President Obama and First Lady Michelle Obama, joined by the new King Salman of Saudi Arabia, shake hands with members of the Saudi Royal Family at the Erqa Royal Palace in Riyadh, Saudi Arabia, on January 27, 2015, as they, U.S. Secretary of State John Kerry and other dignitaries extended condolences to the late King Abdullah and call upon and met with King Salman. (Photo by State Department) *** Please Use Credit from Credit Field *** (Newscom TagID: sipaphotosfive183721.jpg) [Photo via Newscom]

President Obama and First Lady Michelle Obama, joined by the new King Salman of Saudi Arabia, shake hands with members of the Saudi Royal Family at the Erqa Royal Palace in Riyadh, Saudi Arabia, on January 27, 2015….[Photo via Newscom]

This problem has been illustrated in profound ways by the American President’s trip to Saudi Arabia on April 20th.  He is expected to try to mend fences with the despotic salafist kingdom despite its possible role in sponsoring terrorism which may have benefited those who attacked Americans on September 11, 2001. At issue is an effort, and an unfulfilled promise, to release 28 pages of the 911 report which spell out suspicions that Saudi officials aided the 911 hijackers. This would be a crippling blow to Saudi prestige in the US and abroad and would sour the public even further against the despotic salafist kingdom.

The timing of the President’s trip is disconcerting to many who see kowtowing to the Saudis at play here. This has been an ongoing problem since well before President Obama took office, but the President had promised to release the 28 pages. Those who felt that President (GW) Bush was too cozy with the Saudis have been let down by President Obama whose rhetoric has not matched his actions.

The Saudis have been rather bald and open in their response to the mere “threat” of exposing possible terror ties. Adel al-Jubeir, their foreign minister, has literally threatened to unload as much as $750 billion in US assets, securities, and other holdings. He claims it would better to unload these assets rather than face any possible forfeiture of such assets if victims of Saudi-sponsored terror are given the green light to sue the despotic salafist kingdom. Congress is considering legislation that would pave the way to sue any foreign government which might have even indirectly sponsored terrorism resulting in harm to Americans. With those 28 pages as proof, 911 families might have grounds to sue the Saudis and seize parts of their US business empire as compensation.

The key threat is Saudi Arabia’s intention to liquidate its US dollar holdings. This would amount to economic warfare aimed at punishing the US by attempting to cause a collapse in the value of the dollar. But nobody knows how many treasury holdings the Saudis possess- unlike the figures for other nations, the figures for Saudi are kept secret.

Saudi Arabia holds around $500 billion in US dollars. China, by comparison, holds almost $3.5 trillion in US dollars. While analysts focus on Saudi Arabia’s threats, which some assert would hurt the Saudis, the greater issue is the policy that allows foreign governments to directly or indirectly control vital US assets.

It is not possible to stop anyone from holding dollar reserves, which are bought on the open market, but actual US properties, businesses, and treasuries could be used by foreign governments to hold US policy hostage. US policy is being held hostage by this despotic salafist kingdom because of threats of brutal economic warfare against the American people.

At the very hour in which the American people want answers about the possible Saudi ties to the 911 hijackers so that our people can obtain justice, the American President is flying off to that same despotic regime to “mend fences.” Instead of supporting the American people, the US President, like so many before, is caving in to Saudi economic blackmail.

This all comes back to the core problem. Nations such as China, Russia, and Saudi Arabia see no separation between economic and political activity. They have no hesitation in using economic activities in the global market to pursue political aims. The US has officially turned a blind eye to this. Our government allows foreign powers to have so much control over vital US economic assets and resources that political policies that are beneficial to the US could be jeopardized.

Will the Saudis follow through on these threats if Congress passes the 911 bill and if those 28 pages are released? This is not the real question. The real question is: will President Obama listen to the American people or Saudi threats of brutal economic warfare against Americans? Few predict President Obama will do anything different than any other President has. Even fewer would predict the US will rethink its myopic policies of allowing foreign powers to control vital economic assets.