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I am a Practitioner of 'The 7e Way of Leaders' where a Leader will Envision, Enable (ASK for TOP D), Empower, Execute, Energize, and Evolve grounded on ETHICS!

Monday, December 28, 2015

Daily Lessons from Life 28 December 2015 - Saudi posts record US$98 billion deficit in 2015: Ministry

3 more days to end of 2015! Time flies! Still 3 days to make SOME of the 2015 Resolutions realities! :-)

"Saudi posts record US$98 billion deficit in 2015: Ministry - AFP 28 Dec 2015

RIYADH: OPEC kingpin Saudi Arabia posted a record $98 billion budget deficit in 2015 due to the sharp fall in oil prices, the finance ministry said on Monday (Dec 28).

Revenues were estimated at 608 billion riyals (US$162 billion), well below projections and 2014 income, while spending came in at 975 billion riyals (US$260 billion), ministry officials announced at a press conference in Riyadh."

Should we be VERY WORRIED?

Lessons for me are:

1. is this REAL? how can this be. 'Black Gold' is supposed to be GOOD forever! How can the kingpin of OPEC be posting a record fiscal deficit of US$98B? What does it mean for the rest of the world? Especially those what make a living, fat one until recently, from supplying products, services and solutions to the OIL & GAS (O&G) industry?;

2. while DEFINITELY those directly linked to the O&G industry will HURT, and hurt BIG TIME, I always wonder whatever happened to: 'when oil price is LOW, things will be CHEAPER, costs of many by products of the O&G industry what flow into other industries will be cheaper'? Growth will be there as people, other than those from the O&G and related industries, will ENJOY cheaper stuffs? Alas, I hardly HEAR any such 'arguments' or 'theories'! Most predict that 'things will be bad! Very bad when Oil prices ARE LOW and KEPT LOW!' Hmm. Many I don't get 'economy'!!;

3. will this UNPRECEDENTED turn of fortune be just an anomaly or a FIRM FUTURE TREND? If so, maybe the Middle East political scene will be LESS MESSY! The USA and those 'for profit' ALLIES will leave the Middle East region to their OWN DEVICE and RESOLVE their 'conflicts' by themselves!!

This may include the 'religious' differences they may have with each other. This WILL be the MOST beneficial for the world. Yes? Or I am just being naive? Whatever!!
 

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