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Saudi Power Struggle Could Destabilize The Entire Middle East

Saudi Power Struggle Could Destabilize The Entire Middle East

Riyadh

Political instability in Saudi Arabia is growing as King Salman bin Abdulaziz begins to overhaul the Saudi government, putting a long list of family members into positions of influence while increasing the power of his son, Deputy Crown Prince Mohammad bin Salman. These actions have the potential to lead to a direct conflict with Crown Prince Mohammed bin Nayef. The expected internal power collision, predicted by many analysts, finally seems to be heating up. The real surprise, however, is that it is taking place while King Salman is still alive rather than during the succession period. King Salman’s royal decrees, in which he has appointed two of his other sons, Prince Abdulaziz and Prince Khaled as Minister of State for Energy Affairs and Ambassador to the United States respectively, has opened up Pandora’s box.

At the same time, King Salman has decided to re-establish all allowances and benefits which were canceled last September during the oil price bust. Additionally, the King has stated that two months of salary will be paid as an allowance to the military and security personnel fighting in Yemen. The latter is a complete reversal on economic measures taken in 2016 when Saudi Arabia was hard hit by the global slump in oil prices.

The power struggle in the coming months could emerge inside of King Salman’s palaces as the current government overhaul is a direct move to increase the influence of the Salman branch of the Al Saud family tree. During this time, media sources in Saudi Arabia and the GCC have indicated that King Salman’s decrees have moved several allies of his son, Mohammed bin Salman, into key positions. King Salman has also shown a keen interest, likely supported or instigated by Mohammed bin Salman, in strengthening relations with the United States. The appointment of Price Khaled as ambassador to Washington is convincing evidence of this suggestion.

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My Financial Road Map For 2016

My Financial Road Map For 2016

Over the holidays, I had the opportunity to stay away from airports and hike Runyon Canyon with my dogs. For those of you that have never traversed Runyon’s peaks and dips, they are nature’s respite from the urban streets of Los Angeles, yet located in the heart of the City of Angels. It’s a place in which to observe, reflect, and think about what’s coming ahead.

As a writer and journalist covering the ebbs and flows of government, elite individual, central bank and private industry power, actions, co-dependencies, and impacts on populations and markets worldwide, I often find myself reacting too quickly to information. As I embark upon extensive research for my new book, Artisans of Money, my resolution for the book – and the year – is to more carefully consider small details in the context of the broader perspective. My travels will take me to Brazil, Mexico, China, Japan, Germany, Spain, Greece and more. My intent is to converse with people in their respective locales; those formulating (or trying to formulate) monetary, economic and financial policy, and those affected by it.

We are currently in a transitional phase of geo-political-monetary power struggles, capital flow decisions, and fundamental economic choices. This remains a period of artisanal (central bank fabricated) money, high volatility, low growth, excessive wealth inequality, extreme speculation, and policies that preserve the appearance of big bank liquidity and concentration at the expense of long-term stability. The potential for chaotic fluctuations in any element of the capital markets is greater than ever.

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Olduvai IV: Courage
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Olduvai II: Exodus
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