Aid to Israel - Top Priority - despite US depression.
Israel’s Treasury: A huge deficit in 2010 could destroy us.
When the new government forms after yesterday's elections, it will receive an economy in crisis. Moreover, treasury officials are terrified, not of the giant deficit this year, but of giant deficits in the following years, which would be the road to ruin. - The figures are frightening.
… The treasury would prefer to raise money by taking advantage of the rest of the $9 billion in guarantees granted to Israel by the United States in 2003, during the second intifada.
That gave Israel the right to issue $9 billion worth of bonds on the U.S. market, repayment of which is guaranteed by Washington. American backing for the bonds means that the interest Israelis have to pay on the bonds is as low as possible - just a hair above the rates on comparable bond issues backed by the Federal Reserve. Israel has used only $4.4 billion of the guarantees. The last time the state issued bonds in the United States backed by the guarantees was in 2004.
However, the United States plans to deduct $1 billion out of the remaining $4.6 billion, to punish Israel for its investments in territories beyond the Green Line.
If Jerusalem can't reverse that decree, it will still have $3.6 billion in guarantees. …
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