Love it or hate it, we are in a longterm relationship with Saudi Arabia and will continue to be in one for the foreseeable future. Reason why Saudi Arabia, the royal Saudi family to be more precise, is because of their hold over our economy, our debt to be more precise.
Is Saudi Arabia holding too much US debt
Exact amount of debt that Saudi Arabia holds is difficult to determine. Some reports say that they have “only” around 100 billion dollars of US debt. Other reports are saying that this number could be as high as 1 trillion dollars, if you account all the shell companies that Saudis used to buy US debt indirectly.
Whatever the amount is, it makes a lot of sense to lower the amount of debt that’s in the hands of such an instable government. Should they start offloading it on the markets, they could cause problems to the United States economy, especially if you take into account that such a move from the Saudis would also be accompanied by a decline in oil exports. Some might say that they would be hurt more by such a move, but keep in mind that the royal family doesn’t care that much for its people. They wouldn’t be hurt that much, since they can throw their people under the bus. We will see how the situation unfolds in the future. It’s an interesting sale mate no doubt.