- Dec 6, 2009
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first, israel receives $1.5 bil in us loans (like we receive from china that have to be paid back) and $1.5 bil in military aid.
"Beginning in 2007, the U.S. has been increasing military aid by $150 million each year. By FY2013, we will be sending Israel $3.15 billion a year (or an average of $8.6 million a day) and will continue to provide military aid at that level through 2018. U.S. tax dollars are subsidizing one of the most powerful foreign militaries."
Linkie:
http://www.fas.org/sgp/crs/mideast/RL33222.pdf
2005 figures (so it has increased since then):
"Loans with Repayment Waived
The United States has not canceled any of Israels debts to the U.S. government, but the U.S. government has waived repayment of aid to Israel that originally was categorized as loans. Following the 1973 war, President Nixon asked Congress for emergency aid for Israel, including loans for which repayment would be waived. Israel preferred that the aid be in the form of loans, rather than grants, to avoid having a U.S. military contingent in Israel to oversee a grant program. Since 1974, some or all of U.S. military aid to Israel has been in the form of loans for which repayment is waived. Technically, the assistance is called loans, but as a practical matter, the military aid is grant. From FY1974 through FY2003, Israel has received more than $45 billion in waived loans. (Egypt also receives some of its U.S. military assistance in the form of loans with repayment waived. In 1990, the United States canceled $6.7 billion in past military debts that Egypt owed to the United States.)"
Linkie:
http://www.usembassy.it/pdf/other/IB85066.pdf
Of course the loans to Egypt are for Israel's benefit - essentially bribing the Mubarak regime to aid and abet U.S./Israeli policies.
Actually, now more than $3 billion a year in military aid:
Over the last 20 years, the U.S. has been slowly phasing out economic aid to Israel and gradually replacing it with increased military aid. Beginning in 2007, the U.S. has been increasing military aid by $150 million each year. By FY2013, we will be sending Israel $3.15 billion a year (or an average of $8.6 million a day) and will continue to provide military aid at that level through 2018. U.S. tax dollars are subsidizing one of the most powerful foreign militaries.
Linkie:
http://www.fas.org/sgp/crs/mideast/RL33222.pdf
Second, that military aid has strings attached. It must be used on us arms dealers. The us doesn't want to allow these private companies to sell to any country (for good reason), but like any private company they need incentive and profits. Requiring the $1.5 bill to be spend on us arms agencies creates an incentive.
"Contrary to ordinary U.S. policy, Israel has been and continues to be allowed to use over 26% of this military aid to purchase equipment from Israeli manufacturers. According to CRS, no other recipient of U.S. military assistance has been granted this benefit. Thanks in part to this indirect U.S. subsidy, Israels arms industry has become one of the strongest in the world. In 2007, it was the 8th largest arms supplier to the developing world."
Linkie:
http://www.fas.org/sgp/crs/mideast/RL33222.pdf
Third, israel's gdp is $215 billion, so the $1.5s just 0.5% of their gdp and $3 bil is 1%. Would hurt to lose 1%, but i think they could manage
fourth, israel contributes 7.3% of its gdp to defense, so that is $15.6 bil, removing the $1.5 bil the budget would hurt, but not destroy their military!
https://www.cia.gov/library/publications/the-world-factbook/geos/is.html
It would have a significant impact on Israel's defense budget: Israel would have to make cuts.
"According to the CRS report, '[current U.S. military aid] grants to Israel represent 18.5% of the overall Israeli defense budget.'"
Linkie:
http://www.fas.org/sgp/crs/mideast/RL33222.pdf
"Israel is not economically self-sufficient, and relies on foreign assistance and borrowing to maintain its economy. Since 1985, the United States has provided $3 billion in grants annually to Israel. Since 1976, Israel has been the largest annual recipient of U.S. foreign assistance, and is the largest cumulative recipient since World War II. In addition to U.S. assistance, it is estimated that Israel receives about $1 billion annually through philanthropy, an equal amount through short- and long- term commercial loans, and around $1 billion in Israel Bonds proceeds."
Linkie:
http://www.usembassy.it/pdf/other/IB85066.pdf[/QUOTE]
Super mooch!