Saudi Bank Warning: U.S. Debt Ratio Same As Italy’s -- World Tribune
ABU DHABI — 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.
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My Comment: The Saudis have every reason to be concerned .... they are holding about $492 billion in U.S. debt .... and as for the Chinese who hold a trillion plus .... they are very very concerned. Zero Hedge has done a bit more analysis on American government's addiction to debt ... it has become one of my go-to-place for U.S. economic and business trends.