QuickHitCurepon
Diamond Member
Saudi Arabia severs diplomatic ties with US over response to conflict in Syria | Mail Online
Can you imagine what would happen if Saudi Arabia dumps all its U.S. Treasury bonds?
If relations with the Saudis continue like this, they will eventually, say five, ten years from now, stop importing oil to the U.S. That'll hurt the U.S. economy tremendously, as will if the Saudis stop buying fighter jets and arms from us and buy them instead from Russia and elsewhere.
The source... suggested that the planned change in ties between the energy superpower and the United States would have wide-ranging consequences, including on arms purchases and oil sales.
Saudi Arabia, the world's biggest oil exporter, ploughs much of its earnings back into U.S. assets. Most of the Saudi central bank's net foreign assets of $690 billion are thought to be denominated in dollars, much of them in U.S. Treasury bonds.
Can you imagine what would happen if Saudi Arabia dumps all its U.S. Treasury bonds?
If relations with the Saudis continue like this, they will eventually, say five, ten years from now, stop importing oil to the U.S. That'll hurt the U.S. economy tremendously, as will if the Saudis stop buying fighter jets and arms from us and buy them instead from Russia and elsewhere.