With the Saudi Foreign Ministry openly threatening to collapse the US dollar just days ago, President Obama’s visit to Riyadh today wasn’t exactly met with a warm welcome. Saudi state TV always hypes visits by foreign heads of state. Obama’s arrival was conspicuously not mentioned.
Saudi King Salman had been at the airport, broadcast on state TV greeting other arriving leaders for the GCC summit, by the time Obama got there, he and the TV crew were long gone, and only the local governor was there to meet with him.
The Saudis have been pretty public about their displeasure about Obama’s presidency, and were pressing Obama on their ongoing desire for hostilities with Iran, as Obama pressed them to accept a “cold peace” that would end the sectarian tensions in the region.
Obama was said to have mentioned “concerns” about Saudi human rights violations, but publicly praised the kingdom for itss pledges to eventually provide humanitarian aid to Yemen, which they attacked last year and have imposed a naval blockade on.
Unlikely to be acknowledged are any conversations related to Foreign Minister Jubeir’s threat to sell $750 billion in treasury securities to punish the US for a law that would expose them to legal action for their involvement in 9/11.
Obama has not directly commented on the situation regarding the treasury assets at all, but White House press secretary Josh Earnest said Monday that Obama would almost certainly veto the legislation to protect “taxpayers.”
The Sauds can no more ‘collapse the dollar” than they can make gold from lead.
In fact, the Saudis have been pegging their currency (the riyal) to the USD for >30 years. So if they collapse the dollar, they also collapse the riyal. And if the abandon the peg, the overvalued riyal collapses anyway. In addition, the KSA has been depleting its foreign exchange reserves lately to prop up its welfare state in the face of low oil prices, so it cannot salvage the riyal with those.
If Obama had any stones at all, he’d get back on that plane, go home, and then release those infamous 28 pages – and while he’s at it, direct his UN Rep to file 1. papers to initiate statehood for the Palestinians, and 2. file papers bringing charges against the Israelis for what they’re doing regarding the theft of Palestinian land. Oh, and he should immediately curtail any monetary and military “gifts” to both the Israelis and the Saudis.
But, when you have a largely feckless President, standing up for the US usually falls short of fulfilling their oath to protect the country.
Obama knows that to allow the 28 pages to come out will lead to the demonization of Saudi for 911. And knowing that he knows that will provide the justification that is starting to be fabricated for war against Saudi. That’s what we antiwar crusaders need to start thinking now, as there are just too many indications that the US is on that track.
This however may be negated by the next president if the momentum is shifted to a war with Iran on trumped up charges, which will pacify Saudi and be in their interests.
Which presidential candidate will get that missing war with Iran going the quickest? A hard one to answer but it’s likely that Trump would be the easiest to manipulate.
The Islamic State, a state created for the sole benefit of keeping the Saudi royal family in power, they just executed 250 young women for refusing to be sex slaves. So, what is your problem Obama, don’t you read the news?
You can lead the charge on the demonizing John but this time you’re likely to get the hawks on board with you. Even though Republican supporters are slow to take up a demonizing cause under a Dem president, most likely.
I don’t how it would ‘collapse the dollar’. Selling the bonds requires US dollars to buy them; either that creates demand for dollars in the market or the Fed would create dollars to buy them. What it would possibly do if there were one dump in the open market is reduce the price of the bonds, thus raising the yield, but that would cause the dollar to go up too.