[A-List] From Sarajevo to Riyadh

["bon moun" <sherrynstan@xxxxxxx>]

Saudi Arabia: The Sarajevo of the 21st Century



Is Iraq a Diversion from the Real Invasion or Will Bush Try to Occupy Both
Countries at Once?

Allah's Last Laugh

by Michael C. Ruppert

[Copyright 2002, From The Wilderness Publications, www.copvcia.com. All
Rights Reserved. May be copied or distributed for non-profit purposes only.
MAY NOT be posted on any internet web site in its entirety without express
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Aug. 21, 2002, 14:00 PDT (FTW) - The global horrors of the First World
War - the war to end all wars - began with the assassination of Archduke
Francis Ferdinand in Sarajevo in 1914. The apocalyptic war of the 21st
century may have begun with a $1 trillion lawsuit filed in the United
States by 9-11 victim families against Saudi Arabian banks and members of
the Saudi royal family. In what may be the opening salvos of a financial
and energy apocalypse, the Financial Times reported yesterday that wealthy
Saudi investors had begun a run on their U.S. banking deposits that may
have taken as much as $200 billion out of U.S. banks. These massive
withdrawals - out of an estimated $750 billion in Saudi U.S. investments -
occurred within days of the August 15 filing of the suit. Ironically, the
principal attorneys in the suit are all political insiders and, in one
case, a member of the Council on Foreign Relations. You might think they
would have thought of this beforehand.

There are two basic questions to ask about Saudi Arabia. Why was Saudi
Arabia not a focus of U.S. action and serious media attention in the
immediate aftermath of Sept. 11 even though there were so many obvious
connections? And why now is Saudi Arabia so prominently a focus of what is
apparently government-approved U.S. animosity? One thing is obvious. On the
eve of a U.S. invasion of Iraq the deployment of U.S. military personnel in
the region is also a convenient placement of resources for what may be a
one-two punch to take over a tottering kingdom that owns 25 percent of all
the oil on the planet at the same time that Saddam Hussein is removed from
power in a country that controls another 11 percent. Together, the two
countries -- which have not yet peaked in production capacity -- and which
are the only two nations capable of an immediate increase in output possess
36 percent of the world's known oil.

The Saudi situation is complicated by the fact that much of Saudi Arabia's
wealth is invested in U.S. financial markets and its sudden loss could
devastate the U.S. economy. But Bush brinksmanship -- an understatement --
is making possible a scenario where Saudis long-loyal to the U.S. markets
cut off their own arm in a coyote-like effort to free themselves from a
trap that threatens the stability both of their kingdom and the global
economy.

Osama Bin Laden is a Saudi. Fifteen of the 9-11 hijackers were Saudi. There
has been an obvious and clear financial trail showing Saudi support for the
Al Qaeda. In fact, as has recently been noted by French author and former
intelligence officer Jean Charles Brisard in his book, "The Forbidden
Truth," the financial support network of Al Qaeda is a virtual
cut-and-paste reincarnation of BCCI, a Pakistani bank known for terrorist,
drug, and CIA connections in the 1980s. One of BCCI's former executives,
Khaled bin Mafouz, remains the banker for the Saudi royal family today and
both he and Saudi Arabia's former intelligence chief, Prince Turki (removed
just before the 9-11 attacks after 25 years of liaison with bin Laden),
have been discussed repeatedly, if obliquely, in both mainstream and
independent press stories since the attacks took place.

After months of strenuous and repeated assertions by the Bush
Administration that Saudi Arabia was a key ally in the war on terror, that
they were loyal and trusted partners in U.S.-led efforts, someone has
suddenly turned on the tap for anti-Saudi propaganda and the mainstream
media are eating it up.

On June 20 the Jang group of newspapers in Dubai reported that Al Qaeda
networks were active in Saudi Arabia. This followed a June 18 announcement
that a group linked to Al Qaeda had been arrested inside the kingdom and
charged with planning attacks on Saudi government installations.

On July 18 the BBC reported that Saudi Prince Nayef Bin Sultan Bin Fawwaz
Al-Shaalan had been indicted by a Miami court on charges of having smuggled
1,980 kilos of cocaine on his private jet in 1999.

On July 28, Britain's The Observer released a story that quickly spread
around the world. It was headlined, "Britons left in jail amid fears that
Saudi Arabia could fall to al-Q'aeda." The lead paragraphs read, "Saudi
Arabia is teetering on the brink of collapse, fuelling foreign office fears
of an extremist takeover of one of the West's key allies in the war on
terror.

"Anti-government demonstrations have swept the desert kingdom in the past
months in protest at the pro-American stance of the de facto ruler, Prince
Abdullah.

"At the same time, Whitehall officials are concerned that Abdullah could
face a palace coup from elements within the royal family sympathetic to
al-Q'aeda.

"Saudi sources said the Pentagon had recently sponsored a secret conference
to look at options if the royal family fell."

The story later mentioned, "Anti-Abdullah elements within the Saudi
government are also thought to have colluded in a wave of bomb attacks on
Western targets by Islamic terrorists."

After finally mentioning the apparently unimportant subject of the
headline -- the fact that several Britons had been jailed on bootlegging
charges -- the story concluded by stating that feuding between factions in
the Saudi court was going to increase with the death of King Fahd who was
unstable in a Swiss hospital.

The story ended by quoting Saudi dissident Dr. Saad al-Fagih who declared,
"'There is now an undeclared war between the factions in the Saudi royal
family.'"

On the same day a lengthy essay on Saudi Arabia in The Asia Times by Ehsan
Ahrari observed, "It is interesting to note that [Prince] Sultan is
believed to be a preferred U.S. candidate for the Saudi throne." Abdullah
is the crown prince, not Sultan.

On July 29 Stratfor, a global intelligence reporting and analysis service,
reported that a feud was brewing between Saudi Arabia and neighboring Qatar
over Qatar's willingness to openly support the U.S. invasion of Iraq. Qatar
is nearly sinking under the weight of pre-deployed military equipment and
has a brand new state-of-the-art U.S. Air Force Base. [See story this
issue.]

On July 30, the suggestions that internecine warfare had erupted in Saudi
Arabia were given credence by an Agence France Presse report describing the
recent deaths of three Saudi princes in eight days. Prince Fahd bin Turki
died of thirst in the desert on July 30. Prince Sultan bin Faisal died in a
car crash on July 23, and Prince Ahmed bin Salman died the day before of a
heart attack.

On Aug. 1, The World Tribune reported that Saudi Arabia, which has been
acquiring long range ballistic missiles had also been, according to reports
confirmed by U.S. officials, attempting to acquire nuclear weapons from
Pakistan which has been well-documented to have heavy concentrations of Al
Qaeda supporters within all parts of its government.

On that same day, Saudi dissident Dr. al-Fagih appeared on the Australian
Broadcasting Corporation program "Lateline" and offered some startling
revelations:

"Prince Abdullah who is supposed to be the next in charge, the next King
would not accept to appoint Prince Sultan as Crown Prince and Prince Sultan
insists that he should be the next in line for Abdullah to be [king]."

Al-Fagih predicted the imminent death of the ailing King Fahd and noted,
"That's why probably the foreign office have [sic] expected some major
thing happening in the next few weeks.

"I mean, Prince Abdullah is in charge of the national guard and Prince
Sultan is in charge of the army, and either one will use his own force to
fight the other to fight for power. Now they will use all elements of the
population, of the society. [including a large portion of the population
that supports al-Q'aeda and radical Islamic fundamentalism].

Al-Fagih said that there was a psychological barrier in the country because
all information is so thoroughly controlled and the regime maintains the
appearance of complete control. Almost all Saudis dislike the corrupt
regime for a multitude of differing reasons. But, said the medical doctor
who once served with Osama bin Laden in the Afghan war against Soviet
occupation, "Once this psychological barrier is broken, either by a dispute
of the royal family, or by a financial collapse, you would expect a major
act by the people against the regime."

Al-Fagih also noted that in general the dislike of the Saudi people for the
U.S. was intense because of its unremitting support of Israel and also
because the U.S. had maintained a military presence on Saudi soil long
after the end of the Gulf War.

Just five days later on Aug. 6 the Washington Post reported that a month
earlier on July 10, a top Pentagon advisory group had received a briefing
from Rand Corp. analyst Laurent Murawiec describing Saudi Arabia as en
enemy of the U.S. and threatening seizure of its oil fields and financial
assets if it did not stop supporting terrorism. The Pentagon group which
received the briefing, the Defense Policy Board, is headed by renowned hawk
Richard Perle. Although high-level Bush administration figures like Colin
Powell downplayed the briefing's significance, it received heavy-handed
media play for several days. Subsequent reports stated that Vice President
Dick Cheney's staff had "embraced" the report.

On Aug. 7 Saudi Arabia made clear and unequivocal public pronouncements
that it would not allow its soil to be used for an invasion of Iraq.

On Aug. 14, Reuters reported that King Fahd, who had just been moved to
Spain was in failing health and possibly near death.

On Aug. 15 amidst massive daylong publicity, a 15-count, $1 trillion
lawsuit was filed against various Saudi interests for liability in the 9-11
attacks. Included among the defendants were the Saudi Bin Laden Group of
companies (previously connected through the Carlyle Group to Bush family
finances), three Saudi princes, seven banks, eight Islamic foundations, a
number of charities and the government of Sudan.

The three Saudi princes are Turki Faisal al Saud (see above), Prince Sultan
bin Abdul Aziz (same as above), and Prince Mohamed al-Faisal.

This new suit eclipsed three earlier suits, largely ignored by the major
media, filed by victim families charging various degrees of liability
and/or complicity by the U.S. government. The key lawyers in the case have
a history of close affiliation with the Republican Party, the Bush family
and/or the Council on Foreign Relations. Media coverage of the suits
continued through the weekend ending Aug. 18.

What gives?

FOLLOWING THE MONEY

The instability in Saudi Arabia may well be just the end result of internal
decay and rot. But the consequences and implications of Saudi Arabia's
current crisis are far deeper once one examines the financial threat that
Saudi chaos might unleash.

Like the United States, the Saudi economy is in tatters. Like the U.S.
economy it needs only one thing to keep it afloat -- cash.

The Saudi government rightly fears a quickly successful U.S. invasion of
Iraq. A first inevitable consequence would be serious anti-American
protests from the Saudi population. The second inevitable consequence would
be an almost immediate increase in Iraqi oil production, which would result
in a price reduction that might break the back of OPEC and dramatically
reduce oil income. Seeing that the U.S. economy is on the brink of
collapse, the Bush Administration, facing congressional elections in
November and a potentially disastrous 2004 presidential election, must do
whatever it takes to keep itself in power. For this administration, so
hugely populated by oil men (and woman), cheap oil is the obvious first
choice.

Saudi Arabia seems to have seen this coming for some time. In April, the
Saudi government announced that it was considering privatizing parts of
Aramco, the Saudi national oil company, and selling off some of Aramco's
operations to Exxon, BP-Amoco, Shell and other major companies. Though
little has been disclosed since the early announcements, this move would
benefit the Saudis in two big ways.

First, it would give Western companies an equity stake in the stability of
the monarchy, making it difficult for the U.S. to consider bombing or
embargoing operations owned by western companies. Secondly, it would
generate large amounts of cash to offset declining economic growth, rising
unemployment and declining per capita income, according to Stratfor on
April 29.

The oil-based Mexican standoff is mirrored by what is effectively a much
more successful financial deterrent -- the Saudis ability to wreck the U.S.
financial markets should they see their situation become utterly desperate.

OWNING THE AMERICAN DREAM

It is impossible to quantify the exact amount of Saudi holdings in the U.S.
economy. But anecdotal evidence is utterly compelling.

The New York Times reported on Aug. 11, "An adviser to the Saudi royal
family made a telling point about Saudi elites. He said an estimated $600
billion to $700 billion in Saudi money was invested outside the kingdom, a
vast majority of it in the United States or in United States-related
investments." The BBC has estimated Saudi U.S. investment at $750 billion.

Adnan Khashoggi, perhaps the best-known Saudi billionaire, controls his
investments through Ultimate Holdings Ltd. and in Genesis Intermedia, which
was reported to have been connected to suspicious stock trades around the
time of the Sept. 11 attacks. (No linkage has been made between these
trades and the attacks themselves). The rest of his private U.S. holdings
are administered through his daughter's name from offices in Tampa, Fla.,
not far from where many of the hijackers received flight training at both
private and U.S. military installations.

Khashoggi is a longtime financial player, deeply connected to the
Iran-Contra scandal of the 1980s and also to BCCI. But Khashoggi doesn't
even make the Forbes list of the richest people in the world. One Saudi who
does is Prince Alwaleed Bin Talal, who ranks as the 11th richest man on the
planet with an estimated net worth of $20 billion.

Some of Alwaleed's holdings and recent acquisitions include:

-       The single largest shareholder in Citigroup, the teetering U.S.
financial giant, which is reported to have a derivatives bubble of more
than $12 trillion and has reportedly sought recent emergency assistance
from the Federal Reserve. On July 18 Alwaleed made an additional $500
million purchase of Citigroup stock, raising his estimated shareholding to
$10 billion.

-       Alwaleed also owns, according to an August 9 story in The Guardian,
three percent of the total shares of Newscorp (Fox), making him the
second-largest shareholder behind Rupert Murdoch.

-       Alwaleed's other significant holdings include Apple Computer,
Priceline, The Four Seasons Hotels, Planet Hollywood, Saks and Euro Disney.

-       Alwaleed also sits on the board of directors of the infamous
(post-9-11) Carlyle Group.

Alwaleed alone is in a position to pull the plug on the U.S. economy. But,
of course, he would cost himself billions to do it and this is not a likely
scenario because he has long been a pro-democratic U.S. supporter. The
remaining investments of the Saudi family, taken as a whole, would
undoubtedly paint an even grimmer risk assessment. All of this assumes, of
course, the stability of the Saudi monarchy -- an apparent prerequisite for
the preservation of their continued financial empire, the stability of the
U.S. economy making it the most profitable place for Saudi investment, and
the absence of a major and protracted regional conflict. But if the U.S.
economy fails?...

The Bush Administration's unilateral and illegal commitment to an Iraqi
invasion brings all three essentials into question.

The August 20 report from the Financial Times suggests that the Saudis are,
at minimum, firing a clear warning shot across the bow of the U.S.S. Bush.

ALLAH'S LAST LAUGH

In his appearance on Australian television Dr. al-Fagih discussed the
likelihood of a Balkanization of Saudi Arabia by dividing the kingdom into
three separate states and separating the eastern oil provinces from the
holy sites in the west. Such a shot-term solution might delay what seems to
be an inevitable final conflict.

But there is another telling factor that has not been discussed in the
major media.

There are signs that major financial power houses are looking into gold
hedges, especially mining and actual possession of gold in anticipation of
a large gold "bust-out." The head of the California Personnel Employee
Retirement System (CALPERS), the largest pension fund in the country,
recently announced his resignation to go into the gold sector of the
financial markets.

Recent reports starting in 1998 indicate that Saudi Arabia contains
enormous quantities of gold. A 1997 Saudi embassy press announcement
revealed 800 locations where gold had been discovered. A Nov. 8 report from
Ohio State University -- based upon new Global Imaging System technologies,
confirmed "2,100 known occurrences of gold, silver, copper, and other
metals in the western third of the Saudi peninsula." Saudi Arabia appears
to be sitting atop one of the largest gold stores on the planet.

But there is something else in the western third of the country -- the two
holiest cities in all of Islam -- Mecca and Medina. And a gold bust-out
might well signal the end of the U.S. dollar's reign as the dominant
currency in world commerce -- the means by which the U.S. has policed its
global financial empire. And Iran has just signaled that it is considering
pricing its oil in Euros.

Yet the Bush Administration seems willing to risk everything for a roll of
the dice in Iraq and a lawsuit in New York -- moves it may have already
committed itself to take and cannot reverse. And still the American people
try to ignore the fact that the administration knew about, and could have
prevented, the attacks of September 11th.