Saudi arms deal

"The Obama administration is about to propose the sale of more than $60 billion worth of advanced weapons to Saudi Arabia. Apart from providing an obvious boost to the U.S. defense industry, the clear purpose here is to send a message to Iran. As an unnamed U.S. official stated a few days ago, "We want Iran to understand that its nuclear program is not getting them leverage over their neighbors, that they are not getting an advantage. . .  We want the Iranians to know that every time they think they will gain, they will actually lose." In short, the sale is "mainly intended as a building block for Middle East regional defenses to box in Iran."  I get all that, although it seems like an awful lot of weaponry to "contain" a country whose entire defense budget, according to the International Institute for Strategic Studies, is only $10 billion.  But my real question is this: if our primary goal is to discourage Iran from developing nuclear weapons, then might this new initiative be counter-productive? Doesn't it just give Iran an even bigger incentive to get a nuclear deterrent of its own? Think about it: if you had a bad relationship with the world's most powerful country, if you knew (or just suspected) that it was still backing anti-government forces in your country, if its president kept telling people that "all options were still on the table," and if that same powerful country were now about to sell billions of dollars of weapons to your neighbors, wouldn't you think seriously about obtaining some way to enhance your own security? And that's hard to do with purely conventional means, because your economy is a lot smaller and is already constrained by economic sanctions. Hmmm....so what are your other options?"