It is difficult to determine whether the U.S. bailout request to the Middle East is begging activity or just part of the protection racket. The Arabs would be most unwise to provide any support once they realize the engineers of the financial melt-down are still in power (actually favoured and approved with rescues) and how shady and ineffective the massive U.S. bailouts have fared thus far.

Should the Arabs decline this request, I am sure the influence of China and Russia would rise immediately in the Gulf States.

Regards - VHF

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US Seeks 300 Billion Dlrs from Gulf States: Report

22/Nov/2008
AFP

The United States has asked four oil-rich Gulf states for close to 300 billion dollars to help it curb the global financial meltdown, Kuwaits daily Al-Seyassah reported Thursday.

Quoting "highly informed" sources, the daily said Washington has asked Saudi Arabia for 120 billion dollars, the United Arab Emirates for 70 billion dollars, Qatar for 60 billion dollars and was seeking 40 billion dollars from Kuwait.

Al-Seyassah said Washington sought the amount as "financial aid" to face the fallout of the financial crisis and help prevent its economy from sliding into a painful recession.

The daily said the United States plans to use the funds to help the ailing automobile industry , banks and other companies suffering from the global financial turmoil.

The four nations, all members of OPEC, produce together 14 million barrels of oil per day, around half of the cartels production and about 17 percent of world supplies.

The four states are estimated to have amassed close to 1.5 trillion dollars in surplus in the past six years due to high oil prices that rocketed above 147 dollars in July before sliding to just above 50 dollars.

The daily also said that the United States has asked Kuwait to forgive its Iraqi debt estimated at around 16 billion dollars.