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The announcement last week by the United States of the largest military aid package in its history – to Israel – was a win for both sides.

Israeli prime minister Benjamin Netanyahu could boast that his lobbying had boosted aid from $3.1 billion a year to $3.8bn – a 22 per cent increase – for a decade starting in 2019.

Mr Netanyahu has presented this as a rebuff to those who accuse him of jeopardising Israeli security interests with his government’s repeated affronts to the White House.

In the past weeks alone, defence minister Avigdor Lieberman has compared last year’s nuclear deal between Washington and Iran with the 1938 Munich pact, which bolstered Hitler; and Mr Netanyahu has implied that US opposition to settlement expansion is the same as support for the “ethnic cleansing” of Jews.

American president Barack Obama, meanwhile, hopes to stifle his own critics who insinuate that he is anti-Israel. The deal should serve as a fillip too for Hillary Clinton, the Democratic party’s candidate to succeed Mr Obama in November’s election.

In reality, however, the Obama administration has quietly punished Mr Netanyahu for his misbehaviour. Israeli expectations of a $4.5bn-a-year deal were whittled down after Mr Netanyahu stalled negotiations last year as he sought to recruit Congress to his battle against the Iran deal.

In fact, Israel already receives roughly $3.8bn – if Congress’s assistance on developing missile defence programmes is factored in. Notably, Israel has been forced to promise not to approach Congress for extra funds.

The deal takes into account neither inflation nor the dollar’s depreciation against the shekel.

A bigger blow still is the White House’s demand to phase out a special exemption that allowed Israel to spend nearly 40 per cent of aid locally on weapon and fuel purchases. Israel will soon have to buy all its armaments from the US, ending what amounted to a subsidy to its own arms industry.

Nonetheless, Washington’s renewed military largesse – in the face of almost continual insults – inevitably fuels claims that the Israeli tail is wagging the US dog. Even The New York Times has described the aid package as “too big”.

Since the 1973 war, Israel has received at least $100bn in military aid, with more assistance hidden from view. Back in the 1970s, Washington paid half of Israel’s military budget. Today it still foots a fifth of the bill, despite Israel’s economic success.

But the US expects a return on its massive investment. As the late Israeli politician-general Ariel Sharon once observed, ­Israel has been a US “aircraft carrier” in the Middle East, acting as the regional bully and carrying out operations that benefit Washington.

Almost no one blames the US for Israeli attacks that wiped out Iraq’s and Syria’s nuclear programmes. A nuclear-armed Iraq or Syria would have deterred later US-backed moves at regime overthrow, as well as countering the strategic advantage Israel derives from its own nuclear arsenal.

In addition, Israel’s US-sponsored military prowess is a triple boon to the US weapons industry, the country’s most powerful lobby. Public funds are siphoned off to let Israel buy goodies from American arms makers. That, in turn, serves as a shop window for other customers and spurs an endless and lucrative game of catch-up in the rest of the Middle East.

The first F-35 fighter jets to arrive in Israel in December – their various components produced in 46 US states – will increase the clamour for the cutting-edge warplane.

Israel is also a “front-line laboratory”, as former Israeli army negotiator Eival Gilady admitted at the weekend, that develops and field-tests new technology Washington can later use itself.

The US is planning to buy back the missile interception system Iron Dome – which neutralises battlefield threats of retaliation – it largely paid for. Israel works closely too with the US in developing cyber­warfare, such as the Stuxnet worm that damaged Iran’s civilian nuclear programme.

But the clearest message from Israel’s new aid package is one delivered to the Palestinians: Washington sees no pressing strategic interest in ending the occupation. It stood up to Mr Netanyahu over the Iran deal but will not risk a damaging clash over Palestinian statehood.

Some believe that Mr Obama signed the aid package to win the credibility necessary to overcome his domestic Israel lobby and pull a rabbit from the hat: an initiative, unveiled shortly before he leaves office, that corners Mr Netanyahu into making peace.

Hopes have been raised by an expected meeting at the United Nations in New York on Wednesday. But their first talks in 10 months are planned only to demonstrate unity to confound critics of the aid deal.

If Mr Obama really wanted to pressure Mr Netanyahu, he would have used the aid agreement as leverage. Now Mr Netanyahu need not fear US financial retaliation, even as he intensifies effective annexation of the West Bank.

Mr Netanyahu has drawn the right lesson from the aid deal – he can act against the Palestinians with continuing US impunity.

- See more at: http://www.jonathan-cook.net/2016-09-19/palestinians-lose-in-us-military-aid-deal-with-israel/#sthash.fL4Eq28N.dpuf

"America Has Lost" in the Philippines

By Pepe Escobar

October 25, 2016 "Information Clearing House" - " SCF "- Your honors, in this venue I announce my separation from the United States… both in military and economics also».

Thus Philippines President Rodrigo «The Punisher» Duterte unleashed a geopolitical earthquake encompassing Eurasia and reverberating all across the Pacific Ocean.

And talk about choosing his venue with aplomb; right in the heart of the Rising Dragon, no less.

Capping his state visit to Beijing, Duterte then coined the mantra – pregnant with overtones - that will keep ringing all across the global South; «America has lost».

And if that was not enough, he announced a new alliance – Philippines, China and Russia – is about to emerge; «there are three of us against the world».

Predictably, the Beltway establishment in the «indispensable nation» went bananas, reacting as «puzzled» or in outright anger, dispersing the usual expletives on the «crude populist», «unhinged leader».

The bottom line is that it takes a lot of balls for the leader of a poor, developing country, in Southeast Asia or elsewhere, to openly defy the hyperpower. Yet what Duterte is gaming at is pure realpolitik; if he prevails, he will be able to deftly play the US against China to the benefit of Filipino interests.

«The springtime of our relationship»

It did start with a bang; during Duterte’s China visit, Manila inked no less than $13 billion in deals with Beijing – from trade and investment to drug control, maritime security and infrastructure.

Beijing pulled out all stops to make Duterte feel welcomed.

President Xi Jinping suggested Manila and Beijing should «temporarily put aside» the intractable South China Sea disputes and learn from the «political wisdom» of history – as in give space to diplomatic talks. After all, the two peoples were «blood-linked brothers».

Duterte replied in kind; «Even as we arrive in Beijing close to winter, this is the springtime of our relationship,» he told Xi at the Great Hall of the People.

China is already the Philippines’ second-largest trade partner, behind Japan, the US and Singapore. Filipino exports to these three are at roughly 42.7 percent of the total, compared to 22.1 to China / Hong Kong. Imports from China are roughly 16.1 percent of the total. Even as trade with China is bound to rise, what really matters for Duterte is massive Chinese infrastructure investment.

What this will mean in practice is indeed ground-breaking; the China-led Asian Infrastructure Investment Bank (AIIB) will definitely be involved in Philippine economic development; Manila will be more involved in promoting smooth China-ASEAN relations in all sorts of regional issues (it takes the rotating chair of ASEAN in 2017); and the Philippines will be more integrated in the New Silk Roads, a.k.a. One Belt, One Road (OBOR).

Three strikes; no wonder the US is out. And there’s even a fourth strike, embedded in Duterte’s promise that

he will soon end military cooperation with the US, despite the opposition of part of the Filipino armed forces.

Watch the First Island Chain

The build-up had already been dramatic enough. On the eve of his meeting with Xi, talking to members of the Filipino community in Beijing, Duterte said, «it’s time to say goodbye» to the US; «I will not ask but if they (the Chinese) offer and if they’ll ask me, do you need this aid? [I will say] Of course, we are very poor».

Then the clincher; «I will not go to America anymore … We will just be insulted there».

The US was the colonial power in the Philippines from 1899 to 1942. Hollywood permeates the collective unconscious. English is the lingua franca – side by side with tagalog. But the tentacles of Uncle Sam’s «protection» racket are not exactly welcomed. Two of the largest components of the US Empire of Bases were located for decades in the Philippines; Clark Air Force Base and Subic Bay Naval Base.

Clark, occupying 230 square miles, with 15,000 people, was busy to death during the Vietnam War – the main hub for men and hardware in and out of Saigon. Then it turned into one of those Pentagon «forward operating» HQs. Subic, occupying 260 square miles, was as busy as Clark. It was the forward operating base for the US 7th Fleet.

Already in 1987, before the end of the Cold War, the RAND corporation was alarmed by the loss of both bases; that would be «devastating for regional security». Devastating» in the – mythical - sense of «defending the interests of ASEAN» and the «security of the sea-lanes».

Translation; the Pentagon and the US Navy would lose a key instrument of pressure over ASEAN, as protecting the «security of the sea-lanes» was always the key justification for those bases.

And lose they eventually did; Clark was closed down in November 1991, and Subic in November 199

It took years for China to sense an opening – and profit from it; after all during the 1990s and the early 2000s, the absolute priority was breakneck speed internal development. But then Beijing did the math; no more US bases opened untold vistas as far as the First Island Chain is concerned.

The First Island Chain is a product, over millennia, of the fabulous tectonic forces of the Ring of Fire; a chain of islands running from southern Japan in the north to Borneo in the south. For Beijing, they work as a sort of shield for the Chinese eastern seaboard; if this chain is secure, Asia is secure.

For all practical purposes, Beijing considers the First Island Chain as a non-negotiable Western Pacific demarcation zone – ideally with no foreign (as in US) interference. The South China Sea – which in parts is characterized by Manila as the Western Philippine Sea - is inside the First Island Chain. So to really secure the First Island Chain, the South China Sea must be free of foreign interference.

And here we are plunged at the heart of arguably the key 21st century hotspot in Asian geopolitics – the main reason for the Obama administration’s pivot to Asia.

The US Navy so far counted on the Philippines to oppose the proverbial, hyped up «Chinese aggression» in the South China and East China seas. The neocon/neoliberalcon industrial-military complex fury against «unhinged» Duterte’s game-changer is that containing China and ruling over the First Island Chain has been at the core of US naval strategy since the beginning of the Cold War.

Beijing, meanwhile, will have all the time needed to polish its strategic environment. This has nothing to do with «freedom of navigation» and protecting sea-lanes; everyone needs South China Sea cross-trade. It’s all about China - perhaps within the next ten years - being able to deny «access» to the US Navy in the South China Sea and inside the First Island Chain.

Duterte’s game-changing «America has lost» is just a new salvo in arguably the key 21st century geopolitical thriller. A Supreme Court justice in Manila, for instance, has warned Duterte that, were he to give up sovereignty over the Scarborough Shoal, he could be impeached. That won’t happen; Duterte wants loads of Chinese trade and investment, not abdicate from sovereignty. He’d rather be ready to confront being demonized by the hyperpower as much as the late Hugo Chavez was in his heyday.

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