The Total Collapse of Saudi Arabia is Fast Approaching

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saudi tank wikimedia

To the casual observer, Saudi Arabia might seem like an emboldened nation that is asserting itself. They’ve been challenging Iran, fighting rebels in Yemen, threatening to invade Syria, and if some rumors are to be believed, they are currently trying to attain nuclear missiles from Pakistan. However, these aren’t the actions of a stable nation that is asserting its dominance in the region. These are the flailing death throes of a nation that is struggling to hang on.

Ever since global oil prices started to plummet, Saudi Arabia just hasn’t been the same. That’s no surprise. Since prices fell, other oil rich nations have been hurting as well. Russia’s economy has been on the ropes, Canada is plummeting into a recession, and Venezuela is on the verge of total collapse. However, there probably isn’t any nation on Earth that is more reliant on oil than Saudi Arabia. If anyone is going to be destroyed by low oil prices, it’s the Saudis.

The crux of the matter is that this country is running out of money. It doesn’t look like it at first glance. They’ve only recently started to dip into their enormous savings, and their debt to GDP ratio is remarkably low. However, they are hemorrhaging money at an alarming rate. They’ve been flooding the market with cheap oil to drown out their competition (a dangerous gambit for a government that receives 80% of its revenue from oil) , and they’ve been fighting several expensive proxy wars with Iran, which are not going so well. The situation is so dire that the IMF expects them to run out of money within 5 years.

For most countries this wouldn’t be such a big deal. They would just go into debt and kick the can down the road until their financial system crumbled after many years. But the Saudi’s can’t do that. Their government and their society is structured in such a way that they can’t maintain anything with debt. The reason why is that they are not a traditional nation-state.

In fact, Saudi Arabia is no state at all. There are two ways to describe it: as a political enterprise with a clever but ultimately unsustainable business model, or so corrupt as to resemble in its functioning a vertically and horizontally integrated criminal organization. Either way, it can’t last. It’s past time U.S.decision-makers began planning for the collapse of the Saudi kingdom.

In recent conversations with military and other government personnel, we were startled at how startled they seemed at this prospect. Here’s the analysis they should be working through.

Understood one way, the Saudi king is CEO of a family business that converts oil into payoffs that buy political loyalty. They take two forms: cash handouts or commercial concessions for the increasingly numerous scions of the royal clan, and a modicum of public goods and employment opportunities for commoners.

Essentially, Saudi Arabia runs on institutionalized bribery. They need cold hard cash to keep the population in line, to keep the ever-growing royal family rich and happy, and to make sure everyone is doing their job. It’s not like what you see in most Western nations, where much of the population has a misplaced sense of civic duty. This system needs cash, and can’t survive on IOUs.

The elites in this society demand a life of perpetual luxury, and government handouts are the only thing keeping the oppressed masses from rebelling. Once they run out of money, everything will fall apart from the bottom up.

But the financial situation isn’t the only problem with the Saudi kingdom. Much of their budget is being burned up from fighting their war in Yemen, which they are losing badly. Dozens of their Blackwater Mercenaries were killed in a missile attack last month, the Yemeni rebels captured one of their military bases two weeks ago (within Saudi territory no less), and last week Yemeni forces managed to capture over a hundred Saudi soldiers.

This is a regime that rules with fear and oppression. How can they do that when their own military can’t beat an insurgency in their own backyard? When the handouts and bribes grind to a halt, and their population is sick and tired of being dominated by the Saudi family, how long do you suppose it will take for them to rebel?

And on top of all that, Saudi Arabia is faced with a severe water crisis. They’re heavily reliant on underground aquifers that aren’t renewable, and they use more water per person than in many Western nations (in fact, twice as much as the average person in the EU). They could run out of water in as little as 13 years. This has prompted the Saudi regime to start taxing water for the first time, partly due to the water crisis, and partly due to falling oil revenues.

As you can see, there are a lot of existential threats bearing down on Saudi Arabia. Their proxy wars with Iran are bleeding their coffers dry just as oil revenues have reached record lows, their oppressed population is restless, they can’t meet the demands of their gluttonous elites, and they’re facing a nationwide environmental disaster that could grind everything to a halt.

In short, one of America’s strongest allies in the Middle East and the linchpin of the petrodollar, is facing a complete collapse, and it may happen within a decade. This could lead to chaos in the Middle East, and would have huge ramifications for the global economy. And at the end of the day, there really isn’t anything that can be done to stop it.

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Contributed by Joshua Krause of The Daily Sheeple.

Joshua Krause is a reporter, writer and researcher at The Daily Sheeple. He was born and raised in the Bay Area and is a freelance writer and author. You can follow Joshua’s reports at Facebook or on his personal Twitter. Joshua’s website is Strange Danger .

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  • doucyet

    What! Chaos in the middle east!! Say it isn’t so……………

    • Lanaljohnson3


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      • Dennisito

        I guess there is one idiot left in the world that falls for this stupid fuckin shit. That idiot is you. Now how does that feel?

  • Donna

    “Saudi Arabia runs on institutionalized bribery”

    Just like the Republicans & Democrats

    I wonder where they get their business model from?

    • WinstonSmithy

      The Rockefellers/Standard Oil. Seriously. Look it up.

      • I guess you were unaware that the Rockefellers had sold out their interests in large oil companies at the beginning of the collapse?

        • WinstonSmithy

          Huh? I wasn’t talking about current times or the collapse. My point was that the Rockefellers/Standard Oil created “Saudi Arabia” out of thin air in the early 20th century. That’s where the Saudi state “got its business model.”

          • Muhammad Abbass

            It was Rothschild’s actually and comprises the story of “Lawrence of Arabia” They are the “owners” of the British Secret Service which morphed into MI6 and most intelligence agencies the world over.

          • jeff

            Right on. The Rothschilds do own the oil and put Rockefeller as the steward of the trust.

  • WinstonSmithy

    Couldn’t happen to a nicer bunch of medieval head choppers.

    • john700

      What’s really happening:
      In 1998, the barrel of oil was at $11. The Saudis were screwed and they concoted the plan for the 9/11 attacks in order to make the oil price go up. So, 9/11 happened and the Saudis were behind it. The US government knew they were behind it from the beginning. The couldn’t say it because this would have generated a spike in oil prices like never seen before ($500/bbl). It was decided to destroy Saudi Arabia incrementally, by elevating Iran. So Irak was attacked. It was known that this would help Iran take over Irak. An agreement was signed with Iran. Iran is fighting the Saudis in Yemen and in Syria. The Saudis will be gone soon.

      • WinstonSmithy

        Interesting speculation. SA may indeed be on the way out, but your analysis assumes SA is some kind of independent entity and that oil cannot be allowed to find a natural market price (we’ve lived with $130/bbl oil recently). In reality, SA is a compliant US satrap, in fact a creation of Standard Oil/Rockefeller interests that is used to control, albeit indirectly, the oil fields first discovered and opened by Standard Oil in the early 20th century After 1971, oil became the basis for the “petrodollar” reserve currency regime that the world lives under today. Why would the US destroy SA and this petrodollar arrangement incrementally, at great cost to itself in terms of blood and treasure (ignore for a moment that war is a racket and perpetual war brings in perpetual profits to the MIC as well as destroys domestic liberty to the benefit of TPTB) when it could have done it immediately, especially to replace the current arrangement with another involving a historical adversary of “Western, a.k.a US & British” interests?

        • Muhammad Abbass

          I disagree. The USA and SA and indeed most nations are controlled through their intelligence agencies in large part and they are all tools of the Banksters, SA is only seeming to be controlled by the USA but the USA is itself a puppet.

      • Muhammad Abbass

        We already know Israel did 9/11 and how.

      • Roger Dixon

        Israeli Mossad carried out 911. If you can’t get that right, what else in your post can make any sense at all?

  • Mike

    good, the more of them that take each other out the better.

    • Dennisito

      My ultimate fantasy is to watch them eat each other.

      • ahuxley

        With fava beans and a nice Chianti…?

        • I forgot

          It is a ‘brave new world’.

  • Broos

    “Well” (to quote Raygun); they MOSSAUDOMIZED Themselves for U$rael !

  • Mr Gadget

    It’s awesome that saudi doesn’t have a single river and must rely on desalination plants to just have drinking water. The stake in the devils heart will be the release of the 28 pages. Let’s face it, bush conspired with saudi to attack Iraq after saudi supported the attack or was allowed to attack on 9/11. I can’t think of anything sweeter then America arresting bush/cheney, freezing saudi assets worldwide, and withdrawing the 100’s of billions of weapons and military support of saudi and watching them be beheaded in their own town squares where they behead every friday under their own radical islamic sharia.

    • The advantage to desalination is obvious to those who know that it also removes VOCs and other contaminates, so further filtration is unnecessary.

      • Mr Gadget

        easy to destroy

        • difficult to understand

          • Mr Gadget

            I just view saudi as the enemy and their world disrupting dictatorship needs to be destroyed. Taking out their desalination plants is fine by me. Of course, it would be great if their foreign workforce fled before saudi’s annihilation, but oh well, they are basically working for satan. Is that what is hard to understand?

          • It is much easier to understand once you have elucidated it. If I had the money that they do, I’d complement the desalinization plants with large arrays of air wells near the beaches, which could be easily concealed and armored and still do their job. If I were in the nuclear power business, I’d build my reactors onto floating platforms and station them at sea, with submerged transmission lines to carry the power to shore, and docking stations to dispense the massive amounts of distilled water that would be produced in the cooling towers into tankers. A nuclear reactor sitting in an ocean would never need to overheat, especially if it was a modern negative coefficient model that can’t.

          • Mr Gadget

            Isn’t technology great, but after being there a couple of times, I’d have to say saudi would make a fine glass parking lot and just a few tactical nukes could accomplish it.

          • Unfortunately, you have failed as completely as everyone in our government to demonstrate that anyone in Saudi Arabia has done anything to justify being unilaterally attacked with weapons that they have never provably possessed or deployed against anyone, let alone ourselves.

          • Mr Gadget

            I’m just waiting for the 28 pages that some congressmen have read and done their best to explain without getting thrown in prison. If it is found the saudi government funded and assisted on the attack on 9/11 they can be properly retaliated against. If they did fund the attack and then bush/cheney conspired with saudi to attack Iraq for saudi….

          • If funding attacks on foreign countries is a justification for attacking them, America would have been bombed back to the stone ages before WW2. There is a reason why Cheney, Rove, and both president Bushes don’t travel very widely outside this country. It is because there are standing indictments against them in multiple jurisdictions for wars crimes and crimes against humanity.

          • Mr Gadget

            If they could have they probably would have, our biggest enemy is attacking from within. Add the WH puppet master soros to that list, and and and…..

          • Have you ever seen any reportage about George Soros and Barry Soetoro having any communicative connections?

          • Mr Gadget

            Absolutely, I think last week soros advisors where at the rainbow house, and then of course, sharpton is practically obama’s roommate/racial division advisor sponsored by soros.

          • Soros’ advisors work for the same people that Soros works for. Would you consider any of your coworkers to be valid spokesmen for yourself? What is the difference between a practical roommate and a practical wife?

          • Mr Gadget

            people that work for soros that advise obama…and of course soros funds radical groups like BLM and so many others.

          • Soros has no employees, he gets to spend a lot of the money that he administers on himself, and will die a well-funded pauper.
            Is the “BLM” that you mention the Bureau of Land Management, an executive branch federal government agency?

          • Mr Gadget

            no , black lives matter, but I suppose the both have the same masters. Soros is pure friggin evil

          • Soros is nothing more than another opportunist, like those who take his employers’ money in return for doing his employers’ bidding.

          • Mr Gadget

            or his goals from peddling evil worldwide are much worse than monetary gains.

          • He has access to as much money as he can spend, knowing that he will die like a rich man without any assets, as long as he says and does as he is told, like Obama.

    • jeff

      American alphabet agencies will never freeze their own paycheck funds. You must be dreaming

  • StevetheHun

    They don’t make anything. They don’t build anything. Everything they have is because some Europeans came along, asked “who’s in charge here? Hey, you! Wanna be rich? Take this money and keep the other tribes away while we drill the oil you have no idea is there.” And the House of Saud was created.

    And they were rich. They thought that made them better than everyone else.

    Now they’re not going to be as rich. They had a chance to build a nation and they blew it like lottery winners on a spending binge. They even spent it on developing terrorism.

    • Fortunately, their oil fields are beginning to produce more dirty water than oil, so they are on the other side of their own peak oil dilemma.

  • Tom

    Keystone pipeline. As far back as Slick Willie, we were told “It’ll take 10 years to build. It’s not worth it.” It would be producing oil NOW. Lying liars that lie.

    • Pipelines don’t produce anything.

      • Tom

        Ok semantic dbag. The oil fields would be producing oil and the pipeline would deliver it. Good enough? The point is the same.

        • The oil fields will be the last part of the petroleum industry to feel the glut that is filling up the pipelines and the tank farms. If you appear to be ignorant, you should be happy that there are those who will prevent you from being so.
          If not, we already have enough ignorant sheeple here being woken up. If you don’t want to be awoken, you are wasting bandwidth.

          • Tom

            Mercy me, brainiac. I’ll stop wasting your bandwidth and time. We apologize for our ignorance. Good day.

          • Glenn Turner

            Well said!! Instead of escalating the situation you diffused it. That showed restraint and wisdom!! It sux seeing people being shit to each other when were are all basically on the same page, so to speak.

          • Tom

            Thanks GT. Life is too short too argue with faceless people. Waste of time, too.

        • jeff

          Fracked environmental disaster water killing oil is a good idea? Not

  • RandyJ/ProudSurvivor

    “…could lead to chaos in the Middle East.” That shit hole has been a dumpster fire for as long as man has been there.

  • Chaos in the Middle east? Take a look! We already HAVE CHAOS IN THE MIDDLE EAST! It’s just going to get a whole lot worse when these towel heads start nuking one another! I say good riddance! Then we can reopen the fracking fields in the U.S. and become the world’s number one oil supplier until we find something better.

    • ElaisaKasan

      Until we find something better? Where have you been for the last 120 years. Nicola Tesla showed us how we can extract energy from the universe in 1891. Many other pioneers followed, such as Stan Meyer in 1994. Watch SIRIUS: The Movie and demand accountability for the multi-trillion dollar crimes against humanity committed by Big Energy interests. Wake up people!

  • Since Saudi Arabia started the price cutting to drive the wildcat frackers out of business, it is appropriate that they will go down before most of the targets will.
    It is but the cherry on top that Halliburton and Schlumberger are stumbling as well.

  • SP_88

    These people will be at war with each other forever. If it isn’t over oil or petrodollars, it will be something else. There has been war in the middle east for a thousand years. Long before oil was ever discovered. I think that they just enjoy killing each other.

  • Frank

    Doesn’t this also describe the United States? :
    “The elites in this society demand a life of perpetual luxury, and government handouts are the only thing keeping the oppressed masses from rebelling. Once they run out of money, everything will fall apart from the bottom up.”
    After all, millions of dollars are spent paying off the social-welfare-dependent masses and when that money stops flowing, we’ll see unimaginable rioting and looting. So, the corruption and pay-offs in Saudi Arabia is nothing unique. As for the water shortage problem, we’ve got that, too. When Hollywood and Beverly Hills-type residents can keep their grass green while food production is decimated because of a shortage of water for agricultural production, starvation awaits those that can’t pay enough.

    • jeff

      Right same business model, different time zone.

  • ICFubar

    For one the Saud’s are not “challenging” anyone, their are committing aggressive war under Nuremberg Code either directly or by proxy with the full endorsement of the USA and other western backers. Two, Saudi Arabia is not a nation in the sense of the people having any say in its actions or development as it is all owned by a thieving monarchial feudal system headed by the House of Saud as a omnipotent oppressive regime of the worst kind. The world will be a better place when these royalist swine are removed from their control of Arabia in any which way.

  • They’re going down sooner than that, along with every other government on earth!
    robertsrevolution.net

  • Truth walker

    Everyone expects a war of Saudi Arabia against Syria and its allies, but people are not considering an alliance !! This is what can happen if a coup d’etat occurs in this country … And at that moment that a real war could occur.History is not written in advance.

  • We should get right on this.

    What do you all think, mid-23rd century look good ?

  • Muhammad Abbass

    They are also loathed by most of the world’s 1.5 billion Muslims and so too their Wahhabi symbiotic twin. They are a scourge on Islam which was forced on us by that scoundrel Colonel Lawrence working for the Rothschild’s in the early 20th century. They will be crushed the moment they stumble.

  • Maxx Headroom

    It’s going exactly as planned out in 2006 by the bush administration to divide Saudi Arabia into different nation states, just look it up, things are going on as planned.

  • Doctor Who?

    The collapse of Saudi Arabia and Erdogan’s Ottoman empire can’t happen soon enough for me.

  • davol

    Haw haw haw haw! Good riddance Saudi Arabia. I see the future and the small, lean, and mean shall survive and the over-expanded conglomerates shall all die of bankruptcy. Haw haw haw haw haw haw haw haw haaawwwwwww.

  • disqus_xp4GYx7DZk

    It couldn’t happen to a nicer bunch of 9-11 suspects!!

  • smooze

    The US will just bail them out….

  • Bill in Tennessee

    So our own government has been “bribing” a whole bunch of useless breeders and feeders in an effort to keep them fat, dumb, and happy. What happens when our own debt bubble pops and their welfare checks and EBT cards (i.e,, bribes) stop? Don’t be anywhere NEAR a large city when that happens.