 "Saudis selling US investments would destabilise global markets")
Global financial markets would be destabilised if Saudi Arabia decides to sell off the $750 billion worth of American assets it holds, in protest against a controversial legislation that would allow 9/11 victims to sue the kingdom, the White House has warned.
"What I'll just say in general is our concern is that a hypothetical transaction or series of transactions like this would destabilise the global financial markets," White House Press Secretary Josh Earnest said.
Earnest said this when asked about the reported Saudi threat that the kingdom would sell its stakes in the US if the controversial Congressional legislation is passed, and what kind of damage it may cause to the American economy generally.
"That kind of instability and that kind of volatility is not in the interest of any of the advanced economies around the world. Both the US and Saudi Arabia would be in the category of advanced economies that would not benefit from a situation like that," he said.
"Given our shared interest in protecting the stability of the global financial system, I suspect it's not something that would be considered for long," Earnest said.
Authored by Senators John Cornyn and Charles Schumer, the Justice Against Sponsors of Terrorism Act would allow victims of the September 11, 2001, massacre and other attacks to sue nations supporting terrorism.
The Obama administration has lobbied Congress to block the bill's passage, according to Obama administration officials. The officials have warned senators of diplomatic and economic fallout from the legislation.
Obama is headed to the Saudi Arabia later this week.
Earnest said the administration has worked effectively with Saudi Arabia and other Gulf Cooperation Council (GCC) partners to add important resources to their campaign to counter the Islamic State (IS) group.
"We have worked closely with the Saudis and the Emiratis and other GCC partners to shut down ISIL's efforts to finance their operations," he said using another acronym for the IS.
"Some of the countries that the President will be meeting with have capitals who are a regional financial center, and by blocking or at least countering ISIL's ability to access the services available in those capitals is important to our longer-term success," Earnest said.
There are a variety of ways in which the partnership between the US and Saudi Arabia has been enhanced under Obama's leadership in a way that is good for the US, that is good for US national security, and that's good for homeland security.
"That's always what the President is focused on when he's making these kinds of decisions and when he's engaged in this kind of diplomacy. This is a good example of the President focused on the right goal in pursuit of the kind of common ground that benefits the citizens of both the United States and Saudi Arabia," Earnest said.
