sovereign immunity

sovereign immunity

If the Fed raises rates selling Treasuries by bedouins would be a gnat on an elephants ass. Who would buy the oil ? Yemen ?

Sell em if you got em

JASTA would remove sovereign immunity, preventing lawsuits against governments, for countries found to be involved in terrorist attacks on U.S. soil. Saudi Foreign Minister Adel al-Jubeir said on May 2 that the kingdom had warned the United States that the proposed law would erode global investor confidence in America.

Fifteen of the 19 hijackers who crashed airliners in New York, outside Washington and in Pennsylvania on Sept. 11, 2001 were Saudi nationals; furthermore the recently released formerly classified "28 pages" showed a clear connection between Saudi officials and events on Sept 11, but the Saudi government has strongly denied responsibility and has lobbied against the bill.

That has not stopped some members of Congress from becoming increasingly vocal in criticizing Saudi Arabia, long a U.S. ally and trade partner.

A bigger question is whether the Saudis have backed off their previous threat to dump US Treasuries in case Obama fails to veto a bill which all of America wants passed; needless to say Obama finds himself in a rather unpleasant situation - deciding how to appease a country which has openly threatened the US if it does not get its way, potentially roiling the bond market at a very sensitive time, and at the same time avoiding to appear like a traitor to an entire nation with just a few months left in his term.