The proper US response to the Saudi’s threat would have been the middle finger. Ever-happy-to-monetize central banks and the world’s capital markets can handle a $750 billion sale of US debt. There would be a price concession as markets soaked the Saudis, but after the sale prices would rally and there would be no permanent damage. That the US would allow itself to be threatened illustrates what happens when a confederated empire runs on borrowed money. How long can an empire last that succumbs to its creditors’ threats? (China has a lot more US government debt than Saudi Arabia.)

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