The true cost of Israel

Source: The American Conservative
by Philip Giraldi

“[H]ow 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.” (04/12/17)

http://www.theamericanconservative.com/articles/the-true-cost-of-israel/