Posted on 11/05/2017 9:00:28 PM PST by TigerLikesRooster
The Saudi purge will change how investors view the Kingdom
Saudi Arabia suddenly arrested powerful royals and businessmen over the weekend
As investors digest the news, they may demand higher returns from Saudi assets to offest the political risks
Sri Jegarajah | @cnbcSri
Saudi Arabia suddenly arrested powerful royals and businessmen over the weekend, in what officials call an anti-corruption drive, but outside observers deem domestic power consolidation.
Either way, the move is likely making investors see Saudi assets as riskier, so they're set to demand higher returns.
Some believe the extraordinary purge is an attempt by 32-year-old Crown Prince Mohammed Bin Salman to consolidate his power by eliminating potential rivals. That may herald political uncertainty, tension and possibly unrest not seen before in the history of OPEC's biggest oil producer.
Among those removed from power was Prince Miteb Bin Abdullah. Prince Miteb, relieved of his post as head of the National Guard, was once considered a contender for the throne.
"It is not possible to remove and imprison all these top princes and all will be business as usual," warned Fereidun Fesharaki, founder of energy consultancy FACTS Global Energy.
That expectation of a new normal will likely mean investors need a higher risk premium — the additional expected return on investment compared to a risk-free (but otherwise identical) asset — to invest in the Kingdom.
"This should increase the risk premium for Saudi assets," said Alastair Newton, a political analyst heading Alavan Business Advisory and a former British diplomat.
(Excerpt) Read more at cnbc.com ...
Trump may be boxed in by deep state in U.S., but he may have more freedom in a foreign country to hit them from behind with the help of his new found allies.
Did Trump make similar deals with Xi?: he could help Xi take down his enemies and consolidate his power which could cut off the flow of Chinese money to Trump's enemies. Another inducement to make Xi work together with Trump to take down N. Korean regime.
If. And I say if. If this Saudi News is a real cleanup or draining of the Saudi Swamp- cesspool, then it will substantially reduce political risk and make Arabia more attractive to investors.
The fermentation process has been going on for some time now.
It sounds like they are taking a Xi Jinping approach.
Hopefully the saudis will need workers and take back all the obozo Islamic invaders and infiltrators plus the f@@@ing Fakestinians too!
They share adversaries (Iran), but mostly they share a positive vision of the future.
Saudi Arabia understands that this isn't the 1970s, and that an economy based entirely around oil, with religious extremists in control, is going to lead to their destruction. They see the success of Dubai without oil, and look to that as a model. They want to use oil money while it is still coming in to build a new, diverse economy, including whole cities that are not under sharia restrictions, to get them away from oil and terrorism.
If you know the history of Italy, much of what is modern Italy used to be run by the Vatican. Eventually that broke up, and the modern arrangement of the country of Italy, plus the Vatican as a small area within it, formed. Saudi Arabia will eventually be a modern state which will surround the Islamic islands of Mecca and Medina.
President Trump fully supports that vision, and will back them up when they need it. Already it has paid off in the Gulf states confronting Qatar over terror funding, and fighting ISIS.
What President Trump gets out of the purge is that the funding from Saudi Arabia to the Bush and Clinton families, and deep state is being cut off.
You can tell Trump is pleased with the purge, because he publically offered to list Aramco, the Saudi oil company, on the NYSE, which would benefit SA's modernization vision.
Prince Mansour bin Muqrin, the son of the former Crown Prince Muqrin bin Abdulaziz and deputy governor of Saudi Arabia’s Asir Province, perished in the accident... The chopper was carrying other government officials, though their fate remains unclear.
There are reports that Saudi Arabia is on lockdown as elite Clinton connections are being detained.
Among the documents related to former al-Qaeda leader Osama bin Laden, released by the CIA, is a letter reportedly sent by his daughter Eman to Iranian leader Ali Khamenei. (excerpt) Another document, sent by al-Haj Osman (as he called himself) to Maulawi Azmari, a prominent al-Qaeda leader, sheds light on Iran’s support for al-Qaeda operatives. This finds mention in Bin Laden’s correspondence and reveals his role as the link between Iranian intelligence and al-Qaeda. In the letter, Osman mentions the details of the return of some elements of the organization to Iran to collect funds and fighters and to communicate with the Iranian intelligence.
Your very last line was interesting.
“Trump offered to list Aramco, the Saudi oil company, on the NYSE.”
That’s good if it’s the right time to do such.
But I didn’t know a president could make facilitate such an addition to the NYSE. I thought that would come from someone like Yellen. Learn something new everyday.
I see this as significant. Yes, Iran is the enemy of both bin Salman and Trump, but this has more bearing on beating deep state globalist enemies. His domestic enemies can deploy court orders, congressional sabotages, and special prosecutors to tie down Trump, but they cannot stop him from launching offensive via a foreign country. It is not just globalists who can play a global game. Trump can, too.
What's happening in Hollywood, while not coming from Trump, will have a devastating effect on donations to the democrat party.
Sessions and others have closed slush funds in the government used to fund left wing organizations.
And now the Saudis who fund the deep state are being replaced by Saudis who don't. This as much as anything is the end of the Bush/Clinton/Obama era.
And in all of this, his supporters have not been negatively affected at all. By the time the election rolls around, the democrat party will be bankrupt and unable to run nationally, and Trump will appear to have done nothing.
It's not in the official job description, but through the secretary of commerce or treasury, he could almost certainly block a foreign company from being listed. The Saudis probably asked for the company to be listed during his visit in April, and President Trump asked for help removing deep state funding coming from SA.
As you said, cutting off funding for liberal organizations and Jihadis (and RINO's) is essential in taking down their operations. No funding means no logistics, no public relations, no training, and no recruitment.
Another angle...what if those princes purged were ones in which the Bush family were heavily invested?
Likely Clinton Foundation also...
As I said in previous replies in this thread, I suspect that is basically what happened. Saudi golden geese of Bushes and Clintons are gone.
...makes sense and they will know what happened but can say nothing...
Thank you for your thoughtful response. I hope you are right.
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