Secret Saudi Trade Deal Exposes How the Terrorist Nation Holds the US Govt and Economy Hostage

secret-saudi-deaBy Justin Gardner

In April, we learned once again how subservient the U.S. is to the interests of Saudi Arabia when Obama poured his efforts into blocking a bill that would have allowed Saudi Arabia’s government to be held accountable for any role it played in the 9/11 attacks.

The drama centers on “the 28 pages” of a congressional investigative report into 9/11—which are still being kept from the public—that details the extent of foreign government support for Al-Qaeda. The pages could expose Saudi financial and logistical connections with the 9/11 hijackers.

The Wahhabist regime quickly responded by threatening to crash the dollar by liquidating their U.S. assets. Lawmakers quickly acquiesced with a last-minute amendment to the bill that allows for the U.S. attorney general and secretary of state to stop any pending legislation against the Saudis.

Families of 9/11 victims and all those who question the official 9/11 narrative were left stunned by this capitulation. A brutal Middle Eastern dictatorship obviously has much more influence over our government than the citizens. Saudi Arabia has great potential to hold the U.S. economy and government hostage through its purchase of Treasury holdings, but how did this special arrangement come to be?

Bloomberg has, for the first time ever, uncovered the amount of Saudi Arabia’s holdings, and the secret deal began 41 years ago to hide the kingdom’s influence over U.S. government actions.

The basic framework was strikingly simple. The U.S. would buy oil from Saudi Arabia and provide the kingdom military aid and equipment. In return, the Saudis would plow billions of their petrodollar revenue back into Treasuries and finance America’s spending.

It took several discreet follow-up meetings to iron out all the details, [former Deputy Treasury Secretary] Parsky said. But at the end of months of negotiations, there remained one small, yet crucial, catch: King Faisal bin Abdulaziz Al Saud demanded the country’s Treasury purchases stay “strictly secret,” according to a diplomatic cable obtained by Bloomberg from the National Archives database.

Parsky was there during the Saudi talks that took place in Jeddah, Saudi Arabia, in July 1974. He was assistant to Secretary William Simon, who was tasked by President Nixon to save America’s economy by making a deal with the kingdom and its newfound petrodollar wealth. The OPEC oil embargo, put in place in response to aiding Israel’s Yom Kippur war, was wreaking havoc on U.S. inflation and the stock market.

Simon, a former Wall St. bond trader and director of the Treasuries desk at Salomon Brothers, helped hatch a plan to finance America’s growing deficit. He “understood the appeal of U.S. government debt and how to sell the Saudis on the idea that America was the safest place to park their petrodollars.”

Saudi Arabia’s wealth was lusted after by several Western countries and Japan, but the U.S. managed to get the golden egg. However, King Faisal was worried that their money would be spent by the U.S. to further aid Israel’s military conquests, thus jeopardizing the kingdom’s rule.


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U.S. officials complied by “letting the Saudis in through the back door.

In the first of many special arrangements, the U.S. allowed Saudi Arabia to bypass the normal competitive bidding process for buying Treasuries by creating “add-ons.” Those sales, which were excluded from the official auction totals, hid all traces of Saudi Arabia’s presence in the U.S. government debt market.

For 41 years Saudi Arabia’s U.S. debt ownership—instead of being listed individually like other countries—was obscured by grouping under a generic heading called “oil exporters,” which included nations such as Kuwait and the United Arab Emirates.

Treasury has taken pains over the decades to protect Saudi Arabia’s confidentiality, even as scrutiny of U.S. creditors has greatly increased. The International Investment and Trade in Services Survey Act of 1976 gave the agency plenty of cover, and continued even after the Government Accountability Office found in 1979 that there was “no statistical or legal basis” for using it.

The practice of “add-ons” routinely posed risks to the Treasury system, but preserving the special Saudi relationship took precedence.

Bloomberg’s FOIA request—granted after the Treasury Dept. concluded “that it was consistent with transparency and the law to disclose the data”—found that Saudi Arabia owns $117 billion in U.S. debt, which represents 20 percent of foreign reserves.

While the kingdom is one of America’s largest foreign creditors, this number is most likely a comical understatement. One former Treasury official says the actual debt holdings are double or more. Offshore financial centers allow the kingdom to mask other Treasury purchases.

More realistic estimations of Saudi’s debt holdings are up to $750 billion, meaning that Saudi divestment is a major threat to crash the dollar and other global markets. With the oil price crash there is pressure on the kingdom to liquidate assets, making their status as creditor a political weapon.

As such, it is no surprise that Obama and Congress would protect Saudi Arabia from any possibility of being exposed as a 9/11 conspirator. The U.S. government has a 41-year history of preserving this special relationship, and is now held hostage by the consequences of the deal.

This also explains why Saudi Arabia can go on bombing hospitals and civilian populations in countries like Yemen—acting as a proxy for U.S. “anti-terror” campaigns—with no repercussions. The Wahhabist kingdom is free to carry out its war, overtly and covertly, on the Shia countries of the Middle East.

Justin Gardner writes for TheFreeThoughtProject.com, where this article first appeared.


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8 Comments on "Secret Saudi Trade Deal Exposes How the Terrorist Nation Holds the US Govt and Economy Hostage"

  1. This reminds me of that movie , i think it was the Avengers. With Thor and Loki. Loki want’s the entire race of humans to worship him. He says: “Bow before me.Humans.” And an old man stands up and says NO! The rest just cowar in the background.

  2. Chuck (Smithfix) Smith | June 5, 2016 at 11:22 am | Reply

    What bullshit. If Saudi Arabia wanted to hurt AmeriKa all it has to do is say, “Give us back our money, here are your worthless bonds.” What motive would Saudi Arabia have? Cui Bono (Who Benefits)? Now, let us consider Israel…

    • Agreed. Focussing on Saudi Arabia assists to distract from Judaism´s long-term plan, announced by Ben Gurion, Judaism´s chief terrorist of 1947-1948. http://www.washingtonsblog.com/2014/08/prominent-jewish-leader-israel-intentionally-killed-civillians-1948-engaged-ethnic-cleansing-ever-since.html
      Genuinely pursuing the Saudi role in 9-11 would evoke removal of some of the cover of the master minds within the US of the 9-11 project, also that Saudi sheiks are basically not Moslems. Therefore, Saudi Arabia is not one of the countries that Judaism plans to overtake and repopulate.

      • Hi drbhelthi! I completely agree this is a distraction of a larger multi-pronged endgame. Heads up…one wonders about the spin from W.B. He rarely connects the power elite to the bankers, the UN, the Rockefellers, the Agendas, etc. He backpedaled on 9/11 going from excellent hard core 9/11 Truther in the early days to blow back commentator sometime around or after the 2008 banking crisis. He also allowed a fellow academic, Carl Herman, to post several left wing commentaries on his blog and Herman’s solution was to give the Establishment more powers to regulate and he advocated the technocratic uber-authoritarian Venus Project, going so far as to provide a link to the V.P. on his posts (e.g. 4/24/12).

  3. Junior Globalist Mafia members the Saudi royals putting the screws on the Rocks & Roths? lol Did I stumble onto a portal to The Onion? It’s always the banksters, not nation state puppet theatrics. How many countless $$$trillions have the R&Rs moved out of the real economy and trillions more sucked in the black budget? With control over the printing presses and major resources the globalists aren’t worried about treasury holdings.

    Meanwhile, last week global elite meme leader Wall Street Journal published a long article outlining how the Saudis are rapidly adopting austerity measures and radical new social and cultural re-engineering to be compliant with the globalists’ UN Agenda 2030. WSJ made sure to use the alternative term Saudi “Vision 2030”. Gotta keep our eyes on the real targets and endgame of the men at the top of the pyramid.

  4. Saudi Arabia is a pawn used to allow the U.S. to play the victim. These camel jockeys were “put” in “power” by the con-artist British Elite. Then propped up to appear as some huge threat. Their population is then wielded by the European and American Elites as a battering ram against their enemies.

    Saudi Arabia can be neutered at any time. But why bother when you can take advantage of them?

  5. America has been conquered and not a shot was fired in our defense.

  6. Bad, bad Saudis, poor Jewmerika, will Saudi Arabia then the next country to libyanised or syrianised from world terror police war criminal state?

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