I, Against My Brothers. Meh!

Saudi Arabia appears to be experiencing a purge and consolidation of power. The Bedouin say

I, against my brothers.

I and my brothers against my cousins.

I and my brothers and my cousins against the world. 

With two Saudi princes dead in the last 24 hours, and 11 more under house arrest, it appears we are solidly now journeying through the first clause of the proverb. Anyone would say these are precipitous times for the world’s fuel supply.

Though oil prices are somewhat higher, the VIX remains subdued around 9.5, which is essentially at all time lows. Unconcerned with volatility and sitting near all-time highs, stock markets seem to like the centralization of power. Turkey under Erdogan undertook a purge earlier this year that eliminated literally tens of thousands of potential political opponents from their posts. China under Xi has amassed more control than anyone since Mao. Investors don’t seem very fussed at the moment with the global trend.

Which makes for an interesting question in the US. What happens next in the Game of Thrones match between Mueller and Trump? And is power fracturing or consolidating? For the moment, the wisdom of the crowds says: “Don’t worry.”