Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Tuesday, 17 September 07:03 (GMT -05:00)



Business And Politics News

Maariv On USA's Betrayal of Israel


 

At first sight, we have just witnessed a sensational event. It seems like the bilateral relations between Iran and the USA are improving. As you probably know, not so long ago, Iran and 6 international mediators (members of the UN Security Council and Germany) signed an agreement leading to freezing the Iranian nucellar program in exchange for the elimination of all those sanctions against Iran.
 
It seems like we should be celebrating the event. However, there are countries that indignant at the situation. Obviously, this is Israel. Tel-Aviv called it a terrible agreement between the West and Iran, even a historical mistake and the USA's betrayal of Israel as a devoted ally in the Middle East.
 
Israel says that the world's most terrible regime made another big step towards developing nuclear arms and is unlikely to abandon this idea despite the agreement.
 
So, what about the US-Israeli relations? Are they deteriorating due to the agreement? Will Israel remain a strategic asset and ally for the USA?
 

 

 

 

 
USA and Israel
 
According to Maariv, an Israeli edition, has published an article with a crying headline «Who Betrayed Israel?» Journalist knows that such sensational headlines guarantee popularity and attention.
 
However, in this case, the headline reflects the general tone of the entire article. Indeed, it even resembles a female nerve storm with crying, resentment and threats. It seems like the author is trying to be sincere but usually hysteria has nothing to do with rational thinking.
 
In his article, the author confesses that most of the globe doesn't like Israel. At the same time, he says that the recent nuclear agreement is another link in the chain of the USA’s errors, which shows us how dangerous it is to rely on the While House. Moreover, the author says that Obama and his administration have been openly hostile towards Israel over the last few years.
 
Of course, nobody betrayed Israel. Tel-Aviv and Washington still have special relations. Still, the situation in the USA and outside has changed, thereby changing the USA’s external policy a little.
 
Changes
 
There are several factors that changed the relations:

The USA seems to have changed their interests in the Middle East. Obviously, the USA is eager to improve the bilateral relations with Iran. Firstly, this is a major player in the region. Secondly, no country likes endless tensions with others. By the way, if the relations are improved, this will allow the USA to resolve several issue, including:


the ability to weaken Russia’s influence in Iran and the entire Middle East. At the same time, it is a kind of a block-post on the way of radical Sunnite groups in the Caucasus and Middle Asia. Russia has lost its loyal regimes in Libya and Iraq while other nations in the region don’t seem to be as friendly.
 
At the same time, this can be an extra escape way for the US troops deployed in Afghanistan. The USA doesn’t seem to rely on Pakistan anymore.
At the same time, this is a chance to improve the relations with Saudi Arabia that worsened after the USA abandoned the idea of starting a military campaign against Syria.
 
On top of that, the USA now looks more focused on China and the Asian-Pacific region.
 
At the same time, some experts say that Israel has never been a useful ally in the region. They suggest recollecting military operations in Iraq, Afghanistan, Libya, Syria etc. When exactly was Israel a useful ally?
 
The second factor is the economic crisis. Most experts assume that Israel is the leader in terms of financial aid received from the USA since WWII. Israel gets $2-3bn a year! This is 1,4% of the US budget! Still, amid higher deficit and debt, the US government finds it harder and harder to spare the sum to keep sponsoring Israel! The sponsorship is mainly given to Israel to purchase arms. Still, the list of arms is reserved.
 
The Israeli Shekel has strengthened a bit against the US Dollar and the common European currency – by 705 and 219 percent points respectively. The chart below, courtesy of Masterforex-V Academy, reflects the current state of affairs in the market of USDILS:
 

 

 

By the way, instantly after the agreement was singed, energy markets responded with price declines. When the prices fall, this usually becomes a major stimulus for an economic recovery in the USA and the EU.
 
 
Thirdly, it is about political confrontation. We must confess that the USA and Israel cannot boast friendship during Obama’s administration. However, the relations started changing for the worse before Obama came to power. In other words, Obama improved his image by signing the agreement.
 

 

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

Fed Cuts Key Interest Rate For The First Time In 10 Years

The U.S. Federal Reserve is reported to have cut the key interest rate, which is something really outstanding since the Fed has done it for the first time since 2009.

Publication date: 11 August 03:05 AM

New Prime Minister Names Brexit Date

It seem that the new Prime Minister of the United Kingdom is really determined about everything related to the Brexit. The process is expected to start in later 2019. Boris Johnson's standpoint on the matter didn't come as a surprise to the international expert community, Market Leader reports. The thing is, he has been well-known for being an advocate ad big supporter of quitting the European Union in general, and doing so without a major agreement in particular, which is also known as the hard Brexit scenario. 

Publication date: 07 August 06:54 AM

Johnson Launches Hard Brexit Ad Campaign

Boris Johnson, who has recently been appointed new UK Prime Minister, is on his way to launch an ad campaign to promote the idea of quitting the EU the hard way, which is also known as the hard Brexit. For those of you who don't know, the hard Brexit scenario implies quitting the European Union without signing a major agreement.

Publication date: 31 July 11:43 AM

U.S-China Trade War Is Sponsored By Consumers

According to the IMF, consumers and producers are the biggest losers in the trade war between the United States and China. Despite growing duties, American companies are not in a hurry to move their production back to the USA.

Publication date: 12 July 01:19 AM

US-China Trade Conflict May Trigger Another Global Financial Crisis

Beijing and Washington are one step away from escalating their trade conflict. The confrontation may harm the entire global economy. Some experts belive that the trade war may also trigger another global financial crisis. At this point, the parties seem to have come to a standstill, which is why the chances of the conflict escalating into a move severe trade war are still growing.

Publication date: 18 June 10:18 AM

WTO Lowers Global Trade Growth Forecast

 WTO experts are reported to have revised their forecast for the pace of global trade growth. The renewed forecast names figures below the previous ones - 2,6% against 3,7%. It's also interesting to note that the previous forecast for 2018 failed to match the actual figures.

 
Publication date: 19 May 02:58 AM

How to Protect Investment Capital in 2019?

Existing political and economic risks are pushing international investors into thinking about the security of their investment capital. Chasing big profits becomes secondary to this kind of security.

Publication date: 31 March 11:26 AM

EU Comes Up With Workaround to US Sanctions

The representatives of Germany, France, and the UK have registered a company to let it trade with Iran despite the US sanctions. The company still needs to be approved by 28 EU members.

Publication date: 31 March 02:33 AM

Beijing and Washington are getting ready for the final talks

Publication date: 17 February 08:58 AM

US-China Trade War Reaches Next Level

Washington and Beijing have announced a new round of talks. International experts say that the trade war is indeed going to a whole new level.
Publication date: 08 January 10:17 AM