KSA Economy About To Collapse?
Aug 6th 2015, 10:25 am
#2
Hit 16's
Joined: Mar 2010
Location: Of all the gin joints, in all the towns, in all the world, she walks into mine
Posts: 13,112
Re: KSA Economy About To Collapse?
One can only hope.
And good (I think) definition of rentier state here: https://en.wikipedia.org/wiki/Rentier_state
This exerpt is defining:
"According to Douglas Yates, the economic behavior of a rentier state:
embodies a break in the work-reward causation ... [r]ewards of income and wealth for the rentier do not come as the result of work but rather are the result of chance or situation."
And good (I think) definition of rentier state here: https://en.wikipedia.org/wiki/Rentier_state
This exerpt is defining:
"According to Douglas Yates, the economic behavior of a rentier state:
embodies a break in the work-reward causation ... [r]ewards of income and wealth for the rentier do not come as the result of work but rather are the result of chance or situation."
Last edited by Bahtatboy; Aug 6th 2015 at 10:30 am.
Aug 6th 2015, 11:08 am
#3
Joined on April fools day
Joined: Apr 2012
Location: 30 miles from a decent grocery store.
Posts: 10,642
Re: KSA Economy About To Collapse?
Saudis, Russians, Iranians what a nice bunch, no tears shed with 98% of the world I wouldn't imagine.
Aug 6th 2015, 11:36 am
#4
BE Forum Addict
Joined: Mar 2015
Location: Paphos Cyprus
Posts: 1,833
Re: KSA Economy About To Collapse?
Is everyone forgetting that the Saudis discovered Huge GOLD reserves and these have yet to be exploited. Saudi will not go bust.
Aug 6th 2015, 12:03 pm
#5
Hit 16's
Joined: Mar 2010
Location: Of all the gin joints, in all the towns, in all the world, she walks into mine
Posts: 13,112
Re: KSA Economy About To Collapse?
My first international project was on the Goldfields Madh Adh Dhahab goldmine, back in the 80's. Worked in an office in London, with an Ozzie QS called Bruce who was travelling/working the world with his girlfriend Sheila.
Aug 6th 2015, 4:10 pm
#6
Lost in BE Cyberspace
Joined: Aug 2009
Location: Disneyland, Dubai
Posts: 15,887
Re: KSA Economy About To Collapse?
44.22 USD a barrel at this very minute.
Aug 6th 2015, 4:14 pm
#7
Hit 16's
Joined: Mar 2010
Location: Of all the gin joints, in all the towns, in all the world, she walks into mine
Posts: 13,112
Re: KSA Economy About To Collapse?
What's oil going to bounce back to? $75 or more? And is that because shale not all it's fracked up to be?
And gold? If the events in the ME turn into major economic dislocation for the region, is that why gold will recover its attraction?
Bit brief, I know...
Aug 6th 2015, 4:20 pm
#8
Lost in BE Cyberspace
Joined: Aug 2009
Location: Disneyland, Dubai
Posts: 15,887
Re: KSA Economy About To Collapse?
Not bad for a barrel of gold. I'll take 2, please.
What's oil going to bounce back to? $75 or more? And is that because shale not all it's fracked up to be?
And gold? If the events in the ME turn into major economic dislocation for the region, is that why gold will recover its attraction?
Bit brief, I know...
What's oil going to bounce back to? $75 or more? And is that because shale not all it's fracked up to be?
And gold? If the events in the ME turn into major economic dislocation for the region, is that why gold will recover its attraction?
Bit brief, I know...
Oil, i've always thought it was a demand problem not a supply one - turns out it really is both now. All that said, the world needs oil (it does not need gold) and we will be burning it for many more years to come. I think the environmental issues on fracking will be what kills it eventually, but not until some massive disaster has unfolded.
We are at 44 USD now... It may touch something very low, but a long-term price has to be something about 60. That price is sustainable for the industry and consumer.
Aug 6th 2015, 4:28 pm
#9
Hit 16's
Joined: Mar 2010
Location: Of all the gin joints, in all the towns, in all the world, she walks into mine
Posts: 13,112
Re: KSA Economy About To Collapse?
actually, I don't believe in gold. it has no real use. given the shit everything is in and deflation all around, gold will be in trouble a while.
Oil, i've always thought it was a demand problem not a supply one - turns out it really is both now. All that said, the world needs oil (it does not need gold) and we will be burning it for many more years to come. I think the environmental issues on fracking will be what kills it eventually, but not until some massive disaster has unfolded.
We are at 44 USD now... It may touch something very low, but a long-term price has to be something about 60. That price is sustainable for the industry and consumer.
Oil, i've always thought it was a demand problem not a supply one - turns out it really is both now. All that said, the world needs oil (it does not need gold) and we will be burning it for many more years to come. I think the environmental issues on fracking will be what kills it eventually, but not until some massive disaster has unfolded.
We are at 44 USD now... It may touch something very low, but a long-term price has to be something about 60. That price is sustainable for the industry and consumer.
Gold just seems to be purely demand-driven, and given its lack of utility for most owners it will always remain a whimsical investment.
Having said that, as someone fairly well-known once said, "The markets can stay irrational far longer than you can stay solvent."
Aug 7th 2015, 6:10 am
#10
Lost in BE Cyberspace
Joined: Aug 2009
Location: Disneyland, Dubai
Posts: 15,887
Re: KSA Economy About To Collapse?
Very logical. Conventional oil recovery has had its fair share of disasters, but I guess because most of those have been offshore the NIMBY factor has been limited.
Gold just seems to be purely demand-driven, and given its lack of utility for most owners it will always remain a whimsical investment.
Having said that, as someone fairly well-known once said, "The markets can stay irrational far longer than you can stay solvent."
Gold just seems to be purely demand-driven, and given its lack of utility for most owners it will always remain a whimsical investment.
Having said that, as someone fairly well-known once said, "The markets can stay irrational far longer than you can stay solvent."
Of course. Short term, they are going to frack everything.
Aug 7th 2015, 5:16 pm
#11
Gold-Helmeted Member
Joined: Dec 2004
Location: Setubal-ish
Posts: 688
Re: KSA Economy About To Collapse?
Economic problems are the biggest driver of political unrest. Would really not want to be living in small nations next door if it all kicks off in Saudi. Definitely time to run before the bearded men on pickup trucks arrive.
Regardless, I am sure Dubai will still sell itself as a place of safety and stability, and some suckers will buy it.
Regardless, I am sure Dubai will still sell itself as a place of safety and stability, and some suckers will buy it.
