Does your professor think the Saudi oil money is not invested directly, but via UK? If you look at Saudi Tbill purchases, they are flat, but the UK purchases have tripled. Brad Setzer, of Roubini Global Economics, suspects that it is Saudi money. Where else will they put all those extra dollars? I got an e-mail from Money and Markets, and that guy actually fell for the diversion, and said “Saudi Tbill purchases remain constant at $13 bil”. I would expect better research from a financial advisor.
What does your professor think about the sustainability of foreign financing, and whether our exports will eventually increase to satisfy a consumption oriented China? Will they start buying agricultural products from us?
