The Integrated Non-USD Platforms

The many new integrated non-USD platforms devised and constructed by China finally have critical mass. They threaten the King Dollar as global currency reserve. Clearly, the USDollar cannot be displaced in trade and banking without a viable replacement for widespread daily usage. Two years ago, critics could not point to a viable integrated system outside the USD realm. Now they can. The integration of commercial, construction, financial, transaction, investment, and even security systems can finally be described as having critical mass in displacing the USDollar. The King Dollar faces competition of a very real nature. The Jackass has promoted a major theme in the last several months, that of the Dual Universe. At first the USGovt will admit that it cannot fight the non-USD movement globally. To do so with forceful means would involve sanctions against multiple nations, and a war with both Russia & China. Their value together is formidable in halting the financial battles from becoming a global war. The United States prefers to invade and destroy indefensible nations like Libya, Iraq, Ukraine, Syria, and by proxy Yemen. The USMilitary appears formidable against undeveloped nations, seeking to destroy their infra-structure and their entire economies, in pursuit of the common Langley theme of destabilization. In the process, the USMilitary since the Korean War has killed 25 million civilians, a figure receiving increased publicity. The Eastern nations and the opponents to US financial hegemony will not tolerate the abuse any longer. They have been organizing on a massive scale in the last several years. Ironically, the absent stability can be seen in the United States after coming full circle. The deep division of good versus evil, of honest versus corrupt, of renewed development versus endless war, has come to light front and center within numerous important USGovt offices and agencies.
The shape of the US nation will change with the loss of the USDollar’s status as global currency reserve. The starting point for the global resistance against the King Dollar was 9/11 and the onset of the War on Terror. It has been more aptly described as a war of terror waged by the USGovt as a smokescreen for global narcotics monopoly and tighter control of USD movements. Then later, following the Lehman failure (killjob by JPMorgan and Goldman Sachs) and the installation of the Zero Interest Rate Policy and Quantitative Easing as fixed monetary policies, the community of nations has been objecting fiercely. The zero bound on rates greatly distorted all asset valuations and financial markets. The hyper monetary inflation works to destroy capital in recognized steps. These (ZIRP & QE) are last ditch desperation policies designed to enable much larger liquidity for the insolvent banking structures. Without them, the big US banks would suffer failure. They also provide cover for the amplified relief efforts directed at the multi-$trillion derivative mountain. In no way, can the global tolerate unbridled monetary inflation which undermines the global banking reserves.

This post was published at GoldSeek on 26 December 2017.

Saudi Economy Contracts For First Time In 8 Years, Unveils Record Spending Spree To Boost Growth

Back when oil was at $100 and above, the Saudi economy was firing on all cylinders, and nobody even dreamed that the crown jewel of Saudi Arabia – Aramaco – would be on the IPO block in just a few years. However, with oil stuck firmly in the $50 range, things for the Saudi economy are going from bad to worse, and today Riyadh – when it wasn’t busy preventing Yemeni ballistic missiles from hitting the royal palace – said its economy contracted for the first time in eight years as a result of austerity measures and the stagnant price of oil, as the Kingdom announced record spending to stimulate growth.
OPEC’s biggest oil producer said 2017 GDP shrank 0.5% due to a drop in crude production, as part of the 2016 Vienna production cut agreement, but mostly due to lower oil prices. The last time the Saudi economy contracted was in 2009, when GDP fell 2.1% after the global financial crisis sent oil prices crashing. Riyadh also posted a higher-than-expected budget deficit in 2017 and forecast another shortfall next year for the fifth year in a row due to the drop in oil revenues: the finance ministry said it estimates a budget deficit of $52 billion for 2018.
More surprising was the Saudis announcement of a radically expansionary budget for 2018, projecting the highest spending ever despite low oil prices in a bid to stimulate the sluggish economic, saying it expects the GDP to grow by 2.7%. While we wish Riyadh good luck with that, we now know why confiscating the wealth of ultra wealthy Saudi royals was a key component of the country’s economic plan…

This post was published at Zero Hedge on Dec 19, 2017.

Second Saudi Prince Confirmed Killed During Crackdown

Following the death of Prince Mansour bin-Muqrin in a helicopter crash near the Yemen border yesterday, the Saudi Royal Court has confirmed the death of Prince Abdul Aziz bin Fahd – killed during a firefight as authorities attempted to arrest him.
The death has been confirmed by the Saudi royal court.
The Duran and Al-Masdar News both report that the prince died when his security contingent got into a firefight with regime gunmen attempting to make an arrest.
Prince Aziz (44) who was the youngest son of King Fahad.
The Duran’s Adam Garrie points out that Prince Abdul Aziz was deeply involved in Saudi Oger Ltd, a company which until it ceased operations in the summer of this year, was owned by the Hariri family. Former Lebanese Prime Minister Saad Hariri was punitively in charge of the company until it ceased operations.
Prince Abdul Aziz’s strange and sudden death which is said to have occurred during an attempted arrest, sheds light on the theory that the clearly forced resignation of former Lebanese Prime Minister Saad Hariri had more to do with internal Saudi affairs than the Saudi attempt to bring instability to Lebanon.
The Saudi Royal family has now lost two princes in 24 hours.

This post was published at Zero Hedge on Nov 6, 2017.

Enter The NatGas Cartel

The King Dollar is mortally wounded. Many notice but the masses seem largely unaware. Since 1971, the Gold Standard has been removed from its anchor position. But since 1973, the Petro-Dollar has taken its place. It has called for crude oil sales led by the Saudis and OPEC to be transacted in USDollar terms, for oil surpluses to be stored in USTreasury Bonds, and for some kickbacks from the Saudis to the USMilitary complex for weapons purchases. Of course, the US is ready willing and able to create strife and to foment wars whereby the Arab oil monarchs will need more weapons. Since 2014, many events have pointed to the crippled condition of the important link between the USDollar and crude oil. The price has plunged by 50% of more, and not recovered. It is currently lurching in the nether bounds near the $45 level. Anything less than $65 to $70 per barrel is very dangerous for keeping the oil sovereigns afloat and for keeping the US energy sector solvent. Witness the Wall Street banks having tremendous problems with impaired bonds and toxic energy portfolios. They seem not resolvable. They cannot keep the oil price over $50, a sign of their impotence.
Not enough financial analysts connect the new normal of a much lower crude oil price with the eventual vanishing act of the Petro-Dollar. The Wall Street banks are deeply exposed on their entire energy portfolios, which include both bonds and commercial loans. Tens of $billions will have to be written off as loss, beyond the $billions already declared as losses. These corrupt banks have worked their magic to lift the oil price above the $50 level, but failed. They worked the task for over a year, but failed. They need an oil price over $60, but failed. The Saudis did not help the cause, by their ongoing extra output to finance their filthy Yemen War. The Saudis earned the anger of their OPEC partners, especially the Gulf Arab allies. The Wall Street banks deeply resent the Saudis for this deed, but the USMilitary complex loves the Saudis. The other Arab oil producers also harbor consider rancor toward the Saudis, who really have no friends in the entire Persian Gulf region. They are so worthy of a palace coup, which would bring clamors of rejoicing in many corners of the West if it were to occur. The day might be close.

This post was published at GoldSeek on July 5, 2017.

S&P Downgrades Qatar To AA-, Credit Risk Spikes To 2017 Highs

Citing expectations of notable slowing in economic growth andconcerns about fiscal and current account deficits widening, S&P has downgraded Qatar from AA to AA- as credit risk premia hit 2017 highs.
Qatar credit risk is at 2017 highs (but remains well below Jan 2016 recent highs…
Full Statement from S&P…
On June 5, 2017, a group of governments including Saudi Arabia, United Arab Emirates, Bahrain, Egypt, Libya, and Yemen moved to cut diplomatic ties, as well as trade and transport links with Qatar. We believe this will exacerbate Qatar’s external vulnerabilities and could put pressure on economic growth and fiscal metrics. We are therefore lowering our long-term rating on Qatar to ‘AA-‘ from ‘AA’ and placing it on CreditWatch with negative implications. The negative CreditWatch encompasses numerous downside risks to the rating as a consequence of recent events, reflecting that we could lower the ratings if domestic political risks were to substantially increase or if government indebtedness increases materially quicker than we currently expect. We could also lower the ratings if our assessment of contingent liabilities from the banking system or the government’s related entities were to increase, or if Qatar’s external financing lines were withdrawn.

This post was published at Zero Hedge on Jun 7, 2017.

Asian Metals Market Update: June-06-2017

Developments in Qatar will be closely watched. Energy is the root cause of all Middle East wars. After Qatar, Oman will be left. Oman could also start turning into a Yemen from next year. The so called energy war in the Middle East is a joint effort by the Saudi’s and NATO to make new nations including expansion of Israel. Iran is a powerful nation and also has the support of Russia. The Syrian war changed when Russia started intervening. NATO forces are no match for Russian weapons. Gold will get the benefit of doubt. Unofficial physical gold demand in the Middle East will zoom.
Technically gold and silver are bullish but need to break and trade over $1293 and $1776 for another wave of rise. Bloomberg survey says a ninety percent chance of an interest rate hike next week. There is speculation of preponement of German elections so that Merkel cashes in on the increase in voter sympathy towards her. I am not sure whether political developments in the Eurozone and the UK will support gold in the medium term. But any increase in political unrest in Europe will support gold.

This post was published at GoldSeek on 6 June 2017.

America’s financial war strategy

America’s renewed desire to escalate military tensions is a front for America’s continual financial war, this time directed at North Korea, Syria and possibly Iran. This is likely to be the opinion of China’s strategic advisors. We analyse the geopolitics and economics behind America’s war strategy from China’s perspective, concluding that it is entering its final phase. China’s exit plan appears to be to tie the pricing of energy and then other major commodities to gold, returning to the pre-1971 status quo, when the dollar was just a settlement link between commodity prices and gold. Except this time, the dollar itself will be side-lined, so far as China is concerned, which will use the yuan instead for its empire, which will be far larger than that of the US in time, measured by GDP.
The day President Trump assumed office, it appeared that at last there would be dtente with Russia, leading to America’s withdrawal from unwinnable conflicts and towards a new peaceful agreement between these long-term enemies. However, within the traditional presidential bedding-down period of one hundred days, Trump has gone from his electoral platform of disengagement from foreign ventures to overt aggression in multiple locations.
Something major has changed his thinking. Trump has committed no less than five acts of foreign aggression in that short time, with a sixth pending. The first was a joint operation with Emirati commandos in Yemen, which backfired, leading to the death of a Navy SEAL. The second was the recent attack on a Syrian airfield, in response to an alleged poison gas attack. The third is the escalation of military threats against North Korea. The fourth is the bombing of a cave network in Eastern Afghanistan. And the fifth is the deployment of more troops to Northern Iraq and Eastern Syria to step up the fight against ISIS. The rhetoric is also being ramped up against America’s long-term bogeyman, Iran.
The three theatres of war that offer the best prospects for further escalation are Syria, Korea, and Iran. They are in two regions where significant quantities of dollars are owned and invested, offering the potential for capital flight, which should be kept in mind, when reading this article.
Trump is also seeking congressional approval for an increase in defence spending totalling $54bn, a massive increase which, to put it in perspective, compares with Russia’s total defence budget of $66bn.
The default assumption is that American military power and weapons technology guarantees battlefield objectives will be achieved. This hasn’t usually been the case since the first Iraq invasion in 1990. Since then, any initial success has been more than outweighed by subsequent failures and unintended consequences. It is because of American-led operations in Iraq, Afghanistan, Libya and Syria that Europe is flooded with refugees, bringing undercover terrorists with them. There can be little doubt that a dispassionate analyst would recommend America abandons military action, so there must be other reasons behind America’s war-mongering.
China, itself a long-time strategic target for American aggression, is sure to be worried about the escalation of threats to North Korea, and with good reason. In terms of trade, South Korea is now an important trading partner, and for that reason, China will not want to see the situation on the Korean peninsula deteriorate. She will also not want America securing territory which abuts her border. Russia has a small border with North Korea as well and is likely to share that view. However, Russia’s trade is not so much with South Korea, but she is a major arms supplier to the North.

This post was published at GoldMoney on APRIL 20, 2017.

Bill Blain On This Morning’s European Euphoria

Mint – Blain’s Morning Porridge – March 16th 2017
What a fascinating world of possibilities opened up y’day, but let’s start with a simple game. Without thinking about it too much; name 5 famous European politicians of the last 30 years.
I bet none of them were Dutch.
Why? It’s a great country with a functional consensual political system biased towards compromise and coalition. Generally it works. The country works.
Yet this morning the European markets are Risk-ON in frothy celebration because Right-Wing demagogue Gert Wilders ‘apparently’ lost the election and won’t dominate the coalition process. All the anti-pollsters who predicted a higher Wilders vote due to polling bias were proved wrong. The Populist bogeyman was overcome by Dutch common-sense. We can relax as the same-old, same-old Dutch right-of-centre social democracy sits in the comfy chair.
Nothing for Europe to worry about….
Except for the fact that Holland – one of the most successful Euro member economies with a growth rate faster than Germany and less than 7% unemployement – still gave the Extreme populist Right Wing 25% more seats while the ruling VVD (a most unpleasant sounding name for a party) lost about the same amount!

This post was published at Zero Hedge on Mar 16, 2017.

Yemen Denies ‘Fake News’ That It Withdrew Permission For US Ground Operations

Fake news?
Yesterday evening, The New York Times reported that:
Angry at the civilian casualties incurred last month in the first commando raid authorized by President Trump, Yemen has withdrawn permission for the United States to run Special Operations ground missions against suspected terrorist groups in the country, according to American officials. Grisly photographs of children apparently killed in the crossfire of a 50-minute firefight during the raid caused outrage in Yemen.
While the White House continues to insist that the attack was a ‘success’ – a characterization it repeated on Tuesday – the suspension of commando operations is a setback for Mr. Trump, who has made it clear he plans to take a far more aggressive approach against Islamic militants.
With NYT notably remarking on President Trump’s involvement…

This post was published at Zero Hedge on Feb 8, 2017.

Technical Scoop – Weekend Update Feb 5

Week two of Trump. Same as the first week. Confusion and volatility. Courts overturned, at least temporarily, the ban from seven Muslim countries. And apparently even the White House’s appeal to have the ban restored has failed. Sabre rattling was predominant first with an attack on Yemen, a country the US is supposedly not at war with but well known they are backing Saudi Arabia and Egypt in fighting the Houthi rebels who are supposedly backed by Iran as the country is engulfed in a civil war; and, further sabre rattling directed against Iran and North Korea. Trump has also directed an assault on regulations particularly Dodd-Frank, a Wall Street reform and consumer protection act that was signed into law in July 2010 and designed to prevent another recurrence of the events of the financial crash of 2008. There were also riots at University of California Berkley to prevent an ultra-conservative from speaking (he was forced to cancel). They were reminiscent of the Vietnam War protest days of the 1960’s. All topsy-turvy.
With so much in the way of headlines and air being taken up by Trump the events in Quebec City where an extremist Quebecois attacked a Mosque killing 6 and wounding more was almost overlooked at least by Trump who barely acknowledged it centering instead on a lone attack outside the Louvre in Paris, France. Maybe that explains why the White House administration was pushing to erase white Neo-Nazi and supremacists from the US’s counter extremism to focus solely on Islamic extremism. It’s a topsy-turvy world.
Not so topsy-turvy was the markets where in the early part of the week the US stock markets were weakening largely because of all of the events noted above. Once again the tail is wagging the dog as the markets respond to political events. The US Dollar also fell and that in turn pushed gold higher. Friday’s employment report that came in sharply higher than expected helped push the US stock market back up again. As a result the markets closed largely unchanged on the week. Gold, after faltering initially also rose later in the day bucking thoughts that a strong employment number would weaken gold.

This post was published at GoldSeek on Sunday, 5 February 2017.

Asian Metals Market Update: November-15-2016

I am against selling gold and silver unless they fall below yesterday’s low. Silver’s pathetic performance will ensure that more and more investors invest in gold and not in silver. Gold is still a safe call over silver. Physical gold premiums rise anytime and makes up (too a certain extent) the fall in spot prices. Obama advised Trump that it will be a different ball game once Trump moves to the White House. Speculation is that Trump is trying to get special security clearance from the CIA for certain family members. All kinds of confusing news are causing volatility in the markets. Some bankers say gold will fall below $1000 next year under Trump. Others say gold will rise. Even the banking and hedge fund community is divided over the direction of gold for next year.
I agree with Buffet. All election promises are never implemented. Some are just made to win the elections. If Trump succeeds in reviving the American manufacturing sectors and reducing illegal immigrants then gold will come under further medium term bearish direction. To me the Trump’s foreign policy will dictate investment demand in gold and silver. Trump’s foreign policy with (a) UK and European Union be the key. NATO and CIA have common interest of creating more and more wars. Everyone was made to believe that Obama will bring more peace globally. But the reverse happened as he created the Islamic state, bombed innocent humans in Yemen and Syria. (b) Relations with China in the South China Sea. Gold investment demand under Trump will be dependent on Trump’s foreign policy apart from interest rate and other factors.

This post was published at GoldSeek on 15 November 2016.

Crude Lifts After Rising Oil Rig Count Trend Ends

After Yellen, Saudi-Yemen, and Fischer headlines roundtripped crude prices for the day, Baker Hughes’ oil rig count was unchanged for the week at 406 (ending 8 straight weeks of rises). Crude prices are rising modestly on the news…
*U. S. GAS RIG COUNT DOWN 2 TO 81 , BAKER HUGHES SAYS *U. S. OIL RIG COUNT UNCHANGED AT 406 , BAKER HUGHES SAYS US oil rig count continues to broadly track lagged oil prices but stalled the rise this week…

This post was published at Zero Hedge on Aug 26, 2016.


To the casual observer, Saudi Arabia might currently seem like an emboldened nation that is asserting itself. They’ve been challenging Iran, fighting rebels in Yemen, threatening to invade Syria, and if some rumors are to be believed, they are currently trying to attain nuclear missiles from Pakistan. However, these aren’t the actions of a stable nation that is asserting its dominance in the region. These are the flailing death throes of a nation that is struggling to hang on.
Ever since global oil prices started to plummet, Saudi Arabia just hasn’t been the same. That’s no surprise. Since prices fell, other oil rich nations have been hurting as well. Russia’s economy has been on the ropes, Canada is plummeting into a recession, and Venezuela is on the verge of total collapse. However, there probably isn’t any nation on Earth that is more reliant on oil than Saudi Arabia. If anyone is going to be destroyed by low oil prices, it’s the Saudi’s.
The crux of the matter is that this country is running out of money. It doesn’t look like it at first glance. They’ve only recently started to dip into their enormous savings, and their debt to GDP ratio is remarkably low. However, they are hemorrhaging money at an alarming rate. They’ve been flooding the market with cheap oil to drown out their competition (a dangerous gambit for a government that receives 80% of its revenue from oil) , and they’ve been fighting several expensive proxy wars with Iran, which are not going so well. The situation is so dire that the IMF expects them to run out of money within 5 years.

This post was published at The Daily Sheeple on MARCH 6, 2016.

“There Is A Dollar Shortage”: Abu Dhabi Warns On Decreased Dollar Supply

It’s not entirely clear whether Saudi Arabia knew what they were setting in motion when the kingdom moved to deliberately suppress crude prices at the end of 2014.
The idea (of course) was to preserve market share by bankrupting the US shale space and if there were ‘ancillary benefits’ – like say forcing Moscow to give up its support for Bashar al-Assad – well then all the better.
Unfortunately for Riyadh, things didn’t really go as planned. The kingdom’s budget deficit ballooned to 16% of GDP (which, for the uninitiated, is an unmitigated disaster) and this year’s target of 13% will invariably prove to be elusive unless the Saudis decide to either drop the war in Yemen, drop the riyal peg, or (preferably), both.
In any event, the demise of the petrodollar has predictably created a shortage of, well, petrodollars, and it’s starting to show up in the UAE.

This post was published at Zero Hedge on 03/02/2016.

Will Non-OPEC Oil Production Collapse In 2016?

The IEA Oil Market Report, full issue, is now available to the public. Some interesting observations:
Non-OPEC oil supplies are sharply lower in December. Overall supplies are estimated to have slipped by more than 0.6 mb/d from the month prior, to 57.4 mb/d. A seasonal decline in biofuel production, largely due to the Brazilian sugar cane harvest, of nearly 0.4 mb/d was the largest contributor to December’s drop. Production in Vietnam, Kazakhstan, Azerbaijan and the U. S. was also seen easing from both November’s level and compared with a year earlier. Persistently low production in Mexico and Yemen were other contributors to the year-on-year decline.
As such, total non-OPEC liquids output slipped below the year earlier level for the first time since September 2012. A production surge in December 2014 inflates the annual decline rate, but the drop is nevertheless significant should these estimates be confirmed by firm data. Already in November, growth in non-OPEC supply had slipped to 640 kb/d, from as much as 2.9 mb/d at the end of 2014, and 2.4 mb/d for 2014 as a whole. For 2015, supplies look likely to post an increase of 1.4 mb/d for the year, before contracting by nearly 0.6 mb/d in 2016. A prolonged period of oil at sub-$30/bbl puts additional volumes at risk of shut in as realised prices fall close to operating costs for some producers.

This post was published at Zero Hedge on 02/05/2016.

Gold And Silver – Current Prices Do Not Matter.

Truth be known, short of an uprising or revolution by the masses, which is highly unlikely, the elites have won over the masses, hands down, and the end game is in the final and irreversible stages. Time and again, we have reiterated the elites formulaic strategy of Problem, Reaction, Solution. The most current is the outrageous Mid East refugee situation where European countries are being forced to accept hundreds of thousands of displaced refugees from the war-torn Middle East.
It is no secret that the US has been covertly responsible for much of the destruction and strife in that area. Where not covertly involved, the US has provided arms and logistics to Saudi Arabia as the Saudis are destroying helpless Yemenis in the proxy war against Iran.
None of the bought-and-paid-for Western press is questioning how and why, all of a sudden, Middle Eastern refugees have the money and means to escape to various parts of Greece and Europe, en masse. How is it that black Africans were never able to be in a position to migrate from far worse war atrocities? Unseen forces are behind this.
Problem, refugees, Reaction, growing antagonism of Europeans justifiably against the rabble rousing, sexual assaulting of women, robbing trucks on highways, etc, etc, etc, creating instability in an already weakened EU. The Solution is yet to come, but you know it will entail further weakening of individual freedom and eroding of the ability of individual countries to protect against this politically motivated destabilization of Europe where the elites will strengthen their stranglehold over Europeans via the artificially created European Union.
Banks, and now select individual countries, are increasing the call for getting rid of cash altogether, ostensibly to fight terrorists who use cash, the prevention money laundering, and a few other nefarious reasons. The terrorists also use cell phones, but there are no plans to ban cell phones, and perhaps the biggest money launderers, by far, are large banks dealing with drug money to keep their banks afloat. However will the CIA launder all of its drug money from Afghanistan being funneled to support groups like al Qaeda and ISIS?
Guess what happens when cash disappears and all so-called ‘money’ becomes digital?
The elite’s bankers now keep track of every single transaction you make, where and how you spend your digital ‘currency.’ Banks will have a ledger for everyone on which all
inflows and outflows of funds are tracked.

This post was published at Edge Trader Plus on January 30, 2016.


Gold: $1107.70 up $15.80 (comex closing time)
Silver $15.34 up 38 cents
In the access market 5:15 pm
Gold $1094.00
Silver: $14.02
At the gold comex today, we had a poor delivery day, registering 0 notices for nil ounces. Silver saw 0 notices for nil oz.
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 200.82 tonnes for a loss of 103 tonnes over that period.
In silver, the open interest rose by 725 contracts even though silver was only up only 1 cent with respect to yesterday’s trading and again without a doubt we had more short covering. We have an extremely low price of silver and a very high OI. The total silver OI now rests at 168,245 contracts. In ounces, the OI is still represented by .841 billion oz or 120% of annual global silver production (ex Russia ex China).
In silver we had 0 notices served upon for nil oz.
In gold, the total comex gold OI rose by a whopping 8318 contracts to 422,006 contracts as gold was up $13.50 in yesterday’s trading.
We had a huge 4.16 tonnes of gold deposit into gold inventory at the GLD, / thus the inventory rests tonight at 645.13 tonnes. The appetite for gold coming from China is depleting not only gold from the LBMA and GLD but also the comex is bleeding gold. Our 670 tonnes of rock bottom inventory in GLD gold has been broken. It looks to me that China has taken the last amounts of physical gold from the GLD. I guess the only place left for China to receive physical gold, after they deplete the GLD will be the FRBNY and the comex. In silver, we had huge changes in inventory at the SLV/we had massive withdrawals of 4.28 million oz /Inventory rests at 317.797 million oz.
First, here is an outline of what will be discussed tonight:

This post was published at Harvey Organ Blog on January 7, 2016.

Saudi Arabia unveils record deficit as it succumbs to oil price rout

A brutal sell-off in oil prices has forced Saudi Arabia’s government to post the largest budget deficit in its history, as the state’s revenues have crumbled.
The country’s deficit rose to 367bn riyals (66bn), after government spending rose 13pc above officials’ plans in the wake of declining oil prices and a war with Yemen. A Saudi official said that the deficit was ‘considered an acceptable figure’ under the circumstances.
Stock markets reacted positively to the government’s spending plans, as investors had feared far worse news was to come, anticipating an overshoot well in excess of 13pc. The total deficit stood at 16pc of the economy’s size, while analysts had expected a gap of 20pc. The Tadawul All Share Index made a daily gain of 0.7pc.

This post was published at The Telegraph