Saudi threat to withdraw billions in US investments

The Telegraph (U.K.) ^ | 08/20/2002 | Simon English

[Thud]

We're so scared.

[gcraig]

A spokesman for the Al Rajhi Investment and Development Corporation, a bank named in the lawsuit, said: "This is an act to extort Saudi money deposited in the United States and a way of meddling in the region."

Saudi Arabia, you haven't seen meddling yet. Wait till we start bombing.

[Jorge]

$750 Billion isn't even 1% of the US market...microsoft alone is $300 billion.

In other words we could afford to have two companies like Microsoft completely leave the US market with less of an impact on our economy and jobs, than would result if the Saudis pulled their investments.
That's comforting.

[joesnuffy]

Pay em in Saudi Script

[IronJack]

Saudi investors have $750 billion in the US.

It's $750 billion of our own money, come back home to roost. If we retake our oilfields, the Saudis will be back to cooking scorpion stew over a camel crap fire, and praying the next sandstorm doesn't blow them halfway to Haifa.

[Leisler]

1. If they quit, everyone will ride the prices down, so they will be selling at a discount.

2.What ever they get, they put it into a fund/back, whatever. Naturally this fund/bank will be looking for good buys-like U.S. investments that have dropped in price. So, the money comes back.

3. The political situation will become so uncertain that money worldwide will fly to security, like US Treasury notes.

4. Frankly, a lot of rich, fat, no account Saudis are going to keep, if not increase their investments. Saudi Arabia will go tapioca before the US ever does. Look for Beverley Hills mansion prices to skyrocket.

[SAJ]

The word is 'sequestration'. And I completely agree with you.

Sequestration of enemy assets is incredibly and immediately effective.

Give the Saudis 96 hours to surrender all the supposed Al-Qaeda 'fighters' they've 'captured' (what a crock), suspend ALL asset transfers as of the very minute of the announcement, and when they don't comply (and ALSO allow use of their physical facilities to the US Armed Forces regarding Hussein and his Ba'athists), sequester all Saudi assets.

Probably the highly predatory Swiss will go along with this, perhaps even (no bets) the Dutch. The Brits certainly will, New Labour are **desperate** for revenue to maintain their idiotic welfare-state posture.

[SAJ]

The word is 'sequestration'. And I completely agree with you.

Sequestration of enemy assets is incredibly and immediately effective.

Give the Saudis 96 hours to surrender all the supposed Al-Qaeda 'fighters' they've 'captured' (what a crock), suspend ALL asset transfers as of the very minute of the announcement, and when they don't comply (and ALSO allow use of their physical facilities to the US Armed Forces regarding Hussein and his Ba'athists), sequester all Saudi assets.

Probably the highly predatory Swiss will go along with this, perhaps even (no bets) the Dutch. The Brits certainly will, New Labour are **desperate** for revenue to maintain their idiotic welfare-state posture.

[Billthedrill]

It could just as easily backfire on them. Throw $750 billion worth of stock and real estate on the market and the overall price will go down, true, but there's also going to be a reactive frenzy of buying and a resulting stimulation of the economy that they're trying to depress. And they'll have to find somewhere to put $750 billion that won't also react negatively - throw that money into the EU markets suddenly, say, and what happens? The prices go up. And then? Inflation, further loss of productivity, increased cost of EU goods, and resulting degradation of EU competitiveness in the international market. Let's face it, you don't throw that kind of money around lightly without risking a huge loss.

I think the point is that they'd rather do so than lose it in a lawsuit, which is natural enough. But the reason that this sort of economic warfare hasn't become common is the prohibitive price the manipulator has to pay for manipulating the victim's economy.

[SAJ]

Apologies to all for the double post!

Either kbd bounce or a nervous disorder on my part (g!).

[SAJ]

You are mistaken, sir. On December 9, 1944, after the Swiss had refused to stop allowing transshipment of military materiel through their nation in exchange for Nazi coal, FDR froze ('sequestered' is the proper term) ALL Swiss assets in the U.S. The next day, all the Allied Powers followed suit. It took exactly 9 days for the Swiss to cooperate.

As Casey Stengel, the old Yankee maanger, used to say: 'Ya could look it up.'

[VaBthang4]

"Saudi's richest investors are threatening to pull billions of dollars out of America..."

Dont talk about it...Do it!

[Jorge]

You are mistaken, sir. On December 9, 1944, after the Swiss had refused to stop allowing transshipment of military materiel through their nation in exchange for Nazi coal....

You're talking about a World War over a half a century ago..and comparing the Saudi situation to the Nazis...and this is supposed to be a convincing argument. LOL

[EternalHope]

You know, it is so odd. The parts for all their military hardware they bought from us just tripled in price.

They don't seem to work quite right either.

[Eaker]

When will President Bush simply announce publicly that the Saudis are our enemy??

[F16Fighter]

"Suspend ALL asset transfers as of the very minute of the announcement, and when they don't comply (and ALSO allow use of their physical facilities to the US Armed Forces regarding Hussein and his Ba'athists), sequester all Saudi assets..."

And I concur....

The US should have no qualms at all implementing into action your suggested plan. In fact the Saudis should consider themselves lucky if this was the only extent of a retributive phase regarding their blatant and overt support of terrorism aimed at America.

As for the Euro-wusses, the only ones worth consulting with on any basis are the Brits.

[altair]

Where they gonna put it?

Tokyo.

[mo]

Supposing they already TRIED to get their cash out..out of enron, worldcom, global crossing etc last spring...gives a new thought to "motive"....

[weikel]

I wonder if the Saudi money in the US is why Bush has been kissing up to them instead of say launching a surprise night paratrooper attack and seizing the oilfields followed by a general invasion and destruction of the Wahabbi cult and House of Saud. Thd DOW dropped about 1000 points on the Friday and Monday BEFORE 9/11 I think its because the Saudis were selling short I think they knew all about it in advance. Damn Ive been on FR too long Im starting to grow tinfoil on my head.

[weikel]

You assume the idiots in our government know what assets are owned by the Saudis Im sure that most of what the Saudi have invested goes through about 100 intermediaries.