Senior U.S. senator wants 'freeze' on Saudi cooperation including most arms sales, blasts Riyadh

[Novus ordu seclorum]

KSA picked up oil production to cover the production loss of those countries. In the early 2000's, Germany and the west still had cheap Russian energy. Japan wasn't 2 steps from a massive currency/sovereign debt crisis. Rest of the world didn't consume as much as today. USA, EU, and UK weren't engaged in massive money printing.

Economic conditions are far different today. USA is better off biting its lip and remaining quiet.

Gulf states aren't wrecked like the rest of Arab middle east because of American backing. Gulfies go to America and Europe for education not the other way around. Have you seen Saudis speaking Chinese or English? Their lifestyle depends on wooing Westerners. FIFA granted the world cup to Qatar. These organisations are creations of the West. $500 billion NEOM project is unachievable and worthless without Westerners. MBS dreams about being the New Europe.

 

[dbc]

Your grammar sucks. Saudi's investments in US stocks and T-Bills doesn't mean anything when the risk is to be cut off from SWIFT. To hedge against said risk, Saudi needs to introduce alternative to petrodollar.

what does SWIFT have to do with US Dollars? SWIFT is a financial messaging service that allows two financial institutions to transact in any currency.

If Saudi is banned from SWIFT then the first thing that will happen is that all expats will disappear from Saudi over night turning Saudi into a ghost town. No amount of hedging in 'alternatives' to US dollars will save Saudi from total collapse. You do know 40% of Saudi population is expat workers.

 

[beijingwalker]

US’ Joe Biden says Saudi Arabian ties to be ‘re-evaluated’​

• AFP, WASHINGTON
  Thu, Oct 13, 2022

US President Joe Biden promised “consequences” for Saudi Arabia after a Riyadh-led coalition of oil-producing nations sided with Russia to slash output.

The 13-nation OPEC cartel and its 10 allies headed by Moscow angered the White House last week with its decision to cut production by 2 million barrels a day from next month, raising fears that oil prices could soar.

“I’m not going to get into what I’d consider and what I have in mind, but there will be — there will be consequences,” Biden told CNN when asked about possible responses.

Biden did not reveal what options were being considered, but the White House had made clear earlier that he was reassessing ties between the allies.

“I think the president’s been very clear that this is a relationship that we need to continue to re-evaluate, that we need to be willing to revisit,” US National Security Council spokesman John Kirby told CNN. “Certainly in light of the OPEC decision, I think that’s where he is.”

The OPEC move was widely seen as a diplomatic slap in the face, as Biden traveled to Saudi Arabia in July and met with Saudi Arabian Crown Prince Mohammad bin Salman, despite vowing to make the kingdom an international “pariah” following the murder of journalist Jamal Khashoggi.

It also comes at a sensitive moment for Biden’s Democratic party, as it faces midterm elections next month with rising consumer prices a key talking point.

Saudi Arabia has defended the planned production cuts, saying the priority of OPEC+ was “to maintain a sustainable oil market.”

On Tuesday, Saudi Arabian Minister of Foreign Affairs Prince Faisal bin Farhan told al-Arabiya channel that the move “was purely economic and was taken unanimously by the [organization’s] member states.”

“OPEC+ members acted responsibly and took the appropriate decision,” he said.

Kirby said that Biden was “willing to work with [the US] Congress to think through what that relationship [with Saudi Arabia] ought to look like going forward,” although he clarified that no formal discussions had yet begun.

US’ Joe Biden says Saudi Arabian ties to be ‘re-evaluated’ - Taipei Times

Bringing Taiwan to the World and the World to Taiwan

www.taipeitimes.com

 

[CrazyZ]

Gulf states aren't wrecked like the rest of Arab middle east because of American backing. Gulfies go to America and Europe for education not the other way around. Have you seen Saudis speaking Chinese or English? Their lifestyle depends on wooing Westerners. FIFA granted the world cup to Qatar. These organisations are creations of the West. $500 billion NEOM project is unachievable and worthless without Westerners. MBS dreams about being the New Europe.

The Gulfies aren't wrecked since they weren't democratized by the Neocons. Have you been to KSA.....most Saudi nationals speak only Arabic. Trade will continue between east west......as it has for 1000's of years......long before the dollar even existed. Many different reserve currencies have come and gone but the trade always continues. Using the dollar as a weapon has limits.

 

[kuge]

US cut itself from Iraq, Iran, Venezuela, and Libya simultaneously, all OPEC countries, yet maintained global currency domination.

yes for a moment & usd domination is eroding over time....

 

[jhungary]

seems like you are the uneducated one. he's talking about petrodollar, not arms sales.

That's what he is talking about.

Petrol Dollar is a chump change on US Dollar generated as revenue.

Compare the two.

SWIFT have 6.5 trillion US Dollars transaction a day.

Petroldollar is backed by a 3 trillion dollars a year oil industry

Which one is bigger? The interest rate and exchange rate charged on those SWIFT transaction a year will dwarf the entire oil industry, ever wonder why you need T+3 to settle any non-tangible transaction?

Petrol Dollar is not the main drive of USD, it's always its value as a commodity.

Your grammar sucks. Saudi's investments in US stocks and T-Bills doesn't mean anything when the risk is to be cut off from SWIFT. To hedge against said risk, Saudi needs to introduce alternative to petrodollar.

US cannot cut anyone from SWIFT.

SWIFT is a Belgium Company, only EU can.......

 

[casual]

US cannot cut anyone from SWIFT.

SWIFT is a Belgium Company, only EU can.......

lol ok...

 

[Communism]

MBS chose exactly the wrong time to poke Biden in the eyes.


Biden literally only asked for the production cut to be postponed until after the mid-terms, which is a very small ask.


There's no way that the U.S. will allow this to go unnoticed.


There is probably going to be regime change in Saudi Arabia in the next 5 years.

 

[Novus ordu seclorum]

The Gulfies aren't wrecked since they weren't democratized by the Neocons. Have you been to KSA.....most Saudi nationals speak only Arabic. Trade will continue between east west......as it has for 1000's of years......long before the dollar even existed. Many different reserve currencies have come and gone but the trade always continues. Using the dollar as a weapon has limits.

They need English for this.

U.S. and Saudi Arabia sign 18 agreements in energy, other areas

The United States and Saudi Arabia signed 18 partnership agreements in fields including energy, communications, space and healthcare during a visit by U.S. President Joe Biden, Saudi state TV al-Ekhbariya reported.

www.reuters.com

And, Arabic for this.

 

[mulj]

to late for any move that would hurt SA without hurting USA too even more, now they have credible alternative for whatever USA offers them.

republicans might be even thankful for this move after upcoming elections.

 

[Viet]

Saudis have bankrolled US economy and its war machine for the last 50 years. This is easier said then done.

Without Saudi petrodollar backing it, the greenbacks would be worth less than toilet paper.

The mullahs in Iran are the winner. They can warm up the missiles and tanks for invasion. Berlin, London, Paris can expect huge fleeing dollars from the Saudis.

 

[ahaider97]

The mullahs in Iran are the winner. They can warm up the missiles and tanks for invasion. Berlin, London, Paris can expect huge fleeing dollars from the Saudis.

Why? They have no conflict with the Saudis. The enemy has always been America, the Iranians will actually support regional countries against America.

 

[Viet]

Why? They have no conflict with the Saudis. The enemy has always been America, the Iranians will actually support regional countries against America.

Ok sorry my mistake. The Saudi buys $350 billion US weapons to fight the US. That makes sense. If Iran buys the same amount US weapons to fight US, then double win win.

 

[ahaider97]

Ok sorry my mistake. The Saudi buys $350 billion US weapons to fight the US. That makes sense. If Iran buys the same amount US weapons to fight US, then double win win.

That's how a racket works.

 

[lightning F57]

This is just noise making, both US and SA have a relationship of convenience both rely on each other for different things. Cant see SA going rogue and selling off their USD holdings and then looking to exchange their oil in other currencies. Cant see US sanctioning arms as their arms lobby is very strong and will get their way.