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.
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?
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...
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?
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?
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.