Corporate taxes

Beware investing in autocracies

Illustration of an oil rig in the Saudi desert casting a shadow in the shape of a dollar sign
Illustration: Sarah Grillo/Axios

Aramco, Saudi Arabia's state-owned oil company, promised this week that it would set a dividend of at least $75 billion through 2024 — or, that non-government shareholders would receive at least $750 million in dividends for every 1% of the company that they own, from 2020 through 2024.

Why it matters: Because the Saudi royal family controls Aramco, it doesn't need the company to pay any dividends at all. If they need to extract money from Aramco, they can always raise the company's tax rate, or simply expropriate what they need.

Markets are untrustworthy

Illustration: Aïda Amer/Axios

The big lesson of this week: Don't trust the markets.

What's happening: U.S. money markets fell into chaos this week as risk-free overnight interest rates spiked to almost 10%. But, while market information is a very important signal, it should never be taken as being definitive.