Saudi Devaluation Bets Surge Due To 9/11 Lawsuit Bill
In a nutshell, today's Senate Approval paving the way for lawsuits against Saudi Arabia, just threw another monkey wrench in already teetering Saudi Finances by stalling a potential bond auction.
And, two days ago...
Salaries of Saudi ministers cut by 20%, Shura members by 15%
The reverse "Keynesian" multiplier:
By curbing what many Saudis had for years taken for granted, the government is signaling a determination to reduce the highest budget deficit among the world’s 20 biggest economies amid low oil prices and a lingering war in neighboring Yemen. The measures, however, risk deepening the kingdom’s economic slowdown by damaging consumer confidence.
Past governments have spent billions of dollars on state wage increases, making private-sector jobs less attractive for Saudis
The Saudi deficit for 2015 was -15% of GDP. Three times the level from 2009:
Saudi Arabia ETF
As long as tripled leveraged oil doesn't roll over, this will all be fine...
Tripled leveraged oil ETF volume, with WTI
Got short covering on 4x average volume? Check.