Comments on: Saudis Have $421 Billion Invested in US

By: Sandy

Sandy — Sun, 08 Nov 2009 20:11:13 +0000

Port Capacity is certainly an issue- but I don’t see why the demand for basic goods would rise with oil prices.

By: Solomon2

Solomon2 — Sun, 08 Nov 2009 19:47:58 +0000

If I recall correctly, the driver for the high cost of goods in the KSA during oil booms isn’t the oil price as much as high demand for goods and inadequate port capacity driving portage costs sky-high. What the KSA needs are more ports – and, I suspect, less corrupt port officials who won’t demand a bribe to lubricate the movement of ships.

By: Sandy

Sandy — Sun, 08 Nov 2009 19:01:58 +0000

People “outside” seem always to think Saudi flourishes when oil prices skyrocket. But actually when they go too high- people here start really to suffer. High oil prices inflate the cost of many goods- since so much is shipped in. People’s buying power really drops. I suppose in theory when prices are high- the profit is meant to “trickle down” and help everyone. But we all know how well “trickle down” often works in reality.

By: John Burgess

John Burgess — Sun, 08 Nov 2009 17:57:39 +0000

I’m sure they did. And I’m equally sure they’re cautious about the price of oil getting too high. That seems to have been a Saudi approach for most of its history, in fact. They’ve been the ‘doves’ in OPEC and know that if the global economy tanks, the Saudi economy goes right along with it.

By: Solomon2

Solomon2 — Sun, 08 Nov 2009 16:48:21 +0000

I think I figured it a few years ago, just on the basis of capital movements, at a half-trillion dollars; the amount really started piled up after the Saudis paid off their 1990s debts. But they must have lost 20-40% of their investments in the market and housing collapse of the the past two years.