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KSA Warns of Economic Fallout if Congress Passes 9/11 Bill

I've not much to say for Saudis apart from the fact they buy kit from us - which 9 times out of 10 I'd rather we sell to someone else. We've kissed their backsides too often for my liking.


Book Reviewer
KSA will soon find out that they need the West rather more than the West needs them.
The freezing of Saudi assets in the UK Act 2017. I'd like to see this one on the books.

So about half the Uk in terms of value then :lol:
...spending like a drunken sailor on bling.
You say that like it's a bad thing!

I've got some of my bestest gizzits while being, err, socially confused.


A podcast Ian Master's Background Briefing has an interview with Youssef Ibrahim mainly about Saudi energy policy and some very pissed off folk at Aramco but he covers a few other topics including this one. The KSA under "The Boy" is making too many strategic mistakes.


To elaborate a bit more, the current Saudi threat is way weaker than the implicit Chinese threat of seven years ago, because:

  • Saudi Arabia holds fewer dollar assets than China;
  • Saudi Arabia’s 2016 economy is far less imposing than China’s 2009 economy;
  • The U.S. dollar is even more dominant now than it was in 2009;
  • The U.S. economy — in particular the fiscal picture — is in far better shape now than in 2009;
  • The array of alternatives to dollar-denominated assets look way worse now than in 2009;
The one difference in the Saudis’ favor is that the kingdom is a U.S. ally, while China is viewed as a rival. This helps explain the administration’s position on this issue (though I suspect its concern is about the precedent this bill would set if it became law). The thing is, recent Obama interviews and news storieshighlight the ways in which these ties are fraying. And the very fact that this threat got publicized is not going to improve U.S. attitudes toward Riyadh.

No, the most interesting thing about the revelation of this threat has been the lack of pundit panic in Washington. If anything, the response has been eithera shrug of the shoulders or an insistence on calling the Saudi bluff.
Interesting comparison with an earlier threat by China to drop its holding of US debt that caused apoplexy.

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