Saudis may sell off billions

Did anyone else see this? If they actually went through it, which I highly doubt they would, I wonder what kind of ripple affect it would have. I imagine it would be somewhat short term or does anyone think it would have any mafor impact?

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

WASHINGTON (Reuters) - 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.

The newspaper reported that Saudi foreign minister Adel al-Jubeir told U.S. lawmakers last month 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."

The bill, which passed the Senate Judiciary Committee earlier this year, would take away immunity from foreign governments in cases "arising from a terrorist attack that kills an American on American soil."

The New York Times, citing administration officials and congressional aides, said "the Saudi threats have been the subject of intense discussions in recent weeks between lawmakers and officials from the State Department and the Pentagon."

It added that the Obama administration had lobbied Congress to block the passage of the bill.

The State Department said it stood "firmly with the victims of these acts of violence and their loved ones."

"We remain committed to bringing to justice terrorists and those who use terrorism to advance their depraved ideology," said State Department spokesman John Kirby..."

https://www.yahoo.com/news/saudi-arabia-could-sell-off-billions-american-assets-195814768.html?ref=gs
Oh how wonderful. And yet another great Vegas related contribution from the whiner. Let's all wait until "no money to play RouletteMan" comes to save the day for Jatki.
Never fear.

The Obama is traveling to the Kingdom of Saudi Arabia next week to meet with Arab leaders.



DonDiego supposes everything will go well.
Were these assets purchased with some of that pretty green paper that we've been sending them for years? Bernie plans for us to send more pretty green paper to the Saudi's in the future.





Holy smokes, now Obama's bowing to the Burger King guy?!?

Quote

Originally posted by: Boilerman
Were these assets purchased with some of that pretty green paper that we've been sending them for years? Bernie plans for us to send more pretty green paper to the Saudi's in the future.


Brought to you by the guy that wants to issue more debt via repealing Obamacare
So we print up pieces of pretty green paper, send them to the middle east and receive the life blood of our economy for them, but boiler has a problem with that.
Just suppose the Saudis dump their US assets. What would the impact be on our economy?

1. Bond prices would decrease with a corresponding rise in interest rates. How high would they go? That depends on whether others panic and follow suit.
2. Equity prices would decrease. How low would they go? That depends on whether others panic and follow suit.
3. The value of the dollar would decline creating inflationary pressure. How much? Unknown.

We know these are the impacts of an asset dump. We just don't know how severe that impact will be.

Worst case scenario: Stock Market Crash combined with Crushing Interest Rates and High Inflation.
Best case scenario: Slightly higher interest rates, a stock market correction and a slightly weaker dollar.
Quote

Originally posted by: alanleroyII
Just suppose the Saudis dump their US assets. What would the impact be on our economy?

1. Bond prices would decrease with a corresponding rise in interest rates. How high would they go? That depends on whether others panic and follow suit.
2. Equity prices would decrease. How low would they go? That depends on whether others panic and follow suit.
3. The value of the dollar would decline creating inflationary pressure. How much? Unknown.

We know these are the impacts of an asset dump. We just don't know how severe that impact will be.

Worst case scenario: Stock Market Crash combined with Crushing Interest Rates and High Inflation.
Best case scenario: Slightly higher interest rates, a stock market correction and a slightly weaker dollar.


Worst case: Saudi citizens plan and carry out another 911 style terrorist attack financed by Saudi citizens. Then they hide and say “We can’t be held responsible for the action of our individual citizens even though a bunch of them were involved.”

All the article is really saying is that the Saudi’s are threating to become international deadbeats. That is if some 911 family member sues them or insurance companies sue them to recoup their losses, they want to be able to hide their assets from any judgments issued by U.S. Civil courts.
Quote

Originally posted by: malibber2
Quote

Originally posted by: alanleroyII
Just suppose the Saudis dump their US assets. What would the impact be on our economy?

1. Bond prices would decrease with a corresponding rise in interest rates. How high would they go? That depends on whether others panic and follow suit.
2. Equity prices would decrease. How low would they go? That depends on whether others panic and follow suit.
3. The value of the dollar would decline creating inflationary pressure. How much? Unknown.

We know these are the impacts of an asset dump. We just don't know how severe that impact will be.

Worst case scenario: Stock Market Crash combined with Crushing Interest Rates and High Inflation.
Best case scenario: Slightly higher interest rates, a stock market correction and a slightly weaker dollar.


Worst case: Saudi citizens plan and carry out another 911 style terrorist attack financed by Saudi citizens. Then they hide and say “We can’t be held responsible for the action of our individual citizens even though a bunch of them were involved.”

All the article is really saying is that the Saudi’s are threating to become international deadbeats. That is if some 911 family member sues them or insurance companies sue them to recoup their losses, they want to be able to hide their assets from any judgments issued by U.S. Civil courts.
Except that's all irrelevant to the impact of a Saudi asset dump on the US economy...which is what I was idly speculating about.

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