Monday, August 01, 2005

Saudi King Dies

Saudi King Fahd, a Key U.S. Ally, Dies.

RIYADH, Saudi Arabia - Saudi Arabia’s King Fahd sought to modernize his desert kingdom while balancing change against tribal tradition and orthodox Islam, but a stroke a decade ago left him a ruler in name only during tumultuous times for the world’s biggest oil producer. His death Monday came as the Saudi government pursues an aggressive clampdown on Islamic terrorism and unprecedented reforms.

Debka agrees that it really isn't a big deal because the king wasn't running the country at all. Fahd had a stroke in 1995 and then turned the running of the kingdom over to his half-brother, the Crown-Prince Abdullah, who's been running the country ever since. The big deal, in Debka's mind, is the successor Abdullah has chosen (should anything happen to Abdullah).

So nothing has really changed, except the public perception changed to perceive increased instability in the major oil producing country, shooting oil prices higher. Just goes to show, it doesn't matter what really happens when discussing the market, only public perception matters. That is one reason I believe the dollar will go down , to be explained in more detail in a further post.


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