Total US Debt soared to 101.5% of GDP in May under the leadership of Barack Obama. (Zero Hedge)

Saudi Arabia’s National Commercial Bank has issued a warning to investors that the US debt burden has reached the same ratio as Italy.
World Tribune reported:

Saudi Arabia has warned the financial community of a decline of the U.S. dollar.

Saudi Arabia’s National Commercial Bank said the debt burden of the United States has reached the same ratio of Italy, deemed a default risk. In a report, the Jedda-based bank warned that the downgrade of the U.S. credit rating from triple A status would reduce energy demand and prices, a move expected to harm the Saudi kingdom.

“Foreign central banks maintain a large share of their foreign currency reserves in U.S. treasuries because it is the deepest and most liquid bond market,” the report said. “But, international funds that limit their investments to AAA-rated bonds may dump the U.S. holdings, causing the U.S. dollar to depreciate. Yet, mutual fund investment guidelines do retain some flexibility regarding the handling of such matters.”

The report, titled “The Standard and Poor’s Downgrade of U.S. and Its Implications on the Saudi Economy,” however, said the Gulf Cooperation Council state could withstand the decline of the U.S. dollar. NCB said Saudi Arabia wielded a large reserve to ensure government programs over the next few years.

Saudi Arabia is said to hold about $492 billion in U.S. debt. The report said Washington was certain to honor its obligations, and that the United States could print money at any time.

 

 

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  1. all according to the leftist’s plan led by their tool barack obama.

  2. ++

    December 27, 2012

    Stalin Knew, Mao Knew, Hitler Definitely Knew

    [I say this is an egregious example of social engineering. Most children at one time or another question and /or are confused about their sexuality – this is not abnormal. But for an agenda-driven group to seize upon adolescent confusion and engineer it into something it may not become on its own is criminal. It is a draconian plot to create a cadre of extremists with one goal in mind – to countermand society as we now know it. This is the time-tested methodology of despots since Hitler.

    [..]

    Logically speaking, if the Catholic Church was unable to protect altar boys from homosexual priests, how does one propose the safety of the supposed homosexual student in an exclusively homosexual environment? Or isn’t that a valid concern? What boundaries will be set in place to protect the weaker children from sexual exploitation and /or assault by predatory schoolmates or from the teachers themselves?

    Oh … silly me … I forgot that is a question only a bigoted homophobe would entertain. Such behavior only occurs in public schools – it would never happen in a school exclusively for homosexual, lesbian and bisexual children. (Sarcasm intended.)]

    why i bet their plan to destroy US from within is working better than even
    they expected, and what do we have in Italy? why we have Rome, and what
    do we have in Rome?? why the Vatican, that’s what.. how dumbed down
    are we?? verily.. *sigh*

    (again, please scroll thread for more)

    ==

  3. “and that the United States could print money at any time.”

    The presses are ready to throw their bearings after the last 4 years.

  4. Dear Saudi Arabia:

    Oh, we’re going WAAAAAAAAAAAAAAAAAAAAAY beyond Italy, just watch our dust.

  5. ++

    oops re: #3 December 27, 2012 at 1:07 pm bg

    wrong thread, sorry..

    ==

  6. ++

    oops again re: #6 December 27, 2012 at 1:08 pm bg

    oh no it isn’t.. :lol:

    ==

  7. I’m surprised they aren’t claiming that fracking is a Jewish conspiracy to harm muzzies.

  8. The report said Washington was certain to honor its obligations, and…

    A questionable assumption, especially where Democrats are concerned.

    When was the last time the Democrat-dominated U.S. Senate passed a budget?

  9. ++

    ht Oliver

    The latest from “DHS Insider”

    [DH: Wait, you’re DHS—not some Wall Street insider.

    RB: So you think they are separate agendas? That’s funny. The coming collapse of the U.S. dollar is a done deal. It’s been in the works for years—decades, and this is one of the most important cataclysmic events that DHS is preparing for. I almost think that DHS was created for that purpose alone, to fight Americans, not protect them, right here in America. But that’s not the only reason. There’s the gun issue too.]

    ==

  10. Saudi Arabia for crying out loud. Their media is more truthful than our MSM–no surprise.

  11. They are just as crazy as bizarre ben bernanke. if they think printing money is good back up plan.

  12. They are just as crazy as bizarre ben bernanke. if they think printing money is good back up plan.

    When one is owed a large sum of money, being paid something is better than not being paid at all…

  13. Nothing good can come from those who side with evil, as Barack Obama’s Administration has done throughout the Middle East since its inception.

    His Progressive agenda leans Islamic Fascist; and so like the Islamists throughout the world, he seeks the destruction of all Western democracies, but especially America.

    Anyone who sees it otherwise is either delusional or a liar.

  14. My first thought was “I wonder how long it will take the NYT and WP to cover this — June or July of 2013 or never?”

  15. Who cares? The US’s credit worthiness is so good, we can borrow money for free. Ten year T-Bills are less than 2%, which is the average rate of inflation. So people are literally paying us to hold their money.

    The US is NEVER going to become Italy, or Greece, or Spain…

  16. Irresponsible is the word that needs to be used. .

    On Obama and Reid for not passing a budget in 3 1/2 years and on Tax Cheat Geitner for doing noting on treasury obligations

    http://cnsnews.com/news/article/geithner-debt-limit-1639-trillion-will-be-met-new-years-eve

    Hold the line on revenues and cut spending NOW before it is too late. . .



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