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Millions in bonds for Israel put US states at odds with investment policies

Millions in bonds for Israel put US states at odds with investment policies

The United States has long been Israel’s primary international backer, lending it vast political, diplomatic and financial support. This has only increased since Israel began its assault on Gaza last October, even as it gradually expanded the parameters of its war, in which it is widely accused by human rights groups of committing genocide. According to Brown University’s Watson Institute, the US government provided Israel with almost $18bn in weapons and military aid in the first year of Israel’s war. But Israel is also increasingly dependent on another source of funds: bonds, bought by states and municipalities across the US. Between October 7, 2023 – when the Palestinian group Hamas attacked Israel and the latter subsequently began its war on Gaza – and April 18 this year, nearly three dozen states and counties have bought $1.7bn worth of bonds, according to Israel Bonds, a US-based company that raises foreign funds for Israel. This money has gone straight into Israel’s general fund, where it can then be funnelled into Israel’s ballooning military budget. An email from Israel Bonds to an Ohio county treasurer noted the bonds were used in part to “refund the United States Government for security equipment”. Advertisement The world’s single largest purchaser of Israel’s war bonds is Palm Beach County – the wealthy Florida county home to President-elect Donald Trump’s Mar-a-Lago residence. Palm Beach holds a startling $700m worth of Israel bonds – a loan large enough to cover the purchase of multiple F-15 fighter jets. But now, after more than a year of an escalating and internationally condemned conflict, Israel’s economy is stumbling. Tens of thousands of Israeli firms are predicted to shut this year, the budget deficit has ballooned from 4 percent to 8 percent of gross domestic product (GDP), direct investment has fallen about 30 percent and US rating agencies have downgraded Israel’s credit. All this means that when local treasurers buy Israeli bonds, they increasingly risk violating their own policies, which require them to invest taxpayer money in a responsible way. In fact, a review by Al Jazeera found that at least two states appear to face violating their state treasury investment policies if they buy more Israeli bonds. At least four other states that have bought Israeli bonds since October 2023 could also face non-compliance if Israel’s credit is lowered further. A risky investment When a state or county buys Israeli bonds, they essentially loan the Israeli government money with an agreement that they will get those funds back in an agreed-upon number of years, plus interest. After October 7, the staff of the underwriter for Israel Bonds directly contacted treasurers in Florida, Louisiana, Ohio, and other states. Those treasurers quickly bought tens of millions of dollars worth of Israeli bonds. Advertisement But as Israel’s economy weakens, it appears increasingly difficult to justify these investments. In April, Fitch, one of the three leading US credit rating agencies, warned that the conflict could “lead to a large deterioration of Israel’s credit metrics”. By August, Fitch had downgraded Israel’s credit. The next month, another agency, Moody’s, also downgraded Israel’s credit rating to Baa1 for the first time in its history, and in October, the third agency, S&P, downgraded Israel as well. Moody’s even warned of further downgrades in light of Israel’s conflict with the Lebanese group Hezbollah. A ceasefire between Israel and Hezbollah was agreed to in late November, but Fitch warned “the ceasefire is likely to be fragile”, and predicted a rise in Israel’s 2025 budget deficit. All three major credit rating agencies project a negative outlook for Israel’s credit. All together, it indicates Israel is less able to pay back its loans. This places some US states in a precarious position, as some state investment policies specify that treasurers can only invest in foreign entities if they are above specific credit ratings. Al Jazeera has found that two states – Florida and Nevada – may face violating their investment policies if they buy more Israel bonds. The Treasury policies of both states require foreign obligations to have ratings of AA- or higher from at least one credit rating agency. Israel Bonds stopped meeting that standard in April. Florida’s Chief Financial Officer last announced purchases of Israeli bonds in March, bringing the state’s holdings to $250m. Nevada bought Israeli bonds last October, according to the CEO of Israel Bonds. Advertisement Neither the Florida nor Nevada Treasury office responded to requests for comment. If Israel’s credit is further downgraded, at least four other US states may also have to halt purchases of Israeli bonds: Ohio, Georgia, Louisiana, and Oklahoma. Rachel Ziemba, a geo-economic and country risk expert and adjunct senior fellow at the Center for a New American Security, said that further purchases of Israeli bonds would appear to violate these states’ policies after she reviewed the policy documents. “Reading their guidelines suggests that it’s in violation… they would have to sell their Israeli bonds especially if there are further downgrades,” Ziemba said, though she added that state investment committees could also decide to make exceptions. “Ultimately I think they’re doing it [buying Israeli bonds] for political and what they believe are moral reasons [but] given the credit rating outlook, it’s probably something that will come up more and more, and probably there will be more legal cases around this issue.” Daniel Garrett, an assistant professor of finance at the Wharton School of the University of Pennsylvania, was more cautious. He noted that Florida had multiple portfolios, some of which have higher rating requirements, and that it was unclear which portfolio the Israeli bonds sit in. Garrett added that all state policies tend to give investment managers flexibility when a security falls out of compliance, and “getting your credit downgraded doesn’t lead to immediate divestment, even if it doesn’t meet these portfolio standards any more”. Advertisement Still, he added, “If I saw increasing investments in a security that has a declining and no longer complying credit rating, that would be out of line with

Online consultation with Vedic Astrologer Acharya Indravarman

Online consultation with Vedic Astrologer Acharya Indravarman

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TikTok divestment could be ‘deal of the century’ for Trump, House China Committee chair says

TikTok divestment could be ‘deal of the century’ for Trump, House China Committee chair says

EXCLUSIVE: House China Committee Chairman John Moolenaar told Fox News Digital that President-elect Donald Trump is the “perfect leader” to negotiate and deliver the “deal of the century” to keep TikTok available in the U.S. The Supreme Court is expected to hear oral arguments on Jan. 10, 2025 on the law that requires a divestment of TikTok from foreign adversary control. TikTok is owned by ByteDance, a company based in Beijing and connected to the Chinese Communist Party.  TIKTOK: MCCAUL SAYS HE ‘CAN’T THINK OF A GREATER PROPAGANDA TOOL’ FOR CHINA That legislation, which was signed into law in the spring, requires a sale of TikTok from ByteDance by Jan. 19. If ByteDance does not divest by the deadline, Google and Apple are no longer able to feature TikTok in their app stores in the U.S. Supreme Court Justices said they will hold a special session on Jan. 10 to hear oral arguments in the case — an expedited timeline that will allow them to consider the case just nine days before the Jan. 19 ban is slated to take effect. The law allows the president to extend the deadline by up to 90 days if ByteDance is in the process of divesting.  In an exclusive interview with Fox News Digital, Moolenaar, R-Mich., said he has been meeting with top investors, and that he has “full confidence” that Trump “will be able to make a great deal for America.”  “It will be the deal of the century,” Moolenaar said, noting that the divestment “could happen in phases.”  “First with a buyout and then a massive IPO—probably the largest IPO in history,” he said. “And I believe President Trump is the perfect leader to negotiate and deliver this win.”  He added: “President Trump has the opportunity to make the deal of the century because of the leverage of the TikTok legislation passed by Congress.”  SUPREME COURT TO TAKE UP CHALLENGE TO TIKTOK BAN Moolenaar predicted that the sale of TikTok could be completed quickly after it exhausts its appeals and the U.S. Supreme Court decides the case. He said a “massive” IPO could occur “later, as one piece of the solution.”  “I think TikTok and ByteDance have been dragging their feet,” Moolenaar said. “Once they realize they’re required to follow U.S. law, I believe this will move forward fairly quickly.”  TikTok and ByteDance filed an emergency application to the high court earlier this month asking justices to temporarily block the law from being enforced while it appealed a decision from the U.S. Court of Appeals for the District of Columbia Circuit.  Lawyers for TikTok have argued that the law passed earlier this year is a First Amendment violation, noting in their Supreme Court request that “Congress’s unprecedented attempt to single out applicants and bar them from operating one of the most significant speech platforms in this nation” and “presents grave constitutional problems that this court likely will not allow to stand.” But Moolenaar warned that without divestment, the CCP could attempt to “manipulate perceptions in the United States,” and said they have “access to Americans’ data” through TikTok.  “It is very profitable, very popular, and it is a major inroad for the CCP to influence American culture,” said Moolenaar. But as for CCP access to the data of U.S. citizens, TikTok created its “Project Texas” initiative, which is dedicated to addressing concerns about U.S. national security.  TikTok CEO Shou Zi Chew says “Project Texas” creates a stand-alone version of the TikTok platform for the U.S. isolated on servers in Oracle’s U.S. cloud environment. It was developed by CFIUS and cost the company approximately $1.5 billion to implement. Chew has argued that TikTok is not beholden to any one country, though executives in the past have admitted that Chinese officials had access to Americans’ data even when U.S.-based TikTok officials did not. TikTok claims that the new initiative keeps U.S. user data safe, and told Fox News Digital that data is managed “by Americans, in America.” But Moolenaar says that even “Project Texas” “really is not enough.”  TECH LEADERS BEZOS, ZUCKERBERG, COOK AND PICHAI LOOK FOR FACE TIME WITH TRUMP    “When you consider that ByteDance is affiliated with the CCP, and they call the shots for TikTok, the TikTok algorithm is very different in the U.S. than it is in China,” he explained. “There needs to be a divestment, and we need to know either an American company or a company affiliated with like-minded nations, friendly nations, not adversarial nations, is in charge of this app.”  He added: “Only that will satisfy the law and protect our national security.”  Moolenaar said that, until now, the Chinese Communist Party “didn’t have a reason to allow the sale of TikTok.”  “But that has changed, and President Trump knows from experience that the only language the CCP speaks is hardball,” Moolenaar said. “He is an incredible negotiator, and our legislation is giving him the leverage he needs to make this historic deal.”  Yet, Trump has signaled support for TikTok. Earlier this month, he met with Chew at Mar-a-Lago, telling reporters during a press conference ahead of the meeting that his incoming administration will “take a look at TikTok” and the looming U.S. ban. “I have a warm spot in my heart for TikTok,” Trump told reporters.

Panama’s president hits back at Trump idea to reclaim key canal

Panama’s president hits back at Trump idea to reclaim key canal

Panama’s president has responded to President-elect Trump’s idea that his new administration could try to regain control of the Panama Canal. After Trump said Sunday that the United States “foolishly gave it away” and is now “being ripped off” at the waterway, Panama’s conservative President José Raúl Mulino released a video declaring that “every square meter of the canal belongs to Panama and will continue to belong” to his country. Without mentioning Trump by name, Mulino addressed Trump’s complaints over rising fees for ships crossing the canal, saying they are set by experts who take into account operational costs, and supply and demand factors. “The tariffs are not set on a whim,” Mulino said. He noted that Panama has expanded the canal over the years to increase ship traffic “on its own initiative,” and added that shipping fee increases help pay for improvements. TRUMP FLOATS IDEA OF US RECLAIMING PANAMA CANAL: ‘FOOLISHLY GAVE IT AWAY’ “Panamanians may have different views on many issues,” Mulino said. “But when it comes to our canal, and our sovereignty, we will all unite under our Panamanian flag.” Trump then took to his social media site to offer in response, “We’ll see about that!” He also posted a picture of a U.S. flag planted in the canal zone under the phrase, “Welcome to the United States Canal!” FETTERMAN: THOSE HOPING TRUMP FAILS ARE ‘ROOTING AGAINST THE NATION’ Trump had previously addressed the canal in a Saturday Truth Social post, where he complained at length about the fees levied on U.S. ships going through the Big Ditch. The Panama Canal’s tolls can range from three to six figures depending on how large a vessel is and how much cargo it carries, with the largest ships being charged as much as $500,000. The United States built the canal in the early 1900s as it looked for ways to facilitate the transit of commercial and military vessels between its coasts. Washington relinquished control of the waterway to Panama on Dec. 31, 1999, under a treaty signed in 1977 by President Jimmy Carter. The canal depends on reservoirs to operate its locks and was heavily affected by 2023 Central American drought that forced it to substantially reduce the number of daily slots for crossing ships. With fewer ships using the canal each day, administrators also increased the fees that are charged all shippers for reserving a slot. With the weather returning to normal in the later months of this year, transit on the canal has normalized, but price increases are still expected for next year. Fox News’ Andrea Margolis and the Associated Press contributed to this report. 

Retiring GOP congresswoman’s decline has been ‘very rapid,’ son says

Retiring GOP congresswoman’s decline has been ‘very rapid,’ son says

Rep. Kay Granger, R-Texas, experienced a “very rapid” decline since moving into a retirement facility, her son said, after it was discovered over the weekend that the congresswoman had been absent from her duties in the Capitol for nearly six months. Brandon Granger told the New York Post that his mother made the decision to move into the retirement community on her own, though she has since shown signs of dementia over the past three months. The 81-year-old congresswoman, who did not seek re-election and is retiring at the end of this congressional term, has largely remained absent from the Capitol in recent months, having last cast votes on July 24. She was not present for over 54% of votes this year. Granger’s absence was first reported by the Dallas Express on Friday in a piece that quoted a constituent of her district who said that Granger was residing in a memory care facility in Texas. HOUSE PASSES FUNDING BILL WITH JUST HOURS UNTIL GOVERNMENT SHUTDOWN A source in Granger’s office spoke to Fox News on Sunday, denying that the congresswoman was in the facility’s memory care unit. The source said Granger was residing in the retirement facility where memory care is provided, though not in the memory care unit itself. Brandon Granger excoriated the reports that said his mother was in the memory care unit after she was found wandering as “a load of bulls–t.” “They have a memory care facility there, but she’s in [an] independent living facility,” Brandon Granger told The Post. “It’s a nice condo. I helped her move in.”  Brandon Granger added that his mother’s decline has been “very rapid and very difficult,” though he did not say whether she had received treatment at the memory facility, the Post reported. GOP REP-ELECT OUTLINES HOW DOGE, TRUMP AGENDA WILL GET COUNTRY ‘BACK ON TRACK’: ‘NO MORE BUSINESS AS USUAL’ Granger released a statement Sunday saying that she has faced “health challenges” and is “deeply grateful for the outpouring of care and concern” over the weekend. “As many of my family, friends, and colleagues have known, I have been navigating some unforeseen health challenges over the past year,” Granger said in the statement. “However, since early September, my health challenges have progressed making frequent travel to Washington both difficult and unpredictable. During this time, my incredible staff has remained steadfast, continuing to deliver exceptional constituent services, as they have for the past 27 years.” While Granger appears to not have cast a vote since July, she did return to the Capitol in November for the unveiling of her portrait as Appropriations Committee Chairwoman, and a reception that followed. House Speaker Johnson, R-La., and House Majority Leader Steve Scalise, R-La., were both present at the event. Granger has served in the House since 1997. She previously served as the first female mayor of Fort Worth, Texas. Republican congressman-elect Craig Goldman will succeed Granger in January. Fox News’ Chad Pergram contributed to this report.