How Did Saudi Arabia Financed US Debt For Over 4o Years

President Nixon walks with Saudi King Faisal in Saudi Arabia in June 1974. AP photo.jpg

Image: President Nixon walks with Saudi King Faisal in Saudi Arabia in June 1974. Source: AP Photo

According to the Bloomberg report, a bond trader from Salomon Brothers arranged a prominent deal that reshaped US-Saudi relations for the last four decades.

In 1974 when the mood in US was intense due to quadrupled oil prices, which resulted in the stock market crash. A newly appointed US Treasury secretary landed on July teh same year in Jeddah, Saudi Arabia.

The mission of the trip, kept in high secrecy within President Richard Nixon’s inner circle, was to persuade the Kingdom to finance US burgeoning deficit with its newfound ‘black gold.’

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