[misterno]

I don’t understand where Saudis will find the money to pay for this. Even without this 100BN dollar deal, KSA is in the projection to go bankrupt in 5 years so where is the money coming from?

[misterno]

$this->bbcode_second_pass_quote('GASMON', 'O')il

[Cog]

This is why Trump is president and you are not.

[misterno]

$this->bbcode_second_pass_quote('pstarr', '')$this->bbcode_second_pass_quote('misterno', '')$this->bbcode_second_pass_quote('GASMON', 'O')il

[Cog]

This deal can easily be financed through Goldman Sachs or any other large investment banking firms. I believe our Treasury Secretary knows a few guys over there. *wink*. Maybe some Aramco stock, after their IPO, as collateral.

Trust me on this. People are going to make a wad of cash on this deal. Which is why Trump is the right guy in office to make this happen.

[Plantagenet]

$this->bbcode_second_pass_quote('misterno', 'I') don’t understand where Saudis will find the money to pay for this..... where is the money coming from?

[ROCKMAN]

Does anyone bother to read the ENTIRE KSA balance sheet? Bankrupt? LMFAO

http://www.tradingeconomics.com/saudi-a ... ebt-to-gdp

[peripato]

$this->bbcode_second_pass_quote('misterno', 'I') don’t understand where Saudis will find the money to pay for this. Even without this 100BN dollar deal, KSA is in the projection to go bankrupt in 5 years so where is the money coming from?

[Antaris]

Lots of dumb ass people like cog to give money away.

[EdwinSm]

Rockman, thanks for the link. That is a low debt to GDP ratio. So it looks like they would be able to borrow lots of money if needed.

[EdwinSm]

According to the EIA the oil export revenues for Saudi Arabia for the last few years are:-

2010 $ 229 billion
2011 $ 336 billion
2012 $ 353 billion
2013 $ 334 billion
2014 $ 297 billion
2015 $ 157 billion
2016 $ 133 billion.

Quite a drop, but still lots of money, but they must be hurting.

Link:- https://www.eia.gov/beta/international/regions-topics.cfm?RegionTopicID=OPEC, and link within page for data pre-2015

[Outcast_Searcher]

$this->bbcode_second_pass_quote('EdwinSm', 'A')ccording to the EIA the oil export revenues for Saudi Arabia for the last few years are:-

2010 $ 229 billion
2011 $ 336 billion
2012 $ 353 billion
2013 $ 334 billion
2014 $ 297 billion
2015 $ 157 billion
2016 $ 133 billion.

Quite a drop, but still lots of money, but they must be hurting.

Link:- https://www.eia.gov/beta/international/regions-topics.cfm?RegionTopicID=OPEC, and link within page for data pre-2015

[Cog]

As long as their check clears, the USA will be happy with the result. Much better than the deal of handing the Iranian's $150 billion in electronic cash and $400 million in pallets of real cash on a tarmac.

[misterno]

Would you spend 20% of your total reserves to arms and guns when it is shrinking so fast that you will be penniless in 5 years?

Nobody with the right mind would do that

The Saudis know something that we don't or someone or some country promised something behind the doors?

Does anyone here think oil price will ever be above $100/brl which is what Saudis need to balance the budget?

I don't think so.

So what is going on here?

[Cog]

The Saudi's know the price of oil won't stay at $50ish long enough for them to run out of cash reserves. And lets not forget the 2 trillion that Aramco is going to be worth when they have their IPO. Two trillion buys you a lot of time for the price of oil to go back up. Which of course it inevitably will.

[Outcast_Searcher]

$this->bbcode_second_pass_quote('misterno', 'W')ould you spend 20% of your total reserves to arms and guns when it is shrinking so fast that you will be penniless in 5 years?

Nobody with the right mind would do that

The Saudis know something that we don't or someone or some country promised something behind the doors?

Does anyone here think oil price will ever be above $100/brl which is what Saudis need to balance the budget?

I don't think so.

So what is going on here?

[Zarquon]

https://lawfareblog.com/110-billion-arm ... -fake-news

"Last month, President Trump visited Saudi Arabia and his administration announced that he had concluded a $110 billion arms deal with the kingdom. Only problem is that there is no deal. It’s fake news.

I’ve spoken to contacts in the defense business and on the Hill, and all of them say the same thing: There is no $110 billion deal. Instead, there are a bunch of letters of interest or intent, but not contracts. Many are offers that the defense industry thinks the Saudis will be interested in someday. So far nothing has been notified to the Senate for review. The Defense Security Cooperation Agency, the arms sales wing of the Pentagon, calls them “intended sales.” None of the deals identified so far are new, all began in the Obama administration.

An example is a proposal for sale of four frigates (called multi-mission surface combatant vessels) to the Royal Saudi navy. This proposal was first reported by the State Department in 2015. No contract has followed. The type of frigate is a derivative of a vessel that the U.S. Navy uses but the derivative doesn’t actually exist yet. Another piece is the Terminal High Altitude Air Defense system (THAAD) which was recently deployed in South Korea. The Saudis have expressed interest in the system for several years but no contracts have been finalized. Obama approved the sale in principle at a summit at Camp David in 2015. Also on the wish list are 150 Black Hawk helicopters. Again, this is old news repackaged. What the Saudis and the administration did is put together a notional package of the Saudi wish list of possible deals and portray that as a deal. Even then the numbers don’t add up. It’s fake news.

Moreover, it’s unlikely that the Saudis could pay for a $110 billion deal any longer, due to low oil prices and the two-plus years old war in Yemen. President Obama sold the kingdom $112 billion in weapons over eight years, most of which was a single, huge deal in 2012 negotiated by then-Secretary of Defense Bob Gates. To get that deal through Congressional approval, Gates also negotiated a deal with Israel to compensate the Israelis and preserve their qualitative edge over their Arab neighbors. With the fall in oil prices, the Saudis have struggled to meet their payments since."