Low Crude Oil Prices And Saudi Arabia's Future

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Remember the previous Arab Springs, maybe it isn't over until the fat lady sings? Okay so, that was a fun play on words for an article writer like myself, but let's talk about this shall we? You see with low oil prices Saudi Arabia will have to borrow money to continue the promises to its people, all that social welfare. Could Saudi Arabia and a number of other Arab states fall the wayside as did Libya, Egypt, Tunisia, Syria, etc., etc.? Well, think about it, this last go around we almost lost Jordan, and things are not so good those Oil Republics, Oil Monarchies, or Kingdoms.
There was an interesting article on the Martin Armstrong Economics Blog recently, posted on December 28, 2015 titled; "Saudi Arabia Announces Fiscal Deficit of $135 Billion," by Martin Armstrong which states: "Yesterday, Saudi Arabia announced that 2015 would produce as budget deficit amounting to $135 billion - 367 billion riyals."
The Wall Street Journal similarly noted on December 24, 2015 in an article titled; "Oil's Fall Is set to Limit Saudi Arabia's Largess" by Ahmed Al Omran and Margherita Stancati which noted that the Kingdom for the first time began running a deficit in 2014 and now it is getting quite significant, and postulates that the Kingdom is in trouble if oil prices remain low much longer. If the Kingdom back-offs its food subsidies and low fuel prices and doesn't maintain such levels there will be civil unrest, and this isn't very good timing as the whole Middle East is having challenges, terrorism and wars.
Back in 2010 many Arab states noted they needed to see the world oil prices at $85-90 per barrel to ensure growth and 'stability' but that is indeed a pretty tall order. With economic turmoil in the BRICS - Brazil, Russia, India, China, South Africa, no one is laughing at the problems ahead, and instability is not good for the world, or the humans on said planet. Of course, paying outrageous oil and fuel prices isn't good for anyone either.
The IPCC and Global Warming Crowd would like to see fossil fuels go away to save the planet from so-called "evil CO2" a mere trace gas in the atmosphere. The IPCC says that Global Warming will cause people to die in poor nations - still I wonder how many people will die in a WWIII scenario. It wouldn't take much to kindle that flame in 2016, and how delighted the Club of Rome would be to see human populations taken back by 2/3rds in an all-out-war between the nations of the world.
No, I am not proposing an apocalyptic theory of any kind, but 2016 might be a good year to play it safe, play nice and keep all this in mind.
Lance Winslow has launched a new provocative series of eBooks on Future Concepts. Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank; http://www.worldthinktank.net
Article Source: http://EzineArticles.com/expert/Lance_Winslow/5306

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