So was this the reason for the “expedited” meetings between Obama and Yellen this week? Good chance. But we don’t know.
And if the Saudis were to sell $750 billion in US Treasuries who would they sell them to? That’s a lot of paper to move and the world isn’t that big.
Add that the Saudis would isolate themselves diplomatically and one has got to think that the Saudis, usually pretty rational actors, wouldn’t actually pull the trigger.