This is the funniest video I have ever made. It’s a tremendously satisfying video as well. It’s nice to see one of my predictions pan out. One of the central messages of this channel is that we shouldn’t be as panicked about the state of the world as everybody wants us to be. Exhibit one in the case against the pro-panic media is Terrorism, by which the media generally means Terrorism associated with Islam. Since I launched my “Everybody’s Lying About Islam” series in April I’ve gotten many more pro-fear comments than anti-fear ones. People seem to believe that the media isn’t pro-fear enough when it comes to Islam and terrorism.
These cowardly commenters have two main sources. The first is Bill Warner, a charlatan who travels the world hating on Islam. If you’re interested you can read a Quora take-down I put together on his work recently. The second is a website called “The religion of peace” that I won’t deign to link here. These clowns desperately want the public to be more freaked out about Islam. It’s absolutely delightful to be using their data to help people calm down. And that’s why this is the funniest video I’ve ever made.
We certainly heard a lot about Trump and Saudi Arabia this weekend. Considering the content of this channel, it won’t surprise you to hear that I found it disappointing, and disturbing. But more than anything else it was distracting. This whole trip was a distraction from Trump’s woes back in Washington, DC. But Trump’s Saudi Arabia clown show was also a distraction from something we should have all been paying more attention to. It was good news for once!
It was all a tremendous distraction from Iran. After months of predictions that he would lose, Iran’s moderate president Hassan Rouhani triumphed in his re-election campaign. Iran chose openness, despite the repeated rejections and abuse hurled at them by the United States. This is a very big deal. The hardliners that have ruled Iran since the revolution continue to abuse power. It makes me believe that peace in the region might finally really (eventually) be possible.
But nobody paid any attention. Trump and Tillerson issued their customary condemnations of Iran this weekend, calling them out for supporting terror, even while being hosted by Saudi Arabia, Iran’s sworn enemy, and the main inspiration behind almost every terror attack of the past 17 years. Tragic stuff. It’s already causing problems for Rouhani back in Iran. This video lays out the details….
My roommates went to Coachella this weekend. When they got back I made them talk about Saudi Arabia. They were pretty beat, but it’s still a more useful conversation than you would ever get on Fox News or CNN. The talk is a bit rambling, but it’s super useful. It gave us a chance to enlarge on some of the issues brought up by the videos. It also brings in some of the issues covered by the “Everybody’s Lying About Islam” essay that may not get covered in the videos.
The most important issue that the talk covers is my personal attitude towards Saudi Arabia and Saudi Arabians. It’s important to emphasize that as angry as I am about the US-Saudi relationship, I bear no ill will towards Saudi Arabians. The whole country, even its leadership is caught in a trap. It’s not a trap that’s entirely of their own making. Find out more by reading the essay…
People are good at ignoring the obvious. Saudi Arabia is finished. The 2014 crash in the price of oil has left the ruling family in an impossible position. Since 2014 the country has been burning through around $100 Billion of dollar reserves a year. At that pace, the current regime has got about 4 years left before they can’t meet their obligations. The almost 100 billion in debt (up by a factor of 4 since 2014) that the country is now carrying will accelerate this issue. This problem has been noted of course, but most financial publications have been quick to swallow the Saudi line on the issue.
The problem has been identified, and Saudi Arabia is supposedly taking bold steps to address it. What few are talking about is how inadequate these steps are. This video covers the farcical “Vision 2030” idea that is supposedly going to turn Saudi Arabia into a new Dubai.
What I didn’t get into, because the video was already too long, was the illusion of a Saudi Aramco IPO. Saudi Aramco, the state oil company, is supposedly a multi-trillion dollar company. Selling off the proposed 5-10% of the company would give the Saudi royal family a few more years of runway. It’s not going to work. It may very well go forward, but they are not going to get the money they want. Also, the investment is something that everybody will be excited to look into, but dramatically fewer will want to actually buy.
Aramco is a state-run black box at the moment. Getting money from outside investors would require a high degree of disclosure and re-organization that they are unlikely to be interested in doing. The country is also faced with a couple of Catch-22s. First, driving up the valuation of the company requires driving up the cost of oil. To do this Saudi Arabia has to restrict its supply, which means it would lose market share, and have less funds to deal with its many issues. Second, if they don’t get Aramco up to Western corporate standards, they’ll have to rely on local investors. Those investors have plenty of money, but as the country gets shakier, they will become less interested in investing in Aramco. A great indication of the shakiness of Saudi Arabia would be the country’s needing to rely on local investors to fund the Aramco IPO.
These issues leave me convinced that by 2030 Saudi Arabia will be a completely different country. Unfortunately US policy seems to be that the Saudi money spinner will go on forever. The new administration has been doubling down on the brutal Saudi adventure in Yemen, and seems to want to escalate with Iran. This is crazy.
