Oh joy! Obama to cut $1 billion from Israeli loan guarantees
Haaretz reported on Thursday that the incoming Obama administration may cut as much as $1 billion from Israel's loan guarantees to offset moneys that Israel has spent over the green line. The United States administration plans to cut about $1 billion from the balance of its loan guarantees to Israel because of its investments in the settlements. The balance currently stands at $4.6 billion.Hope and change!
Washington has not officially informed Jerusalem of the cut. The assumption is that the announcement, and the decision over the exact extent of the cut, will come only after Barack Obama is sworn in as president next Tuesday.
Israel has used about $4.4 billion of the $9 billion in loan guarantees extended by the U.S. in 2003 in the wake of the war in Iraq and to help shore up the Israeli economy. The guarantees have assumed greater importance recently in light of the global economic crisis and the Finance Ministry intention to use the guarantees to secure foreign loans to help pay for the expected government budget deficit.
The loan guarantees arrangement specifies that the U.S. will reduce the guarantees by the amount the Israeli government spends on settlements in the West Bank. The U.S. embassy in Tel Aviv monitors that spending and the administration informs Jerusalem of the amount it is holding back from the guarantees.
In the past two years no such announcement was made, but in unofficial talks held recently U.S. officials indicated that the cut would be about $1 billion.
posted by Carl in Jerusalem @ 2:59 AM
7 Comments:
Its a form of discrimination applied to Jews only. The Palestinians can be as extreme as they want and they are lavished with Western aid. No wonder there's no genuine progress towards peace in the Middle East.
The more Israel cuts it'sself from American aid the MORE israel can do what it wishes...
AID has strings...
BIBI came to washington and asked for a reduction to zero economic aid...
This is a smart way to go...
What is "Occupation," you took the words out of my mouth. Israel must be free of Washington's puppet strings.
Nevertheless, this is a great display of the foreign policy naivete we can expect from Obama.
Pass the popcorn!
Not so fast gentlemen, this story has no legs.
Obama has not said this nor have any Obama spokespeople.
The story clearly fails to attribute this alleged cut to anyone, in other words, its a rumour.
I don't buy it.
Ugh, so not it begins? I sure hope Michael is right and that this is simply a rumor.
Offer your prayers up to the One true God, the God of Abraham, Isaac, and Jacob -- Israel will need them.
Let all aid stop so Israel will not be beholden to the US for anything. Then, after all is cut off and the US wants to stick its nose in Israel's business, Israel can tell 'em to kiss off. Israel has been looking over her shoulder for America's approval for much too long. America is Israel's "friend?" What friend tells you to give away two of your bedrooms and the backyard too? It should have happened LONG AGO!
Mr. "Yes we can" just did. And he will do it again and again.
Post a Comment
<< Home