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Saudi Arabia Warns of Economic Fallout if Congress Passes 9/11 Bill

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By MARK MAZZETTI

APRIL 15, 2016

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  • Saudi Arabia has told the Obama administration and members of Congress that it will sell off hundreds of billions of dollars’ worth of American assets held by the kingdom if Congress passes a bill that would allow the Saudi government to be held responsible in American courts for any role in the Sept. 11, 2001, attacks.

    The Obama administration has lobbied Congress to block the bill’s passage, according to administration officials and congressional aides from both parties, and the Saudi threats have been the subject of intense discussions in recent weeks between lawmakers and officials from the State Department and the Pentagon. The officials have warned senators of diplomatic and economic fallout from the legislation.

    Adel al-Jubeir, the Saudi foreign minister, delivered the kingdom’s message personally last month during a trip to Washington, telling lawmakers that Saudi Arabia would be forced to sell up to $750 billion in treasury securities and other assets in the United States before they could be in danger of being frozen by American courts.

    Several outside economists are skeptical that the Saudis will follow through, saying that such a sell-off would be difficult to execute and would end up crippling the kingdom’s economy. But the threat is another sign of the escalating tensions between Saudi Arabia and the United States.

    The administration, which argues that the legislation would put Americans at legal risk overseas, has been lobbying so intently against the bill that some lawmakers and families of Sept. 11 victims are infuriated. In their view, the Obama administration has consistently sided with the kingdom and has thwarted their efforts to learn what they believe to be the truth about the role some Saudi officials played in the terrorist plot.

    “It’s stunning to think that our government would back the Saudis over its own citizens,” said Mindy Kleinberg, whose husband died in the World Trade Center on Sept. 11 and who is part of a group of victims’ family members pushing for the legislation.

    President Obama will arrive in Riyadh on Wednesday for meetings with King Salman and other Saudi officials. It is unclear whether the dispute over the Sept. 11 legislation will be on the agenda for the talks.

A spokesman for the Saudi Embassy did not respond to a message seeking comment.

Saudi officials have long denied that the kingdom had any role in the Sept. 11 plot, and the 9/11 Commission found “no evidence that the Saudi government as an institution or senior Saudi officials individually funded the organization.” But critics have noted that the commission’s narrow wording left open the possibility that less senior officials or parts of the Saudi government could have played a role. Suspicions have lingered, partly because of the conclusions of a 2002 congressional inquiry into the attacks that cited some evidence that Saudi officials living in the United States at the time had a hand in the plot.

Those conclusions, contained in 28 pages of the report, still have not been released publicly.

The dispute comes as bipartisan criticism is growing in Congress about Washington’s alliance with Saudi Arabia, for decades a crucial American ally in the Middle East and half of a partnership that once received little scrutiny from lawmakers. Last week, two senators introduced a resolution that would put restrictions on American arms sales to Saudi Arabia, which have expanded during the Obama administration.

Families of the Sept. 11 victims have used the courts to try to hold members of the Saudi royal family, Saudi banks and charities liable because of what the plaintiffs charged was Saudi financial support for terrorism. These efforts have largely been stymied, in part because of a 1976 law that gives foreign nations some immunity from lawsuits in American courts.

The Senate bill is intended to make clear that the immunity given to foreign nations under the law should not apply in cases where nations are found culpable for terrorist attacks that kill Americans on United States soil. If the bill were to pass both houses of Congress and be signed by the president, it could clear a path for the role of the Saudi government to be examined in the Sept. 11 lawsuits.

The Big Four in Saudi Arabia’s Government
Brief background information on the most powerful figures in the kingdom, and how they stand in the sometimes complicated order of succession.


Obama administration officials counter that weakening the sovereign immunity provisions would put the American government, along with its citizens and corporations, in legal risk abroad because other nations might retaliate with their own legislation. Secretary of State John Kerry told a Senate panel in February that the bill, in its current form, would “expose the United States of America to lawsuits and take away our sovereign immunity and create a terrible precedent.”

The bill’s sponsors have said that the legislation is purposely drawn very narrowly — involving only attacks on American soil — to reduce the prospect that other nations might try to fight back.

In a closed-door briefing on Capitol Hill on March 4, Anne W. Patterson, an assistant secretary of state, and Andrew Exum, a top Pentagon official on Middle East policy, told staff members of the Senate Armed Services Committee that American troops and civilians could be in legal jeopardy if other nations decide to retaliate and strip Americans of immunity abroad. They also discussed the Saudi threats specifically, laying out the impacts if Saudi Arabia made good on its economic threats.

John Kirby, a State Department spokesman, said in a statement that the administration stands by the victims of terrorism, “especially those who suffered and sacrificed so much on 9/11.”

Edwin M. Truman, a fellow at the Peterson Institute for International Economics, said he thought the Saudis were most likely making an “empty threat.” Selling hundreds of billions of dollars in American assets would not only be technically difficult to pull off, he said, but would also very likely cause global market turmoil for which the Saudis would be blamed.

Moreover, he said, it could destabilize the American dollar — the currency to which the Saudi riyal is pegged.

“The only way they could punish us is by punishing themselves,” Mr. Truman said.

The bill is an anomaly in a Congress fractured by bitter partisanship, especially during an election year. It is sponsored by Senator John Cornyn, Republican of Texas, and Senator Chuck Schumer, Democrat of New York. It has the support of an unlikely coalition of liberal and conservative senators, including Al Franken, Democrat of Minnesota, and Ted Cruz, Republican of Texas. It passed through the Judiciary Committee in January without dissent.

“As our nation confronts new and expanding terror networks that are targeting our citizens, stopping the funding source for terrorists becomes even more important,” Mr. Cornyn said last month.

The alliance with Saudi Arabia has frayed in recent years as the White House has tried to thaw ties with Iran — Saudi Arabia’s bitter enemy— in the midst of recriminations between American and Saudi officials about the role that both countries should play in the stability of the Middle East.

But the administration has supported Saudi Arabia on other fronts, including providing the country with targeting intelligence and logistical support for its war in Yemen. The Saudi military is flying jets and dropping bombs it bought from the United States — part of the billions of dollars in arms deals that have been negotiated with Saudi Arabia and other Persian Gulf nations during the Obama administration.

The war has been a humanitarian disaster and fueled a resurgence of Al Qaeda in Yemen, leading to the resolution in Congress to put new restrictions on arms deals to the kingdom. Senator Christopher S. Murphy, Democrat of Connecticut, one of the resolution’s sponsors and a member of the Senate Foreign Relations Committee, said that Congress has been “feckless” in conducting oversight of arms sales, especially those destined for Saudi Arabia.

“My first desire is for our relationship with Saudi Arabia to come with a greater degree of conditionality than it currently does,” he said.

http://www.nytimes.com/2016/04/16/w...allout-if-congress-passes-9-11-bill.html?_r=0
 
Basically, house of Saud is set to realize that it too can be discarded like a dirty napkin. And once that happens, the only way the kingdom continues to survive as a kingdom is with the help of Pakistan!

However, I hope that democracy is soon introduced in the Kingdom! It is high time the house of Saud paid for its satanic and Pharaohic ways of domination and ruthlessness it introduced in the Muslim world.
 
here we are invading countries like Afganistan,Iraq,Libya, and Syria when it was the KSA all with our Zionist controlled leaders that planned and did 9/11.


their threat just proves what we already know, that KSA is guilty of supporting terrorists and promoting a terrorist ideology (wahhabism) and funding the 9/11 attacks and Osama Bin Laden.


we should be bombing the KSA and removing the King and his kin instead of President Assad.
 
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Those 28 (infamous) pages have not yet been declassified. They hold the key. One page is dedicated to Pakistan out of those 28.
 
I think Egypt is more preferable choice for this task ....

Hmm...but Egypt also has good relations with Israel and the West. Egyptian point of view can change very quickly. And Pakistan also brings Chinese support and perhaps can even work as a bridge b/w Saudi Arabia and Iran.

There is potential in Pakistan that is not being allowed to develop. Not that I would endorse Pakistan supporting anything to do with the evil house of Saud.
 
What is this about? Does anyone here really believe that KSA was behind 9/11? What benefits would such an absurd action exactly give KSA?

9/11 was followed by the catastrophic invasion of Iraq which was totally against the interests of KSA as a state.

http://news.bbc.co.uk/2/hi/middle_east/2773759.stm

OBL who was half Yemeni and half Syrian was stripped off his Saudi Arabian citizenship in 1994.

OBL, Al-Qaeda and Taliban would not even be relevant today had it not been for American involvement in Afghanistan during the Soviet-Afghan war. A conflict where Pakistan, ISI and Zia-ul-Haq were absolutely crucial as a neighboring state. KSA, being in the American camp, was more or less forced to support the US in that endeavor and did so by supporting the Mujahideen financially (which almost every Muslim state with money did, including Western powers other than the US) who were deemed as freedom fighters back then by the entire West because it suited their interests as they fought against their worst enemy - the Soviet Union. Not only that numerous Saudi Arabian individuals, other Arabs and Muslims across the world joined that conflict. A conflict that had nothing to do with KSA and which only had grave consequences for the society in KSA and later gave increased power to the clergy back home. I wish that we (our leadership) had never involved ourselves in that hopeless part of the world. It was a fatal mistake.

Anyway supposed KSA support for 9/11 has already been dismissed in American courts. This is just an attempt to extract money from KSA which will not succeed. USA would have acted long ago against KSA if it was really involved.

Even if we theoretically assume that 1 out of the 15.000 or so House of Saud members were somehow involved in 9/11, that can never be the fault of KSA as a state let alone ordinary Saudi Arabians.

Anyway the same US has committed hundreds of 9/11 since WW2 ended so if anything countries like Vietnam, Iraq, Afghanistan etc. could demand trillions from the US due to their numerous war crimes and illegal actions. Of course that is never going to happen as this is not how the world works like.

Lastly KSA has excellent ties with all world powers, except Russia, although there is even cooperation on this front, all European, Arab and Muslim powers. If the US "abandons" KSA it will be their lose. I am sure that China, who are our biggest trading partner, will want to replace the US as a key ally. Remember what happened in the 1980's vis-á-vis KSA and China? The relationship is much stronger than people believe or can imagine. However I do not believe that it is in the interests of either KSA or USA to cut ties (why should that occur)?

KSA is one of the most powerful, wealthy, biggest and influential states on the planet. This is not the 1950's anymore. Nor is any sane power ever going to invade KSA as that would cause mayhem among the 1.6 billion Muslims. Imagine a foreign power (non-Muslim moreover) occupying Makkah and Madinah. Iraq and Afghanistan (wars that the US did not succeed at if we look at those wars from a full perspective) will look like a picnic trip in comparison. Not to mention the huge size of KSA, geography, climate and the fierce opposition any invader would be met by. ISIS would look like school boys in comparison as well. There is a reason why no foreign power from ancient times to modern times have tried (those who tried failed) to engulf themselves in such a hopeless "project". But we will invite any such fools to try. KSA is no Iraq, Libya, Syria or Afghanistan.
 
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What is this about? Does anyone here really believe that KSA was behind 9/11? What benefits would such an absurd action exactly give KSA?

9/11 was followed by the catastrophic and illegal invasion of Iraq which was totally against the interests of KSA as a state.

http://news.bbc.co.uk/2/hi/middle_east/2773759.stm

OBL who was half Yemeni and half Syrian was stripped off his Saudi Arabian citizenship in 1994.

OBL, Al-Qaeda and Taliban would not even be relevant today had it not been for American involvement in Afghanistan during the Soviet-Afghan war. A conflict where Pakistan, ISI and Zia-ul-Haq were absolutely crucial as a neighboring state. KSA, being in the American camp, was more or less forced to support the US in that endeavor and did so by supporting the Mujahideen financially (which almost every Muslim state with money did, including Western powers other than the US) who were deemed as freedom fighters back then by the entire West because it suited their interests as they fought against their worst enemy - the Soviet Union. Not only that numerous Saudi Arabian individuals, other Arabs and Muslims across the world joined that conflict. A conflict that had nothing to do with KSA and which only had grave consequences for the society in KSA and later gave increased power to the clergy back home. I wish that we (our leadership) had never involved ourselves in that hopeless part of the world.

Anyway supposed KSA support for 9/11 has already been dismissed in American courts. This is just an attempt to extract money from KSA which will not succeed. USA would have acted long ago against KSA if it was really involved.

Even if we theoretically assume that 1 out of the 15.000 or so House of Saud members were somehow involved in 9/11, that can never be the fault of KSA as a state let alone ordinary Saudi Arabians.

Anyway the same US has committed hundreds of 9/11 since WW2 ended so if anything countries like Vietnam, Iraq, Afghanistan etc. could demand trillions from the US due to their numerous war crimes and illegal actions. Of course that is never going to happen.

Lastly KSA has excellent ties with all world powers, except Russia, although there is even cooperation on this front, all European, Arab and Muslim powers. If the US "abandons" KSA it will be their lose. I am sure that China, who are our biggest trading partner, will want to replace the US as a key ally. Remember what happened in the 1980's vis-á-vis KSA and China? The relationship is much stronger than people believe or can imagine.

KSA is one of the most powerful, wealthy, biggest and influential states on the planet. This is not the 1950's anymore. Nor is any sane power ever going to invade KSA as that would cause mayhem among the 1.6 billion Muslims. Imagine a foreign power (non-Muslim moreover) occupying Makkah and Madinah. Iraq and Afghanistan (wars that the US cannot win) will look like a picnic trip in comparison. Not to mention the huge size of KSA, geography, climate and the fierce opposition any invader would be met by. ISIS would look like school boys in comparison as well. There is a reason why no foreign power from ancient times to modern times have tried to engulf themselves in such a hopeless "project". But we will invite any such fools to try. KSA is no Iraq, Libya, Syria or Afghanistan.

You Saudis invited a foreign non muslim power to fend off Saddam, just sayin lol...
 
Basically, house of Saud is set to realize that it too can be discarded like a dirty napkin. And once that happens, the only way the kingdom continues to survive as a kingdom is with the help of Pakistan!

However, I hope that democracy is soon introduced in the Kingdom! It is high time the house of Saud paid for its satanic and Pharaohic ways of domination and ruthlessness it introduced in the Muslim world.

Why do u want destruction of a perfectly normal and stable muslim country? Are u a bigot?

KSA is a force of stability in the muslim world and they have treated their citizens well. Not to mention the amount of financial assistance they have given to completely undeserving & backstabbing 3rd rate secular muslim majority shitholes.
 
here we are invading countries like Afganistan,Iraq,Libya, and Syria when it was the KSA all with our Zionist controlled leaders that planned and did 9/11.


their threat just proves what we already know, that KSA is guilty of supporting terrorists and promoting a terrorist ideology (wahhabism) and funding the 9/11 attacks and Osama Bin Laden.


we should be bombing the KSA and removing the King and his kin instead of President Assad.

Your words mean nothing, your rulers love the Saudis.
 
You Saudis invited a foreign non muslim power to fend off Saddam, just sayin lol...

What is your point Einstein and what has that to do with the facts that I wrote?

Invited? You are joking right? The US would have acted regardless as the US as the foremost global power has tremendous interests in the GCC-region and even more so had so back in 1990.

Last time I saw it was small Kuwait (a defenseless country and a fellow Muslim and Arab country) that was invaded by Saddam, not 121 times bigger KSA. Likewise those events occurred almost 30 years ago and are irrelevant of today.

Why do u want destruction of a perfectly normal and stable muslim country? Are u a bigot?

KSA is a force of stability in the muslim world and they have treated their citizens well. Not to mention the amount of financial assistance they have given to completely undeserving & backstabbing 3rd rate secular muslim majority shitholes.

He is butthurt like the rest of them. All they can do is bark. Hence all the frustrations.
 
Once again, Obama is coming to Saudi Arabia in the upcoming days and I expect nothing more from him except bowing to King Salman as he previously did when he visited King Abdullah. Presidents of the USA are slave to money and authority, they can be controlled as you do with a child.

bowone.jpg


100421bowingtwo.jpg
 

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