SOURCE: AGAINST CRONY CAPITALISM
So was this the reason for the “expedited” meetings between Obama and Yellen this week? Good chance. But we don’t know.
And if the Saudis were to sell $750 billion in US Treasuries who would they sell them to? That’s a lot of paper to move and the world isn’t that big.
Add that the Saudis would isolate themselves diplomatically and one has got to think that the Saudis, usually pretty rational actors, wouldn’t actually pull the trigger.
(From The New York Times)
Saudi Arabia has told the Obama administration and members of Congress that it will sell off hundreds of billions of dollars’ worth of American assets held by the kingdom if Congress passes a bill that would allow the Saudi government to be held responsible in American courts for any role in the Sept. 11, 2001, attacks.
The Obama administration has lobbied Congress to block the bill’s passage, according to administration officials and congressional aides from both parties, and the Saudi threats have been the subject of intense discussions in recent weeks between lawmakers and officials from the State Department and the Pentagon. The officials have warned senators of diplomatic and economic fallout from the legislation.
Adel al-Jubeir, the Saudi foreign minister, delivered the kingdom’s message personally last month during a trip to Washington, telling lawmakers that Saudi Arabia would be forced to sell up to $750 billion in treasury securities and other assets in the United States before they could be in danger of being frozen by American courts.