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Comment by tsoukase | Hacker News Reader

Their whole investment castle is built on sand (pun intended) and when oil even remotely starts to fade out as a commodity, it will crumble instantly. Panic will ensue and corruption will be rampant in order to continue the lavish consumerism. Everything will be sold for pennies. The difficult thing is not to make money once, it's to keep them afterwards.

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A sovereign wealth fund with over $1 trillion USD (so with over $1 million per Emirati citizen) which invests heavily in U.S. equities will be sold for pennies?

So U.S. equities will be sold for pennies?

Are you predicting a U.S. stock market crash bigger than the Great Depression, when oil runs out?

Hhmmmm,

Could be a sell off if it isn't managed...measured buy-backs scaled over a timeline that maybe offers them an opportunity to invest in other commodities may be preferable.

Actually now that I think about it...I should probably keep a pulse on ME holdings about 2 or so decades from now

Foreign assets are only as good as your alliance with those foreign nations.

When you lose your only bargaining chip(oil), things start to look dicey.

You're implying that the U.S. securities worth hundreds of billions held by a nation will be under threat of theft (by the U.S. government itself?) because the nation doesn't "have bargaining chips"?

So the U.S. will begin to rob and plunder the bank accounts of countries that don't have a bargaining chip?

Is that where the U.S. heading? The daylight roberry of the bank accounts of foreigners?

The Russian reserves are taken just as you described. The trust is eroded by a bit, despite the general acceptance that it was justified.

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