Jitters in Saudi Arabia: Will $35 Billion In Cash Fix It?

As the Middle East is awash in protests and popular uprisings, King Abdullah of Saudi Arabia (“the Custodian of the Two Holy Mosques” as he is described) has quickly announced $35 billion in aid for people. The money is supposed to be used to offset high inflation and to help young unemployed people (potential protesters anyone?) find jobs. If they’re working they won’t have time to stand in the streets protesting, or at least that’s the theory. No major political reforms were announced.

Abdullah is returning to Saudi Arabia today after receiving medical treatment in the United States. Libya is in chaos and how things end up there will have an enormous effect on the world economy. But what if Saudi Arabia were to descend into the abyss? This is a country that controls more than a fifth of known world oil reserves and is sitting on massive pile of cash. There has now been a call on Facebook for a “day of rage” across Saudi Arabia next month. Stay tuned.