Re: Saudis want their money back!
$360Bn invested abroad in the last 18months? First of all, it doesnt say where from and secondly, invested in the last 18months only. Petrodollars cud hv been invested anywhere in the world, given the current political climate and investment opportunities available, its very likely this money was invested in Euro-land or Asian economies. Since Saudi revenues are US Dollar based, its equally probable this money was reinvested into US treasuries or securities. On the second point, $360Bn investment equates to their oil revenue generated over the period 2001-2004, forget about the trillions earned and invested abroad over the last 30years.
Provided these investments are made in the US and are withdrawn as stated by Saudi authorities, well it will certainly have a negative impact on yields (rise), and stocks. More importantly, an adverse impact on already strained US-Saudi relations. Iam very sceptical of such statements, fact is US is the biggest fish out there in terms of oil consumption and Saudi's wud never want to offend not only their biggest customer but also supreme protector.