The Coming Financial Crisis In….Saudi Arabia?

Outlook? Uh, not so good.

Yes, they get all of that money from the West for their oil. But the Saudi Royal Family has been tapping into its cash reserves for years and using the money to prop up allies in the region and buy-off support within its own borders. For years Saudi Arabia has been seen as a moderate in OPEC. But now they require oil to be at $85 a barrel just to balance their budget. And according to financial projections, that will rise to $320 a barrel by 2030. In 1980 they had $180 billion in cash assets. By 2002 that had become $102 billion in debts. Yes, the Saudis still have $500 billion in foreign assets, but that will all be gone by 2030, according to a recent report. We’ve become addicted to those petro-dollars moving through world financial markets that allow us to borrow money on the cheap. Those days are over. No more. Is no country actually saving money out there anymore? One more thing to worry about: the Saudis going broke!