/johnny
One of my daily prayers, part of reviving America as a Nation under God, is to be energy independent.
This is an economic war. If we had the right people in office, they would break the Saudis hold on world energy.
Subsidize our producers until the Saudi economic terrorists quit.
The Saudis need to start buying up North Dakota farmland. Before the Chinese do.
in a sane world, the Saudi dictator would be bowing to the “American” president, not the other way around.
(and America would be energy independent instead of having sell-out or enemy-agent politicians blocking USA Energy Independence)
in a sane world....
Bull. It is about crippling Russia.
Why is Saudi Arabia doing this NOW? Maybe because Obama stabbed the Saudis in the back by making a deal with its mortal Shiite enemy, Iran, that will allow the Ayatollahs to continue to build their nuclear bomb.
Earlier, the West had imposed sanctions on Iran to hurt its economy and therefore stall its nuclear program. However, Obama has now lifted those sanctions.
Also, for years the Saudis, like the rest of the world, had believed that the U.S. and/or Israel would destroy Iran’s nuclear facilities with air strikes. Remember Bibi Netanyahu’s Red Line? But for some reason, Bibi has turned, if not into a chickensh**, at least into a chicken.
So there stands Saudi Arabia, alone — like the British during the Blitz of World War II — and very vulnerable.
So is it any wonder that the Saudis would try to destroy Iran with their own version of sanctions — lowering oil prices until Iran’s oil-dependent economy — much poorer than Saudi Arabia’s — collapses, or at least has to stop its centrifuges from running?
And how much is Saudi Arabia suffering from lower oil prices? Not much if it hedged its sovereign investments by buying stock in airline companies (American Airlines, up 30% since August, or by loading up on U.S. dollars which trade inversely to the price of oil).
If bringing America’s fracking companies to their knees is the Saudis’ main objective in keeping oil prices low, it won’t be long before its goal has been reached and the situation can reverse itself. However, if the Saudis are determined to destroy Iran and its Ayatollahs, we could be in for a long siege.
In which case, the airline stocks will be flying into the stratosphere and so will their investors. American Airlines (symbol: AAL).
this isn’t DUMB, the writer is...Saudi have three trillion in reserves and can ride out any storm...only true financial idiots cant see the game they play...in a game of Poker if you bet constant amounts and YOU have the most money youll outlast the competition...
Someone this past week commented that one of the reasons the Saudis are dropping prices is to generate as much capital as possible in the event ISIS gets a foothold in their country. Not sure how much truth there is to that belief.