Saudi Arabia, United States, Saudi Arabian Government discussed on The Inquiry
The bond is a type of loan from investors to government, the investors. You buy them a guaranteed to be paid back in full on a set date with interest. In day to day work. Andrea one specializes in the US debt owned by China, and then one day and nets walked over to my desk and set to me, hey, enough about China. What about Saudi Arabia? Andrew's mission was to find out how many US government bonds, Saudi Arabia owned something that should have been easy. I was kind of a treasury data Wong at that time, and I thought that I was just able to find that number and show it to my within three clicks. Clearly that didn't happen, and the US Kaufman has data, but it uses to keep it a secret. The US publishes the data every other government in the weld. So why not? Saudi Arabia became very clear to me that this is kind of various there must be a backstory behind us, and there was. Andrea's detective mission through up diplomatic cables from the nineteen seventy s one of the names on those cables was Jerry policy. He was at the time, the assistant Treasury Secretary, Andrea tracked him down. He is for me the only person alive who has intimate knowledge of what happened. Then of how in July nineteen, seventy four. There was this do or die trip that he and the Treasury Secretary of the time Bill Simon, they took this trip or the way to Saudi Arabia to convince King Faisal to agree to buy American spawns from her conversations with Jerry Paschi story unfolded in the nineteen seventies under president. Nixon America's economy was in a bad way. Growth was we got inflation was high. The country was hugely reliant and buying oil from Saudi Arabia. On the other hand, Saudi Arabia at that time was. Was very rich. It had the money, the US government was bleeding dollars and was desperately trying to figure out a way to bring that money back from Saudi Arabia to America. So they hatched a plan. Well, the Saudi Arabia do with all that dollars it conscious. Keep it under the mattress has to find some way to actually invest those dollars and those toll Saudi Arabia, you know what you should do, invest in the safest esaid in the world which is US treasuries. And that persuasion worked because two months later, King Faisal said, yes, sure. I'll put three billion US dollars into Americans government bonds. But in exchange, I demand that this transaction be kept strictly secret. The reason for secrecy was because at the time America was helping Israel with financial aid and weapons sales. Saudi Arabia was worried that all the money that gave to America in the change of those bonds will just simply end up in. Israel, it's a nemesis hand. The Saudis didn't mind. It's money being in America's hands. I could totally about the money might possibly be used to support Israel. It just didn't want the well to know. The ongoing arrangement formalised an economic interdependence between the two countries and remained a secret for four decades. It's also meant Saudi Arabia now had a lot stake in the US economy something they recognize they could use as leverage. In twenty sixteen for example, US congress was debating whether the victims of the nine eleven attacks could sue the Saudi Arabian government over its alleged support for the terrorists. The Saudi Arabia government was not very happy, so it floated some threats to the press that, hey, if this really goes through, we are going to sell all of our US assets and that include billions of dollars of US treasuries. The Saudi government never followed through on these threats, but it had they would have created panic in the markets and hurt the US economy. I probably won't go so far as blackmailing, but in negotiations, Saudi Arabia recognized its leverage over America and try to use that to influence two sessions just in terms of Saudi Arabia's reach into America. The SS that owns, we know so little. So the scale is probably larger than what we've uncovered, but it's murky. So who is in the driving seat deal was the one unearthed by Andrea Wong highlight just how much the to have needed each other. The condition of secrecy when the Saudis to Merican debt was one of many special arrangements that would we shape the ripple the years to come. Part three, the king of America..