“Global investors continue to shovel money into the United States; if the Saudis go, the experts say, others will take their place.…To elaborate a bit more, the current Saudi threat is way weaker than the implicit Chinese threat of seven years ago, because:
-Saudi Arabia holds fewer dollar assets than China;
-Saudi Arabia’s 2016 economy is far less imposing than China’s 2009 economy;
-The U.S. dollar is even more dominant now than it was in 2009;
-The U.S. economy — in particular the fiscal picture — is in far better shape now than in 2009;
-The array of alternatives to dollar-denominated assets look way worse now than in 2009;
The one difference in the Saudis’ favor is that the kingdom is a U.S. ally, while China is viewed as a rival. This helps explain the administration’s position on this issue (though I suspect its concern is about the precedent this bill would set if it became law).”
Snippets from the Right
Fox News
“Obama’s tin-eared comments about Saudi Arabia may be why Saudi King Salman was not there to greet him when the president’s plane landed in Riyadh Wednesday. The King did greet other heads of state when they arrived, according to Reuters.
Given the way he has ignored Saudi security concerns and tilted toward Iran during his presidency, I assume the Saudis have written off Mr. Obama and recognize that most experts in Washington – Republican and Democrat – do not share his radical and disjointed foreign policy views. The Saudis know their strong relationship with the United States will survive Barack Obama’s presidency. But even if they do understand this, Saudi leaders also know that this president’s failed Middle East policies did enormous damage to Middle East security that they will have to live with for many years to come.
Aside from Obama’s Iran policy – which is making Iran a regional hegemon – Riyadh is worried about the Syria/Iraq situation and the absence of a serious U.S. strategy to defeat ISIS and restore stability to the region.”
Snippets from the Center