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economy

Rising shekel hurts Israeli exports. Shekel increases against dollar due to high-tech boom.

Of $1.5 bn reported for 2006, 55% is Intel Corp.’s commitment spread over 10 years. Average annual investment until 2017 projected at merely $150 mil.

Five earlier reductions didn’t help. The current interest rate threatens inflation. Shekel rises because of Israelis’ relative poverty and highly unequal income distribution: foreign investment and exports of a few large companies outpace consumer imports.

Lev Levaev buys $525 mil NY Times building, upping that Israelites’ New York investment to a billion. Levaev’s friends range from ex-Mossad’s Danny Yatom to Putin. His associate Gaydamak will run for Jerusalem mayor with pitiful prospects.

Industrial output of the 250 largest companies rose 10.5% in 2006 to 2005, far outpacing economy in general. Employment increased 3% and average salary – only 5%. Oligarchy and socialist over-regulation impedes the development of small businesses. The expansion of large export companies amid the stagnation of consumer purchasing power and imports caused shekel to rise sharply.

Microsft’s investment commitment in India is $1.7 bn

The investment is trivial by venture capital market standards. Intel’s investments provide it with cheap use of Israeli patents. Oligarchy and socialist-era regulation suppressed Israeli venture capital firms.

Israelis become relatively poor as the economy growth. Such economic layout is typical for oligarchic post-socialist or colonial economies. Consumer imports rose only 3.7% on the annual basis while overall exports rose 21%. Raw materials’ import grew only 11% as Israel becomes more dependent on imports of technologies.

The top ten companies grew 24% over the year, five times above the economy average.

Russian Jewish oligarch Lev Leviev buys another building in New York for $200 mil, will invest another $100 mil. In a separate deal, Leviev invests $243 mil in Russian real estate.
Putin chose Lev Leviev to replace another Jewish billionaire Gusinsky as Russia’s top Jew. Leviev had urgently set up a network of Jewish organizations parallel to Gusinsky’s. After Putin ousted Gusinsky, his old Jewish organizations went down. Putin pays Leviev for spearheading Russian interests in Israel with diamond concessions in Russia.

Israel negotiates with British BG group on buying gas from offshore gas field near Gaza. Barak gave the field to Arafat for unspecified cut and BG subsequently received the development rights. The field contains a trillion cubic feet of natural gas.
The gas deal adds one billion dollars annually to the cost of Israel abandoning Gaza to Arabs.

Infrastructure Minister ben Eliezer mulls buying gas from Palestine and Russia, oil from Turkey. Barak gave Israeli offshore gas oilfield near Gaza to Palestinians.

Israeli price is a bit higher than in EU countries and almost three times the US price.

Only 7,200 Israelis, or 0.1% of the population own over $1 million. In contrast, over 8,000,000 Americans or 2.3% of the population are millionaires. So much for the smart Jews.

Israeli government extended the Wisconsin program for two years but remove 45+ year olds from the hook and relaxed welfare requirements for the rest. The program provides incentives to entrepreneurs for employing the jobless and requires jobless Israelis to imitate job-hunting.
Israeli leftists understandably oppose the anti-socialist program. The right and religious parties also oppose it because their constituencies largely belong to the society’s economic bottom.

Trade Minister Eli Yishai refused to endorse 12% increase in bread prices. Israel, like socialist and third world countries, regulates prices for bread, petrol, and many other products.

The infamous Milken Institute launched junk bond program for Israeli north. Milken Institute is a quasi-academic offshoot set up by Michael Milken, jailed in the US for machinations with junk bonds. Milken is barred from investment activity, and set up the Milken Institute as nominally non-financial front for his dirty operations.
Milken envisages a patriotic junk bond casino for Israeli north affected by the Lebanon war. As other Milken’s schemes, this one will milk the investors.
Milken Institute asked Israeli government to assist the scam.

Most Israeli bakeries stopped making bread following the populist government’s refusal to allow 12% price hike in response to 30% increase in world market’s flour prices.

After the Heftziba real estate company went bankrupt with $300 million in debts, hundreds of ultra-Orthodox Jews settled the homes owed to them by the company. Police threatens to evict the religious Jews so that the houses can be sold to satisfy Heftziba’s bank debts.

Year 2008 budget of US$80 billion is Israel’s largest ever, one of the highest per-capita allotments in the world. Education expenses largely attributable to Israeli Arab parasites fuel budget deficit of 1.6%. Education budget hike will increase teachers’ salaries without altering that moribund pool of unskilled leftist appointees.
Defense budget increase of $10 billion over the coming decade is laughable on the background of Saudi one-time arms purchase from America of $8 billion.

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