Israel

Israel’s Money Machine: Jewish Oligarchs Fund Crimes Against Humanity

The stars came out in Hollywood on November 2nd, or at least some of them did. The gala event celebrated the Israel Defense Forces (IDF) and raised funds to support its mission in Israel itself and on the occupied West Bank. The organization being fêted was the Friends of the Israel Defense Forces (FIDF), which has fourteen regional offices in the United States and operates under the slogan “Their job is to look after Israel. Our job is to look after them.” In attendance were Arnold Schwarzenegger and actor Gerald Butler. Entertainment was provided by the singer Seal.

Hollywood Jewish royalty was thick on the ground, the grub was strictly kosher and billionaires competed to see who could give the most to such a worthy cause. The 1,200 attendees at the Beverly Hilton Hotel donated a record $53.8 million, with Oracle founder Larry Ellison leading the pack with a contribution of $16.6 million. Israeli media mogul Haim Saban, Hillary Clinton’s most generous supporter, served as host of the event and donated $5 million. Two weeks ago, a similar gathering of 1,200 in New York City dubbed “A Night of Heroes,” attended by GOP major donor casino magnate Sheldon Adelson, raised $35 million, $7 million coming from Adelson personally. FIDF reportedly was sitting on $190 million in contributions for the year before the Hollywood and New York events.

Donations to FIDF are tax deductible as the organization is registered with the U.S. Treasury as a 501(c)3 educational and charitable non-profit foundation. One might well ask how it is possible that the American taxpayer should subsidize a foreign military organization that is regularly accused of war crimes in its ongoing brutal and genocidal occupation of the Palestinian West Bank and East Jerusalem? One might also wonder how an organization that continues a military occupation in opposition to multiple United Nations resolutions that have been endorsed by Washington gets any kind of tax break at all? And finally, one might reasonably ask why an organization that already gets in excess of $3.8 billion annually directly from the U.S. Treasury needs more money to allegedly provide creature comforts for its soldiers?

The answer to all of the above would be that Jewish power in the United States makes it happen. But more particularly, it is Jewish money that does the trick since cash on the table provides access both to the media and to the people that matter in Washington. A tight circle of billionaire oligarchs, including Saban, Ellison and Adelson as well as Paul Singer and Bernard Marcus directly support organizations like FIDF as well as major pro-Israel groups like the Foundation for Defense of Democracies, the America Israel Public Affairs Committee, the Washington Institute for Near East Policy, the Anti-Defamation League and the Jewish Institute for National Security of America. The billionaires are not shy about where their loyalty lies, boasting as does Saban, that he is a one issue guy and that issue is Israel. Adelson has stated that he wishes that he had served in the Israeli army instead of the U.S. military and wants his son to grow up to “be a sniper for the IDF.” Both have publicly advocated bombing Iran. In Adelson’s case, the bomb would be nuclear.

Sometimes both the Israel agenda and the financial support is deliberately hidden, as in the case of the recently launched “Christian engagement in the Middle East” anti-Iran Philos Project, which was funded by Singer. The billionaires also directly donate to the campaigns of politicians and support projects that engage in the message management that is used to justify pro-Israel policies in Congress and the media.

Much of the current agitation to “do something” about Iran comes, for example, from these groups and media assets. In truth, American aid to Israel has become virtually untouchable and is something like a goose that keeps on laying golden eggs. The operation of “The Lobby,” generally regarded as the most powerful voice on foreign policy in Washington, led Professors Stephen Walt and John Mearsheimer to ask, “Why has the U.S. been willing to set aside its own security … in order to advance the interests of another state? [No] explanation can account for the remarkable level of material and diplomatic support that the U.S. provides.” They observed that “Other special interest groups have managed to skew foreign policy, but no lobby has managed to divert it as far from what the national interest would suggest, while simultaneously convincing Americans that U.S. interests and those of the other country—in this case, Israel—are essentially identical.”

The money committed by the Jewish oligarchs on behalf of Israel has turned out to be a good investment, returning billions for millions spent. Since the foundation of the state of Israel in 1948, it has been “the largest cumulative recipient of U.S. foreign assistance since World War II,” according to the Congressional Research Service. The United States has provided Israel with $233.7 billion in adjusted for inflation aid between 1948 through the end of 2012, reports Haaretz.

The $38 billion over ten years in military assistance that the Obama recently promised to Israel is far less than what will actually be received from the United States Treasury and from other American sources, including handouts from Congress. To cite only one recent example, in September Congressman Alcee Hastings proposed a legislative amendment that would give $12 million to help settle Israel’s Ethiopian community. Senator Lindsey Graham (R-S.C.), speaking in the most recent legislative discussion over Israeli aid, stated that the $38 billion should be regarded as a minimum amount, and that Congress should approve additional funds for Israeli defense as needed.

At its most recent meeting in March 2017, AIPAC announced the latest windfall from America, applauding “the U.S. House of Representatives for significantly bolstering its support of U.S.-Israel missile defense cooperation in the FY 2017 defense appropriations bill. The House appropriated $600.7 million for U.S.-Israel missile defense programs.” And there is a long history of such special funding for Israeli-connected projects. The Iron Dome missile-defense system was largely funded by the United States, to the tune of more than $1 billion. In the 1980s, the Israeli Lavi jet-fighter development program was funded by Washington, costing $2 billion to the U.S. taxpayer before it was terminated over technical and other problems, part of $5.45 billion in Pentagon funding of various Israeli weapons projects through 2002.

How Israel gets money from the United States Treasury 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 1st. 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.

Department of Defense co-production projects, preferential contracting, “scrapping” or “surplusing” of usable equipment that is then turned over to the IDF, as well as the forward deployment of military hardware to an Israeli base, are considerable benefits to Tel Aviv’s bottom line. Much of this assistance is hidden from view.

In September 2012, Israel’s former commander-in-chief, Gen. Gabi Ashkenazi, admitted at a conference that between 2009 and 2012 American taxpayers had paid for more of his country’s defense budget than had Israeli taxpayers. Those numbers have been disputed, but the fact remains that a considerable portion of the Israeli military spending comes from the United States. It currently is more than 20 percent of the total $16 billion budget, not counting special appropriations.

Through tax exemptions, the U.S. government also subsidizes the coordinated effort to provide additional assistance to Israel. Like FIDF, most organizations and foundations that might reasonably be considered active parts of the Israel Lobby are generally registered with the Department of the Treasury as tax-exempt foundations. Grant Smith, speaking at a conference on the U.S. and Israel on March 24th, explained how the broader Israel Lobby uses this legal framework:

“Key U.S. organizations include the American Israel Public Affairs Committee (AIPAC), the American Jewish Committee (AJC), the Zionist Organization of America (ZOA) and the Anti-Defamation League (ADL). Hundreds more, including a small number of evangelical Christian organizations, play a role within a vast ecosystem that demands unconditional U.S. support for Israel. In the year 2012 the nonprofit wing of the Israel lobby raised $3.7 billion in revenue. They are on track to reach $6.3 billion by 2020. Collectively they employed 14,000 and claimed 350,000 volunteers.”

The $3.7 billion raised in 2012 does not include the billions in private donations that go directly to Israel, plus billions in contributions that are regarded as “religious exemptions” for groups that don’t file at all. There are also contributions sent straight to various Israeli-based foundations that are themselves often registered as charities. The Forward magazine investigated 3,600 Jewish tax-exempt charitable foundations in 2014 and determined that they had net assets of $26 billion, $12–14 billion in annual revenue, and “focuse[d] the largest share of [their] donor dollars on Israel.” The Forward added that it is “an apparatus that benefits massively from the U.S. federal government and many state and local governments, in the form of hundreds of millions of dollars in government grants, billions in tax-deductible donations and billions more in program fees paid for with government funds.”

Money being fungible, some American Jews have been surprised to learn that the donations that they had presumed were going to charitable causes in Israel have instead wound up in expanding the illegal settlements on the West Bank, an objective that they sometimes do not support. Donald Trump’s son-in-law and advisor Jared Kushner has a family foundation that has made donations to Israel, including funding of West Bank settlements, which is illegal under U.S. law, as has Ambassador David Friedman.

Israel also benefits in other ways, frequently due to legislative action by Congress. It enjoys free and even preferential trade status with the United States and runs a $9 billion trade surplus per annum. Its companies and parastatal organizations can, without any restrictions, bid on U.S. defense and homeland-security projects—a privilege normally only granted to NATO partners. It’s major defense contractor Elbit recently was awarded a multi-million dollar contract to apply technologies to defend American tanks. It was a prime example of U.S. aid subsidizing an Israeli industry that then competes directly with American companies, producing a loss of jobs in the United States.

And the transfer of public money to Israel is common even at state and local levels. Some state treasuries and pension funds have purchased Israel Bonds, which are a bad investment, putting retirees at risk, as they have to be held to maturity and therefore have no secondary market and lack liquidity. Most recently, the Ohio Treasurer’s office bought a record $61 million in Israel Bonds on April 3rd. Ohio Treasurer Josh Mandel admitted the purchase was in response to the boycott, divestment and sanctions movement, meaning that Ohio taxpayers are unsuspecting participants in a risky investment scheme largely intended to punish critics of Israel. Mandel is, not surprisingly, hardly a disinterested party on the subject of Israel. He was a member of AIPAC while attending Ohio State University and spoke at its 2008 Policy Conference in Washington. After denouncing Iran, he said that “Israel is our best friend and ally in the Middle East and it’s important that we maintain a strong and lasting relationship with them.” Eighty other state and municipal public employee pension and treasury funds have also reportedly bought the bonds.

The U.S.-Israeli bilateral relationship has been an expensive proposition for Americans, yet another instance where the perceived needs of a U.S. “ally” take precedence over genuine national interests. Tens of billions of dollars need not necessarily be spent to placate a wealthy foreign country and its powerful domestic lobby or to satisfy the pretensions of the billionaires who grease the machinery to keep Israel’s money machine operating.


Originally published on 2017-11-14

About the author: Philip M. Giraldi, Ph.D., is Executive Director of the Council for the National Interest, a 501(c)3 tax deductible educational foundation that seeks a more interests-based U.S. foreign policy in the Middle East. Website is www.councilforthenationalinterest.org, address is P.O. Box 2157, Purcellville VA 20134 and its email is inform@cnionline.org.

Source: The UNZ Review

Read our Disclaimer/Legal Statement!

Donate to Support Us

We would like to ask you to consider a small donation to help our team keep working. We accept no advertising and rely only on you, our readers, to keep us digging the truth on history, global politics and international relations.

Save 

RELATED POSTS
Israel’s Secret Plan For A “Second Israel” In Ukraine
The role of Jewish figures and that of the State of Israel in the Ukrainian crisis has not gone unnoticed considering that this community represents less than 1 percent of the population. However, a secret report in the hands of the Netanyahu administration confirms that Ashkenazi Jews do not originate from the Levant, but are the descendants of the Khazars. This little-known population founded a Jewish empire in the tenth century on the banks of the Black Sea. Therefore, some Zionists see in Ukraine a possible second Israel.The Times of Israel, an independent Israeli newspaper that counts among its staff ...
READ MORE
The 1967 Obsession, Trump and Trivia
I arrived in Jerusalem last night and as always during the weeks between mid-May and mid-June the media is full of romanticized memories. Within these weeks are the two most siginicfant dates in modern Palestinian history: May 1948 when Palestine was conquered and renamed Israel, and June, 1967 when the Israeli army completed the conquest of Palestine by taking East Jerusalem, the West Bank and the Gaza Strip. For Palestinians these dates bring back bitter memories, but for Israelis the memories are sweet – those were the days when we were young and brave and innocent.  Vintage photos of soldiers at the newly conquered ...
READ MORE
Behind the Balfour Declaration
AcknowledgementsTo Benjamin H. Freedman, who committed himself to finding and telling the facts about Zionism and Communism. and encouraged others to do the same. The son of one of the founders of the American Jewish Committee, which for many years was anti-Zionist, Ben Freedman founded the League for Peace with Justice in Palestine in 1946. He gave me copies of materials on the Balfour Declaration which I might never have found on my own and encouraged my own research. (He died in April 1984.)The Institute for Historical Review is providing means for the better understanding of the events of our ...
READ MORE
Israeli-Zionist Genocide and Racism Unmasked
Is Israel and its infamous Wall of Separation representative of a modern evolving democratic state, based upon Biblical principles and teachings, as applied towards the original indigenous Palestinian peoples of Palestine, or is it an example of yet another ethnic-cleansing, apartheid state, possessive of the same genocidal-racist tendencies as those 19th century colonial-imperialistic powers – like the United States, Canada, Australia and South Africa – who also once invaded and committed wholesale destruction of other ancient indigenous peoples entire ways of life; sweeping their survivors aside onto reservations, reserves and Bantustan-type compounds to be ultimately ignored and forgotten?Professor Ilan Pappe, ...
READ MORE
Was Israel Under Existential Threat in June 1967?
Up to June 1967, a border separated Jews living in Israel and Palestinians residing in the West Bank and Gaza. The Six Day War, which occurred exactly fifty years ago, erased that line. Israel has been occupying these territories ever since. This has been the source of an endless conflict between Jews and Arabs. Who started that war? Having won the war, Israel set out to give an answer to that question which would suit its needs.To cement its hold over the new territories Israel had sought to mold the story of the Six Day. The attempt to frame the ...
READ MORE
Zionism, Anti-Semitism, BDS, and the United Nations
An earlier abridged version of this post was published by Middle East Eye under a different title on June 5, 2016. The focus is upon the misuse of anti-Semitism by those defending Israel to deflect a rising tide of civil society activism and public criticism of Israeli policies and practices.Zionism as Racism? Zionism and the State of Israel8 Jun 2016 – More than 40 years ago the UN General Assembly adopted controversial resolution 3379 by a vote of 72-35 (with 32 abstentions), determining “that Zionism is a form of racism and racial discrimination.” This resolution was bitterly opposed by Israel and its ...
READ MORE
Ethnic Cleansing in Palestine
Ilan Pappé is a historian, socialist activist, professor at the University of Exeter, and supporter of the Campaign for Boycott, Divestment, and Sanctions (BDS). Of Israeli origin, he is a world-renowned scholar on the Palestinian-Israeli conflict and has written numerous books on the subject, including The Ethnic Cleansing of Palestine and The Idea of Israel: A History of Power and Knowledge.Pappé was interviewed by Alejandra Ríos for Left Voice, where this article first appeared.Alejandra Ríos (AR): You’ve talked and written about the concept of homeland as justification for destroying the native population. What is the meaning of this concept and ...
READ MORE
Terrorist al-Nusra Front is blamed for massacre and abduction of Syrian civilians.
President Obama’s final foreign policy speech at MacDill air force base in Tampa, betrayed its purpose through the venue.  The Tampa, Florida, base is home to Special Operations Command and Central Command — Special Operations playing an ever increasing role in counter terrorism.The gist of the speech seemed to assert that the US is and should stay true to its values when fighting terrorism.  An assertion when at the same time Congressman Ted Lieu, a California Democrat, has written a letter to Secretary John Kerry warning him the US could be charged with war crimes in aiding Saudi Arabia’s bombing ...
READ MORE
The Occupied Golan Heights: How Israel Thrives from Syria’s Natural Resources
We all know how the story goes. The Golan Heights is Syrian territory that has been occupied by Israel since the 1967 Six-Day War. It was then controversially annexed in 1981, despite the UN calling the efforts “null”, “void” and “without international legal effect”. Today it is still internationally and legally recognised as Syrian land, but Israel persists with its possession.Of course, such persistence can prove to be quite lucrative when the land is abundant in resources – especially land as fertile as the Syrian Golan – a generous source of gushing waters and game changing oil reserves.In fact, the ...
READ MORE
2791603 02/15/2016 Old Town destruction in Aleppo. This 12th-16th-century set of buildings was included into the UNESCO World Heritage list in 1986. Michael Alaeddin/Sputnik via AP
Recently, the West and the Middle East pundits and analysts have been trying to analyze the provisions of the new draft constitution proposed by the Russian side as a solution to the Syrian conflict.Naturally, analyzing the provisions, any of the sides involved in the conflict is trying to present itself as the legitimate government. That raises the question of whether to adopt such a draft or not, because a newly appointed government would have to comply with a new constitution. Not surprisingly, not only the moderate opposition and illegal armed groups, but the official Syrian authorities as well subject the ...
READ MORE
The Contradictory Statement of Riyadh on Syria Talks
Saudi Foreign Minister Adel Al-Jubeir currently stated that the Syrian talks in Astana would lead to ceasefire in the country.However, in this context, the minister’s statement sounds a little bit strange as throughout the Syrian conflict, Saudi Arabia and other Gulf states have been providing comprehensive assistance to Islamic State terrorists, supplying weapons, equipment and mercenaries to overthrow Syrian President Bashar al-Assad. There are undeniable proofs of these “acts of good will” on behalf of Saudi Arabia.Large chemical reserves seized by the Syrian army last week in eastern Aleppo destined for the manufacture of explosives can be characterized as striking ...
READ MORE
Back To The 1930s: Hitler, Da’esh And The West
Whilst Da’esh are constantly being compared to the Nazis, the real parallel – the West’s willingness to build up fascism in order to cripple Russia – is often forgotten.The recent debate in the British House of Commons on bombing Syria saw the comparisons coming thick and fast. “Daesh are the fascists of our time”, said Labour MP Dan Jarvis; “this is the fascist war of our generation” opined Sarah Wollaston; whilst Hillary Benn rounded off the debate by explaining that “we are faced by fascists” and “what we know about fascists is that they need to be defeated”.The parallels are ...
READ MORE
Parallels Between Israel And 1930s Germany
"Please don’t write about Ya’ir Golan!" a friend begged me, “Anything a leftist like you writes will only harm him!"So I abstained for some weeks. But I can’t keep quiet any longer.General Ya’ir Golan, the deputy Chief of Staff of the Israeli army, made a speech on Holocaust Memorial Day. Wearing his uniform, he read a prepared, well-considered text that triggered an uproar which has not yet died down.Dozens of articles have been published in its wake, some condemning him, some lauding him. Seems that nobody could stay indifferent.The main sentence was: "If there is something that frightens me about ...
READ MORE
Rescue in Serbia of the Jews during the WWII
Serbia rescued more Jews than any other part of the former Yugoslavia during the Holocaust. Yad Vashem , The Holocaust Martyrs’ and Heroes’ Remembrance Authority, has awarded the title of Righteous Among the Nations, those who risked their lives to save Jews during the Holocaust, to 127 individuals from Serbia, which is the highest number for the former Yugoslavia.On December 2, 2008, Arthur Koll, the Israeli Ambassador to Serbia,  presented to the children and grandchildren of Borivoje Bondzic, Grozdana Bondzic, Ljubica Mandusic-Gazikalovic, and Jelica Rankovic the Righteous Among the Nations award. They are the descendants of Serbs who during the Holocaust risked their own lives ...
READ MORE
Israel: The Ghetto of the Middle East. History of the Political Zionist Movement
Diaspora families living worldwide, the vast majority in New York with smaller communities in Paris, London and other major conurbations, are taught from an early age to believe that the modern State of Israel is their homeland. Not merely a biblical place of ‘milk and honey’, military might, innate intelligence and integrity but a place of final security; a sanctuary to which they can flee to escape the apparently insidious rise of anti-Semitism in the various land(s) of their birth. An ultimate insurance policy in case of need. That is how it is ‘sold’ to the average Jewish family in ...
READ MORE
Real or Rigged “International Conference on Fascism and Antisemitism” in Vilnius on 9 November?
Yet again, a conference here in the Lithuanian capital dedicated to combating fascism and antisemitism is announced, without there having been a public call for papers, without a single speaker from among those who actually combat fascism and antisemitism in the country, with nobody from the democratically elected Vilnius Jewish community (not even the long-time editor of Jerusalem of Lithuania who has exposed and combated antisemitism for decades). No Holocaust survivors. None of the nationally relevant questions of the day can be found on the conference program. As ever, outstanding academic personalities from abroad are recruited to lend the gravitas and provide serious papers ...
READ MORE
Israeli Military General Compares Israel to Nazi Germany at Holocaust Remembrance Day Event
Israel is in a class all by itself when it comes to perpetuating some of the worst human rights violations of any country on earth today. For decades, Israel has had a policy of ethnically cleansing and robbing the indigenous Palestinian population of its lands and resources and killing them when they resist the atrocities committed against them under the guise of self-defense. Now, an Israeli military general, someone who is one of the leaders of Israel’s killing machine, has come out and admitted that Israel today shares many of the same elements as Nazi Germany.Addressing an audience at Tel ...
READ MORE
“Greater Israel”: The Zionist Plan For The Middle East
This article was published on Global Research April 29, 2013.Global Research Editor’s Note:The following document pertaining to the formation of “Greater Israel” constitutes the cornerstone of powerful Zionist factions within the current Netanyahu government (which has recently been re-elected), the Likud party, as well as within the Israeli military and intelligence establishment.  The election was fought by Netanyahu on a political platform which denies Palestinian statehood.  According to the founding father of Zionism Theodore Herzl, “the area of the Jewish State stretches: “From the Brook of Egypt to the Euphrates.”  According to Rabbi Fischmann,  “The Promised Land extends from the River of Egypt ...
READ MORE
The Origin Of Jihadism
The origin of jihadism is prohibited from being reported truthfully — this truth is prohibited by all of the Establishment ‘press,’  including almost all ‘alternative news’ sites — in the West, because it challenges all of the “sensitive” buttons (all of the bigotries, to put the matter in plain terms); and, though this fact (the Establishment’s bigotries, and its hypocrisy to preserve and protect their bigotries even while condemning those of other people) will prevent almost all of the news-media that I send this to from publishing it, nothing prevents me from writing it; so, here it is (in whatever ...
READ MORE
Myths and Facts аbout the 1967 Six Day War
June 5 marks the 50th anniversary of Israel’s Six-Day War of conquest. Any objective examination of that war, and the events leading to and following it, make clear that the dominant narrative in the United States is reality turned upside down. It is “fake news” that is perpetrated on the public by the corporate media continually, right up to the present day.The Six Day War began on June 5, 1967. Israel launched the war against Egypt, Syria and Jordan with what could correctly called a “sneak attack,” although it is never referred to that way here. In the vocabulary of ...
READ MORE
Israel’s Secret Plan For A “Second Israel” In Ukraine
The 1967 Obsession, Trump and Trivia
Behind the Balfour Declaration
Israeli-Zionist Genocide and Racism Unmasked
Was Israel Under Existential Threat in June 1967?
Zionism, Anti-Semitism, BDS, and the United Nations
Ethnic Cleansing in Palestine
Is The U.S Fighting Terrorism Or Manufacturing It?
The Occupied Golan Heights: How Israel Thrives from Syria’s Natural Resources
The future of Syria is in your hands
The Contradictory Statement of Riyadh on Syria Talks
Back To The 1930s: Hitler, Da’esh And The West
Parallels Between Israel And 1930s Germany
Rescue in Serbia of the Jews during the WWII
Israel: The Ghetto of the Middle East. History of the Political Zionist Movement
Real or Rigged “International Conference on Fascism and Antisemitism” in Vilnius on 9 November?
Israeli Military General Compares Israel to Nazi Germany at Holocaust Remembrance Day Event
“Greater Israel”: The Zionist Plan For The Middle East
The Origin Of Jihadism
Myths and Facts аbout the 1967 Six Day War

Donate & Support The Global Politics