Ahead of the US president's visit to Saudi Arabia, a series of multi-billion-dollar arms deals have been outlined. The previous US administration suspended some supplies because of human rights concerns.
When President Trump arrives in Riyadh this week, he will lay out his vision for a new regional security architecture White House officials call an “Arab NATO,” to guide the fight against terrorism and push back against Iran. As a cornerstone of the plan, Trump will also announce one of the largest arms-sales deals in history.
Behind the scenes, the Trump administration and Saudi Arabia have been conducting extensive negotiations, led by White House senior adviser Jared Kushner and Saudi Deputy Crown Prince Mohammed bin Salman. The discussions began shortly after the presidential election, when Mohammed, known in Washington as “MBS,” sent a delegation to meet with Kushner and other Trump officials at Trump Tower.
After years of disillusionment with the Obama administration, the Saudi leadership was eager to do business. “They were willing to make a bet on Trump and on America,” a senior White House official said.
[...] The most concrete part of the idea is a mammoth U.S. arms package for Saudi Arabia that Trump will also announce in Riyadh. Final details are still being worked out, but officials said the package will include between $98 billion and $128 billion in arms sales. Over 10 years, total sales could reach $350 billion.
The sales include huge upgrades for the Saudi army and navy to include Littoral Combat Ships, THAAD missile defense systems, armored personnel carriers, missiles, bombs and munitions, officials said. Some of the production and assembly could be located in Saudi Arabia, boosting MBS’s project to build a Saudi domestic defense industrial capability. But most of the items would be built by American defense contractors.
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(Score: 2) by Arik on Friday May 19 2017, @09:49PM (5 children)
"the US and its giant debt and trade deficit."
The real problem all the jihadis and russian bugbears are supposed to keep us distracted from.
If laughter is the best medicine, who are the best doctors?
(Score: 2) by bob_super on Friday May 19 2017, @09:55PM (4 children)
I wasn't referring to the ability to get oil. I was pointing out how the dollar being the money in which oil is traded worldwide is quite critical to the US economy.
(Score: 2) by Arik on Friday May 19 2017, @10:18PM (3 children)
If laughter is the best medicine, who are the best doctors?
(Score: 2) by bob_super on Friday May 19 2017, @11:03PM (2 children)
Because the transactions are in dollars, the massive amounts involved, often too high for direct use by various producers, tend to be reinvested in dollar-labelled assets, boosting the US economy...
It also cements the Reserve Currency status, and provides a significant soft power tool for the US against various actors involved in global markets (thou shalt not buy oil from Iran, for the Oil you buy elsewhere uses our dollar...)
Short version:
http://www.investopedia.com/articles/forex/072915/how-petrodollars-affect-us-dollar.asp [investopedia.com]
The long versions are available at the local library.
(Score: 2) by Arik on Saturday May 20 2017, @03:30AM (1 child)
If laughter is the best medicine, who are the best doctors?
(Score: 2) by bob_super on Saturday May 20 2017, @06:27AM
*blink*
Seriously?