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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThe Untold Story Behind Saudi Arabia's 41-Year US Debt Secret
http://readersupportednews.org/news-section2/318-66/37173-the-untold-story-behind-saudi-arabias-41-year-us-debt-secretThe basic framework was strikingly simple. The U.S. would buy oil from Saudi Arabia and provide the kingdom military aid and equipment. In return, the Saudis would plow billions of their petrodollar revenue back into Treasuries and finance Americas spending.
It took several discreet follow-up meetings to iron out all the details, Parsky said. But at the end of months of negotiations, there remained one small, yet crucial, catch: King Faisal bin Abdulaziz Al Saud demanded the countrys Treasury purchases stay strictly secret, according to a diplomatic cable obtained by Bloomberg from the National Archives database.
With a handful of Treasury and Federal Reserve officials, the secret was kept for more than four decadesuntil now. In response to a Freedom-of-Information-Act request submitted by Bloomberg News, the Treasury broke out Saudi Arabias holdings for the first time this month after concluding that it was consistent with transparency and the law to disclose the data, according to spokeswoman Whitney Smith. The $117 billion trove makes the kingdom one of Americas largest foreign creditors.
Yet in many ways, the information has raised more questions than it has answered. A former Treasury official, who specialized in central bank reserves and asked not to be identified, says the official figure vastly understates Saudi Arabias investments in U.S. government debt, which may be double or more.
The current tally represents just 20 percent of its $587 billion of foreign reserves, well below the two-thirds that central banks typically keep in dollar assets. Some analysts speculate the kingdom may be masking its U.S. debt holdings by accumulating Treasuries through offshore financial centers, which show up in the data of other countries.
leveymg
(36,418 posts)Parsky. That name rings some bells. Bookmarked. One of the more important articles you will read this decade.
JCMach1
(27,544 posts)they would be lucky to make it to their Swiss mansions alive.
The amounts privatized (i.e. stolen from the people by the Gulf rulers boggles the mind).
leveymg
(36,418 posts)But, that wouldn't be putting it strongly enough.
Snarkoleptic
(5,995 posts)"I summon my blue-eyed slaves anytime it pleases me. I command the Americans to send me their bravest soldiers to die for me. Anytime I clap my hands a stupid genie called the American ambassador appears to do my bidding. When the Americans die in my service their bodies are frozen in metal boxes by the US Embassy and American airplanes carry them away, as if they never existed. Truly, America is my favorite slave. --- King Fahd Bin Abdul-Aziz, Jeddeh 1993
If the reputation builds that the Saudis take care of their friends when they leave office, youd be surprised how much better friends you have who are just coming into office. --- Ambassador Prince Bandar on Washington
riderinthestorm
(23,272 posts)No doubt this is one of the most important stories in many years. Just stunning in its implications.
Bookmarking. Thanks eridani.
riderinthestorm
(23,272 posts)PM kick!!
(This should be generating so much buzz...)