Can Saudi Arabia recover its cash reserves deposited in the United States in case of bilateral disputes?

Political analyst Alexander Nazarov wrote questioning the extent of Saudi Arabia’s withdrawal of its cash reserves deposited in the United States in the event of a dispute between the two countries and the current crisis over the killing of Saudi journalist Jamal Khashoggi at the Saudi consulate in Istanbul.

Nazarov wrote that Venezuela has been unable two months ago to recover 14 tons of gold, equivalent to half a billion dollars, in the coffers of the United Kingdom.

Can Saudi Arabia recover its cash reserves deposited in United States bonds if they have bilateral disputes?

The United States plans to impose sanctions on Venezuela, preventing it from dealing with its gold assets.

While Britain awaits the entry into force of these sanctions, it is trying in various ways to thwart all attempts by Venezuela to recover its property before the sanctions come into force.

In addition, London began confiscating property whose owners were unable to prove the source of the money they had invested in buying it.

Among the first victims was Zamira Gajeva, the wife of a banker from Azerbaijan.

How did this happen?

Does this mean that London has suddenly ceased to play the role of a safe haven for Arab corruptors, Russian oligarchs, and anyone who has managed to steal money in their home countries to invest in London properties where they spend their old age?

There have also been recent reports from Belgium about the loss of more than 10 billion US dollars out of the 16 billion Libyan funds frozen in Belgian accounts.

This is not the loss of money in Somalia or Zimbabwe, but in one of Europe’s “civilized” capitals.

This leads us to ask whether the United States and Britain, or let’s say the West in general, a safe place to store the reserves of Saudi Arabia, Arab countries and other countries?

The entire world stores its reserves in US bonds. According to the situation in August 2018, Saudi Arabia puts $ 169.5 billion, the UAE $ 59 billion, Kuwait $ 43.6 billion, Iraq $ 29.8 billion, Oman $ 11.4 billion, Morocco $ 3.2 billion, Egypt at least $ 2.1 billion, Qatar at least $ 1.3 billion, Bahrain $ 0.9 billion, and Algeria $ 0.7 billion.

Are these incidents a symptom, or are they interconnected, to form the beginning of a broader trend?

It is just the beginning of a massive transformation in the West’s way of dealing, including the United States of America, it is the new rules of the game, which is characterized as a “game without rules”.

This only happens when the price of harm from loss of reputation becomes less than the gains that can be achieved through confiscation and piracy, and therefore there are two reasons:

First, the US credit pyramid is about to collapse, the reputation of Western banks remains slim, there is no hope of saving the US credit pyramid, and for the Americans to repay these loans, they have to significantly reduce their standard of living for decades to come.

But we see how a few difficult years after the 2008 financial crisis led to a retaliatory vote for the US electorate, followed by President Donald Trump, not to mention the split of the American street as we see it, and if there is “austerity” to reduce the US debt rate, The Americans will be ready to elect any person, even if Hitler is in person.

The country cannot tolerate any austerity policy.

Between the options of non-payment of debts and civil war, I think the American leadership option will fall on the first, Public.

In that circumstance, where the United States is prepared to default, no one cares anymore about the reputation of Safe Haven.

Second, the West and the United States gradually lose their leadership, so they resort to radical steps in order to impose their will on the surrounding countries, even if it brings them more damage in the long run.

The West is now turning from playing the role of “banker” to playing the role of “pirate” and “crusader”.

The time when the world was enjoying economic growth and prosperity was over, and American generals openly announced that the United States would fight China 15 years, in conjunction with the withdrawal of the United States from the Treaty on the reduction of the proliferation of strategic missiles short and medium term, Washington to disclaim any responsibility in the maintenance of global stability and peace.

The United States and the West are preparing for war, which could break out of their debt defaults, which have deposited about $ 1.2 trillion in US bonds.

But the war, if it starts, will only begin with an American initiative.

In any case, whoever initiates war; all the reserves of countries in the West will be burned, frozen or confiscated.

I think that the world has actually entered the era of major changes, and we must give up many illusions, which have long prevailed, and one of those illusions, is that the West lives within the rules and laws, and that the inviolability of property rights there is inviolable.

Russia was fortunate to be the first to face the confiscation of its elites’ money during the Cyprus crisis in 2013 when Cypriot banks, with the consent of the European Union, refused to repay Russian deposits of 3.2 billion Euros (according to some estimates), while Money went to save the banks.

No doubt delusions are expensive, but Russia has learned the lesson well and, as a result, has become the world’s fastest developing gold reserves, while its reserves of US bonds are approaching zero.

Is there still a chance to save Arab countries’ reserves from the Americans?

I doubt it.

I think it is too late for Saudi Arabia to be sure, especially after it fell entirely under the control of Washington, against the backdrop of the Khashoggi issue.

Not only that, but I think that Saudi Arabia will be forced to increase the value of its investments in US debt.