For decades the US and Saudi Arabia have shared a peculiar relationship:
the Saudis sell relatively cheap oil to the United States for which they
accept our fiat currency. They then recycle those paper dollars into the US
military-industrial complex through the purchase of billions of dollars worth
of military equipment, and the US guarantees the security of the Saudi
monarchy.
By accepting only dollars for the sale of its oil, the Saudis help the
dollar remain the world's reserve currency. This has meant that we can export
inflation, finance the warfare/welfare state, and delay our day of financial
reckoning.
But it seems this longstanding entangling alliance is coming apart.
First, the US nuclear deal with Iran has infuriated the Saudis. They view
Iran as bitter rivals and spared no expense in Washington to derail the deal.
They were not successful - at least not yet. They have also been frustrated
that the US has not devoted more of its resources to the Saudi "regime
change" project in Syria, seen as a way to reduce Iranian influence in
the Middle East.
But it is the potential release of the secret 28 pages of the 9/11 Report
that purportedly show Saudi government involvement in the attacks on New York
and Washington that threatens to really blow up US/Saudi relations. The
relatives of the victims are demanding the right to hold the Saudi government
legally accountable if it is shown to have had a role in the attacks, and the
Senate's "Justice Against Sponsors of Terrorism Act" would lift
Saudi sovereign immunity and allow lawsuits to go forward. The Saudis
threaten to dump three-quarters of a trillion dollars in US assets if the
bill becomes law - a move that could rock world markets and even the shaky
Saudi economy.
President Obama's disastrous visit to the Saudi capital last week may have
been seen as the last straw. Billed in Washington as a trip to shore up
relations, President Obama got the cold shoulder as the Saudi monarch sent a
low-level functionary to meet the US president's plane while he met an
incoming delegation from the Gulf Cooperation Council. The message was pretty
clear.
The Obama PR team tried to put a positive spin on the visit, saying it
"really cleared the air" between the two countries. But influential
former Saudi Intelligence Chief Prince Turki Al-Faisal disagreed, telling CNN
that there is going to have to be "a recalibration of our relationship
with America."
I happen to agree with Prince Faisal. We are long overdue for a
recalibration of our relationship. While I do not believe we have any
business telling the Saudis how to run their country, the decades-long
special arrangement must come to an end. No more US-taxpayer subsidized arms
deals to a Saudi Arabia that slaughters civilians in Yemen, transfers weapons
to ISIS and other Islamist extremists in Syria and elsewhere, beheads its own
citizens for minor offenses, finances terrorism overseas, and threatens other
countries in the region. It should be known that no longer will the US
guarantee the security of the Saudi kingdom.
If the Saudis refuse to sell us their oil in protest, there are other
producers who would be happy to step in. The Iranians have long been
prevented from selling their oil on the world market. If the Saudi government
was involved in the 9/11 attacks, it should enjoy no immunity from justice.
If that means reciprocal moves from other countries against the harm US
foreign policy causes overseas, so be it.
Yes, Prince Faisal. By all means let's "recalibrate" our
relationship. No more entangling alliances with Saudi Arabia!
