Bloomberg Uncovers Secret Deal with Saudi Arabia on Debt for the Last 41 Years.

Why would we even care if they chose to sell off their United States debt holdings? It does not impact us at all, we already have the money they used to purchase that debt.

Empty and meaningless threat.

Here's a question... what's the value of the riyal tied too and how does it relate to the American dollar?

Once we know that we know who's really in control.

a reply to: onequestion

That is governed by the Forex and who is buying and selling what currencies.

a reply to: onequestion

the Riyal is pegged to the dollar which means that Saudi Arabia has to use its resources to maintain its desired position.

a reply to: ScepticScot

So they need us.

Seems to me like we should 've using that leverage more effectively.

originally posted by: onequestion
a reply to: ScepticScot

So they need us.

Seems to me like we should 've using that leverage more effectively.

Well they want US dollars (they don't sell oil out of the goodness of their hearts).

As it is easier for the US to replace Saudi Oil than for Saudi to replace US dollar purchasing power then yes I would agree that the US has the stronger position.

a reply to: CyberGarp

I doubt they would crush our economy because they own some debt. I believe we own SA debt too.

originally posted by: intrptr

Just a question, the big threat is selling off bad US debt?

Who'd buy that?

Nobody they can use the treasury bonds as $750 billion wallpaper.

originally posted by: Ove38
[q
Nobody they can use the treasury bonds as $750 billion wallpaper.

If they were legitimately going to sell their holdings (and I do not think they are serious) they would need to sell them at below the current par value of new T-Bills. If they paid more for them they would have to sell them at a loss. If they paid less then someone can purchase these and save on buying new Treasury Bills. Either way someone would buy them as it would buy a sound financial investment.

originally posted by: AugustusMasonicus

Why would we even care if they chose to sell off their United States debt holdings? It does not impact us at all, we already have the money they used to purchase that debt.

Empty and meaningless threat.

Well, if they sold them to China ?

originally posted by: Ove38
Well, if they sold them to China ?

it would not matter who they sell them too, they are already paid for as far as the United States is concerned.

And we invade in

3...2...1...

Perhaps the real threat wasn't so much to sell/cash the debt...

...but to make the deal public, releasing all of the dirt they have on all of the upper echelons of our cesspool letting the american public see with no doubt that their own government has turned on them, and their own monetary system is flawed beyond repair.

Think about what a loss in faith to our currency would do to this country overnight. Entire cities would burn to the ground within a week, and the majority of government would cease to function. Throw in citizens rioting for an overthrow of those in power... throw in all the countries that depend on US currency functioning (or countries sitting on stockpiles of debt) now throwing a fit.

They very well could be sitting on the keys to throwing the whole world into chaos- and that's how they pull the strings. Our beloved puppets would lose their comfortable lives if they didn't do as they're told, so they just keep on keeping on, hoping to live out their lives before it falls apart.

a reply to: CyberGarp

Which would...........cause a collapse of the bond market? Which would cause the financial markets to lock up as in 2008?

a reply to: TonyS

The country a mass sell off of US debt hurt most is the country selling. Not going to happen.

a reply to: ScepticScot

Because..............they'd find themsevlves having to sell at a great loss I suppose.

Maybe this explains the Feds desire to raise interest rates? (Makes sale of new bonds more attractive).

originally posted by: TonyS
a reply to: CyberGarp

Which would...........cause a collapse of the bond market? Which would cause the financial markets to lock up as in 2008?

I dont think 2008 is over, they just made more bonds and dollars, to make the problem go away.

a reply to: CyberGarp

Let's be plain about this.

Saudi's bought down WTC because they found out that the debt they bough was worthless.
And the bill, what the US owed for the oil they took from that country was paid with debt bonds.

How come no one ever thought of this happening. It's happening everywhere.

The debt is worthless because interest is owed on it. Saudi's don't think they should be taxed in the debt sold to them.
US robbed them of their oil and gave them debt to repay.

After all, the money that built those towers were partially given by Saudi's.

Bringing down WTC was a liquidation of their investment assets.

Why do you think Bush made someone else the panzi for the war crimes, Saudi's oil is a main importer of oil.

He must have though he was stealing from the Saudi's and figured they would not catch wind of it.

Well, surprise, surprise.

originally posted by: AscendantCause42
Saudi's bought down WTC because they found out that the debt they bough was worthless.

None of you post makes and financial sense. How did they 'liquidate their investment assets' when they still own the T-Bills?

originally posted by: AscendantCause42
a reply to: CyberGarp

Let's be plain about this.

Saudi's bought down WTC because they found out that the debt they bough was worthless.
And the bill, what the US owed for the oil they took from that country was paid with debt bonds.

How come no one ever thought of this happening. It's happening everywhere.

The debt is worthless because interest is owed on it. Saudi's don't think they should be taxed in the debt sold to them.
US robbed them of their oil and gave them debt to repay.

After all, the money that built those towers were partially given by Saudi's.

Bringing down WTC was a liquidation of their investment assets.

Why do you think Bush made someone else the panzi for the war crimes, Saudi's oil is a main importer of oil.

He must have though he was stealing from the Saudi's and figured they would not catch wind of it.

Well, surprise, surprise.

l thought they paid for the oil with gold ? But if the paid for the oil with treasury bonds, they were smart, it's only paper.