Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

The Saudi Factor



I saw "Fahrenheit 911" the other day. Most of what I saw was expected, except for one claim. Mr. Moore claims that "the Saudis own 8% of the United States."

He may have sources that I cannot access, but it is has been difficult for me to confirm that number.

We believe that they have around $1 trillion in cash equivalents here.(source:Atlantic Online, The Fall of the House of Saud, by Robert Baer ) This figure rose dramatically under President Reagan as he negotiated to reduce our trade deficit with them.

We believe they have around $1 trillion in public equities. We know they are the largest shareholders in Citibank for example.

These numbers are the easiest to estimate.

The value of all U.S. real estate is estimated to be around $25 trillion. We don't know how much of this they own.

And finally we do not know how much of U.S. private enterprise they own.

Whatever the numbers are they are substantial. And by definition the Saudis that own the assets are few in number, the elite controlling princes.

The next question we must ask is how stable is this regime? My thought is...not very.

I know that it does not make Mr. Greenspan nervous that so much of our debt is owned by foreigners (54% up from 25% seven years ago), but I wonder how he feels about assets. It is one thing to have a diverse foreign ownership; it is quite another to have a concentrated one.

If the Saudi princes wind up in a Saudi prison, what do the new owners, who are likely to be unsympathetic to the U.S., do with those assets?
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos