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  • Saudi Arabia's Secret Holdings of U.S. Debt Are Suddenly a Big Deal

    From bloomberg.com

    It’s a secret of the vast U.S. Treasury market, a holdover from an age of oil shortages and mighty petrodollars: Just how much of America’s debt does Saudi Arabia own? But now that question -- unanswered since the 1970s, under an unusual blackout by the U.S. Treasury Department -- has come to the fore as Saudi Arabia is pressured by plunging oil prices and costly wars in the Middle East. In the past year alone, Saudi Arabia burned through about $100 billion of foreign-exchange reserves to plug its biggest budget shortfall in a quarter-century. For the first time, it’s also considering selling a piece of its ... (full story)

another financial storm is coming.
MOIZ VOHRA
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The Saudi probably hold a lot of US debt (think of the huge amount of interest they have to pay when US raise interest rate). The reason why they are pressing down oil price to stem inflationary pressure in US economy. The way to get Saudi to revert their course of action and to slash their oil production is to keep increasing US interest rate so that it is a foregone conclusion and the Saudi will find their over supply action has no effect on US Fed decision to raise interest rate. By delaying interest rate hike based on data-driven principle is playing into the trap of Saudi who is trying to influence data via low oil prices.
Quoting Guest
The Saudi probably hold a lot of US debt (think of the huge amount of interest they have to pay when US raise interest rate).
You are confused: the debt is the USA's - SA is not paying any interest, they are collecting interest at the original rate on which the Treasury was sold. If someone buys your debt they are essentially lending you money. The issue discussed here is: SA is selling their Treasury holdings to raise cash.
"If The Fool persists in his Folly he will become wise." - William Blake
Quoting The Fool
You are confused: the debt is the USA's - SA is not paying any interest, they are collecting interest at the original rate on which the Treasury was sold. If someone buys your debt they are essentially lending you money. The issue discussed here is: SA is selling their Treasury holdings to raise cash.

thx
Saudi Arabia lost billions last year bec. of falling oil prices, but they're playing it smart; They're killing all competition...Look at the world-wide oil lay-offs of last year...Shale Oil has been hurt so bad.
Simplicity is the key to brilliance.
USD will become weaker? When SA sell its treasuries of foreign reserve USD supply in the market will increase. am I right?
I said this before and say it again. Saudi's started this and they are going to be real sorry. It is going to be disaster for them. Now it is Iran's turn to punish Saudi's.
Apparently the USD will become weaker in the short term. However, across the major competitors like EUR, GBP and CAD, the USD will hold. Look to short EURUSD.
Do your homework, follow the footprints of smart money
Even if the Saudi game finish ask for oil is really low because of economic crisis around the world and it is not going to be a rally in oil
Quoting Abhimanyu
I said this before and say it again. Saudi's started this and they are going to be real sorry. It is going to be disaster for them. Now it is Iran's turn to punish Saudi's.
agree with , saudis r just axing there own foot.
Quoting Abhimanyu
I said this before and say it again. Saudi's started this and they are going to be real sorry. It is going to be disaster for them. Now it is Iran's turn to punish Saudi's.
The Saudi production is designed to punish Iran more than anyone else. Just when a desperate Iran comes back on line... the world is drowning in oil. That's how a war works = punish your enemy any way you can.
As the US companies started selling Oil Cheaper to its neighbors Opac especially KSA wanted to Punish those companies by selling oil less than the Production price of US companies and as a result Hugh numbers of oil drilling and exporting Us companies got Bankrupted and other shed labors and KSA could survive even if the price dropped to Single Digit!!!! How? Long time ago Foreign Minister of US threaten King Faisal to destroy KSA's economy,,,as King was sitting in a tent in the desert near a date Tree and Sheep herd was near by,,,King Faisal replied that traditionally we could live on eating Dates and drinking Sheep Milk but if we stop pumping and selling OIL to the US and to world YOU COULD NOT SURVIVE!!!!!!!!!!!!!!!!!1
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no one can win saudi arabia ,they are playing it so smart and they are hahahaha iran can kiss my ass
all have a nice day
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Quoting Ken A
For the first time, it’s also considering selling a piece of its crown jewel -- state oil company Saudi Aramco. The signs of strain are prompting concern over Saudi Arabia’s outsize position in the world’s largest and most important bond market.

http://www.bloomberg.com/news/articl...become-crucial

Guess who will be buying Aramco
only a small portion there are laws here you can not buy more than certain portion so no worry and it is only the outer work of company not reserve ,saudi arabia knows the laws very well and will end wining as always they do
have a nice day please
Guess who will be buying Aramco [/quote]
surely its not ME lol
USA don"t forget that KSA earns Billions from the Pilgrimage through out whole year and especially at the Time of Hajj
Quoting Inceptionist
Saudi Arabia lost billions last year bec. of falling oil prices, but they're playing it smart; They're killing all competition...Look at the world-wide oil lay-offs of last year...Shale Oil has been hurt so bad.
They can kill the competition but they cant kill the oil. The oil is still there. If chevron goes belly up Exxon (or somebody else) will pick up their rights and extract that oil. Saudi Arabia is killing itself. they want their percent of market not caring if they are killing smaller opec countries. Getting into this pumping war with the US,Canada,Russia and now Iran. Imho she will come out of this poorer, with more internal unease, and hated even more around the world.... lose lose situation.
don't get in love with pairs ... up or down is the same pip value
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like many things this could simply be drama or a distraction.
stop watching tv i say
Quoting Zer0sum
The Saudi production is designed to punish Iran more than anyone else. Just when a desperate Iran comes back on line... the world is drowning in oil. That's how a war works = punish your enemy any way you can.
I think the original intent of the Saudis is to decrease/eliminate northern American shale oil businesses market share, but they didn't anticipate that Obama will lift Iranian sanctions (probably as payback). Once Iran fully opens up its oil production, it will drive prices lower which is bad for the Saudis, most OPEC members and the Russians.
Lost....
Quoting Guest
The Saudi probably hold a lot of US debt (think of the huge amount of interest they have to pay when US raise interest rate). The reason why they are pressing down oil price to stem inflationary pressure in US economy. The way to get Saudi to revert their course of action and to slash their oil production is to keep increasing US interest rate so that it is a foregone conclusion and the Saudi will find their over supply action has no effect on US Fed decision to raise interest rate. By delaying interest rate hike based on data-driven principle is...
Wa-wa-wa-WHAAAATTT?! US debt = government bonds (US borrows money and pays interest of it).
Lost....
Quoting Abhimanyu
I said this before and say it again. Saudi's started this and they are going to be real sorry. It is going to be disaster for them. Now it is Iran's turn to punish Saudi's.
40 years ago SA competed against Egypt for dominance among Arab nations. Now it is Iran. Foolishly BHO has been siding with Iran for 7 years because he always supports the more radical option. SA also has the Wahhabi sect controlling the religion. SA made a del with the Devil there a couple hundred years ago. So Wahhabi's internally, Iran and BHO giving them 150 billion externally - yeah SA is in a difficult position. I'm not counting Iran as the winner yet but the US 2016 election has to change course and sanity return to Europe.
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  • Story Stats
  • Posted: Jan 23, 2016 10:55pm
  • Submitted by:
     Newsstand
    Category: Medium Impact Breaking News
    Comments: 21  /  Views: 7,705