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Who Profited From Arming Egypt?

Posted: 01/30/11 09:38 PM ET

Thankfully, although Egyptian president Hosni Mubarak has called out the army in response to the mounting protests against his government, so far the tanks have become a meeting place for protesters and the troops, not a tool of repression. Let's hope it stays that way, and that the military throws itself to the side of democracy rather than propping up Mubarak's corrupt regime.

But even as the political situation unfolds on the streets of Cairo, the question of U.S. support for Mubarak's 30-year rule looms large. And much of that support has come in the form of military aid, $1.3 billion per year like clockwork throughout that entire period. And as Middle East expert Juan Cole noted in a recent appearance on Democracy Now!, most of that aid has been simply a pass through that goes to Egypt and then right back into the coffers of U.S. corporations.

According to lists of arms sales notifications compiled by the Pentagon's Defense Security Assistance Agency, in the last decade alone, the Department of Defense has brokered over $11 billion in U.S. arms offers to the Egyptian regime on behalf of weapons makers like Lockheed Martin, General Dynamics, Boeing, Raytheon, and General Electric. Aside from some leftover Soviet equipment from the pre-Camp David era (before 1979), the Egyptian military is virtually made in the USA. Fighter planes (Lockheed Martin F-16s), tanks (General Dynamics's M-1A1s), missiles (Harpoon, TOW, Hellfire, and Stinger, made by Boeing, Raytheon, and Lockheed Martin), howitzers (United Defense), aircraft engines (General Electric) have all been purchased for the Egyptian armed forces with U.S. taxpayer dollars. The biggest winners have been Lockheed Martin ($3.8 billion); General Dynamics ($2.5 billion); Boeing ($1.7 billion); Raytheon ($750 million); and GE ($750 million).

Now that the Obama administration has at least suggested that U.S. aid may be reconsidered based on how harshly the Mubarak regime continues to crack down on democracy protesters, it is possible that this gravy train for contractors could come to an end. Post-Mubarak, the question will arise as to whether a new government wants to keep such close military ties to the U.S., and even if it does, whether it wants to maintain Mubarak's bloated, made-in-the-U.S.A. arsenal. But there will no doubt be efforts by Washington to use its ties to the military in Egypt to shape the potential outcome there, and dangling more weapons deals while selling support services and spare parts to maintain Egypt's existing weapons might become part of that strategy.

Most likely, even after all those years of supplying weapons and training, the Egyptian military will take its own course, independently of what Washington may want. And if an anti-U.S. regime comes into power, it will be extremely well armed with U.S.-supplied weapons. Could the same happen in Saudi Arabia, which Washington is furiously arming as we speak, with a record $60 billion weapons deal in the works? Perhaps the White House and the Pentagon should take a breather from pouring weapons into the region and allow the democratic currents there to play out.

 
Thankfully, although Egyptian president Hosni Mubarak has called out the army in response to the mounting protests against his government, so far the tanks have become a meeting place for protesters a...
Thankfully, although Egyptian president Hosni Mubarak has called out the army in response to the mounting protests against his government, so far the tanks have become a meeting place for protesters a...
 
 
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07:27 AM on 02/01/2011
DoD Daily Doles to Lockheed Martin: First in Funding, First in Fraud

U.S. total debt $55.6 trillion and rising ... U.S. federal debt $14.1 trillion and rising ... U.S. federal deficit $1.5 trillion and rising ... U.S. dollar rapidly losing world reserve currency status ... as U.S. politicians bought and paid for by multinational corporations (legalized by Citizens United vs. FEC) cut education, close schools, convert asphalt roads to gravel and accelerate America's descent into oblivion just so they can dole out millions daily to Lockheed Martin and other repeat-offender federal contractors for Rube Goldberg weapons systems and myriad military and non-defense boondoggles as unnecessary, unaffordable and unjustifiable as our unending wars for oil and profit:

http://watchingfrogsboil.com/dod-daily-doles-to-lockheed-martin-first-in-f
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HUFFPOST SUPER USER
AF3IRM
A organization of transnational women
06:59 PM on 02/02/2011
War, militarism and US foreign policy have been nothing more than marketing conduits for Corporate America. Wake up, people!
08:42 PM on 01/31/2011
I’m so glad that you discuss the issues surrounding the weapons industry. I think the war profiteers exert a tremendous influence on our foreign policy. I think they encourage us to foster violence. See http://peaceandjusticeonline.org for a new article on this topic. For more on the military-industrial complex, and a short video of key excerpts from Eisenhower’s famous speech, see http://wp.me/pVgdW-4R
12:09 PM on 01/31/2011
Once more the "comments" column is filled with remarks by those whose fear, ignorance or greed, blind them to the truth..

"(Prior to WWII) the United States had no armaments industry. We have (since) been compelled to create a permanent armaments industry of vast proportions...this conjunction of an immense military establishment and a large arms industry is new in the American experience. The total influence -- economic, political, even spiritual -- is felt in every city, every Statehouse, every office of the Federal government.

We annually spend on military security alone more than the net income of all U.S. corporations. We must not fail to comprehend the grave implications...Our toil, resources, and livelihood are all involved. So is the very structure of our society. In the councils of government, we must guard against the acquisition of unwarranted influence... by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist. We must never let the weight of this combination endanger our liberties or democratic processes."

Dwight D. Eisenhower
Farewell Address - January, 1961
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Hunter3203
Beer is proof God loves us and wants us to b happy
03:29 PM on 01/31/2011
During Eisenhower's presidency defense spending represented over 10% of GDP. Current military spending including the wars in Iraq and Afghanistan is half that figure.

In spite of the level of US defense spending at that time, John Kennedy ran on a plank that accused the Eisenhower administration of allowing us to fall behind the Russians in military technology. Eisenhower and Nixon both knew that was BS based on the intelligence from U2 overflights but couldn't reveal that information.
08:11 PM on 02/02/2011
"The increase in defense spending since 2000 (pre 9/11) has been staggering.The annual base defense budget has increased from $295B in FY2000 to $549B by FY2011, almost a 90% increase, while excluding supplemental funding directly attributed to the wars in Iraq and Afghanistan, Homeland Security and certain other expenses directly attributable to the conflict, such as Veterans Affairs. Some experts estimate these indirect costs will eventually exceed the direct costs

The cumulative increase in the base defense budget is estimated to reach $1.46 trillion by the end of fiscal year 2011, while the total spending for the wars is approximately $1.22 trillion, a combined total of $2.68 trillion.

No accounting slight of hand will diminish the non-productive impact of these staggering sums, be they 5%, 7% or 10% of our declining GDP measured in other than U.S. dollars. In hindsight, we will find the severity of the direct threat posed by Islamic extremism extremely overblown - our reactions woefully ineffective and the added deficit serving only to bankrupt the nation.
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HUFFPOST SUPER USER
AF3IRM
A organization of transnational women
07:03 PM on 02/02/2011
The US had a Department of War (now Defense) in the 1800s -- it began the use of foreign policy as a means of economic expansion with the annexation of the Philippines in 1898. Before the country was granted "independence," the New York-based American Chamber of Commerce demanded equal rights to the exploitation of the country's natural resources -- which required a Constitutional Amendment, which in turn led to a long civil war which continues to this day.
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HUFFPOST SUPER USER
Peter Noble 2
12:07 PM on 01/31/2011
The very least atonement for our sins is to provide a future democratic Egypt with the tools to defend itself from American and Israeli agression.
We always fail abroad because we always support the worst to attack mythical powers. Iran for example is not remotely a threat but we insist it is. Like the old Soviet Union.

America has always been the same, boasting about freedom while keeping slaves, teaching about Lincoln while ignoring he did not think "Negros" were equal to Whites and fighting fascism with segregated troops and anti-Semitic generals. Lincoln would have been dismayed to see Obama in the White House and given all the Birthers in America we are either a stupid nation or racist.

We have never been different and we will never change.

How shallow Obama's Cairo speech looks now as he tries his best to support a tyrant but events forced him to side with "peaceful change". What right does he have to insist it is peaceful? What right do Americans who would not know an honest system of government if it dropped on their heads have to insist the people of Egypt do not seek revenge? There are American styled gated communities full of Mubarak's beneficiaries and we have allowed that from Nixon onwards.

The least we could do is provide them weapons to protect themselves from Oligarchs.
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Hunter3203
Beer is proof God loves us and wants us to b happy
06:34 PM on 01/31/2011
"We have never been different and we will never change."

And yet you list several examples of how we have changed. When our country was founded only white men could vote and we enslaved people. Since that time we abolished slavery, freed those enslaved and eventually granted them the same rights as all other citizens. Women were granted the right to vote and restrictions on their role in society have been removed as well.

We may not have a perfect democracy but we have made tremendous strides in our over 230 years of existance.

As for Egypt, Mubarek is the latest leader of a military dictatorship which overthrew a corrupt monarchy in 1952. For most of it's existence this military regime pursued a strategy of conflict with Israel, received military aid from the Soviet Union and was not a friend of the US. With the Camp David accords we agreed to replace the Soviet Union as their supplier of military equipment and provide $1-1.5 bil/yr in aid. Egypt has played a very constructive role in the Middle East since that time and is one of our most important allies. However, we didn't put this regime in place, we haven't kept the regime in power and we don't have and never have had the power to change the regime.
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HUFFPOST SUPER USER
Lost Rights
Wine Glass Wealth Distribution, 20% have 82%.
12:00 PM on 01/31/2011
And the worse thing is that this goes on in almost every country in the world, we support those same contractors arming everybody else.
11:54 AM on 01/31/2011
Yes, folks Saudi Arabia is next on the list. And this whole "pat ourselves on the back" notion of “foreign aid” is preposterous. It's just corporate welfare for our munitions companies to keep them pumping out weapons in times of slow war. An outrage! American taxpayers giving F-16s and tanks and tear gas canisters to Egypt.
iridium53
Semper Fi
11:38 AM on 01/31/2011
Better for U.S. arms makers to profit from selling merchandise than for U.S. citizens to allow the U.S. military to act as mercenaries for foreign regimes as we've done in Kuwait, Iraq and Afghanistan.
10:53 AM on 01/31/2011
It is amazing to me how many articles can be written about the relationship between the US and Egypt and almost none of them mentions Israel or the Palestinians, which is the main reason for our support of Egypt
09:14 AM on 01/31/2011
there's a much more serious concern - once elections are in place, the majority of egytpians support islamists (60% said they prefered islamists to modernists) and then the weapons go to them...and hamas...and iran... http://pewglobal.org/2010/12/02/muslims-around-the-world-divided-on-hamas-and-hezbollah/
11:19 AM on 01/31/2011
Islamists! Hide under your beds! You Americans are so easily spooked. If I were you, I would be much more worried about the gazillions of religious nutcases in your own country, who believe all sorts of crazy nonsense about the big daddy in the sky.
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paxatman
Do no harm, Help others.
11:54 AM on 01/31/2011
Bravo !
12:09 PM on 01/31/2011
I guess you are not old enough to remember the Iranian revolution. Or do not have friends from Iraq or Afghanistan who can tell you what Islamists are like.
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HUFFPOST SUPER USER
godwithin
03:52 PM on 01/31/2011
How come you're not worried over the christianist and judaists taking over US and Israel?
08:46 AM on 01/31/2011
While Western Europe was selling arms to Saddam Hussain and the Iranians (France sold Saddam Hussain a nuclear reactor), the U.S. was supporting its allies and providing jobs for American workers. Arms sales to Egypt was very profitable for American corporations who paid dividends to American retirees.
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Wozzeck
Pearl Bay, Australia
09:03 AM on 01/31/2011
The money that Egypt and Israel "paid" for US weapons came from the US taxpayer.
12:10 PM on 01/31/2011
True. Do you think it would have been cheaper if Egypt had still been a client of the USSR/Russia, or maybe China, and had been waging war against Israel and fomenting terrorism around the world like Iran has been?
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Wozzeck
Pearl Bay, Australia
09:15 AM on 01/31/2011
The USA and Israel both sold weapons to Iran. In fact, Israel proposed selling nuclear-tipped missiles to Iran. See "The Israeli Connection: Whom Israel Arms and Why", by Benjamin Beit-Hallahmi
http://books.google.com/books?id=7v-g21ksdVsC&lpg=PP1&pg=PP1#v=onepage&q&f=false
12:12 PM on 01/31/2011
Somehow that link did not work for me. And somehow I doubt that this is accurate.
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AZreb
equal-opportunity Independent heathen
08:43 AM on 01/31/2011
How many times have we sold or provided arms and military equipment to other countries and then had those weapons turned against us? Might be an interesting study.
HUFFPOST SUPER USER
Bob Gort
07:35 AM on 01/31/2011
Hmmm. Cut arms sales to Egypt and other dictators around the world or cut Social Security. Which do you think the President and most members of Congress would cut first?
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AZreb
equal-opportunity Independent heathen
08:39 AM on 01/31/2011
No question as to the answer on that one - Social Security is said to be short by $48 billion. We are spending $1.2 billion every week in Afghanistan. Using those figures, we could fund SS in 10 months for what we spend in Afghanistan.

And now the largest bank in Kabul is in trouble - sound familiar?
08:42 AM on 01/31/2011
Stupid comment, we make money off arms sales.
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Wozzeck
Pearl Bay, Australia
08:55 AM on 01/31/2011
How do "we make money" by giving billions of dollars of weapons to Israel and Egypt, "we" being the US taxpayer?
10:57 AM on 01/31/2011
Jerry Levy - not a stupid comment at all.
Just because you support the merchants of death - as long as it's not anyone on your side.
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HUFFPOST SUPER USER
Christopher Koulouris
06:20 AM on 01/31/2011
Ultimately what is at stake is the citizen’s of the mid east ability to garner some economic prosperity and mobility and quash the oppressive divide that has worked to date to engender US and entrenched mid east’s interests. But from the US’s point of view what is really at stake is their ability to retain US hegemony and the sale of a McDonald’s sponsored cheese burger at some future date. How the US reacts to EGYPT will be unconditionally tempered by this fact.

http://scallywagandvagabond.com/2011/01/us-hegemony-and-the-crises-called-egypt/
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HUFFPOST SUPER USER
mdmccormick
I am tired of this BS
05:25 AM on 01/31/2011
The issue is not one of the military or religion it is economic. Please note the top 1% have already beat feet to Dubi, and left their government puppets behind to take the heat. The difference between the have and have not’s is huge although nothing compared to our own. The people have had enough and decided to take matters into their own hands, they are lashing out at the government as that is the face they see, reality I believe is now in Dubi. That does not mean that the government has not and is not corrupt and needs to be held to account, simply changing the people in the government and then seeing the Top 1% come back from holiday will ensure that nothing changes. All they need do is look at us every two and four years, the top 1% makes more and more we less and less and our government puppets switch jobs between lobbing for and enacting laws for the top 1%. Our illusion of hope is simply better than Egypt’s as theirs is a stagnate government and has been for thirty years.
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HUFFPOST SUPER USER
Lost Rights
Wine Glass Wealth Distribution, 20% have 82%.
12:06 PM on 01/31/2011
Good description. F&F
04:32 PM on 01/31/2011
Great point, governments are local and the Oligarchy is now global. I recall the images of Bush family and the Saudi royalty...
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greg abbott
Anti-Apartheid and Pro-Democracy
12:33 AM on 01/31/2011
How much has the war in Iraq cost? Afghanistan? 'The Long War against Terror' in Yemen, Pakistan, and Somalia? Are we up to 3 trillion yet? - borrowing all that from the Chinese and Gulf?

These are wars of choice that we were forced into because of our Israel Lobby-dominated foreign policy that supports the Neocon/Israeli Clean Break Plan for the Middle East, and the blowback from the pro-Israel policies that the Israeli Lobby has been bullying American politicians into supporting (if they are not already members of the Israeli Lobby themselves like a Kyl or Lieberman or Graham pushing Neocon wars) and have inflicted on the Middle East for decades

These wars have bankrupted the US - they haven't given America jobs.

Wars that we are manipulated into by Israel to destroy her enemies in the ME for her are by definition warcrimes - just as the Israeli occupation of Palestine that she manages to get the US to support for her is thoroughly illegal and is itself a warcrime