Economy 53,143 Posted January 25, 2016 Share Posted January 25, 2016 http://mobile.reuters.com/article/idUSKCN0V32DG Saudi Arabia has come to recognize that oil now has an uncertain future and are thus going ahead with anbitious plans to change the entire system Politically and economically Politically Saudi Arabia will create more branches of Government deligating more reponsibility away from King so that there can be more flexibility and adaptability to change policies as circumstances change Economically the Saudis want major privatization of many industries including portions of healthcare as an era of lower oil revenue makes such a large and expensive bloated Government impossible to sustain 70% of adults dont work in Saudi Arabia collecting welfare. Of the half that does work, 2/3 work for Government. The saudis are hoping to encourage more private sector investment by making policy changes to make it easier to set up a business. They also hope more women can be encouraged to enter the work force Additionally, fuel subsities have already been slashed recently. The Government also promisses temporary increases in spending in some sectors hoping to kickstart industries that later can support themselves Saudi Arabia still has $500 Billion in cash reserves, low debt and many assets it can sell to raise needed funds to invest in the changes. Should oil prices remain low, it remains to be seen whether their funds are enough to pay for the change of the entire system Link to post Share on other sites More sharing options...
LebaneseDude 6,146 Posted January 25, 2016 Share Posted January 25, 2016 Oh what a shock centralized power leads to inefficiencies... Good on them. Edited just now by LebaneseDude. Link to post Share on other sites More sharing options...
Economy 53,143 Posted January 25, 2016 Author Share Posted January 25, 2016 3 minutes ago, LebaneseDude said: Oh what a shock centralized power leads to inefficiencies... Good on them. They are indeed extremely inneficient hopefuly this is a wakeup call for them Link to post Share on other sites More sharing options...
Luc 4,776 Posted January 25, 2016 Share Posted January 25, 2016 So basically a transition to a free market economy like the US'. Great, but it shouldn't be too fast or it could have negative effects (political instability and economic uncertainty). Link to post Share on other sites More sharing options...
Nino 12 Posted January 25, 2016 Share Posted January 25, 2016 Let's all hope this goes well Link to post Share on other sites More sharing options...
Economy 53,143 Posted January 25, 2016 Author Share Posted January 25, 2016 6 minutes ago, Luc said: So basically a transition to a free market economy like the US'. Great, but it shouldn't be too fast or it could have negative effects (political instability and economic uncertainty). I agree changing an entire system is a slow process too much change too fast can cause systemic shocks and im surprised u said that. Isnt the US too right winged for your taste still? Its less than it used to be but its still more than europe Link to post Share on other sites More sharing options...
Shipper 13,114 Posted January 25, 2016 Share Posted January 25, 2016 This is really interesting. I only think what cheaper gas means on my end and never really thought about the impact of low gas prices on the economies of oil producing nations. To think that it would affect not only an economic and political change, but also social change too. I can't imagine 70% of the population getting welfare. They really must be rich if they have sustained them for so long. I'm happy for the direction Saudi Arabia is heading and I am happy gas prices are so low! I drive about 186 km a day about 110~ miles and having cheaper gas is welcome so I can buy more ARTPOP albums. 🩶🩶🩶🩶🩶🩶🩶🩶🩶🩶🩶🩶🩶🩶🩶🩶🩶🩶🩶 Link to post Share on other sites More sharing options...
Better Day 5,766 Posted January 25, 2016 Share Posted January 25, 2016 I wish our amazing tory prime minister - who f*cks pigs - would stop doing deals with Saudi Arabia. In the same note stop doing deals with China Save the planet, save the trees Together You And I! Link to post Share on other sites More sharing options...
Economy 53,143 Posted January 26, 2016 Author Share Posted January 26, 2016 3 hours ago, MissRebelDolly said: I wish our amazing tory prime minister - who f*cks pigs - would stop doing deals with Saudi Arabia. In the same note stop doing deals with China Save the planet, save the trees China is doing massive investments in renewables and making a swift shift into a service based economy in part to deal with their pollution problems may wanna learn facts a little better before criticising Link to post Share on other sites More sharing options...
Economy 53,143 Posted January 26, 2016 Author Share Posted January 26, 2016 3 hours ago, Shipper said: This is really interesting. I only think what cheaper gas means on my end and never really thought about the impact of low gas prices on the economies of oil producing nations. To think that it would affect not only an economic and political change, but also social change too. I can't imagine 70% of the population getting welfare. They really must be rich if they have sustained them for so long. I'm happy for the direction Saudi Arabia is heading and I am happy gas prices are so low! I drive about 186 km a day about 110~ miles and having cheaper gas is welcome so I can buy more ARTPOP albums. Heres another impact... My Country Canada is the 5th largest oil producer in the world and we have the worlds 3rd largest oil reserves. Oil is also our biggest export the fall in oil has caused our currency to fall... So besides expensive fruits and vegetables that cost a fortune to import from US bow, I also had to cancel my trip to NYC cause the terrible exchange rates will make it to expensive to vacation in the US Its all low oil prices fault Link to post Share on other sites More sharing options...
Shipper 13,114 Posted January 26, 2016 Share Posted January 26, 2016 Just now, Economy said: Heres another impact... My Country Canada is the 5th largest oil producer in the world and we have the worlds 3rd largest oil reserves. Oil is also our biggest export the fall in oil has caused our currency to fall... So besides expensive fruits and vegetables that cost a fortune to import from US bow, I also had to cancel my trip to NYC cause the terrible exchange rates will make it to expensive to vacation in the US Its all low oil prices fault I googled a bit about this since I really didn't know WHY oil prices are so low. (Not the best on current events or whats happening beyond my box). I guess there were just a lot in reserve and the demand became lower. Another thing I read, though this is more of a conspiracy theory is that it is a ploy of the US and Saudi Arabia to economically hurt Russia and Iran. http://www.nytimes.com/interactive/2016/business/energy-environment/oil-prices.html Just a stupid conspiracy theory though. I hope your trip to NY still happens somehow. It might cost more but maybe it's the perfect time to do a roadtrip through the US? I dunno gas is cheap make the best of it at least while you are on vacation. 🩶🩶🩶🩶🩶🩶🩶🩶🩶🩶🩶🩶🩶🩶🩶🩶🩶🩶🩶 Link to post Share on other sites More sharing options...
Luc 4,776 Posted January 26, 2016 Share Posted January 26, 2016 18 hours ago, Economy said: I agree changing an entire system is a slow process too much change too fast can cause systemic shocks and im surprised u said that. Isnt the US too right winged for your taste still? Its less than it used to be but its still more than europe I support privatizing most things as long as it means higher efficiency (and ofcourse things like police, jails, healthcare and education should always remain public). Link to post Share on other sites More sharing options...
Shadow 6,707 Posted January 26, 2016 Share Posted January 26, 2016 13 hours ago, Shipper said: I googled a bit about this since I really didn't know WHY oil prices are so low. (Not the best on current events or whats happening beyond my box). I guess there were just a lot in reserve and the demand became lower. Another thing I read, though this is more of a conspiracy theory is that it is a ploy of the US and Saudi Arabia to economically hurt Russia and Iran. http://www.nytimes.com/interactive/2016/business/energy-environment/oil-prices.html Just a stupid conspiracy theory though. I hope your trip to NY still happens somehow. It might cost more but maybe it's the perfect time to do a roadtrip through the US? I dunno gas is cheap make the best of it at least while you are on vacation. Interesting notion, but the Saudi Arabia stated recently that they are not crashing the oil market to hurt Iran: http://money.cnn.com/2016/01/19/investing/saudi-arabia-oil-prices-iran/ It seemed more plausible that the oil price crash was an effort to hurt their competitors in the U.S., Canada, and other non-OPEC energy industries which it has been. Not sure how the oil sand companies that created a boom in recent years are handling the prices. Prices usually go down when supply is higher than demand, which is unusual for resources like oil, the backbone of America's petrodollar, whose demand is nearly always high. However, how deep are those Arabian reserves and with plans on the table for Saudi Arabia politically revolutionize with a growing uncertainty in oil, is that a sign we're getting close or passing oil's peak in reserves? Stand in the light, cast your shadow. Link to post Share on other sites More sharing options...
Florian 20,017 Posted January 26, 2016 Share Posted January 26, 2016 14 hours ago, Economy said: China is doing massive investments in renewables and making a swift shift into a service based economy in part to deal with their pollution problems may wanna learn facts a little better before criticising The swift shift is not due to pollution. China is just too industrialized, the country can produce more than people are asking (and it's a first time in History). So if China doesn't want to see its growth plummet, it has to make this swift shift. Link to post Share on other sites More sharing options...
Sudarshana 581 Posted January 26, 2016 Share Posted January 26, 2016 Wow, amazing if it happens. Did we see a lot of monarchs who restricted their power by their own will? Nous sommes tous obligés, pour rendre la réalité supportable, d'entretenir en nous quelques petites folies. — Marcel Proust Link to post Share on other sites More sharing options...
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