Tuesday 22 October 2002

Who Finances the State of Israel?

Short answer; WE DO! Personally I've stopped buying anything that has Made in Israel on it.

In the face of Israel's defiance of world public opinion, and its refusal to permit any international humanitarian organization to examine the results of its murderous destruction of the towns and refugee camps in the Occupied Territories, who is financing the Israeli state and why does that financing continue in the face of world opprobrium?

The attempt by the United Nations to investigate Israel's total destruction of Jenin has evoked the hostility of the entire Israeli political class. Shimon Perez (the self-styled labor moderate in Sharon's government) accused the 170 plus member United Nations Organization of "blood libel" presumably including the U.S. which voted in favor of the resolution creating the investigatory commission.

The question of who is financing the Israeli state is basic because, Israel as we know it today, is not a viable state without massive external support. Billions of dollars are raised from a variety of Jewish and non-Jewish institutions to sustain the Israeli war machine, its policy of generous subsidies for Jews enticed to settle in colonies in the Occupied Territories and in Israel, and the high living standards of Israel's Jewish citizens. Without external aid Israel's economy would require severe cutbacks in living standards and working conditions, leading to the likely flight of most Israeli professionals, businessmen and recent overseas immigrants; the Israeli military budget would be reduced and Israel would be obligated to reduce its military interventions in the Arab East and the Occupied territories. Israel would cease being a rentier state living on overseas subsidies and would be obligated to engage in productive activity - a return to farming, manufacture and services minus the exploitation of low paid Asian maids, imported Eastern European farm workers and Palestinian construction laborers.

Europe continues to privilege the importation of Israeli exports and financial services, despite overt and malicious attacks by leaders of both parties in the Sharon regime. Prominent Jewish organizations in France and England, linked to both major parties have muted any efforts to use the "trade card" to pressure Israel to accept European Union or United Nations mediation. European trade and financial ties to Israel however are not the basic prop for the Israeli war machine. The principle basis for long-term, large-scale financial support is found in the U.S., among public and private institutions.

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