund all the 'programs' dems use to buy votes... could you deny them that? /s

[SVTCobra03]

Why do you say that it is unfortunate that oil will not remain at a low price? Many if not most oil companies are laying off workers and some will actually go bankrupt. It is contradictory to say that oil is cyclical and then say that it will remain lowish. Oil will come back. It always has.

[Tolerance Sucks Rocks]