US Seeks $300 Billion from Gulf States

[Calanen]

US seeks 300 billion dlrs from Gulf states: report

KUWAIT CITY (AFP) – The United States has asked four oil-rich Gulf states for close to 300 billion dollars to help it curb the global financial meltdown, Kuwait's daily Al-Seyassah reported Thursday.

Quoting "highly informed" sources, the daily said Washington has asked Saudi Arabia for 120 billion dollars, the United Arab Emirates for 70 billion dollars, Qatar for 60 billion dollars and was seeking 40 billion dollars from Kuwait.

Al-Seyassah said Washington sought the amount as "financial aid" to face the fallout of the financial crisis and help prevent its economy from sliding into a painful recession.

The daily said the United States plans to use the funds to help the ailing automobile industry , banks and other companies suffering from the global financial turmoil.

The four nations, all members of OPEC, produce together 14 million barrels of oil per day, around half of the cartel's production and about 17 percent of world supplies.

The four states are estimated to have amassed close to 1.5 trillion dollars in surplus in the past six years due to high oil prices that rocketed above 147 dollars in July before sliding to just above 50 dollars.

The daily also said that the United States has asked Kuwait to forgive its Iraqi debt estimated at around 16 billion dollars.

http://news.yahoo.com/s/afp/20081120/bs_afp/financeeconomyusgulf_081120072928

[hell]

That's interesting. I wonder what made the Federal Reserve decide to solicit the Arabs instead of just printing up more money? Sure, printing more money is a horrible idea because it devalues the USD, but that hasn't seemed to bother them before now.

Kind of makes you question the big push to alternative fuels as well. One of the main talking points was severing our financial ties to some of the oil-producting countries (mostly Iran and Venezuela though). So hey, great idea, if we can't send them alot of our money because the price of oil is down and demand is low, let's take out a loan (which I'm sure will have a crap-level interest rate). If we're hitting up the Gulf states for money, that suggests to me that our government already hit up China for yet another loan, and the Chinese must have given us the bird, which doesn't bode well for us if even China won't loan us money anymore.

I'm all for finding better alternatives to oil, but something like this sort of kills one of the talking points of moving away from oil. Sure, it takes away the leverage of "we'll cut off your oil supply", but it still leaves us with a pool of debt collectors in another country.

[Mynameischarlie]

If your house is burning you don't give a s* where the firefighters/water is coming from.

[delio]

The U.S. has no problem getting the water. In fact -- and ironically - it is much more easier and cheaper now.


My hunch is that the U.S. may be asking capital rich countries for money not for itself, but for those countries that are finding it extremely hard to get credit at the momment, and which for domestic political reasons the U.S. can't really write a check to as it has done with Mexico (during the Peso crisis) and some Asian countries (during the Asian financial crisis) in the past.

Pakistan for example.

[delio]

...........

[Highspeed]

I believe this mess we are in can be contributed to high gas prices. So the S.O.B's should help us out. Especially Kuwait after we saved their azz in 91'. Yeah I know the housing market, gas prices have affected everyone.

[hskywalker]

It is called protection fee.

[dacanadianbomb]

What I find amazing is the fact that the price of a barrel has sunk two fold but the price I just paid at the gas station hasnt :-/ go figure.

[Mynameischarlie]

What I find amazing is the fact that the price of a barrel has sunk two fold but the price I just paid at the gas station hasnt :-/ go figure.

Well, the Somali employees of the shipping insurance companies demand a higher salary, that's why we all still have to pay the high prices. :)

[Calanen]

I believe this mess we are in can be contributed to high gas prices. So the S.O.B's should help us out. Especially Kuwait after we saved their azz in 91'. Yeah I know the housing market, gas prices have affected everyone.

To be fair to Kuwait and Saudi Arabia, they already picked up the tab for the 1991 war.