By Tyler Durden
Having gone all-in on a Hillary Clinton victory ahead of the elections, Saudi Arabia has quickly pivoted in its "appreciation" of the Trump administration, and having realized that the fastest way to Trump's heart is through the US Treasury's bank account, it is preparing to invest an "unprecedented" amount of money in the US. According to Bloomberg, the Kingdom’s sovereign wealth fund will announce plans to "deploy as much as $40 billion into U.S. infrastructure." The investment will likely be unveiled as early as next week when Trump is scheduled to visit the kingdom.
While it is clear why Saudi Arabia is eager to appease Trump - after all the all important Aramco IPO is coming up, and the Saudis will be eager to open the world's biggest public offering in history to as many US accounts as possible while doing everything in their power to stay on America's good side - Bloomberg's explanation that Riyadh felt "shunned by President Barack Obama, who crafted the 2015 nuclear deal with their Shiite rival Iran" leaves a bit to be desired: after all Saudi Arabia has consistently been the best customer of the US military-industrial complex for the past decade, and to claim that it had troubled relations with the previous administration is naive at best. What is certain, however, is that Saudi Arabia would have been delighted had Hillary Clinton become president, considering the millions in "donations" the Clinton Foundation received from Saudi Arabia and its peer Gulf states over the years.
Meanwhile, the kingdom claimed a “historic turning point” in bilateral relations after President Trump met Saudi Arabia’s Deputy Crown Prince Mohammed bin Salman in the White House earlier this year. On May 19, Trump will make his first foreign trip since taking office, visiting Saudi Arabia and Jerusalem before heading to Europe.
Or perhaps it's not Trump, but rather his son-in-law, that Saudi Arabia is most delighted with. A White House official told Bloomberg that the plans were in the works and that Trump’s son-in-law and senior adviser, Jared Kushner, had played a critical role in the discussions.
The Saudi funding may end up an anchor investment in Trump's massive $1 trillion infrastructure stimulus plan.
Read the rest at Zero Hedge.