What's the Untold Story of Saudi Arabia's Debt Secret?

The transcript discusses the 1973 oil shock's impact on the US economy, leading to a secret financial agreement between the US and Saudi Arabia. The US needed cash due to a recession and budget deficit, resulting in a deal to keep Saudi investments in US Treasuries secret. The disclosure of this deal, after 42 years, was prompted by a Freedom of Information Act request. The transcript also explores Saudi Arabia's foreign exchange reserves and their investment in US Treasuries, comparing it to other countries like China and Japan.

What was a major consequence of the 1973 oil shock for the United States?

• An increase in foreign investments

• A significant increase in oil production

• A decrease in oil prices

• A deep economic recession

What was the primary reason for the US to keep the Saudi oil deal secret?

• To avoid public scrutiny

• To ensure Saudi money returned to the US

• To prevent other countries from knowing

• To comply with international regulations

How does Saudi Arabia's percentage of FX reserves in US Treasurys compare to China's?

• Lower than China's

• Equal to China's

• Not comparable

• Higher than China's

What prompted the US government to disclose the details of the oil deal after 40 years?

• A change in government policy

• A request under the Freedom of Information Act

• Pressure from international organizations

• A new trade agreement with Saudi Arabia

Which countries have replaced Saudi Arabia as the largest foreign debt holders of the US?

• China and Japan

• Brazil and Mexico

• Germany and France

• Russia and India