The IMF just confirmed Breitbart News’ October 5 warning that Saudi Arabia’s cash reserves are in free-fall, with a new estimate that the world’s richest kingdom may be bankrupt by 2020.
Each October, the International Monetary Exchange issues its World Economic and Financial Regional Surveys. For the first time since the 1960s, the region set to suffer the worst financial agony over the next five years is the Middle East. Ground Zero for that pain is Saudi Arabia.
The reason for Saudi Arabia’s reluctance to balance its budget is that the 15,000 members of the six branches of the Saudi royal family buy national support through massive social welfare spending that requires a crude oil price of $103 a barrel to balance their budget.
The vast majority of the 30 million residents enjoy their standard of living due to government handouts. Saudi citizens tend to lack employable skills and are culturally not inclined to work. Of the 5.5 million that do have jobs, 3 million work directly for the government. The small private sector tends only to employ foreigners.