Saudi Arabia could sell off billions in American assets if bill passes: NYT

[News Manager]

The Saudi Arabian government has threatened to sell of hundreds of billions of dollars' worth of American assets should the U.S. Congress pass a bill that could hold the kingdom responsible for any role in the Sept. 11, 2001 attacks, the New York Times reported on Friday. In September a U.S. judge dismissed claims against Saudi Arabia by families of victims of the attacks, saying that the kingdom had sovereign immunity from damage claims by the families and from insurers that covered losses suffered by building owners and businesses.




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[oz codger]

Buyers?

The Bond markets would crash if SA put all her US Treasuries on the market today. They would be lucky to get 10c in the dollar.

Same with anything else they have to sell! SA will have to accept what the market is willing to pay!

An empty threat!

OC

 

[oz codger]

...and if they did flog off the US Treasures, the Fed would print the money and buy the lot for 10c.

Reduce their debt from 100 zillion to 10 zillion in a day!

OC

 

[MontyB]

...and if they did flog off the US Treasures, the Fed would print the money and buy the lot for 10c.

Reduce their debt from 100 zillion to 10 zillion in a day!

OC

Unfortunately it is printing money that got the US its debt in the first place.

 

[oz codger]

Spending money actually!

The US National Debt (US Treasuries on issue) has been out of control and growing, for decades, since WW2 in fact and some would say since WW1. WW2 and the Marshall Plan, Korea, Vietnam and 'Apollo' etc were all done with borrowed money.

Even Clinton's much lauded surpluses were only achieved by taking much of the bad stuff 'Off-Budget'.

Now, a trillion a year is about normal. The actual printing of currency (computer key strokes really) began after the GFC hit in 2008.

That project will be surpassed by a factor of 100 in the near future!