Comments on: Saudi words won’t ease pressure on U.S. fuel prices http://blogs.reuters.com/breakingviews/2012/03/21/saudi-words-wont-ease-pressure-on-u-s-fuel-prices/ Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: dariusaria http://blogs.reuters.com/breakingviews/2012/03/21/saudi-words-wont-ease-pressure-on-u-s-fuel-prices/comment-page-1/#comment-9018 Fri, 23 Mar 2012 18:23:07 +0000 http://blogs.reuters.com/breakingviews/?p=10227#comment-9018 the problem with petrodollars as with any other extra liquidity is that it creates its own liquidity trap. What would Saudis do with their money? They can go on a bing of real estate development, but Arabian peninsula is barely habitable. Arid and inhostipable they have to import every thing, even humidity and rain.

If there is any developer that has a grain of conscience, no body would commence development in such a place.

The other thing they can and have done is investment. With global economy entering a long stretch of slow and stalling growth, Saudi petrodollars will be parked in investment vehicles or poured into baked sands, for a long time to come.

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