[Roy Tucker]

I was being somewhat facetious. The Saudis pay interest they just call it commissions. They also borrow abroad where it is clearly stated that interest is payable. Many Muslims believe that it is not the paying of interest but usury is forbidden in the Koran. But don't be surprised if it becomes a rallying cry from the rabble-rousing fundamentalists.

My experience is that unless it is the specific borrower who defaults who also has assets overseas, then it is very difficult (as it should be)under US and international law to seize that property. If a Government defaults, it is hard to justify that you can seize some prince's real estate in London. Although given the interconnection between the Government purse and the royal family it would be a stronger case to make.

[Cachelot]

Although given the interconnection between the Government purse and the royal family

Yes. And I would expect that if a default takes place, and the Saudis are in "the doghouse" over their terrorist support role, the case would be even stronger.