if Obama is going to threaten Israel with financing, he’d better look at his own… lol…. this is very sad. Obama still thinks he has leverage. news flash! the United States is a debtor to Israel
“As of September 2009, Israel’s foreign debt totals $28 billion. Meanwhile, the State of Israel’s foreign currency reserves total $60 billion. Most of them are invested in US government bonds. That is, the Israeli government’s foreign debt stands at -$32 billion. Or in other words, at this time we, Israelis, are financing America’s debts – and not the other way around.”
A lot of Israeli economists got a good laugh when US Special Middle East envoy George Mitchell threatened in a PBS interview last week to withhold Israel’s loan guarantees. Sever Plocker explains why.
At this time too, the Israeli government is embarrassed to tell the US administration what needs to be said: Please, take back your loan guarantees. In the coming decade we probably will not need them, while you may very well need them. The Administration economists I met know this well.
People who still speak about “US economic pressure on Israel via loan guarantees” are completely disconnected from reality. Israel is now helping the US pay its deficits, and not the other way around. This is why we were laughing, the American economists and myself, when the issue of loan guarantees came up in our conversation. I was laughing happily; they were laughing somewhat sadly.
via ynetnews.com
Posted by Noah Simon 
