Monday, 17 April 2017
The True Cost of Israel - Phil Giraldi
The American Israel Public Affairs Committee (AIPAC) concluded its annual conference late last month, triggering the usual debate in various alternative media outlets. Why does so much U.S. taxpayer money go to a small and not particularly useful client state that has a vibrant European-level economy and is already a regional military colossus?
Those who support the cash flow argue that Israel is threatened, most notably by Iran; they claim the assistance, which has been largely but not completely used to buy American-made weapons, is required to maintain a qualitative edge over the country’s potential enemies. Those who oppose the aid would counter that the Iranian threat is largely an Israeli and Saudi Arabian invention, used to justify continued American support for the national-security policies of both countries. And they would add that Tel Aviv is more than able to defend itself and pay for its own military establishment.
In truth, American aid to Israel is something like a pot of gold that keeps on giving. Both sides in the discussion would probably agree that the domestic Israel Lobby has been instrumental in sustaining the high level of aid, though they would undoubtedly disagree over whether that is a good or bad thing. The operation of “The Lobby,” generally regarded as the most powerful voice on foreign policy in Washington, led Professors Stephen Walt and John Mearsheimer to ask, “Why has the U.S. been willing to set aside its own security … in order to advance the interests of another state? [No] explanation can account for the remarkable level of material and diplomatic support that the U.S. provides.” They observed that “Other special interest groups have managed to skew foreign policy, but no lobby has managed to divert it as far from what the national interest would suggest, while simultaneously convincing Americans that U.S. interests and those of the other country—in this case, Israel—are essentially identical.”
Since the foundation of the state of Israel in 1948, it has been “the largest cumulative recipient of U.S. foreign assistance since World War II,” according to the Congressional Research Service. The United States has provided Israel with $233.7 billion in adjusted for inflation aid between 1948 through the end of 2012, reports Haaretz. Current discussions center on the Obama administration’s memo of understanding with Israel that promised it $38 billion in military assistance over the next 10 years, a considerable sum but nevertheless a total that is far less than what is actually received annually from the United States Treasury and from other American sources.
Senator Lindsey Graham (R-S.C.), speaking in the most recent legislative discussion over Israeli aid, stated that the $38 billion should be regarded as a floor, and that Congress should approve additional funds for Israeli defense as needed. It has, in fact, done so. At its most recent meeting, AIPAC announced the latest windfall from America, applauding “the U.S. House of Representatives for significantly bolstering its support of U.S.-Israel missile defense cooperation in the FY 2017 defense appropriations bill. The House appropriated $600.7 million for U.S.-Israel missile defense programs.” And there is a long history of such special funding for Israeli-connected projects. The Iron Dome missile-defense system was largely funded by the United States, to the tune of more than $1 billion. In the 1980s, the Israeli Lavi jet-fighter development program was funded by Washington, costing $2 billion to the U.S. taxpayer before it was terminated over technical and other problems, part of $5.45 billion in Pentagon funding of various Israeli weapons projects through 2002.
The admittedly unreliable former Congressman James Traficant once claimed that “Israel gets $15 billion per year from the American taxpayers.” Indeed, how Israel gets money from the United States is actually quite complex and not very transparent to the American public, going well beyond the check for $3.8 billion handed over at the beginning of the fiscal year on October 1. Even that check, uniquely given to aid recipient Israel as one lump sum on the first day of the year, is manipulated to produce extra revenue. It is normally immediately redeposited with the U.S. Treasury, which then, because it operates on a deficit, borrows the money to pay interest on it as the Israelis draw it down. That interest payment costs the American taxpayer an estimated $100 million more per year. Israel has also been adept at using “loan guarantees,” an issue that may have contributed to the downfall of President George H.W. Bush. The reality is that the loans, totaling $42 billion, are never repaid by Israel, meaning that the United States Treasury picks up the tab on principle and interest, a form of additional assistance. The Bush-era loan amounted to $10 billion.
Department of Defense co-production projects, preferential contracting, “scrapping” or “surplusing” of usable equipment that is then turned over to the Israel Defense Forces (IDF), as well as the forward deployment of military hardware to an Israeli-run base in Israel (used to support local military operations), are considerable benefits to Tel Aviv’s bottom line. Much of this assistance is hidden from view.
[Posted at the SpookyWeather blog, April 17th, 2017.]