The game of musical chairs between countries looking to liquidate financial assets is far from over. Saudi Arabia threatens to sell off hundreds of billions – with a b – of USD worth of American assets if the bill holding the Saudi government responsible for any role in 9/11 is passed.
Also read: Is Igot Going the Mt Gox Way? Saudi Arabia Threatens US Economy
Everyone in the world would like nothing more than ensuring the parties responsible for the 9/11 attacks are apprehended and brought to justice. Several people within the US Congress feel Saudi Arabia played some role in these attacks, and a new bill has been drafted to hold the kingdom responsible for whichever part they played in this horrible event. But at the same time, the Obama administration has urged Congress to block the bill from passing.
If this bill passed Congress through some miracle – or secret deals between representatives – the results would be catastrophic for the US economy. Keeping in mind how Saudi Arabia holds US$750 billion in Treasury securities and other US assets, liquidating such vast amounts would put a severe strain on the US Dollar, and set a dangerous precedent for the country’s economy.
Although it is very doubtful the Saudi officials would go through with this move if the 9/11 bill passes, the situation has a lot of people on edge. Saudi Arabia seems willing to cripple their economy just to present a financial blow to their American counterparts. But in the bigger scheme of things, the debacle between the Saudi kingdom and the US is escalating at an accelerated pace.
Needless to say, this entire situation is causing a lot of frustration among families of the 9/11 victims as well. A significant portion of them feels Obama is protecting […]
