Here is a clear example of why the US should not run ongoing debt

Discussion in 'News / Current Events' started by Revmitchell, Apr 17, 2016.

  1. Revmitchell

    Revmitchell
    Expand Collapse
    Well-Known Member

    Joined:
    Feb 18, 2006
    Messages:
    38,293
    Likes Received:
    783
    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, reports NYT.

    According to NYT, 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.

    http://www.ronpaullibertyreport.com...reasury-holdings-if-congress-passes-9-11-bill
     
  2. InTheLight

    InTheLight
    Expand Collapse
    Well-Known Member

    Joined:
    Dec 17, 2010
    Messages:
    16,192
    Likes Received:
    611
    Who will buy them?

    And if they sell them, so what?

    Sent from my XT1254 using Tapatalk
     
  3. Benjamin

    Benjamin
    Expand Collapse
    Well-Known Member

    Joined:
    Oct 6, 2004
    Messages:
    4,878
    Likes Received:
    109
    Was thinking the same thing.

    ...And that we are always looking for a good deal on buying back OUR assets!

    ...And if they are proven responsible for the attacks here we ought to be taking our assets backs either way.

    ...And there's probably little they can do about.

    Sent from my HP Laptop using Keyboard
     
  4. Don

    Don
    Expand Collapse
    Well-Known Member

    Joined:
    Oct 7, 2000
    Messages:
    10,542
    Likes Received:
    208
    I think the implied threat is selling them to Russia or China.
     
  5. InTheLight

    InTheLight
    Expand Collapse
    Well-Known Member

    Joined:
    Dec 17, 2010
    Messages:
    16,192
    Likes Received:
    611
    And again I ask, so?

    Instead of paying interest to the Saudis we pay it to someone else.

    Sent from my Nexus 7 using Tapatalk
     
  6. Benjamin

    Benjamin
    Expand Collapse
    Well-Known Member

    Joined:
    Oct 6, 2004
    Messages:
    4,878
    Likes Received:
    109
    You asked, "And if they sell them, so what?"

    So, in selling our debt to others the Saudis are then able to escape being held financially responsible, correct? Isn't that the idea? No problem with that?
     
  7. Squire Robertsson

    Squire Robertsson
    Expand Collapse
    Administrator
    Administrator

    Joined:
    Jul 4, 2000
    Messages:
    9,631
    Likes Received:
    310
    Save for less than a handful of years, The Feds have been running a deficit since the Washington administration.
     
  8. InTheLight

    InTheLight
    Expand Collapse
    Well-Known Member

    Joined:
    Dec 17, 2010
    Messages:
    16,192
    Likes Received:
    611
    Yes I have a problem with not being able to freeze those payments to the Saudis if their government is found to be directly culpable for 911.

    However, the OP was about why the US should not run ongoing debt. A couple of points.

    1.If the Saudis did not hold this debt we would have no leverage over them in this investigation.

    2. The debt is already out there. If the Saudis sell it to someone else the US still has to pay it off.

    I'm not seeing the point of the OP.

    Sent from my XT1254 using Tapatalk
     
  9. Revmitchell

    Revmitchell
    Expand Collapse
    Well-Known Member

    Joined:
    Feb 18, 2006
    Messages:
    38,293
    Likes Received:
    783
    Proverbs 22:7 .......... the borrower is servant to the lender.
     
    • Agree Agree x 1
  10. Benjamin

    Benjamin
    Expand Collapse
    Well-Known Member

    Joined:
    Oct 6, 2004
    Messages:
    4,878
    Likes Received:
    109
    Hmm, perhaps we should be upfront and direct and could declare that we perceive the selling of these debts as an attempt to escape responsibility should it found they are culpable and therefore stipulate that we intend to use any payments toward any debts currently held by the Saudis, should there be a judgement against the holders of these debts, that any new bearer of these debts should beware that any claim against these current debt holders will follow the debt and subsequent payment withholding will still be in effect regardless of the transfer. Should make any perspective buyer think twice...

    Just a thought.
     
  11. Aaron

    Aaron
    Expand Collapse
    Member

    Joined:
    Sep 4, 2000
    Messages:
    15,646
    Likes Received:
    223
    Discussion over.
     
  12. InTheLight

    InTheLight
    Expand Collapse
    Well-Known Member

    Joined:
    Dec 17, 2010
    Messages:
    16,192
    Likes Received:
    611
    Putting additional conditions on the payback of debt after its issuance would have disastrous effects on the US credit rating. Just a thought.
     
  13. Benjamin

    Benjamin
    Expand Collapse
    Well-Known Member

    Joined:
    Oct 6, 2004
    Messages:
    4,878
    Likes Received:
    109
    That is true and worth weighing in, although putting a freeze on a debt in the past hasn't seemed to have that effect. Perhaps this could be considered a preliminary freeze condition?
     
  14. InTheLight

    InTheLight
    Expand Collapse
    Well-Known Member

    Joined:
    Dec 17, 2010
    Messages:
    16,192
    Likes Received:
    611
    If the U.S. could do this quietly get this message across without other nations finding out about it, it would be worth doing, yes.
     
  15. Benjamin

    Benjamin
    Expand Collapse
    Well-Known Member

    Joined:
    Oct 6, 2004
    Messages:
    4,878
    Likes Received:
    109
    Sorry, you lost me on that one. The point of a "preliminary freeze condition" would be stop the Saudis from selling the debts, before the matters of responsibility are decided, because any perspective buyers knowing of the condition and not wanting to take the risk. So I don't see how there is any value toward stopping the Saudis from selling if other countries, perspective buyers don't know about it?
     
  16. InTheLight

    InTheLight
    Expand Collapse
    Well-Known Member

    Joined:
    Dec 17, 2010
    Messages:
    16,192
    Likes Received:
    611
    I meant to quietly inform prospective buyers, like Japan or China that if they buy these securities they will be subject to being frozen. Don't tell other nations like the European nations and require secrecy from the prospective buyers.
     
  17. Zaac

    Zaac
    Expand Collapse
    Banned

    Joined:
    Jun 12, 2012
    Messages:
    13,757
    Likes Received:
    220
    I guess this and a handful of other things explains why we didn't bomb Saudi Arabia and went after an Iraqi state that hadn't attacked us in NYC.

    I wonder if another reason we attacked Shia Iraq was because Sunni Saudi Arabia threatened to sell our debt if we retaliated against them?
     
    #17 Zaac, Apr 19, 2016
    Last edited: Apr 19, 2016

Share This Page

Loading...