By Janine Perrett

Talk about squandering the proceeds of a resources boom. And for once we're not talking about Australia here.

Saudi Arabia would you believe?

That's according to reports around yesterday quoting an IMF report that warns Saudi Arabia could run out of cash within five years...

I kid you not.

Not from some publicity seeking economist or bank energy analyst or even rival oil executive.

This is the International Monetary Fund no less.

Obviously, one should not gloat at the Saudi misfortune, but they are such a vile repressive regime that stone and publicly execute their own people for minor crimes among their many, many other attrocities down to the minor disgraces like not even allowing women to drive cars.

Just how you manage to pee that much up against the wall is incredible. I mean, we all knew the oil would run out one day, but this is something else.

Indeed we are talking about their cash reserves here, and it is due to the recent collapse in the oil price, which will see them lose nearly $400 billion this year alone.

But the ironic thing is that this is mainly of their own doing.

It is Saudi, as the key member of the OPEC cartel which tries to control world oil price and flow, that has aggresively pursued a policy of pumping more oil onto the market to drive down prices. Their bizarre rationale is to drive out competitors in the highly leveraged US shale oil industry.

Well that worked well didn't it?

There is surely more to this story than the shock horror report headline and I don't think we are talking an IMF bailout for the sheiks anytime soon.

But it makes you wonder if this is what Twiggy Forrest was warning about when he questioned a similar strategy by our iron ore producers to ramp up production and send prices plummeting.

That was until he joined them in ramping up production himself.

Poor Twiggy, poor Sheiks, but ultimately probably poor us.