"Due to the fungible nature of money one can demonstrate both that the money is going for the settlements and that it is not. If the Israeli economy generates, say, $200B on its own, and we add in another $4B, and they spend $4B on the settlements (private or government), they will say that it isn't our $4B that went to the settlements, but what would an unbiased observer say?"
Using that argument, you could just as well say that the money went for toilet paper. What's missing is any evidence that cutting off U.S. aid would stop the settlements from being built. If anything, it would cause them to increase, because the U.S. would lose whatever restraining influence it may currently have over Israel. And how do you know that the settlements don't make a net positive contribution to the Israeli economy anyway? Remember, the people who live in them have to live somewhere, and if the settlements weren't being built, then homes would have to be built for them somewhere else.
"That's why I suggested spending it directly on infrastructure, educational scholarships, etc."
I don't object to spending money for peaceful purposes, but I don't trust the Palestinians to spend it for its intended purposes. And what about the "fungible nature of money" you were just telling me about?
"You know what."
I don't know anything of the kind. The U.S. doesn't owe the Palestinians compensation, and I don't think the Israelis do either. The Arab nations owe the Palestinian refugees compensation. They have plenty of oil money. Let them put some of it to a constructive purpose, for a change.
"OK, so both sides are guilty."
No, it's primarily the Arab side that's guilty. They are the ones who have refused to let the refugees be assimilated.
"I'm looking for a solution."
Good. Please explain how your solution will stop Palestinians from attacking Israelis.
"It seems to me that you are more interested in being right."
And you're interested in being wrong? What I'm interested in is getting at the truth. It seems to me that you just don't like being asked the hard questions.
