Saudi Arabia Threatens Economic Strife if 9/11 Lawsuits Are Allowed to Continue
It's not often that news surrounding the 9/11 terrorist attacks makes the front page during today's news cycle. Most Americans are more concerned with the state of the presidential election, or if not that than with the U.S. economy than news regarding terrorist attacks that are 15 years old this year.
But it turns out that the U.S. economy may be more clearly tied to the 9/11 terrorist attacks, and the investigation that is still ongoing into the attacks, than anyone imagined.
How do we know this? Well, the Saudi Arabian government recently came out in a public statement against a little-known bill that is being passed around in the Senate. The bill is being referred to as the 9/11 bill and it deals with countries that assisted in the 9/11 terrorist attacks.
In a nutshell, the new bill would allow countries like Saudi Arabia--countries that had a direct role in the 9/11 attacks--to be held responsible and to pay steep fines for that involvement. In the case of Saudi Arabia, passage of the bill would mean that U.S. courts would put a freeze on almost a trillion dollars worth of Saudi assets and funds.
That's a lot and the Saudis know it.
In response to the potential passage of the bill, Saudi ministers promised that they would quickly sell off the U.S. debt that the country is holding--basically giving the United States a ransom notice.
If the $750 billion of U.S. debt that the Saudis own were to flood the market, their government threatened, it would lead to a devaluation of the dollar by approximately 4 percent.
That's the threat, but the reality of the situation may not be quite so dire.
The Saudi bullies seem to have forgotten that their own currency relies almost exclusively on the dollar. And in a world where the United States is now producing more oil and energy than ever before, it's a whimpy threat that the Saudis are putting forward.
h/t: Mad World News