I had a few GS15s sit down with me in 2019 and explain to me directionally the vibe on Israel. Changed my viewpoint forever. For ~50 years America has subcontr

I had a few GS15s sit down with me in 2019 and explain to me directionally the vibe on Israel. Changed my viewpoint forever. For ~50 years America has subcontracted to Israel a portion of its intelligence operations and sometimes largely for plausible deniability, other times because we cannot spy on our own citizens - the last part wasn't said explicitly - but what I could grok. IMHO, the Israeli apparatus has gone far off the reservation in their operations and have lost favor in the past 5 years, especially in DC. Israel's intelligence apparatus has historically participated in cleaning dirty narco cash via affiliates to finance intelligence operations back home (mostly thorugh hapoalim, safra, leumi, and signature bank), sold hacking tools to narcos, running guns, cleaning blood diamonds, and running kompromat where they deemed it is needed. Rwandan and Guatemalan genocides probably wouldn't have happened to the stunning degree if the Israelis weren't illegally selling munitions into both. Also hard to get clarity if they were doing this as our subcontractors or going off the reservation. Signature Bank's collapse was a sign that your local Israeli-intelligence agency linkedin money laundering apparatus was going to have volatility that there would be volatiliy in the middle east. There was a time in the 90's onwards where one could wlak into signature, hapoalim, leumi, or safra with 10M in narco cash and get it cleaned, or so I'm told. https://www.cnbc.com/2015/02/19/finally-the-us-is-busting-israeli-banks-commentary.html https://www.cnbc.com/2015/02/19/finally-the-us-is-busting-is... 2023: 500k Israelis protesting against Netanyahu, blood diamonds going down in value b/c of lab grown diamonds, and the implosion of their money laundering apparatus cornerstone (Signature bank) probably was a positive signal for disruption in the Israeli way of life in mid 2023. The large question at play amongst the GS15s that I've heard murmured in DC is if America should subcontract security operations to a non-AUKUS passport holders, and Israel is the vendor in question. A lot of CIA seems bifurcated on their viewpoint of Israel. No idea when that happened. Our relationship with Israel costs us $10-$20/barrel in increased fees and 50B-100B/yr to have our military in the region. One thing that is fascinating - the Israelis are getting blamed for Iran right now - but the Hormuz volatility greatly increases their cost of living - and we are the greatest beneficiary. We are the largest producer of nat gas, helium, methanol, LNG, and Oil. I think the "hormuz volatility" has a terminating condition - APAC buying these US products in larger sizes. As it was explained to me, the reason the prices aren't 150 is because while maritime stuff is problematic - the surrounding 5 countries to Iran have ways to get the energy via pipeline and power line. World is a complex place, they're our subcontractor for now....no clue if they will be in the future but the trend is no.