2025-07-14 19:22
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Tags: #Finance #Israel #AmericanJewry
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# Israel Bonds
- The Development Corporation for Israel, known as Israel bonds, is the US based entity which issues Israeli bonds.
- Israel Bonds was formed in 1951 by [[David Ben-Gurion]] after meeting in Jerusalem with influential American Jews.
- [[Henry Morgenthau Jr.]] was critical in persuading Ben Gurion to adopt the bond project.
- [[Samuel Rothberg]] was involved in founding Israel bonds and established its working connection to [[United Jewish Appeal (UJA)]].
- Israel Bonds was initially a vehicle for the Jewish Diaspora to fund the Israeli government.
- They still serve this function however the bonds are now sold in huge quantities to various institutional buyers as well.
- After launching Israel Bonds, Ben Gurion went on a bond drive in the united states with the goal of raising $25 million. $35 million was raised at the Madison Square Garden inaugural ceremony alone, with a total of $52 million for the initial drive.
*[[David Ben-Gurion]] and American Jewish arms smuggler [[Rudolf Sonneborn]] at the 1951 Madison Square Garden inaugural ceremony*
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- Israel Bonds capitalizes off of Israeli national crises, rallying the Diaspora for increased bond sales.
- During the [[1967 Six Day War]] $250 million was raised.
- During the [[1973 Yom Kippur War]] $500 million was raised.
- During the [[First Gulf War]] $1 billion was raised.
- Since [[October 7th]] (1 year 9 months as of writing) over $5 billion has been raised.
- After [[October 7th]] and the ensuing [[Gaza War]], many US states both Republican and Democrat went into overdrive buying Israeli bonds.
- Palm Beach county, which has a very concentrated and very wealthy Jewish population, bought an additional $135 million in Israeli bonds after October 7.
- This investment and others like it are legally conflicting as Florida requires a AAA or AA rated foreign issuer which Israel does not meet. Israel's bond rating is Baa1, the lowest level still considered investment grade.
- As of 2024 Israel Bonds had raised ~$52 billion dollars.
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*Palm Beach County October 2023 announcement of $135 million Israeli bonds purchase.*
#### References
- **“Israel Bonds: The FBI File.”** _Israel Lobby Archive_. Accessed July 14, 2025. [https://www.israellobby.org/israel_bonds/default.asp](https://www.israellobby.org/israel_bonds/default.asp).
- **“Israel Bonds,”** _Wikipedia_, [https://en.wikipedia.org/wiki/Israel_Bonds](https://en.wikipedia.org/wiki/Israel_Bonds).
- Fitch Ratings. “Israel’s Sovereign Rating Downgrade Report.” February 2024.
- Moody’s Investors Service. “Israel Sovereign Rating Downgrade.” 2024.
- NPR. “States, Cities Invest in Israel Bonds amid War.” November 2023. https://www.npr.org.
- Associated Press. “Israel Bonds Face Questions as States Invest.” October 2023. https://apnews.com.
- _Haaretz_. “U.S. States Buy Billions in Israel Bonds after October 7.” November 2023. https://www.haaretz.com.
- _The Forward_. “Israel Bonds in Crisis.” December 2023. https://forward.com.
- Jewish Virtual Library. “Israel Bonds.” https://www.jewishvirtuallibrary.org/israel-bonds.
- Development Corporation for Israel (Israel Bonds). “History of Israel Bonds.” https://www.israelbonds.com.
- Jewish Virtual Library. “United Jewish Appeal.” https://www.jewishvirtuallibrary.org/united-jewish-appeal.