Quote:I never understood why Saudi Arabia doesn't police the region

 

Ask Henry Kissenger.  He set the deal up under the Nixon regime and it has remained in place.  It works like this:

 

#1 - The Saudis and O.P.E.C. agree to only sell crude oil for U.S. dollars.  This requires every nation on Earth to keep a portion of their assets in U.S. dollars and it allows the U.S. to export dollars to the world.

 

#2 - The Saudis will invest their oil profits in U.S. Treasury notes.  This further acts as a prop for the U.S. dollar, creating a steady buyer for our dollars/debt.

 

#3 - The U.S. will provide military security for Saudi Arabia and political backing for the House of Saud.  This includes attacking anyone in the region who could threaten the status quo.  We probably also supply Saudi Arabia with nukes.  Israel has nukes for sure, though it's not clear if we supplied them or if they built their own. 

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