New Report Reveals How Saudis Hold US Ransom


While at the time it seemed like a bargain, opening the doors to Saudi money backfired horribly, as the  radical nation gained power to swing much higher than it could hit. It empowered the country to say “jump!” with the expectation that the US government would say “how high?,” as was plainly seen when the Obama administration attempted to suppress the 28 pages of the 9/11 report like the kingdom demanded:

“The basic framework was strikingly simple. The U.S. would buy oil from Saudi Arabia and provide the kingdom military aid and equipment. In return, the Saudis would plow billions of their petrodollar revenue back into Treasuries and finance America’s spending.

It took several discreet follow-up meetings to iron out all the details, [former Deputy Treasury Secretary] Parsky said. But at the end of months of negotiations, there remained one small, yet crucial, catch: King Faisal bin Abdulaziz Al Saud demanded the country’s Treasury purchases stay ‘strictly secret,’ according to a diplomatic cable obtained by Bloomberg from the National Archives database.

Parsky was there during the Saudi talks that took place in Jeddah, Saudi Arabia, in July 1974. He was assistant to Secretary William Simon, who was tasked by President Nixon to save America’s economy by making a deal with the kingdom and its newfound petrodollar wealth. The OPEC oil embargo, put in place in response to aiding Israel’s Yom Kippur war, was wreaking havoc on U.S. inflation and the stock market.

Simon, a former Wall St. bond trader and director of the Treasuries desk at Salomon Brothers, helped hatch a plan to finance America’s growing deficit. He ‘understood the appeal of U.S. government debt and how to sell the Saudis on the idea that America was the safest place to park their petrodollars.’

Saudi Arabia’s wealth was lusted after by several Western countries and Japan, but the U.S. managed to get the golden egg. However, King Faisal was worried that their money would be spent by the U.S. to further aid Israel’s military conquests, thus jeopardizing the kingdom’s rule.

U.S. officials complied by ‘letting the Saudis in through the back door.’

In the first of many special arrangements, the U.S. allowed Saudi Arabia to bypass the normal competitive bidding process for buying Treasuries by creating ‘add-ons.’ Those sales, which were excluded from the official auction totals, hid all traces of Saudi Arabia’s presence in the U.S. government debt market.

For 41 years Saudi Arabia’s U.S. debt ownership—instead of being listed individually like other countries—was obscured by grouping under a generic heading called ‘oil exporters,’ which included nations such as Kuwait and the United Arab Emirates.”

Source: Activist Post



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