＂Saudi Arabia Is In TROUBLE＂ - Why MBS’ $1T Trump Deal May FALL Apart
Episode Stats
Words per Minute
202.37076
Summary
In this episode of the podcast, we discuss the latest in the Khashoggi case, MBS's trip to the White House, and the reaction of President Trump to it. We also talk about why the Saudis are in trouble and what they need to do about it.
Transcript
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More things yesterday. MBS is in town yesterday, okay?
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When he's in town, Ronaldo's there. Musk is there.
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And while MBS comes in, Trump is going to say hello to him.
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Yeah, he slaps Elon Musk in the butt, like Vinny was saying earlier,
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You know, as long as you apologize, you're welcome back here.
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I don't know if you have the clip or not. Is that the one?
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Just a little tap in the belly, checking his six-pack, okay?
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And then if you want to show Rob the exchange with the media,
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That's one of them, and then we'll go to the other one as well
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while they're having fun together with the investment that he's making.
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Is this the whole exchange? Oh, this is the one, Rob.
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Yeah, let's watch this. Go ahead, Rob. Watch this, folks.
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Is it appropriate, Mr. President, for your family to be doing business in Saudi Arabia
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while you're president? Is that a conflict of interest?
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And, Your Royal Highness, the U.S. intelligence concluded
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that you've orchestrated the brutal murder of a journalist.
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9-11 families are furious that you are here in the Oval Office.
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I have left, and I've devoted 100% of my energy.
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They've done very little with Saudi Arabia, actually.
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But as far as this gentleman is concerned, he's done a phenomenal job.
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You're mentioning somebody that was extremely controversial.
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A lot of people didn't like that gentleman that you're talking about.
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Whether you like him or didn't like him, things happen.
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You don't have to embarrass our guests by asking a question like that.
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Mr. Chairman, just to ask, Mr. President, you allow me to answer.
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You know, I feel painful about, you know, families of 9-11 in America.
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Reality, based on CIA documents and based on a lot of documents,
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that Osama bin Laden, he used Saudi people in that event for one main purpose,
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is to destroy this relation, to destroy the American-Saudi relation.
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About the journalists, it's really painful to hear, you know,
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anyone that's been losing his life for, you know, no real purpose or nothing in a legal way.
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We've did all the right steps of investigation, et cetera, in Saudi Arabia.
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And we've improved our system to be sure that nothing happened like that.
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There's another one that happens as well with the investment of $600 billion, a trillion,
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Your report asked, and then MBS actually wanting to answer it,
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not wanting President to defend him, protect him.
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I think the Saudis are in a lot more trouble than people realize,
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given oil prices and the oil economy over in Saudi Arabia.
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And I think there's a huge incentive for, you know,
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the United States to offer support, but also Saudi Arabia to give them something as well.
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So I think there's, it's not really about the, you know, these political distractions.
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It's more about, hey, we've got some real trouble going on here,
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I think it's like 80% of their GDP is from oil,
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and they're putting a huge initiative into building things
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to make it more of a desirable vacation destination.
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So, I mean, it's a weird place to take that conversation,
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like for 9-11 questions and Jamal Khashoggi questions,
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when there's, you know, a lot more interesting things to talk about than that,
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and there's, like, very little information about that stuff.
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So, yeah, I think that the main reason that we're doing a lot of work with them
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is because we need them, and they need our investment
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to make it a more desirable vacation destination.
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Well, here's, Rob, I don't know if you have the other clip
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He was so unhappy with the question that he comes back explaining to her
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on how many different news, you know, companies lost lawsuits to him,
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And people are wise to your hoax, and ABC is, your company,
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your crappy company is one of the perpetrators.
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And I'll tell you something, I'll tell you something.
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I think the license should be taken away from ABC because your news is so fake
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And we have a great commissioner, the chairman, who should look at that because...
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Oh, I wish you would let it finish because the next thing he says right there
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is about the fact that there's a reason because the average audience,
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if they hear that, they're going to say you can't just go take a license out.
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There's a part where he says, when 97% of your news was attacking me,
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So, yeah, he's obviously not happy with what's going on with these guys.
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He campaigned on energy, not independence, not isolationist,
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He came right out and he said it, and it's going to be drill, baby, drill.
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We were there in Washington on the inauguration day where it was a key part of his speech there.
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He was waving to the crowd, and he said, and drill, baby, drill.
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And Saudis have a Rubik's Cube they have to solve.
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They need to cooperate with the United States with regard to Gaza.
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But they don't want to be seen as patronizing the United States to the other members of OPEC,
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who are also other Arabic and Muslim countries.
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The price of oil is coming down, which is actually going to help certain things.
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It's already helping gasoline and then coming up heating while in the United States.
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But then the Saudis have this arms merchant service that they run, and they get a lot of support and arms from us.
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So they got to kind of – it's like they have to – here's what I think is going on right now with Saudis.
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The Saudis have to drive a toaster through the car wash and get to the other side without getting electrocuted.
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And right now there are so many things from economic pressure to political pressure to the war.
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There is a reason that – you take a look at MBS.
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He was not stammering, but he was really searching for words and stuff.
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He was not the normal MBS, hello, I hope the oil and everything is going good.
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Here's times you can see MBS looking so confident.
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That guy looked – do he look confident to you?
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I think he is – the question about the toaster analogy, Tom, is that if the toaster is plugged in, you're in trouble.
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But if it's not plugged in, you will make it through the car wash, so you know that.
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But I do think Trump is using the leverage to get what he wants.
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I do think he's using the leverage to get what he wants.
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Rob, if you want to play that clip here for us.
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I know he is because he's trying to get that $600 billion to a trillion dollars because he knows –
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Last year for the first time in a long time, the Saudi Arabian economy had to borrow external funds.
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They actually borrowed more in dollars outside of Saudi Arabia than they had –
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Yeah, because with oil prices down, with so many of those internal projects sucking up resources in Saudi Arabia,
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they actually have some of a cash shortage in Saudi Arabia.
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Government planned to borrow about $23 billion for $23 billion.
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Net asset acquisition in 2024 was actually negative, which means they're borrowing more outside the country than they're bringing in.
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The total national government debt increased to an estimated $319 billion.
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They may not even have the $600 billion to invest here.
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So your analogy, the toaster to the car wash, exactly right.
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So then if that's the case, does the president know that?
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So then if he knows that, is this just marketing?
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What can I give you to cushion the blow because I don't want $80 oil?
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What can I give you to help you in transition so that Saudi Arabia doesn't fall apart if oil continues to go lower?
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I thought I said they're buying – they're selling them jets.
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And that was something that had been never even on the table before.
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They said, we're never going to sell you the 35s.
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And what you're seeing there is the guy that we elected to use tariffs and other tools to get people to negotiate.
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And I'll tell you, here's the card that the Saudis have.
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They want to disrupt the supply of Venezuelan oil because right now Venezuela is selling oil to China.
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If China is buying oil on the backside of the Panama Canal from Venezuela, and they are, then who are they not buying it from?
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And so, therefore, a destabilized – a military action that interrupts the flow of oil in Venezuela will cause the price of oil to go up and Saudi will sell to other people.
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The other way to make money is if prices won't go up, how do you make more money?
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Then they could sell it for $70 and make the volume.
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So this is a little Rubik's Cube, but I think the guy that's in the chair there – look at that.
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Look at how he – forget the reaction to the question from ABC.
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But look at the confidence he has and look at the –
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And if they were to buy, say, roughly 48 of them, which is the number that they're talking about,
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that Saudi requested for 48 of them, that would be $4.8 billion for the F-35s.
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Thank you because you've agreed to invest $600 billion into the United States.
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And because he's my friend, he might make it a trillion, but I'm going to have to work on him.
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But it's $600 – we can count on $600 billion.
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But I just want to say it's an honor to be your friend and it's an honor that you're here.
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And if you'd like to say a few words, but thank you very much.
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We believe in the future of the United States of America.
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We believe in what you're doing, Mr. President.
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It's really creating a lot of good things and good foundation to create more economical growth,
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And it will also your work for the world peace.
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I believe, Mr. President, today and tomorrow we're going to announce that we are going to increase
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that $600 billion to almost $1 trillion of investment – real investment and real opportunity
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And the agreement that we are signing today in many areas, in technology, in AI, in bare materials,
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magnet, et cetera, that will create a lot of investment opportunities.
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You're saying to me now that the $600 billion will be one trip?
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Definitely, because what we are signing, it will facilitate that.
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So you're picking up the dinner check and dessert.
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Look, you're getting a guy that, like you said, Tom, you know, when we were talking about
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who to have as a president, you want to vote for somebody that negotiates on your behalf?
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This is where President Trump shakes MBS's hand and then they make fun of Joe Biden.
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So you little piggy in and now I don't give a damn where the hand's been.
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Yeah, no, I agree with a lot of what these guys are saying.
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I think that Saudi has been in a tough spot for a long time.
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They're very much anticipating that the demand for oil,
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or their reliance on oil is going to be a problem for them one day.
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So they're trying to just make it a destination that people want to go to.
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So I think that's why the subsidy here is that the U.S. is investing in, I guess, property or like vacation type of real estate.
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So they're trying to make it like an attractive destination for rich people to go to, to offset some of that blow.
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Why are you pointing at me when you said that, for rich people to go to?
00:13:15.880
If you've got big plans for 2026, I am telling you right now, I can't tell you how many conversations we're having about business planning.
00:13:21.660
There's a reason why we went less than 22 hours to Dallas and come back because we want to see exactly what's happening with 2026.
00:13:28.880
We're planning for our family, for our businesses ourselves.
00:13:31.840
And if 2026 is a big year for you as well, I want you to watch this clip.
00:13:35.080
Rob, can you go to the clip with the Jenga to show them what happens when it comes on to business plan and how all of these things are necessary?
00:13:57.280
Ooh, listen, hanging on one piece here, by the way.
00:14:05.780
As good as this looks, if your foundation isn't built on a good business plan, you know what happens?
00:14:18.620
If you have big plans for 2026, on December 12th, I'm hosting an event called the Business Planning Workshop, where all day we go through the 12 building blocks of writing an effective business plan.
00:14:35.860
If you have to get registered, click on the link below.
00:14:38.300
Let's spend an entire day together on December 12th.
00:14:47.700
And this is going to be people watching this from 100-plus countries.
00:14:51.180
And you can find a way to just get registered at the lowest level.
00:14:53.600
Or you can find a way to be on the screen so everybody can see each other.
00:14:57.700
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