This Donny move needs to be spotlighted.

I recently read that Donny is considering a taxpayer bailout of an oil rich country, the UAE….

President Trump said he is considering a financial bailout for the United Arab Emirates (UAE), an autocratic state experiencing an economic downturn due to the war in Iran. If the Trump administration does use public resources to rescue the UAE, it will be assisting a country that has partnered extensively with the Trump Organization and the Trump family.

On Sunday, the Wall Street Journal reported that UAE Central Bank Governor Khaled Mohamed Balama “raised the idea of a currency-swap line” during meetings in Washington, D.C., last week with Treasury Department and Federal Reserve officials, including Treasury Secretary Scott Bessent. Officials from the UAE said that they “had so far avoided the worst economic effects of the conflict but might still need a financial lifeline.” According to the Journal, a formal request has not yet been made.

UAE officials argued that the war between the U.S. and Iran could damage the country’s economy and harm its global financial standing. The war has already damaged the country’s oil and gas infrastructure, and Iran’s closure of the Strait of Hormuz has cut off oil shipments that are a key source of dollar revenue.

https://popular.info/p/trump-floats-taxpayer-bailout-for

I say bollocks to that!

Donny will do anything for his oil buddies….including throwing taxpayer money at them to preserve his standing with the wealthy.

Let them learn what it is like.

Then after ranting about this situation I read that the UAE is considering leaving OPEC….

The United Arab Emirates said Tuesday that it will leave the oil cartel OPEC and its wider OPEC+ group effective Friday, a move rumored for some time as the Emirates chafed under production restrictions and increasingly had frostier relations with neighboring Saudi Arabia. The UAE has been a longtime member of OPEC, first through its emirate of Abu Dhabi in 1967 and later when the UAE became its own country in 1971, reports the AP. But the UAE has been increasingly trying to leverage its own foreign policy in the Middle East, which has contradicted some positions of Riyadh over time—particularly as Saudi Arabia began to directly challenge the Emirates in trying to draw foreign investment as the kingdom opened up under assertive Crown Prince Mohammed bin Salman.

“This decision reflects the UAE’s long-term strategic and economic vision and evolving energy profile, including accelerated investment in domestic energy production, and reinforces its commitment to a responsible, reliable, and forward-looking role in global energy markets,” the UAE said via its state-run WAM news agency. “Following its exit, the UAE will continue to act responsibly, bringing additional production to market in a gradual and measured manner, aligned with demand and market conditions.”

Saudi Arabia long has been considered a heavyweight of OPEC, an oil cartel based in Vienna that has seen some of its market power wane as the United States increased its production of crude oil in recent years. Saudi Arabia and the UAE increasingly have competed over economic issues and regional politics, particularly in the Red Sea area. The two countries had joined together in a coalition to fight against Yemen’s Iran-backed Houthi rebels in 2015. However, that coalition broke down into recriminations in late December, when Saudi Arabia bombed what it described as a weapons shipment bound for Yemeni separatists backed by the UAE. Saudi broadcasters long based in Dubai, the economic hub of the UAE, have pulled back to the kingdom in recent months as tensions rose.

Come Friday the UAE will be an independent oil producer…..what will that mean?

OPEC just lost a cornerstone member at the worst possible time. The United Arab Emirates’ decision to walk away from the producers’ group strips OPEC of about 13% of its capacity and one of its few members able to quickly pump more oil—right as war in Iran has shut the Strait of Hormuz and scrambled Middle East alliances, reports the Wall Street Journal. “It’s the hardest blow ever,” Homayoun Falakshahi, a senior oil analyst at commodities data company Kpler tells the newspaper. “It raises the question about whether OPEC can survive.” The sentiment is widespread:

• It’s “the beginning of the end” for the alliance, Saul Kavonic of MST Financial tells the BBC. The UAE is OPEC’s fourth-largest producer behind Saudi Arabia, Iraq, and Iran, accounting for about 3.6 million barrels a day, or 3% of the global supply, per the New York Times.
• The effect on prices will be minimal in the short term because of the war, but the longer-term effect is harder to gauge. Greater volatility is one likelihood, per the Times. “But beyond the oil market implications, a deeper fault line is at play,” per Semafor. “The UAE’s move is the latest sign that it is no longer willing to go along with historic alliances it views as unnecessary purely for the sake of harmony.”
• The nation has been signaling a break with OPEC for a while as its ties with Saudi Arabia in particular have frayed, per Reuters. The UAE no longer wants to be constrained by OPEC quotas, and it “would have both the incentive and the ability to increase production, raising broader questions about the sustainability of Saudi Arabia’s role as the market’s central stabilizer,” analyst Jorge Leon of Rystad tells the outlet.
• One other common refrain is that the move is seen as a win for President Trump, who has previously complained that OPEC was “ripping off the rest of the world” with inflated prices, per Reuters. The BBC sees the move as opening the door to closer ties between the US and the UAE.
• The break leaves 11 core members at OPEC, notes the Washington Post: Algeria, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, and Venezuela.

Bet prices go up.

Why is no one talking about a taxpayer bailout for a foreign country?

This is going to bite the US in the ass in several ways.

Need I say more?

I Read, I Write, You Know

“lego ergo scribo”