Posted on 04/15/2023 9:05:53 AM PDT by delta7
Arabs no longer invest in the West. The next step is the Western debt crisis. Then the expulsion of US bases from the Gulf. Last year, in the context of high oil prices, the Persian Gulf countries received record oil revenues. Consulting agencies estimate the benefit at 600 to 700 billion dollars. Kuwait, Qatar, the United Arab Emirates and Saudi Arabia received the lion's share.
In the past, Gulf countries have invested a significant portion of their profits in US debt and other US assets in exchange for security guarantees. However, after some warming of relations with Israel and the beginning of normalisation of relations between Saudi Arabia and Iran, the need for a US military umbrella disappeared.
American bases in the Gulf have gone from being a guarantor of security to an element of destabilisation. It is only a matter of time before they are expelled from the region, but the Gulf countries' gigantic investment in US assets is holding the Arabs hostage and could delay the process.
The looting of Russian assets by the West, the introduction of restrictions on the use of the dollar and the euro forced the Gulf countries to rethink their investment strategy. In the context of gigantic revenues, the reserves of these countries hardly seem to grow, i.e. these countries do not increase their investments in US debt. Instead, the money is used to pay off their own debts. For example, since the end of 2021, the Emirates have paid 7% of the total debt ($3 billion), Qatar, $4 billion.
In addition, the money goes to support friendly countries. Saudi Arabia announced a $5 billion injection into the Central Bank of Turkey. In addition, together with Qatar and the United Arab Emirates, Saudi Arabia pledged to participate in Turkish government bond auctions. Assistance is also provided to Egypt and Pakistan.
Arab countries are also investing in China and Asia in general, especially in oil refining, strengthening the region's dependence on Gulf oil. Investments in Europe have become unreliable: Saudi Arabia's national fund has lost 80 per cent of its investments in Credit Suisse.
In May, the process of financial divorce from the West has the potential to accelerate greatly. Only $86.5 billion remained in the US Treasury account. Given the gigantic excess of spending over revenues, this will be enough for about a month.
In May, a battle will break out in the US Congress over raising the debt ceiling. Usually, everything is limited to small negotiations between the parties, after which the ceiling is raised. This year, however, the deadly battle for the presidency has already begun. The Democrats must remove Trump from the election at all costs, otherwise they will lose. Republicans can respond by bankrupting the Biden administration.
Moreover, even if the debt ceiling is raised, the Federal Reserve is currently struggling with inflation and cannot print money to buy Treasury bills. China, Japan and many other countries are pulling their money out of US bonds. The Arabs don't want to buy them either. Who will finance the US debt?
Even if the debt ceiling was raised in May, this summer the United States will face a shortage of money and rising interest rates on loans for all categories of borrowers, from households to corporations to the government.
In the summer, at least in the autumn, I think we should expect the onset of the debt crisis in the world and in the United States.
China ( not the West) brokered an historic Peace deal uniting the Shia and Sunni….against the West at that. War cheerleaders, your leadership choice of Biden says much about you….Epic Fail. Why is the West so intent on suicide?
This isn’t suicide.
It’s premeditated murder of their middle classes by Deep States all over the globe.
Deep States’ frontmen are stupid, but the people hiding behind them are not.
And they know their history.
Nailed it!
Yep...Useful Idiots.
Posters should be rriving shortly to call Bunk! and tell us the $doller is as sound as ever.
Vorrect. No stupidity. All planned.
Correct. What is Vorrect, very correct?
Hey, that is right up there with cofefe :)
Well, no surprise, the western MSM will not report 30 some Ukie Generals skimmed $400 million dollars of US aid.
https://www.youtube.com/watch?v=UigcLPbnewQ
….as I have stated before, the decades old EU saying “ when shaking hands with a Ukrainian, be sure to check how many fingers he stole”, rings truer everyday.
When does America wake up?
Posters should be rriving shortly to call Bunk! and tell us the $doller is as sound as ever.
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Crickets, time is beginning to foretell the US’s fate.
.
The Suicide Sanctions are having a destructive effect on Western countries.
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