«Israel» is besieged by its Economic Connections and its Military Failure

«Israel» is besieged by its Economic Connections and its Military Failure

Organized international aid for the «state» of the Zionist entity has diverse dimensions and forms, and it is difficult to enumerate them all. However, the connection is deep between the continuation of high-income levels and these flows: from charitable aid to government and military aid, all the way to the last phase in which the flow of foreign investment and corporate finance have become main and important factors. The entity’s economic stability is deeply contingent to the US financial system.

The US is «Israel»’s Artery

«Israeli» economists estimate that after the international economic crisis in 1973, which was severely manifested in «Israel», the flowing aid artery from North America and the US in particular has become contributing to 10-16% of the annual growth of the «state» of the entity. The average per capita share has increased from $6000 annually to $1980, reaching $42 thousand annually today. The US government which militarily feeds the «state» of the entity is also the primary means of collecting international donations for it. Also, since 1973, the annual fundraising process for «Israel» in the US has become an organized process, as the US Bureau of Population, Refugees, and Migration collects donations and gives them to «the Jewish Agency for Israel» as funds allocated for the resettlement of Jews in the entity. Moreover, the US has loaning allocations available for specific countries at an annual value of approximately $9 billion, of which «Israel» has a share of more than the third, and it approximates $3.8 billion, which are not necessarily borrowed by the entity, but are an easy and available financing.

The US government aid is concentrated in economic and military aid. In total, it has reached approximately $243 billion between 1946-2020 according to the fixed prices of 2018, divided between 76% military aid and 24% economic aid according to its general classifications. The total of this large financing, which approximated $3 billion as an annual average during 75 years, only constitutes 12% of the «Israeli» estimates of the $2 trillion in financial assets owned by Jewish families across the world.

Technological Progress is the Result of Militarization and Money Flow

The advanced military base in the entity financed by the dollar system is also a reflection of the US military system, with all the technological progress that this entails. The entity has become an advanced platform for high-tech industries and the financial services associated with them. This development, which some call (the economic miracle), is the product of military industries in the first place, and it was also later fed from abroad, but through foreign investment flows directly to the «state» of the entity. During the last ten years, $139 billion of direct foreign investment has flowed into the «state» of the entity, which is equivalent to approximately 60% of the value of the US government aid since the establishment of the entity! It is an important shift in the weight of financing and its sources that will inevitably be reflected in the policies and strategies of the entity. This foreign investment’s weight in «Israel» is drawn to high-tech capabilities of which Tel Aviv is its center. It should be noted that 16% of this investment is branches of major US companies: Google, Microsoft, Intel, and in general 22% of the fixed capital of the companies in the entity is foreign-owned. This makes fifth of the technological base unaccountable for «Israeli» considerations for staying inside the entity as security risks and difficulties increase, and makes it subject to international estimates of risks and profits. This has been reflected in a continuous pace during the past years and what is happening today. In the battles of 2009-2014, direct foreign investment flows into the entity declined by 51-55% respectively. Whereas, the flows in 2019 declined by 15% without any battle, rather due to the signs of the international crisis and the decline in international investment flows which increased severely in the crisis of 2020, as the UNCTAD estimated the decline of direct investment flows across the world by 42%, whose effects have reached the «state» of the entity just like other countries. An aggressive military entity will not be able to become a financial center, and even if it changed its aggressive nature, it might be late! International financial centers are shaking under the burden of the deep crisis of the dollar system as a whole, and there will not be a chance for a new center in a circumstance like this, especially in the Middle East, which will remain in a state of unrest until it rises on radically different foundations.  

The «state» of the entity has an advanced technological and industrial base; however, this base is not the mainstay of the well-being and the high-income level in it, rather it is fed by the flowing artery from US aid to which foreign investment flows were included during the last two decades. With this and that, it is deeply connected to the system of international financial governance. US military aid is subject to the US ability to continue funding, and more importantly, it is dependent on the strategic benefit of this funding. If the entity succeeded in doing its military and political function as a means of tension, then defending it remains useful for the US rule, and even for global Zionism. However, if it fails like what is happening now, and its political and military defeats become a failure to the US, spending on it will diminish with time. Likewise, international money flows for investment in the entity are subject to its political and military performance, as such a fragile state that resides on a volcano of anger cannot make itself a financial and investment center for the production of technology. The Iron Dome, for example, which is the zenith of the mutual military technology industry with the US, failed to protect Tel Aviv (the oasis of money and the promised technology), as the US $1.6 billion spent on the (Iron) missile defense system could not prevent the arrival of the $300 direct-cost missiles of the resistance, imbued with the most precious possession of human beings: pure blood for the sake of dignity.

Last modified on Thursday, 03 June 2021 03:14