by Rachel Ehrenfeld and Alyssa A. Lappen
FrontPageMagazine | March 24, 2008

The Bush Administration’s search for partners to promote “peace” and “democracy” within the Palestinian Authority (PA) resembles Lord Charles Bowen‘s “blind man in a dark room looking for a black hat … which isn’t there.”

For the first time, the Bush Administration plans to give $150 million in cash directly to the Palestinian Authority (PA) Treasury, as part of a $496.5 million “aid” package, including $410 million for development programs. This added to the $86.5 million for CIA “security training,” which Congress authorized in April 2007.

The CIA has apparently assumed the Palestinian terrorist-training role previously held by the former Soviet Union. Since 1994, the CIA armed and trained thousands of Palestinian “security forces,” who subsequently joined every Palestinian terrorist organization.

CIA Palestinian training success is best described by a member of the PA’s Chairman own security unit — Force 17, officer Abu Yusef: “The operations of the Palestinian resistance would [not] have been so successful and …would not have killed more than 1,000 Israelis since 2000, and defeated the Israelis in Gaza without [American military] trainings,” he boasted in August 2007.

Since the Oslo Accords, the PA received some $14 billion to $20 billion in international aid, according to a 2007 Funding for Peace Coalition (FPC) report to the British Parliament. Each Palestinian received $4,000 to $8,000 per year. In comparison, the US Agency for International Development (USAID), provided $1 billion in humanitarian aid for 2.5 million Darfur refugees from 2003 to 2006 — only $100 per person annually. Moreover, of the $7 billion pledged international aid, only $5 billion were spent to assist more than 5 million Tsunami victims in more than 15 countries on two continents.

The PA received “the highest per capita aid transfer in the history of foreign aid anywhere,” according to former World Bank country director for Gaza and the West Bank, Nigel Roberts. Not surprisingly, hundreds of thousands of Gazans spent more than $300 million in less than two week shopping spree, after Hamas blew up the border with Egypt. Yet, the Palestinian economy is in ruins, Why?

In March 2007, PA Prime Minister and former World Bank official Salam Fayyad, told London’s Daily Telegraph: “No one can give donors that assurance” that funds reach their designated destinations. “Where is all of the transparency in all of this? It’s gone.” Controlling Palestinian finances, Fayyad concluded, is “virtually impossible.”

Palestinian violence has escalated since the 1994 PA establishment and PA officials have produced an unbroken record of unfulfilled promises and outright deception. Yet President George W. Bush in his January 28 State of the Union Address, reassured the Palestinians that “America will do, and I will do, everything we can to help them achieve…a Palestinian state by the end of this year.”

Nevertheless, US-favored PA President Mahmoud Abbas, who in 1957 with Yasser Arafat co-founded the al Fatah terrorist group, assumed the role of his predecessor. Like Muslim Brotherhood, Marxist-trained Jihadist Arafat, neither does Abbas “recognize that confronting terror is essential to achieving a state where his people can live in dignity and at peace with Israel,” as President Bush declared.

Abbas remains committed to the organization’s raison d’etre — destroying Israel and expelling the Jewish people from the region. Despite public Fatah-Hamas leadership disagreements, branding one another “murderers and thieves,” Abbas arranged on Jan. 30 to give Hamas $3.1 billion of $7.7 billion that international donor community pledged last December in Paris.

Abbas’ support for Hamas is not new. In Feb. 2007, He announced, “We must unite the Hamas and Fatah blood in the struggle against Israel as we did at the beginning of the intifada.” He stated this en route to Mecca to meet with the Saudi King, and Hamas terror chiefs Khaled Mashaal and Ismail Haniyeh. The Saudis pledged hundreds of millions of dollars in “humanitarian aid” — which, like previous pledges, they failed to deliver.

Rather than $660 million in annual aid the Saudis promised in 2002, the kingdom donated only $84 million since then, according to World Bank reports. Other Arab League members, who in 2002 promised $55 million monthly to foster PA economic development, gave even less.

Meanwhile, however, the Saudis and the Gulf states funneled hundreds of millions of petrodollars — some raised in government-sponsored telethons — to reward Al Aqsa Martyrs Brigades, Hamas and Palestinian Jihad suicide bombers and fuel the anti-Israel Jihad. Indeed, “Saudi Arabia remains a source of recruits and finances for…Levant-based militants,” said National Intelligence Director J. Michael McConnell, before the Senate Select Committee on Intelligence, on February 5, 2008.

McConnell should have included USAID on his terror-funding list. A Dec. 2007 USAID audit reported that the mission administering its funds gave money to groups and institutions affiliated with US designated terrorist organizations, including Hamas and Islamic Jihad. It warned: “Without additional controls, the mission could inadvertently provide support to entities or individuals associated with terrorism.”

USAID “failure” to prevent funds from reaching Palestinian terrorist is not surprising given US previous Administrations support for Arafat, and now for Abbas, who repeatedly claims: “We have a legitimate right to direct our guns against Israeli occupation,” while reiterating his desire for “a political partnership with Hamas.”

It is time for President Bush to remove his blinders and stop donating US-taxpayer funds to this murderous partnership. It is also time for Congress to demand a proper monitoring program to oversee the legitimate use of US aid to the Palestinians.

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Dr. Rachel Ehrenfeld is author of Funding Evil; How Terrorism is Financed and How to Stop It. She is director of the American Center for Democracy and member of the Committee on the Present Danger. Alyssa A. Lappen, Senior Fellow at the ACD, is a former editor for Forbes, Corporate Finance, Working Woman and Institutional Investor.

All Articles, Poems & Commentaries Copyright © 1971-2021 Alyssa A. Lappen
All Rights Reserved.
Printing is allowed for personal use only | Commercial usage (For Profit) is a copyright violation and written permission must be granted first.

By Rachel Ehrenfeld & Alyssa A. Lappen
Washington Times | March 22, 2008

With the U.S. economy “obviously going through a tough time,” America should welcome capital investments even from foreign sovereign wealth funds, President George W. Bush asserted on March 14, 2008 at New York’s Economic Club.

“It’s our money to begin with,” he added, referring to roughly $95 trillion in OPEC holdings of U.S. dollars and investments accumulated largely through oil sales. Contending that we can “protect our people against investments that jeopardize our national security,” Mr. Bush added, “Seems like we ought to let it come back.” But President Bush is ignoring some basic principles of U.S. capitalism and democracy: personal and corporate ownership rights are nearly sacrosanct.

Dollars may be “coming back,” but they do so with strings attached, giving foreigners huge leverage and control over the U.S. currency and economy. Of the world’s 86 million barrels in daily crude oil output, the Middle East produces only 25.6 percent. With escalating prices, crude oil now runs $111 per barrel, putting $2.4 billion daily in Middle East pockets.

Unlike President Bush, market observers don’t think we can burn the candle at both ends. Legendary investor and Vanguard Group founder John Bogle blasted the “orgy of speculation” that granted foreign investors excessive influence over the U.S. economy. “We should have never let ourselves get into this position where so many dollars are . . . held by foreign countries and bought by foreign countries that are enemies,” he stated also on March 14. “Friend or enemy, they have a lot of control over what happens here,” he said.

Indeed, major Middle East oil producers have a different understanding than Americans of economics and ownership. The October 2006 Organization of the Islamic Conference (OIC) “Mecca Declaration” is but one, albeit pointed example of this fundamental difference. Islam views all property owned by Muslims as held “in trust for Allah.” The Qur’an decrees, “The land belongs to Allah, He gives it as a heritage to those of His devotees whom He pleases” (15:128). Therefore, Muslim property “shall be subject to the terms and conditions established by their owners.” While OPEC and the Saudis blame the Bush administration for high oil prices, by “mismanaging” the U.S. economy, in fact OPEC policies cause the escalation.

In a significant indication of brazen Saudi determination to undermine the U.S. and Western economies with petrodollars, King Abdullah rebuffed President Bush’s recent appeal to boost production and lower prices.

“I would hope, as OPEC considers different production levels, that they understand that if… one of their biggest consumers’ economy suffers, it will mean less purchases, less gas and oil sold,” the President pleaded. Without hesitating, however, Saudi Minister of Petroleum and Mineral Resources Ali Al-Naimi responded, “We will raise production when the market justifies it.” Considering the effects on U.S. markets, the Saudi strategy should be recognized as economic warfare.

Despite protracted violence against the United States, West and Israel since 1979, only the September 11 attacks forced America to recognize the Islamic holy war (jihad) waged by al Qaeda, Hamas, Islamic Jihad and Hezbollah.

What will it take for the United States to recognize the far more dangerous and important part of that jihad—economic warfare (financial jihad, or al-jihad bi-al-mal)–which the Saudis and Gulf States now aggressively also pursue? Shari’a mandates that Muslims fund jihad: Qur’an 61:10-11, “strive for the cause of Allah with your wealth and your lives. . . .” And Qur’an 49:15, “(true) believers are only those who…strive with their wealth and their lives for the cause of Allah…. Financial Jihad [is] ‘ more important’ than self-sacrificing,” says Saudi Islamic cleric and Muslim Brother Hamud bin Uqla al-Shuaibi.

This open economic warfare, however, has not affected U.S. economic or foreign policies, much less media coverage or presidential election campaigns or debates.

While the U.S. currency weakens and Saudi and Gulf interests continue their binge buying of strategic U.S. assets and financial institutions, their petrodollars lure more and more ignorant, and even desperate American bankers and investors into the purported glimmer of shari’a banking — a gold-plated Islamic money pit.

The president and his economic advisors should heed Jack Bogle. Without emergency measures to redirect U.S. economic policy and market regulations, the petrodollar- and shari’a-driven takeover of America will indeed endanger national and global security.

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Dr. Rachel Ehrenfeld is director of the American Center for Democracy and member of the Committee on the Present Danger. Alyssa A. Lappen, Senior Fellow at the ACD, is a former editor for Forbes, Corporate Finance, Working Woman and Institutional Investor.

All Articles, Poems & Commentaries Copyright © 1971-2021 Alyssa A. Lappen
All Rights Reserved.
Printing is allowed for personal use only | Commercial usage (For Profit) is a copyright violation and written permission must be granted first.