Saudis may sell off billions

1. I never said the sky is falling. I gave a best case scenario with minor economic impacts and a worst case scenario with major impacts caused by panic selling. A $750 Billon dollar draw down of US assets could just be a blip compared to our total assets, but it's nothing to sneeze at...about the same amount of money we spent on the 2009 stimulus.

2. Saudi Arabia is the world's lowest cost provider of oil. They are only 'suffering' because they won't make as much money as they thought they would. If there is suffering it's because they are trying to destroy our emerging shale oil and green energy businesses.

3. Saudi Arabia isn't our friend.

Selling the assets doesn't mean they are drawn down. They still exist, it's just somebody else owns them. The stimulus added
cash to the economy. Apple's and Oranges.

Of course the assets still exist. It's a draw down of THEIR investments in the US. As to the Stimulus, I was just talking about the SCOPE of the money involved. You seem to think it's pocket change.

It's also likely someone else will own these assets at a lower price....because that's how supply and demand work....This is why bond prices will move down, Interest rates will move up. Stock prices will move down and If the bulk of this money is in land (Which I really doubt) then land prices will move down too.

And as to the Fed being forced to do another QE to soak up the assets that get dumped and to keep interest rates artificially low...be careful what you wish for.

In any event....this is all idle speculation. If congress passes this 911 bill, President Obama will veto it. He doesn't want to risk economic turmoil over a few lawsuits. He views Saudi Arabia as a key partner in our fight against terrorism. He kisses the ring.

I already posted the link that explains everything you need to know.

But here's a good fact that might be of interest to you: "Spending" and "debt" are not synonymous.