The Truth About The "Billions of Dollars" That the US "Gives" to Israel

20 Menachem Av 5779

There are a lot of misconceptions about the "money" the US "gives" to Israel.  See?  Just that right there does not correctly describe the situation, but it's what we see and hear in the news all the time - that the US gives Israel money, and our enemies in Congress want to take it away as a means of punishing us or blackmailing us.  (Omar says US should halt aid to Israel until it gives Palestinians ‘full rights’ -“We give Israel more than $3 billion in aid every year,....")  And while we're talking truth here, there is no doubt whatever in my mind that this is precisely why the US "gives" any nation "money" - as a means of extending their control.

First of all, the United States government does NOT give Israel money, nor does it even loan us money.  It simply co-signs any loans we make (up to a certain amount) in order to enable us to receive more favorable terms from the banks who actually make the loans.

Loan guarantees to Israel are just another way that the United States financially helps the Jewish state, but this is done without even spending one dollar. In 1992, Congress and President Bush authorized $10 billion in guarantees to Israel and, in 2003, a new set of loan guarantees - for $9 billion - were put in place to serve until 2012. This guarantee was extended to last until 2019.

Guarantees are not grants — not one penny of U.S. government funds are transferred to Israel. The U.S. simply cosigns loans for Israel that give bankers confidence to lend Israel money at more favorable terms: lower interest rates and longer repayment periods — as much as 30 years instead of only five to seven. These loan guarantees have no effect on domestic programs or guarantees. Moreover, they have no impact on U.S. taxpayers unless Israel were to default on its loans, something it has never done. In addition, much of the money Israel borrows is spent in the United States to purchase American goods.  (Source)

Re-read that last sentence carefully - "...much of the money Israel borrows is spent in the United States to purchase American goods."  In fact, this is a requirement of the loan guarantees.  And it is also a fact that Israeli companies have gone out of business over the years because the money the government previously spent at home was now forced to go overseas to America.

I personally would like nothing better than to see the US government shoot itself in its own foot by cancelling their loan guarantees to Israel so that we could spend our borrowed money elsewhere and prop up someone else's economy, if not our own - someone more appreciative of the business.

We have to ask ourselves why this is not more commonly known.  Whose interests are served by letting the general public believe that Israel is simply a beggar coming perpetually hat-in-hand to her Uncle Sam for "help."  Certainly, it's not in the best interests of the Jews.
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NOTE:  In 2003, Congress approved $9 billion in loan guarantees over a three year period. Congress has extended the program several times and it is now authorized through the end of FY2019. As with the earlier guarantees, Israel was required to use the funds within the pre-1967 borders and the amount of the guarantees could be reduced by an amount equal to Israel's expenditures on settlements in the territories.  (Source)