I am sick of the Jew hating trolls here on LL that claim ISrael gets all this money for free from America....that just isnt the case!
US Loan Guarantees Cost US Nothing -
Yet Cost Israel Her Sovereignty!
American Envoy to the Middle East George Mitchell stated last week that if Israel doesn't advance the peace process, "[the United States] can withhold support on loan guarantees to Israel". Israeli Finance Minister Yuval Steinitz, told Mitchell that "We don't have to use those guarantees; we are doing very well without them" and Israeli Education Minister Gideon Sar stated that "We will act in accordance with our own interests and not in accordance with external pressures."
Though US Senators John McCain and Joe Lieberman sought to minimize the threat, Mitchell's statement sheds light on years of attempted American blackmail by which the United States placed financial pressure on Israel to gain the Jewish state’s surrender to and continuation of the ongoing false peace process.
In conjunction with the loan guarantees are the roughly 2.7 billion dollars that Israel receives annually from the United States, i feel that the US aid to Israel should be ended. The loan guarantees and the financial aid have come at a high price to Israel. By following this fraudulent Oslo “peace” process, Israel has suffered almost 2,000 dead and over 10,000 maimed at the hands of her so-called Arab “peace partner”.
Moreover, since the Oslo Accords were signed in 1993 (by which Israel willingly offered to give away the Land where 93% of the places mentioned in the Jewish Bible are located), an ever increasing portion of world opinion (including Jewish opinion) questions whether justice is on Israel's side. This "peace process" has therefore had a deleterious effect vis-à-vis anti-Semitism as well as strengthening terrorism and eroding Israel's military security.
American aid to Israel comes at a heavy price with onerous strings attached. Seventy-five percent of all monies must be spent in the US thus making it a make-work program for America’s defense industry. These conditions have cost Israel 100,000 manufacturing jobs and Israel has been prevented from using its technology for the development of its own economy. The ending of American aid would solve Israel’s unemployment crisis and free Israel to reap a tremendous profit in arms sales that would more than offset any benefits of American largesse. Currently, Israel upgrades virtually all of the military equipment that it receives from the US and yet the American companies own the technology and are the only ones able to profit. Former Israeli Minister of Economic Affairs Ron Dermer publicly confirmed these assertions at the 2006 AIPAC Conference in response to a question from Manhigut Yehudit’s US Director, Rob Muchnick.
Israeli leaders typically state that they must continue the Oslo Process or else the financial spigot from the US will be shut, even though they know that the premise is false. As a case in point, former Prime Minister Ariel Sharon stated in 2005 that if Israel did not implement the “Disengagement from Gaza”, the United States would make Israel “do something worse”. Israeli Prime Minister Benjamin Netanyahu has continued this trend by freezing Jewish construction in all parts of the Land of Israel liberated from the Arabs in 1967. When asked at the aforementioned AIPAC conference for his opinion as to why Israel continues to take American aid, Dermer - now a senior advisor to Netanyahu - responded that this "was a political decision made by each Prime Minister".
I do not blame America for this situation, but our own politicians.
The Jewish state must stand on its own feet and be led only by its devotion to its heritage, its Land, and its survival.
This duplicity on the part of Israel’s leaders has caused her to give up her sovereignty to such an extent that many people now simply think of her as nothing more than an extraneous 51st state of America.
This just isnt true!
Heres an interesting article from Sever Plocker that will shed more light.
Don’t make me laugh
At this time, Israel financing US deficit and not the other way around
Published: 01.11.10, 18:02 / Israel Opinion
US economic pressure on Israel via loan guarantees? Don’t make me laugh.
A while ago I met – on their request – with US Administration economists in Washington who deal with Israeli issues. These are serious people who are well familiar with our economy and highly impressed by it. Towards the end of the conversation, one of them asked: What about the loan guarantees? And all of us burst out in laughter.
It was a healthy laughter. At the height of the 2002 recession, the Israeli government approached the US Administration and asked that it approve loan guarantees that would enable Jerusalem to raise capital internationally. In exchange for these guarantees, Israel was asked to pay a risk premium in advance.
Back then already, Israel did not really need to raise capital abroad. A surplus was emerging in our international balance of payments that only grew in later years. The request from America was made for reasons of political backing and display of trust and support. The guarantees were approved in April 2003 to the tune of $9 billion over three years.
Since October 2004, Israel has made no use of the guarantees, whose validity was extended from time to time. A total of $3.8 billion in unused loan guarantees are just lying there.
A year ago, on the eve of the elections, both Netanyahu and Barak spoke about the possibility of using the guarantees as a lever that would pull the economy out of recession. After the elections they examined the statistics and discovered that Israel has a huge foreign currency surplus relative to our economy’s size. The notion of using the guarantees was abandoned, and rightfully so.
As of September 2009, Israel’s foreign debt totals $28 billion. Meanwhile, the State of Israel’s foreign currency reserves total $60 billion. Most of them are invested in US government bonds. That is, the Israeli government’s foreign debt stands at -$32 billion. Or in other words, at this time we, Israelis, are financing America’s debts – and not the other way around.
Disconnected from reality
China is doing the same to a much greater extent, but the principle is the same: States with a foreign currency surplus, such as Israel or China, are financing states that are facing a deficit, such as the US.
Moreover, objectively speaking, Israel should have been able to raise capital abroad while paying a lower interest than the US. The ratio between net government debt and GDP – which serves as an indication of a state’s financial stability – is lower in Israel than in America. However, no credit rating company out there would lower America’s rating while boosting Israel’s. These firms are dependent on the US Congress, and recently also on large clients from oil states.
Israel initially asked for loan guarantees at the end of the Shamir government’s term in office, and got them only after Yitzhak Rabin was elected as prime minister in 1991. The first guarantees were to the tune of $9 billion and Israel used them fully, even though much of the money remained in the government’s bank accounts for years. We had no use for them. So why did we take them? “It was embarrassing to give them up after the intense lobbying effort in Congress,” a Treasury official explained.
At this time too, the Israeli government is embarrassed to tell the US administration what needs to be said: Please, take back your loan guarantees. In the coming decade we probably will not need them, while you may very well need them. The Administration economists I met know this well.
People who still speak about “US economic pressure on Israel via loan guarantees” are completely disconnected from reality. Israel is now helping the US pay its deficits, and not the other way around. This is why we were laughing, the American economists and myself, when the issue of loan guarantees came up in our conversation. I was laughing happily; they were laughing somewhat sadly.
Click to view image: '1d71b750212b-365b.jpg'
|Liveleak on Facebook|