USA to foot the bill for Israeli war on Lebanon

According to the Israeli deputy chief of staff in 1982 the estimated cost of the then invasion of Lebanon was around $1.1bn.

In the the New York Times – Maj. Gen. Moshe Levy was quoted by the Israeli radio as saying the Defense Ministry’s estimate was based on the assumption that Israeli troops would remain in Lebanon until the end of February 1983.

Interestingly, much of this cost was borne by taxpayers in the USA, which subsidizes the Israeli government both directly and covertly through a series of payments that cross-subsidize the state.

The estimates for the current attacks have yet to roll in but are expected to be at least the same, and more likely much higher than before.

The burden on the American consumer will come as a double whammy, with the immediate increase in the price of gasoline at the pumps, and the subsequent increase in ad later on.

Over time, details on subsidy payments to support Israel – as well as Egypt, Jordon and the Lebanon – have been obstructed and made more difficult to account for.

Estimates of US economic grants to Israel are $596mn for 2003 and $477mn for 2004. These are dwarfed by so called ‘Military Grants’ to the Israeli’s in the form of $3bn for 2003 and $2.1bn for 2004.

As the death toll pushes beyond 300 civilians in the Lebanon and the destruction spreads beyond Hezbollah strongholds – the site of the first the American evacuees landing in Cyprus may start to raise questions on Capitol Hill about – about what price to the USA, what price to the consumer?