There are no announced figures for what the Gulf countries pay the US for defense and security treaties, but what is certain is that they represent fabulous numbers that flow without reckoning from those oil-rich kingdoms to feed the US treasury.
In this context, official statements made by former US President Donald Trump in 2018 from the Saudi capital, Riyadh, said that the United States “has spent $7 trillion over the past 18 years in the Middle East, and the wealthy countries in the Gulf must pay for that.”
The dispute over the budget deficit is raging in Washington today under the dome of the House of Representatives between the Democrats, who are calling for raising the public debt ceiling, and the Republicans, who are insisting on cutting spending, which means that the US government is failing to fulfill many of its obligations in the fields of education, health and insurance.
The US budget deficit carries many bypass names such as “public debt crisis” and “high spending bill” from the Federal Reserve.
However, the truth is that these terms are nothing more than an expression of the term “budget deficit” that is used in all countries and which is an official indicator of the failure of governments to fulfill their political and economic programs.
Based on this description, the annual budgets of successive US governments need alternative and urgent sources to reduce the deficit and bridge the gap arising from the massive increase in government spending.
Hence, the term “free money” or “easy money”, according to the Austrian Mises Institute for Economic Sciences, represents the ideal American option to cover and compensate for this astronomical deficit in the annual budget of the US, which reached its maximum in January 2023 at about $31.4 trillion.
A large part of this deficit is covered by the “ money” that the United States earns from its wealthy allies in the Arab oil states in return for the wars that Washington claims it is waging on their behalf in the region.
Direct payment is not the total proceeds of the bill that the Gulf pays to Washington, as there are trillions of dollars invested by Gulf sovereign funds in US banks and stock exchanges.
Hundreds of billions of Gulf funds are transformed into what look like deposits in US banks, which Gulf governments cannot recover, and de facto turn into investments from which the US government benefits, even if they remain, by default, Gulf money.
In this regard, the “New York Times” said that “America’s ballooning debt is the result of choices made by both Republicans and Democrats. Since 2000, politicians from both parties have made a habit of borrowing money to finance wars, tax cuts, expanded federal spending, care for baby boomers and emergency measures to help the nation endure two debilitating recessions.
In turn, the Mises Institute shed light on what it said was a group of lies and plays associated with the emergence of what is known as the national federal debt ceiling crisis in the United States.
Where the institute went, that any slowdown in the flow of this money is described by the United States as a “reduction” in the budget, while it is in fact a lack of the escalating increase that the Americans continue to demand.
The term “easy money” necessarily refers to funds that enter the US treasury from sources other than US government revenue.
More precisely, that term refers to the billions of dollars that the United States earns from strategic and long-term defense and security treaties that it concludes with the oil-rich countries, led by Saudi Arabia, the UAE, and the rest of the Gulf states.
The pursuit of political and economic lobbies in Washington to highlight the public debt ceiling crisis that all US governments, whether democratic or republican, are going through,and to highlight the easy alternatives and short ways used by US decision-makers to compensate for the deficit in their budgets.
The debt ceiling dispute is of no interest to policymakers in Washington, and according to the Austrian institute, “there are many great myths that policymakers in Washington are eager to repeat to American citizens about this matter.”
All these tactics followed by US politicians are nothing more than an attempt to continue excessive government spending, to finance and ignite American wars, which annually requires trillions of dollars to be compensated through “easy money” that Washington gets for free from its rich allies.
Source: YPA translated by Almasirah#US #Saudi_Arabia 23-06-02
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