Is Saudi Arabia bluffing or is it being genuine in its latest threat?
Over the weekend, it was reported by the New York Times that kingdom officials warned it would sell $750 billion worth of United States assets if the Obama administration or congressional representatives reveal the oil-rich nation’s role in the Sept. 11, 2001 terrorist attacks.
Saudi Foreign Minister Adel al-Jubeir told lawmakers in Washington last month that the country would sell up to $750 billion in Treasury securities and other assets before they’re frozen by U.S. courts and awarded to victims of the terrorist attacks.
The Saudi Arabian government’s threat is apparently being taken seriously by the Obama White House. Reportedly, administration officials are lobbying Democratic and Republican members of Congress to not pass the bill. The warning has also led to serious talks between legislators and Pentagon and State Department officials.
According to many economists, the Saudis will not likely follow through on their threats. News reports suggest that an immense sell-off would not only be hard to employ, but it would significantly damage the Saudi economy.
Nevertheless, Washington officials say a passage of the bill could lead to serious economic and diplomatic fallout. President Obama will meet with King Salman and kingdom officials this week when he steps foot in Riyadh. Although what’s being discussed remains unknown, it’s quite likely that the legislation will be talked about.
Saudi Arabia, along with other oil exporters, are one of the largest foreign holders of Treasury securities. It’s apparent that the Saudi government would prefer to sell its holdings at a discount rather than award the sums to 9/11 victims.
With 15 of the hijackers having Saudi passports is this a surprise??? Time for the President to grow a pair and tell the Saudi’s good by to the F-15 Aircraft support and see how their planes do with no more spare parts, coming from the U.S. We do not need their oil or friendship any longer.