Greg Hunter’s Weekly News Wrap-Up for May 20th, 2016
by Greg Hunter
Saudi Arabia is in deep financial trouble, and that spells financial trouble for the U.S. Let’s connect the dots. Shall we? The Senate just passed a bill that releases 28 secret pages from the 9/11 Report, and it also allows the families sue the Kingdom if it was involved in the attack. Saudi has threatened to dump U.S. assets if this becomes law. Some people say they would never do that because it would hurt them. I say, they may be forced to sell U.S. Treasuries and other assets because they need the money. This is against the backdrop of reports of Saudi Arabia paying workers and contractors with IOUs and mass layoffs in the Kingdom. No wonder why Moody’s just downgraded Saudi debt. This week, we also find out how much U.S. debt Saudi owns. It’s $117 billion. I would say this is on the top of the list to raise cash fast, and Saudi is not alone in the need for cash. This headline from CNN says it all: “U.S. Debt Dump Deepens in 2016.” China, Russia and Brazil are a few more of the many sellers of U.S. debt. How long can this go on for without something breaking? What if everybody holding U.S. debt sells? Not for some punishing reason but just because they need the cash.