So in exchange to gaining access to US treasuries (debt) before action, they had to buy US treasuries? How is that a concession made by the KSA if that’s what they wanted in the first place?
SA gets a good deal on treasuries (basically a bribe) in order to sell oil in dollars and then use those dollars to buy treasuries.
US forces nearly all countries to buy USD that eventually get returned as SA-owned debt (huge monetary policy benefits). SA gets more or less bribed by the worlds largest military.
Awkwardness is when SA wants to do stuff that’s is against US morals (like murdering journalists) or when China firmly but politely asks to buy in RMB (like it has recently).
US generally sees petrodollar regime as second only to the military (as evidenced by their eagerness to invade Iraq and gain leverage over SA).
You mean Libya that was bombarded by France and other European militaries with relatively small US involvement? The same Libya that bombed planes[0][1], killed people in front of embassies[2], helped prop up monsters like Idi-Amin[2], waged war against Chad[4] and Egypt[5] and suggested breaking up Switzerland because dictators son brutalized his servants[6]?
The country which was in midst of protests which their government, dictatorial btw, decided to violently suppress?[7]
Yeah, nice guy all around that Gaddaffi. Oils the only reason anybody would want him gone.
>> * In 1974, Washington and Riyadh struck a deal by which Saudi Arabia could buy US treasury bills before they were auctioned. In return, Saudi Arabia would sell its oil in dollars—not only enlarging the currency's liquidity but also using those dollars to buy US debt and products.*
> So in exchange to gaining access to US treasuries (debt) before action, they had to buy US treasuries?
I have no knowledge about this besides what's been written in this thread, but I assume that having the ability to buy before the auction means they get a good deal.
