Saudi Arabia has warned Donald Trump that the incoming US president will risk the health of his country’s economy if he acts on his election promises to block oil imports.
In a sign of the difficulties Mr Trump faces over his campaign pledges to create “complete American energy independence” from “our foes and the oil cartels”, Saudi Arabia’s energy minister pointedly reminded the president-elect that the US “benefits more than anybody else from global free trade”, adding, “energy is the lifeblood of the global economy”.
“At his heart President-elect Trump will see the benefits and I think the oil industry will also be advising him accordingly that blocking trade in any product is not healthy,” Khalid al-Falih, who is also chairman of Aramco, the state-run oil company, told the Financial Times in Marrakesh, where he is leading Saudi Arabia’s delegation in UN climate talks…. [read more]
article: Permian’s Wolfcamp formation called biggest shale oil field in U.S.
One month ago, when we last looked at the Fed’s update of Treasuries held in custody, we noted something troubling: the number dropped sharply, declining by over $27.5 billion in one week, the biggest weekly drop since January 2015, pushing the total amount of custodial paper to $2.83 trillion, the lowest since 2012. One month later, we refresh this chart and find that in the latest weekly update, foreign central banks continued their relentless liquidation of US paper held in the Fed’s custody account, which tumbled by another $22.3 billion in the past week, pushing the total amount of custodial paper to $2.805 trillion, another fresh post-2012 low.
Then today, in addition to the Fed’s custody data, we also got the latest monthly Treasury International Capital data, which showed that the troubling trend presented last one month ago, has accelerated. Recall that a month ago, we reported that in the latest 12 months we have observed a not so stealthy, in fact quite massive $343 billion in Treasury selling by foreign central banks in the period July 2015- July 2016, something truly unprecedented in size and scope.
Fast forward to today when in the latest monthly update, that of July, we find that what until a month ago was “merely” a record $343 billion in offshore central bank sales in the LTM period ending July 30, one month later this number has risen to a new all time high $346.4 billion, or well over a third of a trillion in Treasuries sold in the past 12 months….. [read more]
Another article: China Holdings of U.S. Treasuries Drop to Almost Four-Year Low
Congress enacted a law to allow families of victims to sue Saudi Arabia for its implicit role in 911, and seize Saudi assets if they obtain a judgment against the Saudi government. The “president” fiercely fought the legislation and vetoed it. Congress, in a rare show of both unity and spine, overwhelmingly overrode his veto. Hillary Clinton’s running mate, Senator Tim Kaine, did not vote, signaling that team Clinton also opposed the legislation.
Deputy Crown Prince Mohammed bin Salman, released a statement in June saying that the Saudis fund 20 percent of Clinton’s campaign, which is illegal. Put two and two together and Clinton’s terror sponsoring donors can now be sued and their assets seized…. [read more]
“Hillary says that the Saudis, Qataris, Kuwaitis and others should stop sponsoring terrorism. Yet her foundation has taken at least $75 million from them and others, with one claiming it funds 20 percent or $42 million of her presidential campaign. Add that Huma Abedin, whose family is foundational to the Muslim Brotherhood terrorist organization, is Clintons top aide, and her campaign chairman John Podesta works for the Saudis, and there is the appearance of something deceptive, illegal and dangerous to Americans taking place with Ms. Clinton.”
Riyadh has approved a long-term economic blueprint to transform the kingdom’s economy aimed at minimizing the country’s reliance on oil.
Titled ‘Saudi Vision 2030’, the plan reveals budget, policy and regulatory changes which are to be realized over the next 15 years to help the country’s economy to survive beyond crude. Over seventy percent of the country’s income comes from energy exports. With the plunge in crude prices Saudi Arabia ran a record deficit of over $90 billion in 2015.
Riyadh intends to raise its share of non-oil exports in non-oil GDP from 16 percent to 50 percent. It aims to build a “prosperous and sustainable economic future” for the kingdom, according to the news release. It also gave details on privatization and the creation of what it called the “largest sovereign wealth fund in the world.”… [read more]
LHWM Notes: Is this sound familiar “prosperous and sustainable economic future”? How about connecting it to the 2030 Sustainable Global Goals.