So how does Israel pay for its wars against the Palestinians? Thank you, American tax-payer:
War-related defence spending and civilian aid would boost the budget deficit and increase borrowing, said former treasury official Yoram Gabai, who is now the chairman of the Pe’ilim fund management unit of Bank Hapoalim.
Raising the money at home might impede central bank efforts to cut borrowing costs and revive growth.
“The government must use the US loan guarantees to raise money abroad – a step that needs US approval – to prevent a problem in the domestic market,” Gabai said. In 2003, the US awarded Israel as much as $9 billion in guarantees.