Trump's War Bomb DETONATES: Yemen's Missiles HIT Israel, IDF Attacks Gaza w/ Ben Norton
According to Perplexity
In the case of Israel defaulting on bonds bought by U.S. citizens, the U.S. government does not automatically cover the bonds. The U.S. Sovereign Bond Guarantee (SBG) program, which has historically provided guarantees for loans to countries like Israel, Egypt, and Jordan, is not a blanket guarantee for all bonds issued by these countries. Instead, it applies to specific, U.S.-guaranteed sovereign bonds. For example, the 2017 U.S.-guaranteed Iraqi sovereign bond had a significantly lower interest rate due to the U.S. guarantee, but this does not extend to all bonds issued by Israel or other countries (
1).
Israel Bonds, which are issued by the State of Israel and sold to U.S. citizens, are not covered by U.S. government guarantees. These bonds are governed by New York law, and in the event of a default, U.S. investors would have no recourse to the U.S. government for repayment (
2) (
4). The U.S. government’s role in such cases is limited to specific programs like the SBG, which require explicit authorization and are not applicable to all bonds issued by foreign governments (
3).
Therefore, if Israel were to default on bonds purchased by U.S. citizens, the U.S. government would not step in to cover the losses unless the bonds were explicitly part of a U.S.-guaranteed program.
