The Saudis are opposed to a U.S. invasion of Iraq but as a nation, they are unable to make a military statement to that effect. However, the Saudis are willing to articulate a serious economic statement. According to analysts and bankers, speculation asserts that over the past several months the Saudis have pulled a minimum of $100 billion to a maximum of $200 billion out of the U.S. economy.

Saudi Arabia's relationship with the U.S. is easily described as two-faced. They have provided our nation with nothing but "lip service" and inaction. Saudi apologists have delivered creative and innovative excuses for their indifference to U.S. policy in the Middle East. Since September 11, 2001, however, their fabricated and illegitimate excuses no longer fly. Spinning a happy face on the fact that 15 of the 19 September 11 hijackers were Saudi nationals is not a simple task.

The U.S. appears impatient to Saudi Arabia's passive responsibility. According to a Financial Times August 21 front-page story, during a pentagon briefing, Saudi Arabia is referred to as the colonel of evil! The demonizing of Saudi nationals by the U.S. may have triggered a chain reaction. The U.S., frustrated with Saudi Arabia's inaction, has begun to publicly vilify them. Consequently, Saudi investors have begun to withdraw investments from the U.S. economy and, like September 11, the stock market has reacted negatively. However, this time it took a couple of months before the market reached a bottom.

In light of the recent lawsuits filed by those victimized by the September 11 terrorist attacks, how much more Saudi money will be recoiled from the U.S. economy? Given the emotional temper of American society towards the Middle East, Arab money in the U.S. is unsafe. The families of the victims are seeking trillions of dollars in retribution. If these suits are discounted as having merit, there will soon be little Saudi money left in the U.S. economy and such a reaction will place severe pressure on the U.S. economy and the U.S. stock market.

This may be an additional reason why the Federal Reserve has opted to remain active. If the Arabs and their sympathizers pull most of their money from the U.S., our country could lose as much as $500 billion and that could very well cause another test of the September lows, as well as the recent August 23 lows. If these lows hold good news, it could mean the worst is over (barring another major economic shock). But if the lows do not hold, there will be lower lows and with them, more economic pessimism.