How does Washington finance its wars with “easy” Gulf money?

SANAA, May 27 (YPA) – The s-called protection, defense, and security treaties that the United States established with a number of countries, such as Saudi Arabia, the UAE, and the rest of the Gulf states, have emerged as a source of compensation for the mythical difference between the increase in US government spending and the increase in the public debt ceiling in the US budget.

According to an analysis issued by the Yemen Press Agency, there are no announced figures for what the Gulf countries pay to the United States in exchange for defense and security treaties, but it is certain that they represent fabulous numbers flowing without account from oil kingdoms to feed the US treasury.

In this context, there had official statements made by former US President Donald Trump in 2018 from the Saudi capital, Riyadh, in which he said that the United States “has spent $7 trillion over the past 18 years in the Middle East, and the rich 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 to cut the expenditure, 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 “loose bypass names” such as “public debt crisis” and “high spending bill” from the Federal Reserve, but the truth is that these terms are nothing more than an expression of budget deficit used in all countries of the world, 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 of “free money” or “easy money”, according to the Mises Institute for Austrian Economics, represents the US’s ideal option to cover and compensate for this astronomical deficit in the annual budget of the United States, which reached its maximum in January 2023 at about $31.4 trillion.

A large part of this deficit is covered by the “free money” that the United States earns from its wealthy allies in the oil-rich Arab states in return for the wars that Washington claims it is waging on their behalf in the region.

The direct payment is not the total outcome 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.

Withdrawal of Gulf money to finance American wars:

In this regard, “New York Times” said that the ballooning US debt is the result of choices made by both Republicans and Democrats alike.

According to the American newspaper, “Since the year of 2000, politicians of both parties have taken to borrowing money to finance wars abroad.”

In turn, the Misys 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 “free 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 “free 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 political and economic circles and lobbies are seeking in Washington to highlight the public debt ceiling crisis that all US governments, whether democratic or republican, are going through, highlights the easy alternatives and short ways used by US decision-making circles 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.”

Finally, 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.

AA