Can the oil price go down further? Here's the case for and against. https://t.co/4E1bCDtxw0 pic.twitter.com/HSUEnTdI87
— Financial Times (@FT) January 12, 2016
Christopher Harress, IBTimes: Amid Falling Oil Price, Middle East Arms Race Led By Saudi Arabia Expected To Slow Down
As Middle East nations look to build up their weaponry amid regional civil wars, that arms race is now at risk of grinding to a halt. The price of oil kept sliding Tuesday, past the point where the oil-based economies in the region are able to balance their budgets.
In particular, Saudi Arabia, Iran and the United Arab Emirates are among the countries whose economies are strongly pegged to the price of oil, which is expected to keep falling well into the new year. But while their respective budgets will likely see swift reductions across domestic spending, their funds set aside for defense will almost certainly have to be slashed as well, said energy and defense experts, who predict a ripple effect on the U.S. military industrial complex with major orders being scrapped as cash reserves becomes scarce.
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WNU Editor: It may actually do the opposite. The budgets of every Middle Eastern government is being slashed because of declining oil prices .... to compensate for this loss government subsidies and assistance is being cut, and if history is any indication in the Middle East .... when subsidies are cut unrest always breaks out. The wars that are engulfing the Middle east are also not abating .... in fact they are getting worse .... in such an environment guns will always be a priority over "butter".
2 comments:
WNU Editor,
KSA and the GCC have already "burned through" two "reloads" of "smart" bombs and "smart" missiles on hospitals, universities, heritage sites, aid warehouses and water and power plants in Yemen and will soon need another reload.
The Fluffy Unicorn Jihadists in Syria and Iraq are running low on TOW's and are demanding SAM's capable of taking down Airliners at altitude, while losing territory,
The Sanctions are going to be lifted on Iran, and the rather "anemic" Iranian Military is going to be beefed up with brand new Russian and Chinese "toys",
Yup, oil prices are not going to have any impact on arms sales any time soon.
BTW, WNU Editor,
https://consortiumnews.com/2016/01/14/will-reckless-saudis-seek-war-with-iran/
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