web analytics
July 24, 2014 / 26 Tammuz, 5774
Israel at War: Operation Protective Edge
 
 
At a Glance

Posts Tagged ‘fischer’

Lapid is Still on a Roll, Poll Says

Sunday, May 5th, 2013

As many of you have known for a long time, I’m as out of the box as they come. My opinions rarely are the popular ones. If the Smith poll, which IMRA wrote about here, had asked me my opinion wouldn’t be like most others.

The poll shows/indicates that Yair Lapid’s Yesh Atid political party is gaining in support and would receive as many seats as the combined Likud Beitenu (Likud and Yisrael Beiteinu). Many of the new voters would be those who are abandoning Kadima and Tzipi Livni’s Movement.

Here are the poll’s results:

If elections held today (expressed in Knesset seats) Current Knesset seats in [brackets]. Please note: There are 120 seats in the Knesset. Parties must receive a minimum of 2% of the valid votes cast in the elections to be included in the Knesset – this comes to 2.4 seats. After elections are held the coalition forming a government must receive 61 votes in a vote of confidence in the Knesset. 30 [31] Likud Beiteinu (Likud and Yisrael Beiteinu) 30 [19] Lapid “Yesh Atid” Party 13 [12] Bayit Yehudi 12 [15] Labor 10 [11] Shas 07 [07] Yahadut Hatorah 07 [06] Meretz 00 [06] Livni party “Hatnua” Party 00 [02] Kadima 11 [11] Arab parties

Of course this poll is just taking into account the political parties in today’s Knesset. Every time we have new elections, new parties sprout up like weeds. And to be super honest, I don’t see a party I’d vote for.

Actually, Lapid as Finance Minister, isn’t doing all that well. After campaigning to reduce the budget, he’s now raising it. Actually he had planned on increasing it much more but was taught that Israel would suffer in terms of its rating.

Following a downgrade to Israel’s S&P credit rating Thursday night, Finance Minister Yair Lapid on Friday backed down on his proposal to raise the 2013 deficit target to 4.9% of GDP from its current 3%, agreeing to set it at 4.65% instead. [Jerusalem Post]

Arutz 7 reports something very troubling about Lapid and how he’s functioning as Finance Minister.

“On Thursday it was reported that Lapid planned to increase the deficit target for 2013 to 4.9%. The move was met with anger because Lapid did not involve Prime Minister Benjamin Netanyahu in his deliberations.

Lapid’s decision surprised Bank of Israel head Stanley Fischer as well. Fischer reportedly first heard of the news on Thursday evening as he landed in the United States.”

It would be better if Lapid was more a team player. He’s not supposed to be making such policy decisions on his own. Of course this is my opinion, and not all Israelis seem to agree with me.

Visit Shiloh Musings.

Fischer Launches New War on Shekel-Dollar Rate

Monday, April 8th, 2013

Bank of Israel Governor Stanley Fischer launched a new war on the falling shekel-dollar rate Monday and ordered the purchase of $100 million of greenbacks, soon after the rate dropped close to 3.59 shekels to the dollar for the first time in nearly two years.

The massive purchase catapulted the rate from the 18-month low of 3.592 to 3.62 in only a few minutes.

The shekel has strengthened this year, receiving recent support from expectations of positive fallout from the beginning of the flow of Israeli natural off-shore gas.

A strong shekel is great news for consumers buying items imported from the United States, but it sends shivers through Israeli companies with revenues in dollars. After converting income to shekels, the firms are left with less money, and their executives are constantly pressuring the Finance Ministry and the Bank of Israel to take measures to raise the currency rate.

Enough with the Praise for Stanley Fischer and Israel’s Central Bank

Sunday, February 3rd, 2013

Stanley Fischer is the head of the Bank of Israel. As such, he is the government appointed goon in charge of money printing. In his infinite wisdom, he is supposed to know exactly what the supply of money should be, because he’s purportedly a chacham she-ein kamohu – a crazy genius who has a pulsating brain and somehow knows these things. Or maybe God comes to him in his sleep and tells him how many shekels should exist and how much he should print and when.

Or maybe he’s just some guy who has no idea what he’s doing, given a power the equivalent of an economic nuclear weapon, something that no one man should ever, ever have.

Stan the Super Shekel Man recently came out with an announcement that he would be quitting his post early. Aside from the speculation as to why (I think it’s because he knows there will be an unstoppable economic tsunami in the next 3-5 years and he wants to duck out early and quit while he’s ahead), I have seen nothing but wall to wall praise for this central planning money printing soviet-style currency czar. Sure he’s kindly, has a sweet voice, an endearing Zambian accent, cutely mixes up male and female in his Hebrew grammar all the time, and the Israeli economy didn’t totally collapse in 2008 so everyone assumes the money master is responsible for saving us all from destitution. But this is all a big, sad, sorry myth.

Let’s break it down.

Let’s step aside for a moment from the persona of Stan the Man himself. He as a person is not the main problem. As I said, he’s a nice guy. The main problem is the very system of central banking that give men like him inordinate power over all of our economic lives, a power which, once you realize the scope and consequences of it, can make you dizzy.

Imagine for a moment two national economies. One where the supply of shoes and their price is controlled by one man and anybody else who manufactures or uses shoes besides him goes to jail, and another where the supply of shoes and their price is controlled by the free market, meaning a myriad of entrepreneurs freely importing and exporting shoes based on the demand for them by customers. In a free market where anyone can manufacture and buy as many or as few shoes as he wants, the supply, demand, and price of shoes will tend to reach an equilibrium point where profits will remain constant and steady. Shoe firms like wholesalers, manufactures, and retailers, will all compete with each other to sell the most shoes to the public. In order to do this, they will have to make shoes of the highest possible quality at the lowest possible prices in order to attract buyers.

If the supply of shoes gets too high, shoe prices will tend to fall, lowering profit margins, thereby restricting the amount of shoes manufactured, choking off supply, and bringing shoe prices back up to equilibrium. If demand gets too high, shoe prices will tend to rise, increasing profit margins, encouraging shoemakers to produce more in order to earn those increased profits. This brings supply back up to match demand, bringing prices back down to equilibrium again.

Now, in an economy where the supply of shoes and their price is controlled by one man, let’s call him the chairman of the Shoe Bank of Israel, we are entrusting a single person to:

  1. Manufacture every single shoe in the country, because anyone else who does that is considered a shoe counterfeiter and goes to prison
  2. Know automatically what the supply of shoes in the country should be at any given moment
  3. Set the price of shoes at whatever he thinks it should be
  4. Not abuse this power

The shoe market in such a country would be a complete mess and everyone who needs shoes would be miserable. Since only one firm would be allowed to make and sell shoes, there would be no competition and the quality of the shoes would deteriorate. If the Chairman of the Shoe Bank of Israel set the price of shoes too low, meaning he underestimates demand, people would start hoarding the shoes and buying more than they need, and there would be shoe shortages. If he sets the price of shoes too high, meaning overestimates demand, people who needed new shoes would not buy them, instead waiting for a lower price. Perhaps they would attempt to repair their old shoes, or cut open the ends if they didn’t fit. Huge surpluses of shoes would result.

Printed from: http://www.jewishpress.com/blogs/settlers-of-samaria/enough-with-the-praise-for-stanley-fischer-and-israels-central-bank/2013/02/03/

Scan this QR code to visit this page online: