#2 worth roughly a quarter billion dollars = ~205, or 210M US aid - is aid to US companies like Lockheed Martin. The money keeps their factories rolling. Israel is a beneficiary, but in return they have to dance to America's tune, or face the conequences. Solution - China is the way forward, and they have bogger military budget, and will soon be #1 economy in the world!
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from the article: Exclusive / Despite row, U.S. and Israel sign massive arms deal