Saudi Arabia to sell $750 billion worth of US assets if congress passes 9/11 bill

[Templar 331]

It's about time. I'm willing to bet the region will be even more unstable after this though. :/

[SodiumChloride]

A teachable moment in not blithely carrying around massive sovereign debt. "They have his soul, who have his bonds"

The moment they try to sell it, it will devaluate - especially if they are selling it all at once.

They are fucking themselves over as well.

People need to stop seeing sovereign debt as a bank loan. Banks are protected by the law, they can seize your shit and garnish your wages. There is no law protecting sovereign debtees.

[alexw]

Saudi Arabia is responsible for the toxic brand of wahhabism in the world. The more the relationship sours the better.

Yup. I kind of hope the US breaks with SA completely and aligns with Iran instead. Though Iran is a theocracy right now, the younger generations are much less intolerant and don't harbor the same hate as their parents generation, and so over time as they assume power Iran will become a much better fit with the US and the rest of the west. It will take some time though and the west will need to substantially increase its switch to renewables so that SA can't use oil as a weapon against us.

[Stormdash]

The moment they try to sell it, it will devaluate - especially if they are selling it all at once.

They are fucking themselves over as well.

People need to stop seeing sovereign debt as a bank loan. Banks are protected by the law, they can seize your shit and garnish your wages. There is no law protecting sovereign debtees.

Well, there is one... the oldest, really. But if that's your safeguard against letting your debtors dictate your public policy, you really don't have the option of not having the strongest military you can maintain, there's never a right time to try to wind it back or scale it down, because it's the only real backstop against that kind of manipulation.

[zebreck]

I hope to god they do sell it. I hope they sell ALL of it. We could use a weaker dollar right now export/import wise, and the more long-term assets the house of saud has to sell off to buy it's people's affection the faster and more intense the inevitable democratic correction is going to be.

[Barnabas]

http://www.nytimes.com/2016/04/16/wo...9-11-bill.html

So is this SA's way of admitting they had a hand in it in some way?

They will likely end up having to do that anyway if saudi arabias finances don't improve.

[Deleted]

This is absolutely ridiculous. Why would Saudi Arabia "as a government" do such a thing to the US "which is it's number 1 ally.

I still don´t understand how this is even possible and how you guys can be okay with it. Saudi Arabia has sharia law and they´re beheading and stoning people for things like witchcraft, adultery, homosexuality, blasphemy etc. They beheaded at least 157 people in 2015 and the people are fucking ignoring it. Don´t even get me started on the human rights council thing...

[Deleted]

But if they were innocent, they wouldn't have to worry about reprisals. An investigation would clear them of any wrong doing. So why act all panicky?

You (and others) assume that the "trial" will be fair and consider that Saudi Arabia as a state might not be involved?
That is naive at best ^^

Would love to add a cent or two on the American lawsystem but I guess that would be considered region bashing - so lets just say that "law" does not equal "justice" or even "fair".

The lawsystem in Saudi Arabia is probably worse, but that is not the topic here.

[Teaon]

do you guys know that if Saudi Arabia sold the assets, USA gonna kiss being the strongest country goodbye?

[Masark]

do you guys know that if Saudi Arabia sold the assets, USA gonna kiss being the strongest country goodbye?

How do you figure that?

[alexw]

I still don´t understand how this is even possible and how you guys can be okay with it. Saudi Arabia has sharia law and they´re beheading and stoning people for things like witchcraft, adultery, homosexuality, blasphemy etc. They beheaded at least 157 people in 2015 and the people are fucking ignoring it. Don´t even get me started on the human rights council thing...

Oil oil oil. As long as the west is dependent on it they dare not make SA an enemy. When the switch to renewables is mostly complete though, well then there will be relationship trouble....

[Independent voter]

I am curious to see what is in that report.

They're saying the way the report's conclusion was written, those who are allowed to see it, the conclusion excludes involvement from the Saudi government at least. But many believe Saudi citizens were involved, some unknowingly some knowingly.

[SodiumChloride]

do you guys know that if Saudi Arabia sold the assets, USA gonna kiss being the strongest country goodbye?

Nah. Japan and China both hold more US debt than SA. The US is quite willing to tangle with the likes of China.

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Oil oil oil. As long as the west is dependent on it they dare not make SA an enemy. When the switch to renewables is mostly complete though, well then there will be relationship trouble....

Oil is so cheap now. There is so much oversupply. SA dropping out of the market won't be a big deal.

For SA though ... they have "social programs" to pay off, that's how the Kings keep their rule - by paying off their opponents.

[Teaon]

How do you figure that?

it would crippled the Dollar, and make it turn into dust worth, it is more like Economical suicide, for both countries

[alexw]

Nah. Japan and China both hold more US debt than SA. The US is quite willing to tangle with the likes of China.

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Oil is so cheap now. There is so much oversupply. SA dropping out of the market won't be a big deal.

That is not how it works. SA does not act alone it is allied with other Sunni oil producers in the region and breaking with SA effectively breaks with them too. Moreover countries do not make decisions on these sorts of things on short-term trends. So the current oversupply is irrelevant to long term allegiances. What matters is what the level of oil usage of the west vs global production will be over the next two decades not what it is right at this moment. Then based on those projections with their levels of uncertainty factored in are the risks of breaking with SA and its satellites worth the reward?

[Ahovv]

The classified pages of the 9/11 report will likely incriminate Saudi officials. Members of Congress whom have read the classified pages suggested the information completely changed their perspective on the events surrounding 9/11.

At this point I feel the only reason those pages are classified is to prevent massive embarrassment. Saudi Arabia is a totalitarian state with barbaric punishments fitting Sharia. The real embarrassment is that we are such close allies with them.

[SodiumChloride]

That is not how it works. SA does not act alone it is allied with other Sunni oil producers in the region and breaking with SA effectively breaks with them too. Moreover countries do not make decisions on these sorts of things on short-term trends. So the current oversupply is irrelevant to long term allegiances. What matters is what the level of oil usage of the west vs global production will be over the next two decades not what it is right at this moment.

OPEC is dysfunctional.

A cartel doesn't work when the members don't trust each other and freely backstab one another.

Given the low price of oil, you think those oil producing countries will hesitate to snap up SA's market share?

SA has next to no leverage right now.

[alexw]

OPEC is dysfunctional.

A cartel doesn't work when the members don't trust each other and freely backstab one another.

Given the low price of oil, you think those oil producing countries will hesitate to snap up SA's market share?

SA has next to no leverage right now.

Yes they backstab each other, but the west is "allied" with the Sunni side of the middle east so that if the west breaks with them they will close ranks and act together. It is like a family squabble where that family is then threatened by outside forces. Under such a scenario the family will group up to face the outside threat.

[SodiumChloride]

Yes they backstab each other, but the west is "allied" with the Sunni side of the middle east so that if the west breaks with them they will close ranks and act together. It is like a family squabble where that family is then threatened by outside forces. Under such a scenario the family will group up to face the outside threat.

Please. They won't even close ranks to boost the current price of oil. You think they will give a shit about SA?

You are greatly overestimating the unity of the Middle East.

If SA stops selling, they will jump at the opportunity to sell their own oil in SA's place.

Alliance with SA is worth less than hard USD.

[DJ117]

Only a guilty person would use threats.