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January 22, 2017 / 24 Tevet, 5777

Posts Tagged ‘gold’

What if Israel Were on the Gold Standard?

Wednesday, April 17th, 2013

Imagine for a moment that I want to buy a car for 100,000 shekels. I’d rather not work and save, so instead I decide to simply print 100,000 shekels in cash so I can buy the car. I print it, I hand the pile over to the car dealer and the car is now mine.

What just happened here? I counterfeited 100,000 shekels and increased the money supply by 100,000 when I handed those shekels over to the car dealer. The average person, the kind that has to work for his money would say that I stole 100,000 shekels. But today’s economic experts like Stanley Fischer and Ben Bernanke and Paul Krugman would say that I gave “economic stimulus to the automobile industry.” So what really happened?

When an average person works in the private economy and saves money to buy a car, he produces more than he consumes, hence savings. In other words, he puts more into the economy than he takes out, the difference represented by the money he saves. There is now more value in the economy, more stuff because he worked harder, and he takes that real value represented by the money saved and buys a car for 100,000 shekels.

The car dealer now has 100,000 shekels of real value to invest in expanding his business, and thanks to the value that the saver added to the economy through saving, there is now more value in the economy with the same money supply. The value of the shekel goes up and prices drop just a little bit, and everyone owning shekels gets a bit richer thanks to the saver. The car dealer can now expand his business and safely assume the demand is there to match his increase in supply. The economy grows.

Now, if I simply print up 100,000 shekels and give it to the car dealer, I added zero value to the economy. There is no more useful stuff. Just paper. I did not save a thing. All I am doing is taking from the economy without adding anything to it. Worse, the 100,000 shekels I added to the money supply makes the value of the shekel go down a little bit, since more shekels are now chasing the same amount of goods. Prices go up. Everyone gets poorer, except for me of course, because I got to buy the car before the money supply went up. The act of me buying the car was itself the action that made the money supply go up in the first place. I, the money printer and the first new money user, am up one car. Yay for me. But everyone else besides the first person to use newly printed money loses.

Now, let’s say I stop printing money and the car dealer expands his business with the new shekels. Since everyone is now poorer, there is no new demand to match his new supply. The signal he got of new demand for his cars was wrong, because the 100,000 shekels I printed did not represent added value to the economy through saving. Demand is not there, his business overexpands and he has to cut back and contract by selling cars for cheaper and taking a loss. His business shrinks or “goes into recession,” but cars get less expensive for everyone else.

But let’s say I keep printing 100,000 shekels every day and buy another car with it day after day after day. The car dealer will keep misinterpreting the sales as new demand that doesn’t actually exist. He will keep expanding. It will look like the economy is growing and growing, the statistics the government puts out on car sales will skyrocket. But really, only I and the car dealer are benefiting. Everyone else is suffering inflation and getting poorer and poorer every time I print. At some point I will have to print more than 100,000 to buy each car since the money supply is expanding so rapidly, but that’s no big deal for me. It takes the same effort to print 150,000 as it does to print 100,000. I keep getting richer. Inflation doesn’t bother me. The car dealer keeps expanding and cars become so expensive that no one can buy them. Then let’s say suddenly I stop printing shekels and stop buying cars. The car dealer’s business totally crashes, and he goes out of business in a bankruptcy sale. All the cars get sold to the public for ultra cheap. His business “goes into depression,” but cars are suddenly cheap for everyone else.

Rafi Farber

The Story Of Daniel

Friday, December 7th, 2012

There are many wonderful stories narrated in Scriptures about the experiences of the Navi Daniel. Many of these stories are found in Sefer Daniel, while others are found in the Talmud and Midrash.

In the third year of the reign of Yehoyakim, king of Yehuda, Nevuchadnezzar, king of Bavel lay siege to Yerushalayim and conquered it. He took many treasures from the Beis HaMikdash back to the land of Shinar, to the house of his god.

He then ordered his courtiers to round up the wisest children of Yehuda, who would be trained as advisors, for these children were known for their erudition and for their worldly knowledge.

Among the children taken were four outstanding young geniuses: Daniel, Chananyah, Mishael and Azariah.

Provides Meats For The Children

The king commanded Ashpenaz, the chief of his courtiers, to provide the children with the best of meat and wine so that they should be healthy in body and in mind when they appeared before him.

Daniel and his companions, however, would not defile themselves with the king’s meat and wine and requested instead that they be supplied with vegetables.

Ashpenaz was afraid to comply with this wish. “I fear to disobey my lord the King, who has ordered me to give you his meat and wine. For, if he sees you looking worse than the other children of your country who are eating the meat, he will have me killed.”

“Fear not,” replied Daniel. “Experiment by giving us only vegetables and water for the next 10 days and then compare us with the other children who will eat the king’s meat. You will then see who looks healthier.”

He agreed, and for the next 10 days he served them vegetables and water. And lo and behold, at the end of that time their countenance appeared fairer and fatter in flesh than all the children who ate meat. From that day onward, Daniel and his companions only ate vegetables.

G-d gave Daniel and his companions, knowledge and skill in all learning and wisdom, and to Daniel, especially, he gave understanding of all visions and dreams.

After three years of study, they appeared before the king and the king found none that in all matters of wisdom and understanding, they were 10 times better than all the magicians and astrologers in his realm. He appointed them to be his personal advisors.

The King’s Dream

In the second year of the reign of Nevuchadnezzar, the king had a dream. He awoke in the morning with a start. It was a terrible dream and it bothered him because he forgot what he had dreamed about. All he knew was that it had been scary.

The king called all of his magicians, astrologers, sorcerers and the Chaldeans to appear before him. When they arrived, the king told them that he had a terrible dream and asked them to interpret it for him.

“O King, live forever,” said the Chaldeans. “Tell the servants your dream and we will then offer you its interpretation.”

“I cannot remember the dream,” replied the king. “It is gone from me. If you will not make known to me the dream with its interpretation I shall cut you to pieces and destroy your homes. But if you tell me what I dreamt and its interpretation I shall reward you handsomely and I will give you great honor.”

The Chaldeans replied, “There is no man on earth who can fulfill your request and there had never been a king who has asked such an unfair request.”

Death To The Wise

The king became very angry and commanded the guards to destroy all the wise men of Bavel. Among the wise men to be destroyed was Daniel, who had not attended the sessions of the Chaldeans. When he was made aware of this decree, he sought out Arioch, the king’s captain, and advised him that he would tell the king his dream and its interpretation the following morning. The captain made arrangements for Daniel to appear before the king the following morning.

That night Daniel visited Chananya, Mishael and Azariah and urged them to pray to G-d to help him so that he they would not perish with the rest of the wise men of Bavel. G-d heard their pleas and He revealed the secret to Daniel in a night vision.

Rabbi Sholom Klass

Four Israeli Wines Win Int’l Contest

Friday, December 7th, 2012

In the 2013 Terravino wine competition held this year in Jerusalem, 13 wines won the coveted double-gold medal.

Four of those wines are from Israel. 21 countries and 500 different wins participated in the contest.

One of the winners was the Tura boutique from the Shomron, which won 2 gold medals.

Jewish Press News Briefs

Symbol Of The Eternal Soul

Wednesday, December 5th, 2012

The festival of Chanukah celebrates two miracles – the military victory over the Syrian Greeks and that one small cruse of oil, good for one day, providing light for eight days. The miracle of the light, however, is the main focus and central theme of this festival.

Thus, according to halacha, when we light the candles in celebration of Chanukah we are prohibited from using their light for any tasks. We are commanded to simply look at the light. All year long we are looking at what we see in the light, but on Chanukah we are to focus solely on seeing the light itself.

What is so special about the light of Chanukah? What is the Chanukah menorah’s message for us in our personal lives? Why does the Rambam call Chanukah “the most beloved and precious mitzvah”?

The answer is that the Chanukah lights help us focus on who we really are. We are not our body suits but are part of God’s Endless Light. Chanukah lights are the symbol of the Divine spark of the human soul, as Shlomo HaMelech says in Mishlei, Ner Hashem nishmat adam – the candle of God is the soul of the human being.

The Mishnah in Avot teaches, “There are three crowns: The crown of Torah, the crown of Kehuna [priesthood] and the crown of Monarchy.” Corresponding to these three with which Israel was crowned, there were three crowns on the Temple vessels. The crown of Torah corresponds to the gold crown, which was set on the Ark of Testimony (containing the two Tablets). The crown of Kehuna corresponds to the incense altar, for only regarding the priests does it say, “They shall place incense in Your Presence, and consume sacrifices on Your altar” (Devarim 33:10). Finally, the crown of Monarchy corresponds to the table in the Sanctuary, for tables, which in biblical and later Hebrew can symbolize wealth and bounty (Psalm 23), may here be viewed as evoking the economic and political power of the state.

However, the Mishnah adds that there is yet another crown, “the crown of a good name,” which “surpasses them all.” This crown is not enumerated among the others. Rather, it is kept separate from them and stands on its own. To what does this crown correspond in the Temple?

The Maharal of Prague associates “the crown of a good name” with the fourth vessel of the Temple – the solid pure gold menorah. The menorah had no gold crown encompassing it. Neither was it made of acacia wood inlaid with gold like the three Temple vessels mentioned above. Rather, the whole menorah was like a pure gold crown, embellished with golden cups, knobs and flowers. The entire menorah itself is a crown.

It is the same with a person’s good name. It is not an external crown that is placed upon one’s head. A person’s good name touches on his very essence. A good name includes one’s entire personality in all its components. It is not an external image, fashioned by public relations professionals, photographers and newsmen. A person’s good name is the reputation he earns for himself through his life’s work, all his deeds and ventures. That is why the Mishnah says that the “crown of a good name surpasses all the others.”

A person’s good name does not find expression at the beginning of his life but is acquired through strenuous, daily toil. Shlomo HaMelech said “A good name is better than precious oil” (Kohelet 7:1). However good it may be, oil is applied externally to a person’s body while a good name is that person himself.

As we light the menorah on Chanukah, it is a time to focus and reflect on the light of God, which is our eternal soul.

Rabbi Ephraim S. Sprecher

Why Chanukah Gelt?

Monday, December 3rd, 2012

Yisrael Rice of Chabad.org explains that the origin of Chanukah gelt (money) is in the fact that the word Chanukah, which means to inaugurate—as in inaugurating the defiled Temple after the Hellenistic Jews were chased out of it—stems from the same root as the word for Chinuch, education.

“Appropriately, during Chanukah it is customary to give gelt (money) to children, to teach them to increase in charity and good deeds, and to add to the festive holiday spirit,” writes Rice.

He then offers a second, deeper reason for Chanukah gelt:

“In his record of the Chanukah events, Maimonides writes: “The Greeks laid their hands upon the possessions of Israel.”

“The Greeks invaded the possessions of Israel in the same spirit in which they defiled the oil in the Holy Temple. They did not destroy the oil; they defiled it. They did not rob the Jewish people; they attempted to infuse their possessions with Greek ideals—that they be used for egotistical and impure ends, rather than for holy pursuits.

“Chanukah gelt celebrates the freedom and mandate to channel material wealth toward spiritual ends.”

Wikipedia thinks it may have begun in 18th century Eastern Europe as a token of gratitude toward religious teachers, similar to the custom of tipping service people on that other winter holiday, just before New Year’s. So you give your kid a coin on Chanukah to give to the teacher in Cheder so he won’t smack you too hard the rest of the year. Works for me. I understand protection.

As to why our Chanukah gelt basically a disk of chocolate wrapped in gold tinfoil, and not real money, it turns out that in the 1920s, Loft’s, an American candy company, produced the first chocolate gelt, wrapped in gold or silver foil in mesh pouches resembling money bags – according to Wikipedia.

Chocolate ‘geld’ is also given to children as part of the other winter holiday in Belgium and the Netherlands.

Seems our winter holiday has been peeking at their winter holiday for quite some time…

Yori Yanover

It’s Not Just About The Internet… We’re Creating Apathetic Robots

Monday, November 19th, 2012

The Orthodox Jewish world continues to seesaw back and forth about the pros and cons of the Asifa on Technology at Citifield in New York.  Debates abound about on the best Internet filters, blocks and technological band-aids to which will surely repair the dangerous environmental influences of the outside world. Let’s ban or block the Internet and suddenly our children will be less distracted, our communities more heimish and our learning and davening more for the sake of Heaven instead of rote blabbering to get it over with.

In 1944, Rav Eliyahu Dessler said in Strive for Truth (v.3, p.143) “Human beings believe, in their arrogance, that if they continue developing the world on the basis of ever expanding technology they will eventually achieve an environment that will afford everyone unlimited gratification of the senses and a life of ease and pleasure. So long as people remain ‘takers,’ their efforts will inevitably be directed toward selfishness…”

With the advance of technology and the ease of availability, the temptation of distraction has become a daily struggle for Jews across the spectrum to remain upright, even in their own homes. But the Internet is only part of the problem. Go into almost any shul today and you’ll find congregants reading their emails on their cell phones and leaving davening to answer their phones, tallis over their heads and tefillin perfectly squared. Attend any d’var Torah, graduation ceremony, wedding or bar mitzvah and you’ll find people distracted with texting.

The real problem is chutzpah and selfishness, and parents are teaching it to their children by their own actions, and then wondering… what went wrong.

Rabbeinu Bachya asserts in Duties of the Heart: “Their evil inclination induces them to abandon the spiritual world wherein lies their salvation… it makes self-adornment more attractive to them… it impels them to gratify their desires for self-indulgence… until they are sunk in the depths of its seas.”

In the rush to satisfy our thirst for instant gratification, information and acceptance, we’ve created a Jewish society devoid of cohesiveness and spirituality, full of chutzpah and apathy. As Rav Dessler predicted 68 years ago, “They persist in thinking that soon, very soon, they will hit the right formula, and if not in this generation, then in the next, universal happiness will come. And so they bring up their children to study nothing and think of nothing but technological advancement…” (Strive for Truth, pg. 152).

It seems that children and adults 68 years ago were also steeped in the excesses of technology, although it was not as insidious as in our generation. Unfortunately, Jews today are becoming apathetic robots. In their quest to look frum, with their starched white shirts and impeccable Borsolino hats, and in keeping up with the Goldbergs, they have truly collapsed into a materialistic society, all “for the sake of Heaven.”

Consider the case of Yaakov, who goes to the store to buy a pair of expensive shoes on sale at a department store, known for its lenient return policy. There he meets his friend Shimon, who has just bought the same pair of shoes Yaakov wants. Shimon relates to Yaakov that he “purchased” the $300 pair of shoes for only $200 by switching the price tag while no one was looking, and that Yaakov can have them for $250, thereby saving him $50 while Shimon makes some money on the deal.

Shimon is proud of himself and Yaakov gets a bargain.

Where I come from, this is called stealing.

Or consider Reuven’s practice of going to an outlet store to buy fancy white shirts for Shabbos, in order to sit and learn in one of America’s finest yeshivos, where he wouldn’t dare stand out wearing a blue shirt. Lo and behold, Reuven ends up at the local Nordstrom return counter, telling the clerk the shirt is imperfect and he wants to exchange the shirt or get a refund.

Why would religious people, steeped in Torah learning, resort to lying and stealing?

The Orchos Tzaddikim in Sha’ar Hasheker says, “Alchemists turn copper into gold where even the experts cannot tell the difference. So it is with the mind of the charlatan. He rationalizes and justifies his lies until they appear even to him as truth.”

Allan J. Katz

Rav Eliezer Lippa

Friday, November 9th, 2012

Among the great giants of Chassidism were two brothers, Rav Zusha of Hanipoli and Rav Elimelech of Lizhensk. But the apple does not fall far from the tree and the deeds of the father are lessons for the children. These two tzaddikim owed much of their character to their father, Rav Eliezer Lippa.

Rav Eliezer Lippa was a wealthy man who lived on the outskirts of Lvov. Throughout the area he was known as a man of great charity and also one whose house was continually open to the poor and guests of all kind.

It was also his custom, when he journeyed to other cities, to pick up every poor man he passed on the road and drop him off at his destination.

One Poor Man

The story is related that Rav Eliezer Lippa was riding one day in his wagon and passing a poor man who was walking slowly, carrying a heavy sack. The good man’s heart was filled with pity at this sight and he stopped his wagon.

“Shalom Aleichem,” he said.

“Aleichem Shalom,” replied the traveler.

“I see that you are carrying a very heavy bundle,” said Rav Eliezer Lippa, “and you look quite tired. Please do me a favor and get into the wagon so that I may drive you to your destination.”

“Thank you,” said the poor man, “I would prefer, however, to go by foot.”

The Rav was very surprised and asked, “But why? The journey could take half the time if you went with me.”

“I know that sir, but if I walk I will be able to stop at each town and collect money.”

An Offer

“I see,” said Rav Eliezer Lippa. “Tell me, approximately how much money do you think you can collect in the towns that lie between here and Lvov?”

The poor man thought for a moment and replied, “I would estimate that I certainly collect about twenty-five gold pieces, and I cannot afford to lose that sum by riding with you.”

“Nevertheless, I cannot bear to see you walking in the heat with that heavy burden. Here are the twenty-five gold pieces – the amount you would have collected by walking – and ride with me.”

“Believe me, I appreciate it,” said the traveler, “but I still think it would be better if I walked.”

Rav Eliezer Lippa was now completely dumbfounded. “I have just offered you the same money that you could make by walking to these towns. What prevents you now from riding in the wagon?”

“You see, I have been going for many years to these towns. I know the people and they know me. They expect me at a certain time every year. If I should now go with you in your wagon, they will surely that I met with some accident and they will worry. I wish to spare them that.”

When Rav Eliezer Lippa heard these words he said, “I appreciate your thoughts, but at least let me carry your heavy sack in my wagon. I will drop it off at the hotel in Lvov and leave it with the innkeeper. When you have finished with your collections and arrive in Lvov, it will be there waiting for you.”

The Hat

Rav Eliezer was proud of being a Jew and never humbled himself before the lords of the area, as did many of the other Jews. He never lowered his eyes when speaking to them or flattered them needlessly. Because he behaved toward them with dignity, they respected and treated him on equal terms, which was rare in Eastern Europe.

Once, when Rav Eliezer Lippa was riding on his horse, he paused and alighted to allow his to rest. Continuing on his way, he decided to walk in front and lead the animal by the reins.

Coming from the other direction was a magnificent coach with four beautiful white horses and in it sat a Count who was a stranger to the area and did not know Rav Eliezer Lippa.

Commanding his coachman to stop the carriage, the Count stopped the rabbi and asked him in an imperious manner, “You, Jew, where are you from?”

“I come from Lvov,” answered Rav Eliezer Lippa quietly.

Rabbi Sholom Klass

Printed from: http://www.jewishpress.com/kidz/midrash-stories/rav-eliezer-lippa/2012/11/09/

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