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Oil price crash: Saudis told to embrace austerity as debt defaults loom
Telegraph (UK) ^ | 30 January 2016 | Mehreen Khan

Posted on 01/31/2016 1:17:32 PM PST by Lorianne

Kingdom faces a future of higher taxes and low fuel subsidies amid fears the world's weakest oil producers will soon begin to buckle ___ Saudi Arabia faces years of tough austerity as the worst oil price crash in the modern history forces the kingdom to make radical cuts to government largesse, the International Monetary Fund has warned.

The world's largest producer of crude oil will need to "transform" its economy away from oil revenues, which make up more than 80pc of the government's wealth, according to Masood Ahmed, head of the Middle East department at the IMF.

The Saudi monarchy has already been forced to unveil the largest programme of government austerity in decades as oil prices have collapsed by more than 70pc in 18 months.

(Excerpt) Read more at telegraph.co.uk ...


TOPICS: Business/Economy; Foreign Affairs
KEYWORDS: energy; oilprice; saudiarabia; saudieconomy
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To: Lorianne

61 posted on 01/31/2016 4:06:34 PM PST by DoughtyOne (the Free Republic Caucus: what FReepers are thinking, 100s or 1000s of them. It's up to you.)
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To: arthurus

Soros and Buffett seem to have a different way of investing lately. I am not sure if its really in their stock holders best interest. Buffet bought one of the largest railroads just before the coal lobby lost out to natural gas. Railroads have done poorly ever since. Soros has bought coal mines for a song. And they still went lower. Now buffet is buying refineries which are also going down.

I would not follow them into these investments. I kind of wonder if they aren’t driving out the profitabilities in these industries by lowering prices. They each have enough money to buy a major player and start a price war.

Think of it this way. If you take the profits out of the coal industry, out of the oil industry, out of the middle east. You end up with a group that has no ability to lobby as strongly as they have in the past. The Saudi’s may not be able to buy the missiles and jets they once used to. The coal industry may not be able to buy the 30 senators they used to. Exxon, Total, Shell may not be able to support the tyrants they used to.

I think a little deflation in the right places may be a benefit to the world.


62 posted on 01/31/2016 4:17:11 PM PST by poinq
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To: Lorianne

I’ll believe it is austerity when they send more than a million foreign maids, million plus foreign drivers and several million foreign workers in retail and the oil fields home - and the Saudis clean their own homes, drive their own kids around and build their own stuff.


63 posted on 01/31/2016 4:35:51 PM PST by tbw2
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To: Gen.Blather

We need to use this drop in oil prices to fill up the strategic oil reserves.


64 posted on 01/31/2016 4:36:40 PM PST by tbw2
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To: poinq

Youthink Soros would do something to benefit anyone other than himself?


65 posted on 01/31/2016 7:20:29 PM PST by arthurus (Het is waar. Tutti i liberali sono feccia.)
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To: The_Media_never_lie

This is sad. I guess they really can’t afford to take in a refugee or two.


66 posted on 01/31/2016 8:01:11 PM PST by mikeIII
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To: Tea Party Terrorist
House of Saud really ramped up their funding to the clergy after the Mecca take over.

Yep. Now, ask yourself *who* was it that put the Mecca takeover together? You've answered this question already, although you may not know it. Follow the money...

the infowarrior

67 posted on 01/31/2016 11:35:33 PM PST by infowarrior
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To: Lorianne

Pretty soon, the Saudis really will be wearing bed sheets. ;-)


68 posted on 01/31/2016 11:36:40 PM PST by r_barton (We the People of the United States...)
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To: Joe Boucher

nobody in india has solid bowel movements. there are no turds floating in the ganges.


69 posted on 02/01/2016 12:14:35 AM PST by Palio di Siena
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To: poinq

I’m having a wild & crazy day, but didn’t want to put off aknowledging your reply, poinq.

I’ll be back- probably tomorrow. Fixing to glue myself to the Iowa caucuses.


70 posted on 02/01/2016 4:27:40 PM PST by KGeorge
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To: poinq

(Apologies that this is so belated, poinq)

Was that the Blackhawk Down thing?

I think I remember the bombing at the World Trade Center. But I thought that was around 1983. That can’t be right. Wasn’t there an attack in Yemen about the same time?

I know that there was some situation where Clinton had the chance to take out Bin Laden & didn’t, but don’t remember the details.

True. We get mixed up in other countries’ business entirely too often, imho. It seems like it always comes back to bite us in the behind. Great Britain has gotten us mixed up in a number of things (Iran) that haven’t worked out well.

I used to know a little about the stuff with Central & South America. It’s been a long time since I read all that, though.


71 posted on 02/02/2016 10:46:58 PM PST by KGeorge
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