The International Lunacy of Financing Saudi Arabia

Aren’t these exactly the folk who flew into the Twin Towers and then hurried back to their desert bunkers before any serious questions could be asked? And is it not the Saudis who fund global terrorists, working around the clock against U.S. interests? And what about those U.S. hate-spewing Madrasas? Do the Saudis not, on a worldwide basis, fund these institutions of U.S. hatred?

Now after decades of holding the world hostage with oil, the Saudis have mismanaged their finances so poorly that they have come to the international bond market, head-gear in hand, like a Bedouin tribe of global panhandlers. Can you even make up a fairy tale like this?

I’ve explained often that it would be in the best interests of Uncle Sam to cut all ties with the Middle Eastern crowd. Moreover, I would push full speed ahead in establishing our secure national energy base with a complete portfolio of renewable and fossil fuel resources featuring zero imports of oil from the Middle East.

Here The Wall Street Journal lays out the hideous story of Saudi Arabia’s international panhandling mission.

Banks and investors flocked to buy Saudi Arabia’s first global bonds, a milestone in the giant oil producer’s efforts to diversify its economy and embrace global financial markets.

The $17.5 billion sale, the largest-ever debt sale by a developing country.

The offering attracted about $67 billion in orders.

Some money managers said they bought in because the giant bond offering will be a significant part of certain global bond indexes.

Saudi Arabia, he said, “is facing significant challenges coming from falling oil prices and requiring some significant expenditure adjustments. The borrowing needs are quite large.

Saudi Arabia’s fiscal deficit widened to about 16% of nominal gross domestic product in 2015, as oil income tumbled. With income from crude exports accounting for nearly three-quarters of government revenue, the kingdom posted a record deficit of $98 billion last year. It is also embroiled in costly conflicts in Yemen and Syria.

Beyond the borrowing and Aramco sale, Saudi officials have taken other steps. Japanese technology company SoftBank Group Corp. said this month it is teaming with Saudi Arabia to create an investment fund with plans to invest as much as $100 billion in tech companies, part of the kingdom’s effort to lessen its dependence on oil.