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

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

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Business, Architecture, Social Studies

University

Hard

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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.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

Why was the information about the US Treasury's dealings disclosed after 40 years?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What changes occurred in the foreign debt holders of the US after the agreement with Saudi Arabia?

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