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Marty explains why aliyah-immigration to Israel from Western, democratic countries is SO important right now…And why it’s also good for YOU, Brother Jew!…

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In spite of the economic meltdown taking place right now in Europe…In spite of the stock market collapse on Wall Street in the US yesterday…Israel’s little old economy keeps on tickin’…

Stanley Fischer..Israeli Economy is Strong

Conservative banking regulations and an innovative hi-tech sector…good old “Jewish Sachel”…an economically savvy leadership, headed by MIT economy-educated Benjamin Netanyahu, assisted by Bank of Israel’s Mega-financial brain, Stanley Fischer…A formula for a successful, growth economy that continues to prove itself year after year, even in the face of worldwide economic crises.

Yeah, Israel…

Fischer: EU crisis mildly impacts Israel

Bank of Israel Governor Stanley Fischer said Wednesday that Israel was likely to weather the European economic crisis, and be only lightly affected by it

Reprinted from Jpost.com

Fischer told the Knesset’s Finance Committee that although the dramatic drop in the value of the Euro and the slowdown in the European economy would impact exports to Europe, those may be offset by improved exports to the US. However, if the crisis engulfs the US, which he deemed unlikely, it would be cause for major concern, said the BoI governor.

“Suddenly” the Greeks discovered “the economic data they had been using was wrong. Their deficit stood at 13 percent rather than five. Their fiscal policy was extremely irresponsible, their debt-to-GDP-ratio was 130%,” Fischer said. “Their economy was in deep crisis and they could no longer finance their over-generous budget.”

Fischer also gave his economic forecast for the year 2011, saying the central bank expected a growth rate of 4%, and was updating the forecast for 2010 to 3.7%.

He favorably compared Israel’s unemployment rate to that of the US, which rose from 5% to 10%. Israel’s unemployment rate was just under 6% and are now near 8%.

Speaking before Fischer, Knesset Finance Committee chairman Moshe Gafni opened the session by attacking the detractors of government support for Yeshivot because they are economically unproductive. Gafni said he would go through the budget item by item and see what outlays were economically productive. “Over 60% of the budget is uneconomical,” he told the committee.

“Was the Kibbutzim debt arrangement economical? Are the dramatic subsidies to agriculture? What about the settlements? I will even say the investment in development towns isn’t economically worthwhile.”

“This is an ideological issue,” Gafni said. “Zionism and civics classes are ideological. I’m all-out opposed to the view that only what is economically productive should be included in the budget. It should be taken off the public agenda.”

Gafni also spoke about the low employment rate among the ultra-orthodox, saying, “I have said and will say again it is not the haredim who do not want to go to work, it is the state that does not want them to work, it lies when it says it wants them to work.”

The Israeli economy continues to thrive and grow, even in the face of the world economic crisis. I have often pointed out, and will continue to do so…Can you begin to even imagine the accomplishments that this tiny little country Israel could achieve if we didn’t have to spend SO much of our human and economic (not to mention emotional) resources fighting terror and daily threats to the existence of the Jewish State.
I can dream, can’t I?

Israel Economy

Our economic success story


While world struggles, Israel’s economy reaches another milestone

Reprinted from Ynetnews.com Sever Plocker

Without you realizing it, Israel is approaching yet another milestone en route to turning into a highly developed economy – our per capita GDP will reach the $30,000 mark this year, likely at the beginning of the summer. The overall gross domestic product, which is the economic value of all the goods and services produced in Israel, will reach roughly $230 billion.

Israel fully reached the $20,000 per capita GDP mark only in the first half of this decade. We did it slowly and hesitatingly; the deep recession during the second Intifada curbed economic growth and pushed the economy backwards.

Reaching the $30,000 per capita GDP mark reflects to a small extent the increase in real national income in shekels, and to a large extent the shekel’s strengthening against the dollar. Yet this does not detract from the accomplishment. For many years, the shekel has been traded in foreign currency markets below its real purchasing power.

We can address the $30,000 GDP mark as yet another statistical figure; just another fleeting figure. Yet we can also look at it as a starting point for a leap in the coming decade. The Israeli economy’s state at this time is exceptionally good: Other economies whose per capita GDP is similar to ours – Spain, Greece, Portugal, and Britain just to name a few – sustained harsh blows during the financial crisis. They will dedicate the coming years to licking the wounds and attempting to extract themselves from the abyss of deficit and debt. Their recovery will be slow.

Window of opportunity

This is our window of opportunity. While in most developed and industrialized states are weakened and bleeding, while their government budgets skyrocketed, Israel is strong and in good health. In six of the seven leading industrial powers, the ratio between government debt and GDP is expected to grow by dozens of percents in the coming years. The debt will reach 90% of the GDP in Germany, 96% in France, 100% in Britain, 110% in the US, 130% in Italy, and 250% in Japan. In Spain, Greece, Portugal, and Ireland, the ratio is expected to stabilize somewhere between the 100% to 150% mark.

Yet in Israel, the opposite is expected to happen: Government debt is expected to go down to only 70% of GDP, with the decline starting as early as this year. The budgetary plan presented to the government by Foreign Minister Yuval Steinitz is a pipe dream for most finance ministers in developed countries.

Israel’s new comparative advantage is prominent in many areas. The Irish government, for example, announced last week a national rescue package for local banks, at a total cost of 80 million Euros. The British, French, and American governments are close to imposing special taxes on financial institutions, in order to fund at least some of the assistance handed over to them during the crisis. Yet in Israel there’s no need for it. Israel’s banking system overcame the past two years without taking a penny from the government.

Ambitious target

Late into his tenure as finance minister, Benjamin Netanyahu presented an ambitious target for Israel: Joining the list of top 10 or 12 richest economies in the world. Is this target realistic? Based on today’s perspective, the answer appears to be “yes.” In order to join the group of truly wealthy states, Israel needs to reach the $40,000 per capita GDP mark. To that end, our economy must grow at an annual rate of 6.5% in the next six or seven years, assuming that the shekel exchange rate won’t shift much from its current level of about NIS 3.6 per dollar, and that our population will grow by 1.8% annually.

This isn’t impossible; the target can be reached. In the years 2003-2008, Israel’s economy grew at an average annual rate of 5.5%, with a less convenient starting point and with two wars in the middle.

So what can the accelerated growth in the coming years be premised on? What are its possible engines? Here they are: Tens of thousands of ultra-Orthodox men joining the workforce, boosting the production of Israeli Arabs, improving the quality of education and employment in outlaying areas, massive investments in physical and educational infrastructure, expanding the export base and directing it to new markets, slowing down the defense budget growth, and removing bureaucratic obstacles. These are the main required steps. All of them, without exception, will minimize economic gaps within Israel.

We are already enjoying strong backwind. Here are four examples: The kibbutzim reinvented themselves and have again turned into an economic asset and a significant growth accelerator; the discovery of natural gas by businessman Yitzhak Tshuva frees Israel of the depdendancy on coal and dramatically brings down the cost of producing electricity; the Arab sector is seeing an unprecedented entrepreneurial business revolution; Israeli software companies are taking over Africa – and there are many more examples.

Diplomatic component

At this time, Israel is equipped with the needed means for a great leap. These means are integrated and also include a diplomatic/political component. In the past, Netanyahu claimed that Israel can grow and become wealthier even without a peace deal (but not under intifada conditions). Yet now he knows: A diplomatic agreement with the Palestinians is a vital condition for the great economic leap. First and foremost, because without such deal, the world will have trouble countering Iran and forcing it to abandon its nuclear program.

The grave economic implications that Iranian nuclear capabilities will have for Israel’s economy are horrifying. A nuclear arms race will add tens of billions of dollars to the defense budget, at the expense of developing the economy. One government body has already prepared a scenario for the day after Iran acquires a nuclear bomb: Foreign investors fleeing, Israeli investors taking their money and assets out of the homeland, and the grim and frightened national mood paralyzing production.

On the other hand, an Israel-Palestinian agreement would serve as a lever for orchestrated global activity – and possibly military action as a last resort – against the Iranian nuclear program. This will enable us to save tens of billions of dollars. Such deal will also open up the giant markets of rich Gulf states, which are desperate for the kinds of products and services Israel specializes in, ranging from right-to-left software systems to salt water purifiers for desert springs.

Incredible gift

Communism’s collapse in the late 1980s granted Israel an incredible gift in the form of the massive immigration from the former Soviet Union and the opening of export markets that were off limits for dozens of years. Israeli governments and the business sector managed to take advantage of the opportunity and completely change the face of our economy. Within about 12 years, we went up from a $10,000 per capita GDP to $20,000 per capita GDP.

Later we turned from a state that owes money to foreigners and contends with a foreign currency shortage to a country that foreigners owe money to, and that has foreign currency surpluses. Our economic, rather than military, independence is full by now.

The 2007-2008 crisis again grants Israel an incredible opportunity, this time in respect to competing against the developed world; the crisis undermined its pillars and posed deep trouble for it. Will we be foolish enough to miss out on this opportunity?

It’s official…Great news for the Israeli economy…Five more years of Stanley Fischer heading the Bank of Israel

Fischer to serve 2nd term as Bank of Israel governor


‘There is no disagreement in the whole world that he does an excellent work,’ prime minister says in press conference announcing his support of central bank head. ‘Now he just has to say yes’

Reprinted from YNet News Zvi Lavi

Stanley Fischer will likely serve as the Bank of Israel’s governor for another five years. Prime Minister Benjamin Netanyahu announced Wednesday in a press conference at the Knesset that he will recommend that Finance Minister Yuval Steinitz appoint Fischer for another term as governor.

As expected, Fischer agreed to the offer after the new Bank of Israel law was passed Tuesday in the Knesset. Fischer is slated to receive the letter of appointment from President Shimon Peres soon.

Fischer’s current term as governor is slated to end on April 30. He will be instated to his second term on May 1.

“This is a man on whom there is no disagreement in the whole world that he does excellent work,” said the prime minister, noting that the Fischer’s recommendation for another term was mutually made between him and the finance minister. “Now all that’s left is for you to say yes,” Netanyahu addressed Fischer, who was sitting next to him on the stage.

“I thank you for the recommendation, and I will continue to fill my position in accordance with the challenges presented by the new Bank of Israel law,” responded Fischer.

“When Netanyahu offered me the position, I couldn’t have imagined what happened in the first run. But it was a challenging period, the height of which was the financial crisis, which we handled well and also came out of.”

Hints dropped recently by the governor to the effect that he would not agree to serve another five years without a new Bank of Israel law spurred the cabinet to submit the bill for the Knesset’s approval before leaving for Passover recess.

The new law, which replaces the 56-year-old Bank of Israel Act, cements the Bank’s independence and instates a regular monetary committee to decide on interest rates and makes provisions regarding Bank employees’ salaries, thus comparing them to other public sector employees.

There was some uncertainty in recent months whether Fischer would continue on for another term, and not just because of the Bank of Israel law. Fischer’s wife and family were pressuring him not to act another term, but the governor insisted that he would remain in the position of the Bank of Israel law were passed so that he could oversee putting the new structure of the bank into action, as detailed in the law.

In the past, Fischer implied that the decision to serve another term would be easier if it were shortened to a period of two years. However, doubts regarding the length of Fischer’s term were also dissipated when he accepted the appointment as he assured in his speech that he would serve the full five year term.

About two years ago, Fischer threatened to resign over the crisis between the Bank of Israel and the Finance Ministry around the signing of a new salary agreement. Prolonged and exhaustive negotiations ensued between the two bodies regarding whether the Finance Ministry would continue its oversight over Bank of Israel salaries. Then Prime Minister Ehud Olmert stepped in and convinced Fischer to withdraw his resignation threat.

‘Fischer among best in world’

Knesset Finance Committee Chairman MK Moshe Gafni praised Fischer’s decision to stay on for another term. Gafni said, “The governor is a professional of the first degree and a leader in the entire world.”

“Stanley Fischer is a real asset to the State of Israel. The Israeli economy owes him a lot for its stability throughout the global financial crisis over the past year. There is no doubt that his staying on for another term will contribute significantly to the Israeli economy and its standing in the world,” said Gafni.

Defense Minister Ehud Barak also welcomed Fischer’s acceptance of another term as bank governor.

“Stanley Fischer is considered one of the most outstanding and professional governors that the Israeli economy has known since the establishment of the state. Governor Fischer successfully handled the financial crisis in a manner that deserves respect. He was among those who helped the Israeli economy get through it strong and secure,” said Barak.

More good news that the Israeli economic recovery is right on track..getting stronger and stronger.
And, the best news of all, looks like immigrant-from-America Bank of Israel Head, Stanley Fischer, will be staying on for another term…One of the best things that can happen to the Israeli economy, promising an even stronger recovery…Good things for the future…

Fischer hopes for return to ‘normalcy’


“The Bank of Israel is trying to bring interest rates back to a ‘normal’ level, which would bring inflation back down into the target range, and to support the recovery of the economy and financial stability,” Bank of Israel Governor Stanley Fischer told a central bank conference in Tel Aviv yesterday.

Reprinted from Haaretz.com Eytan Avriel

“All the while we will follow what’s going on in the world and take into consideration the shekel exchange rates,” Fischer told the conference, entitled “Challenges for the Future.”

“The central bank of a small, open economy cannot be indifferent to the exchange rate,” he said. When things start going back to normal, the bank will probably intervene less in the foreign currency market.

“We can reduce in stages the frequency of our interventions in the foreign exchange market, but it’s dependent on other considerations such as the interest rate, as well as the international and Israeli economy,” he said.

Fischer also addressed the challenges facing him at the beginning of a second term as bank governor. The first challenge involves the internal management of the bank.

Fischer also mentioned that discussions on the new Bank of Israel Law had just finished in the Knesset Finance Committee; next week the bill is expected to pass its second and third readings in the full Knesset to become law. The bill has been one of Fischer’s conditions for accepting a second term. Soon the bank will face the challenge of implementing it – “building a modern Bank of Israel, which the Israeli economy needs for the 21st century,” Fischer said.

The second challenge is fiscal and monetary policy as the world recovers from the financial crisis, he said. “There are countries that are managing to recover better … and there are countries that are having more difficulties…. During the crisis, the European nations handled it better, but now they’re having trouble,” he said.

Great for Israel’s economy…VERY bad for MY waistline!!
I guess it will be even easier to grab some of that yummy Ben and Jerry’s ice cream now…Just when I was achieving reasonable success fighting off the urge for that delish designer frozen yogurt stuff…

Ben & Jerry’s to open new factory in Beer Tuvia

Ice-cream giant to invest NIS 8 million in new production facility that will employ dozens of workers, comply with international exporting standards. Sixteen retail stores, kiosks throughout country also slated to open in near future

Reprinted from YNet News Navit Zomer

Ben & Jerry’s ice-cream company will open a new factory in the Beer Tuvia area in southern Israel, near Kiryat Malachi, in a facility that up until recently served as a soup factory and logistic center for food manufacturer Vita Pri Hagalil.

Some NIS 8 million (appoximately $2 million) will be invested in the new facility, which will employ dozens of workers, and comply with standards set by the global Ben & Jerry’s corporation as well as the European markets and US food authorities.

The company’s previous factory in Yavne was shut down after it did not hold up to the exporting standards set by the ice-cream giant.

The new plant will produce Ben & Jerry’s ice-creams as well as baked frozen items that are marketed in Israel under the brand name “Rosie’s” and include pancakes, blintzes, bagels and more. In addition, the company will open a new retail store in the central city of Modiin.

According to Ben & Jerry’s General-Manger Avi Zinger, another retail store is slated to open next month at the new Cinema City in Rishon Lezion, in addition to the one already operating in Glilot.

The company is currently holding negotiations for opening another store in Jerusalem as well. Ben & Jerry’s annual turnover in Israel is estimated at some NIS 30 million (appox. $8 million).

Along with the expansion of production facilities, Ben & Jerry’s is also planning on expanding to 16 ice-cream parlors and selling kiosks. According to Zinger, “Ice-cream parlors have regained momentum in recent years, and we have also returned to full activity.

“Ben & Jerry’s opened its first store in Israel in 1988 and operated 16 branches at its peak. In 2001 it began to close down its stores dew to losses suffered with the break of the intifada and the era of increased terror attacks,” Zinger said.

Housing one of the top 25 banks in the world is no small feat for a tiny country of 7 million in a perpetual state of war with its neighbors. More evidence that someone is doing something right running the State of Israel. More reasons for you to “come home”, my fellow Jews…

Israel gets representation on list of best banks

Mizrahi-Tefahot on list of 25 best banks in 2010 in developed markets put out by Global Finance magazine. Israeli bank ranked among financial heavy-hitters J.P. Morgan, Credit Suisse, and HSBC

Y-Net

The international magazine Global Finance chose Mizrahi Tefahot as the “Bank of the Year in Israel.” An article published over the weekend highlighted a list of 25 banks chosen as the best for 2010 in developed markets.

The list included leading banks in the world from North America, Europe, Asia and the Middle East.

According to Global Finance, the banks chosen were the ones who attended to their customers’ needs with caution and responsibility during a period of “difficult markets,” and who reached the highest results while laying the foundations for their future success.

The magazine’s editors noted that the banks were chosen both by objective, quantitative criteria – such as growth in assets, profitability, geographic reach, strategic relationships, new business development, innovation and the banks’ ability to conduct and fund themselves in the current environment – and by subjective criteria – such as extensive consultations with bankers, corporatists and equity and credit analysts.

The magazine report noted: “The mix of these factors yields leading banks that may not be the largest, the oldest or the most diversified in a given country, but rather the best — the banks with which corporations around the world would most likely want to do business.”

“We recognize these banks for their outstanding accomplishments,” said Global Finance’s publisher, Joseph D. Giarraputo. “Global financial markets are extremely difficult and conditions in each market may have differed but the winning banks were all noteworthy in their dedication to satisfying their customers’ needs.”

Other banks recognized on the 2010 list include J.P. Morgan, HSBC, Royal Bank of Canada, and Credit Suisse.

More proof that the Israeli governmentt is running the economy pretty
darned well

Israel Growth Accelerates to 4.4% in Fourth Quarter (Update1)

…or is there help from above?..hmmmm

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