I wonder if the Saudi’s realize that they own so many billions of US Treasury bonds that the sale of so many bonds essentially creates a huge liquidity problem for them. To sell that many bonds, they would either have to find a very limited number of willing buyers to do a private transaction, in which case they would do no damage to the US, or they would have to sell them in the open market and take a HUGE loss as selling that many bonds would drive the price per bond into the toilet.
I kinda agree with you. From the 750 billion dollars....the first wave of 20-odd billion might go for full value. The second wave would go for 20-percent off full value, and about mid-way to the 750 billion...it’d be a 50-percent sale, if you ask me. By the end....people would simply pay 33-cents to the dollar for these bonds. Saudi Arabia would get half the true value, and be standing there shaking their head over how they lost so much of their cash. Then....who would buy their oil if you realize you were financing Terrorism Incorporated?
The global bullies - our “free trade” partners - have grown accustomed to ordering us around with economic threats. These are orders for our leaders to act in ways that are not in the interest of the US or our people. Globalism sucks.