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Israel's $38 Billion Scam

As an American it is difficult to imagine a more unseemly bit of political theater playing out than Israeli Prime Minister Benjamin Netanyahu’s appearance before his cabinet to claim that he had gotten every last dollar of military assistance out of the Obama Administration. Netanyahu argued that he had obtained all that was on the table, adding that his bad blood with President Barack Obama had not proven to be detrimental in the bilateral negotiations that had been ongoing for more than a year. The Prime Minister was on the defensive because some of his critics claimed that he might have gotten $100 million more per annum, admittedly chump change on top of the $38 billion over ten years that the Memorandum of Understand will provide Netanyahu from the U.S. Treasury.

The critics also argued that the “real money” obtained from Washington was less than it seemed because of inflation, but the gift of $38 billion to Israel was nevertheless a considerable increase over the roughly $3.3 billion per year that Israel is currently receiving. The protracted negotiations over the exact sum to be handed over were reportedly due to Netanyahu’s demanding much more money, possibly as much as $5 billion per year. The deal did come with a minor problem for the Israeli defense industries, which had become accustomed to skimming 26% off the top of the annual U.S. grant to build and market their own weapons. Someone in Washington finally figured out that the U.S. taxpayer was directly funding foreign competition for its own defense industries, costing thousands of American jobs. But not to worry, the Israeli companies are now setting up U.S. subsidiaries, so the gravy train will almost certainly continue to deliver.

Israel’s argument for more money, such as it was, was based on claims that Obama had weakened its security by coming to an agreement with Iran over that nation’s nuclear program. Israel objected that sharply limiting Tehran’s ability to develop a weapon was not in its own interest, an odd assertion but explicable in terms of Netanyahu’s real objective in dealing with the Mullah’s, which was to have the U.S. take the lead in bombing them into the stone age.

Missing in the discussions was any benefit obtained for the United States by giving Israel all that moolah. America’s largely invisible National Security Adviser Susan Rice spoke of an “unshakeable commitment to Israel’s security” and commented that the agreement was good for the United States because “our security is linked” though she characteristically did not explain exactly why that was so. She called the deal a “win-win,” creating jobs in America and making our “ally and partner” Israel more secure.

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