🇸🇦🇺🇸🇾🇪 Saudi Arabia is about to become America's next bond market problem.
Philip Pilkington joins the show with the numbers nobody else has run:
85% of Saudi imports are paid for by oil exports, down 60-70% and falling, meaning Saudi has to raid its foreign exchange reserves just to keep shelves stocked.
The number: $80-100 billion every 6 months, almost exactly what Japan sold during its bond crisis a few weeks ago.
"Basically, you're talking about another Japan-style event every 6 months, and they'll be stacked on top of each other."
Saudi selling reserves means selling U.S. Treasury bonds, pushing yields higher, on top of Japan, on top of potentially Britain next...
MBS chose to burn through reserves rather than let the riyal fall and crush living standards, and Pilkington's verdict is blunt:
"What were they thinking getting into a fight like this?"
The Houthis capturing the last major city before Taiz today only makes the math worse.
@philippilk
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Aziz @AzezN01 ·
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@MarioNawfal Mario Iran’s propaganda it’s ok to post this video your Iranian boss won’t upset.


































