Sunday, March 10, 2019

US Taxpayers On the Hook for Nearly $1 Billion in Saudi Arabia’s Recent Missile Defense Purchase

By Whitney Webb - March 10, 2019 at 06:07PM

undefined

On Monday, in an all-but-unreported news item, the Pentagon announced that it would be paying $946 million to Lockheed Martin toward the installation of a missile defense system that was purchased — not by the United States government — but by Saudi Arabia. In other words, the Pentagon is paying nearly $1 billion to subsidize a purchase made by a foreign power.

In its announcement, the Pentagon referred to the payment as an “undefinitized contract action” that would be used, in part, to prepare Saudi Arabia’s current missile defense system for the installation of the $15 billion Terminal High Altitude Area Defense (THAAD) system manufactured by Lockheed.

The Pentagon said the payment was intended to prevent major delays in the delivery and production of the THAAD system, suggesting it was likely a hedge against past Saudi interest in the THAAD’s main (and cheaper) competitor, the Russian-made S-400. However, the payment is also authorized for use by Lockheed to pay for materials, tools and engineering development.

The Saudi THAAD purchase was a major component of the “$110 billion” weapons deal much touted by the Trump administration in 2017. However, many of the key purchases within that massive deal were never finalized, an embarrassment for what the administration had advertised as a major foreign policy success that would create jobs in the United States, even though many Lockheed products are actually manufactured abroad.

A better deal for a better product down the block

One likely explanation for the Pentagon’s willingness to pay such a significant amount to subsidize the Saudi THAAD system is the fact that the Saudi government had intended to purchase the cheaper and more effective Russian-made S-400 instead of the THAAD. Indeed, as MintPress News reported last year, the Saudis let the deadline for the THAAD deal pass on September 30 of last year without signing, and instead expressed interest in the S-400. The Saudis also refused US government requests to disavow its interest in the Russian-made system.

Just two days after the THAAD deadline passed, Saudi journalist Jamal Khashoggi disappeared. His disappearance and alleged murder caused international outrage, surprising many observers, as even the most outrage-prone US politicians generally turn a blind eye to Saudi human-rights violations. Senator Lindsey Graham (R-SC), who became one of the most vocal critics of Saudi Crown Prince Mohammed bin Salman (MBS) after Khashoggi’s disappearance, is also heavily funded by Lockheed Martin, which is the largest contributor to his 2020 re-election campaign.

The furor over Khashoggi’s death — which appears to have been, in part, influenced by Saudi lack of interest in the THAAD system — eventually pressured the Saudi government enough to sign letters of offer and acceptance for their purchase of 44 THAAD launchers, missiles and related equipment in November.

However, in order to entice the Saudis to “buy American,” more than political pressure appears to have been needed and it is likely that US officials offered to “sweeten the deal.” Given this context, the Pentagon’s $946 million payout to prevent installation delays appears to be one of these concessions, as the US government continues to scrambleto keep its allies from buying the THAAD’s top competitor, the Russian S-400. Unfortunately for them, it’s the US taxpayers who are footing the bill.

Reprinted with permission from MintPressNews.

from Ron Paul Institute Featured Articles

via IFTTT

No comments:

Post a Comment

Merchandise



See other gifts available on Zazzle.

Ron Paul America Cloud

Site Credits

Ron Paul America

is voluntarily affiliated with

Liberty Operations Group

______________________________

Site created, maintained and hosted by

Liberty Web Services

Tags

#TurnOnTheTruth 2008 2012 4th amendment 911 ACTION Afghanistan war Agency Aggression Principle al-Qaeda Alan Colmes Alert America America's Fault Americans antigun AR 15 assault weapon Audit Authoritarian bailouts Believe Big Brother big government bill of rights Blame blowback bubbles Bush Campaign for Liberty Career Politician Eric Cantor Central Bank Charity China churches collapse Collectivism Commission committee Compassion Congress Conservative constitution Crash dangerous person Democrat Democrats Donald Trump Donald Trump. Planned Parenthood drones economic Economy Edward Snowden End the Fed European Union Federal Reserve Floyd Bayne floyd bayne for congress force foreign interventionism free market free markets GOP Nominee GOP Presidential Debates Government Great Depression gun control House of Representatives housing bubble HR 1745 I like Ron Paul except on foreign policy If ye love wealth better than liberty IFTTT Individual Individualism Institute Irag Iran Iraq war ISIL ISIS Judge Andrew Napalitano libertarian Liberty Liberty Letters Liberty Report Lost mass Media meltdown metadata Micheal Moore Middle East Mitt Romney nap National Neocons New Ron Paul Ad New York Times Newsletters Newt Gingrich No Non non-interventionism NSA NSA Snooping Obama Overreach overthrow Patriot Act peace politicians Pope Francis President Presidential Presidential Race programs prosperity Race Racist Racist Newsletters Rand Paul Read the Bills Act recessions redistribution of wealth refugee crisis Repeal Obamacare Report Republican Republican Nomination Republican Nominee Republicans Revolution Rick Santorum Rick Santorum Exposed Ron Ron Paul Ron Paul Institute Ron Paul Institute Featured Articles Ron Paul Institute for Peace And Prosperity Ron Paul Institute Peace and Prosperity Articles Ron Paul Next Chapter Media Channel Ron Paul Racist Newsletters ron paul's foreign policy Ronald Reagan ronpaulchannel.com ronpaulinstitute.org Rosa DeLauro russia Samuel Adams Saudi Arabia Second Amendment Security Senate Senator September 11th attacks Show Soviet Spying stimulate Stock Market surveillance Syria tech bubble terrorist The the Fed the poor US US foreign policy Us troops USA Freedom Act Virginia Virginia Republican Primary voluntarism. Liberty Voluntary Warner Warning warrantless wiretaps YouTube