A Win-Win Proposition

There are very few true win-wins in this world, but in recent weeks, the State Treasury has found an opportunity for both taxpayers and our ally Israel to prosper.

Since the October 7 terrorist attack, Israel has been forced to fight for its life as the only Middle Eastern democracy. It’s a battle that has cost both blood and treasure. Last week, the State Treasury purchased $10 million worth of Israeli bonds to support our ally as it fights to exist in a dangerous neighborhood.

While this investment comprises just a small fraction of Mississippi’s investment portfolio, it’s impact on our ally is profound and sends a strong signal that the Magnolia State stands firmly beside Israel.

Beyond helping our ally, however, these bonds provide an excellent return to taxpayers. Since our first investment four years ago, Israeli bonds have yielded $2.2 million in interest income. Because of Israel’s high-quality credit rating, the bonds have a solid coupon, paying 4.76% on our reinvestment that occurred on February 1, 2023.

I firmly believe the United States has an interest in and obligation to support Israel as a beacon of democracy in a dangerous neighborhood. While the Biden administration has recently seemed more apathetic to left-wing protesters than the needs of our allies, Mississippi is proud to send a signal to the world that we stand on the side of democracy – and fortunately, that also produces meaningful financial gains for taxpayers too. In other words, it’s a win-win.