web analytics
May 28, 2016 / 20 Iyar, 5776

Posts Tagged ‘investment’

US Investment in – NOT Foreign Aid to – Israel

Monday, May 2nd, 2016

In 2016, Israel is a major contributor to – and a global co-leader with – the USA in the areas of research, development, manufacturing and launching of micro (100 kg), mini (300 kg) and medium (1,000 kg) size satellites and unmanned aerial vehicles (UAVs), as well as joint space missions, space communications and space exploration sounding rocket and scientific balloon flights. According to NASA Administrator, Charles Bolden, “Israel is known for its innovation. The October 15, 2015 joint agreement gives us the opportunity to cooperate with Israel on the journey to Mars, [highlighting Israel’s unique, extremely lightweight technologies, which conserve energy]….”

Israel is no longer a supplicant – as it used to be in its early years of independence – transformed from a net-national security and economic consumer to a net-national security and economic producer, generating substantial, military and commercial dividends to the US, which exceed the highly appreciated $3.1 BN annual investment, in Israel, by the US.

The annual US investment in Israel – erroneously defined as “foreign aid” (Foreign Military Financing) – has yielded one of the highest rates of return on US investments overseas. Israel is neither “foreign,” nor does it receive “aid.”

From a one-way-street relationship, the US-Israel connection has evolved into an exceptionally productive two-way-street, mutually-beneficial alliance. The US is the senior partner, and Israel the junior partner, in a win-win, geo-strategic partnership, which transcends the 68-year-old tension between all US presidents (from Truman through Obama) and Israeli prime ministers (from Ben Gurion through Netanyahu) over the Arab-Israeli conflict and the Palestinian issue.

According to the former Supreme Commander of NATO forces and Secretary of State, the late General Alexander Haig: “Israel constitutes the largest US aircraft carrier, which does not require a single US boot on board, cannot be sunk, deployed in a most critical region to the US economy and national security. And, if there were not Israel in the eastern flank of the Mediterranean, the US would have to deploy – to the region – a few more real aircraft carriers and tens of thousands of troops, which would have cost the US taxpayer some $15 BN annually. All of which is spared by the existence of Israel.”

Israel has been the most cost-effective, battle-tested laboratory of the US defense industries; the most reliable and practical beachhead/outpost of the US defense forces; sharing with the US unique intelligence, battle experience and battle tactics.  Thus, Israel extends the US strategic hand, at a time when the US is experiencing draconian cuts in its defense budget, curtailing the size of its military force and the global deployment of troops, while facing tough international industrial-defense competition and dramatically intensified threats of Islamic terrorism overseas and on the US mainland.

For example, in 2016, Israel’s Air Force, which flies US-made aircraft shares with the US Air Force and the US manufacturers of the F-16, F-15 and additional US aircraft systems, real-time online, daily operational, maintenance and repair lessons, derived from Israel’s daily battle experience, which upgrades US national and homeland security, as well as enhances research and development, global competitiveness, exports and employment base of the US defense industries (e.g., Lockheed-Martin, McDonnell Douglas, Bell Helicopter, Boeing Defense, Northrop Grumman, etc.).

The plant manager of Fort Worth, Texas-based General Dynamics (Lockheed Martin), which manufactures the F-16, asserted that Israeli lessons have spared the manufacturer 10-20 years of research and development, leading to over 700 modifications in the current generation of the F-16, “valued at a mega-billion dollar bonanza to the manufacturer.”  One may conclude that St. Louis, Missouri-based McDonnel Douglas, the manufacturer of the F-15 benefits in the same manner.

Similar lessons have been shared with the US Army, Navy and Marine Corps and the US manufacturers of tanks, armed personnel carriers, missile launchers, missiles, night navigation systems and hundreds of additional military and homeland security systems, manufactured by the US and utilized by Israel. For instance, the Chattanooga, Tennessee-based Northrup Grumman plant, which manufactures explosive-neutralizing robots has increased its exports since Israel’s decision to employ its product, benefitting from weekly telephone conference calls with Israeli experts, who have shared with Northrup Grumman their operational lessons. Israel is to the US defense industry what a triple-A tenant is to a shopping mall – enhancing value and drawing clients.

According to General George Keegan, a former US Air Force Intelligence Chief, the value of intelligence shared by Israel with the US – exposing the air force capabilities of adversaries, their new military systems, electronics and jamming devices – “could not be procured with five CIAs…. The ability of the US Air Force in particular, and the Army in general, to defend whatever position it has in NATO, owes more to the Israeli intelligence input than it does to any other single source of intelligence, be it satellite reconnaissance, be it technology intercept, or what have you.”

A similar assessment was made by the late Senator Daniel Inouye, who was the Chairman of the Intelligence Committee and the Appropriations Committee: “Israel provides the US with more intelligence than all NATO countries combined.”  In July 2003, Brig. General Michael Vane, Deputy Chief of Staff at the US Army Training and Doctrine Command stated that Israel’s counter-terrorism experience shaped the US war on terrorism.

Moreover, US Special Operations units on their way to Iraq and Afghanistan are trained by Israeli experts in tackling suicide bombers, car bombs and the deadly Improvised Explosive Devices (IEDs). Upon arrival at the front, they are assisted by Israeli-developed (and co-developed with the US) unmanned aerial vehicles. Moreover, an Israeli armor plating technology, installed on U.S. military vehicles minimizes US fatalities, and the innovative “Israeli bandage” is employed to stop severe bleeding of injured US soldiers. US bomb squads leverage Israel’s unique counter-terrorism experience, improving their explosives neutralizing capabilities abroad and on the US mainland.

Israel has shared with the US its battle tactics and urban warfare experience, gained during wars against conventional Arab armies and Islamic/Palestinian terrorists.  In 2014, General (ret.) Chuck Krulak, former Commandant of the US Marine Corps, stated: “The US battle tactics formulation, at Fort Leavenworth, Kansas – the intellectual Mecca of the US Army – is based on the Israeli book.”  In 1991, during the First Gulf War, General Krulak fought Russian tanks operated by Saddam Hussein, by applying the 1973 Israeli battle tactics against Soviet tanks employed by Egypt.

In November, 1952, following Israel’s 1948-49 War of Independence, General Omar Bradley, the US Chairman of the Joint Chiefs of Staff, proposed to expand strategic cooperation with Israel, only to be rebuffed by the Department of State, which opposed the establishment of the Jewish State.

However, Israel has evolved into the most effective US strategic beachhead/outpost in the Middle East and beyond, as demonstrated during the 1967 Six-Day-War, when Israel obliterated the Egyptian military, aborting the pro-Soviet Egyptian attempt to topple the pro-US Arab oil-producing regimes, which would have devastated US economic and military interests at a time of high-dependency on Persian Gulf oil.  In 1969, Israel shared with the US its own flare system, which diverted anti-aircraft heat-seeking missiles away from their targets, saving the lives of many gunship pilots during the Vietnam War.

In 1970, Israel’s power projection forced a rollback of the Soviet-backed Syrian invasion of pro-US Jordan, which aimed at toppling the Hashemite regime, and then surging into Saudi Arabia, which would have triggered an anti-US geo-strategic avalanche.

Following Israel’s October 1973 War against the Soviet-armed Egypt and Syria, some 50 US military experts, headed by General Donn Starry, spent six months studying Israel’s battle experience and tactics and the captured Soviet military systems, producing eight thick volumes, which tilted the global balance of power in favor of the US, upgraded the US defense of Europe during the Cold War, enhanced the US air and land battle doctrines during the 1991 Gulf War, and improved the global competitiveness of the US defense industries.

In 1989, 1969 and 1966, Israel snatched a Soviet Mig-23, a most advanced P-12 Soviet early warning radar and ELINT (electronic signals intelligence) system, and a Soviet Mig-21 from Syria, Egypt and Iraq, respectively. All were transferred to the US, evaluated and integrated into the US battle tactics, counter-measures and the defense industrial competitive edge, tilting the global balance of power in favor of the US.

On July 4, 1976, Israel’s Entebbe hostage-rescue operation was a turning point in the battle against anti-US, pro-USSR Islamic terrorism.  In 1981, in defiance of the US Administration, Israel devastated Iraq’s nuclear reactor, sparing the US a nuclear confrontation against Iraq in 1991, and snatching the pro-US Saudis from the jaws of pro-Soviet Iraq.  In 1982, Israel destroyed twenty advanced Soviet surface-to-air missile (SAM) batteries, deployed in Lebanon/Syria and throughout the world, downing 89 Soviet Mig-21s, Mig-23s and Su-20s in the process. Israel proved that the most advanced mobile Soviet SAMs could be jammed, penetrated and destroyed, promptly sharing the battle tactics and electronic warfare innovations with the US Air Force and defense industrial base, providing the US with a significant geo-strategic and industrial game-changing edge over Moscow.  In 2007, Israel destroyed a Syrian-North Korean-Iranian nuclear plant, dealing a blow to global terrorism, sparing humanity the trauma of a nuclear Assad in 2016.

In March, 2007, General John Craddock, the Supreme Commander of NATO, told the House Armed Services: “In the Middle East, Israel is the closest ally of the US, consistently supporting our interests through security cooperation.” Even CNN – which is generally critical of Israel – agreed that Israel’s war against Hamas terrorists advanced homeland security in pro-US Egypt, Jordan, Saudi Arabia and the Gulf States.

A June 2015 strategic agreement intensified cooperation between the air forces of both countries, establishing twelve teams of officers and codifying a widening range of joint annual agendas: operations, battle tactics, training, maintenance, repairs, airborne medicine, flight safety, etc., in the face of mutual threats, joint interests and constrained budgets.  US combat pilots benefit uniquely during joint drills with their Israeli colleagues, who always fly in a “do-or-die” state of mind – a result of Israel’s narrow geographic waistline – which stretches the capabilities of the aircraft to new dimensions and generates more daring and innovative maneuvers, shared with their US colleagues. Recently, Israel’s Air Force developed a ground-breaking method of identifying, repairing and preempting cracks in old combat planes, such as the F-16, and promptly shared that information with the US Air Force and manufacturer. Instead of grounding planes for six months and preoccupying hundreds of mechanics, the Israeli-developed system requires two weeks and only a few mechanics, yielding significant economic and national security benefits.

In 2016, against the backdrop of mounting conventional and terrorist threats, the proliferation of Islamic terrorist cells in the US, the collapse of Europe’s military power projection, the Islamization of Turkey’s national security policy, the erosion of the Western posture of deterrence, and the growing instability, fragmentation, unpredictability and doubtful reliability of pro-US Arab regimes, Israel is the only stable, reliable, predictable, capable, democratic and unconditional ally of the US. Israel constitutes a critical obstacle to the megalomaniacal, Islamic imperialism, enhancing the national and homeland security of the US and its Arab allies. Unlike Europe, Israel is able and willing to flex its muscles.

An Israel-like ally in the Persian Gulf might have dramatically reduced the US military involvement in the Gulf and the Indian Ocean.

The raging, anti-US Arab Street, the melting UN-minded European Street, the commercially and militarily innovative pro-US Israeli Street, and the intensifying threats to global sanity and the US national and homeland security, all highlight Israel’s role as a special strategic partner of the USA – and not a member of the “foreign aid” club of supplicants – increasingly contributing to mutually-beneficial geo-strategic US-Israel joint ventures.

{Yoram will be in the US during May and September, 2016, available for speaking engagements (http://bit.ly/1W5CrSr)}

Yoram Ettinger

Mixing Business with Pleasure

Monday, April 11th, 2016

Sun Bat Yam is a spectacular new seaside real estate project. It is a large luxury hotel complex designed and built to the highest standards in one of the best locations in Israel. It is the brainchild of US businessman and entrepreneur Joshua Guttman and designed by Feigin Architects, one of the leading hotel and leisure real estate architect firms in Israel. Completion is scheduled for the third quarter of 2018. When open for business, it will be an important addition to Israel´s hotel scene in general and business tourism in particular.

The complex is unique because it combines tourism with real estate investment. It will yield respectable annual yields of not less than five percent of the investment in the first two years of operation, plus investors will have a holiday home in Israel by the sea. The grounds cover 15,000 square meters of lush landscaped gardens designed by a leading horticulturist. The complex is made up of two 28-floor towers with a low-rise annex that will contain, among other things, a 2,200 sq. m. convention centre, of which 1,500 sq. m. will be open space unobstructed by columns or pillars.

The superb convention centre will place Sun Bat Yam at the forefront of the country’s convention tourist industry. Consequently, most of the hotel rooms will be occupied by business tourists. This is a very important element in the investment side of the project.

The hotel itself will have 376 suites plus world-class public areas. These include a luxurious lobby, lounges, dining areas and restaurants, a ballroom, conference rooms and coffee shops. The complex will also include 4,000 sq m. of beachfront promenade with fashionable clothing stores, restaurants and cafes.

The complex will also feature a large gym and spa area with state-of-the-art equipment, wet and dry saunas and a semi-Olympic indoor swimming pool, as well as a Dead Sea pool and Dead Sea treatments. In addition, there will be an 80-meter outdoor infinity pool and direct access to the pristine sandy beach of Bat Yam.

The hotel will offer five types of guest accommodation, from 37-sq. m. studio units to three types of two-room apartments, varying from 52 to 61 sq. m. The largest unit will have three rooms and a floor area of 73 sq,m. All hotel units will have balconies with full sea views.

These hotel units will be rented out not only to hotel guests but will also be sold as real estate investments on a private land registry basis and can be resold without any limitations. Because of its prime location on the Bat Yam seashore, the investment value is potentially very rewarding, and one can expect hefty capital returns.

Bat Yam is part of the Tel Aviv metropolitan area, and seaside properties are very limited. The land on which Sun Bat Yam is being built is among the last reserves of seaside building land in the area, which means significant appreciation of the property in the future.

Einat Zakariya, who is in charge of marketing explains, “Investors in Sun Bat Yam will have the advantage of having a property that will potentially increase in value and yield a monthly income. In addition, they will have at their disposal accommodation at the hotel for 90 days a year.”

The increase in value is based primarily on location; the annual yield is based on the daily revenue of the entire hotel room pool. The unit owners receive 25% of the hotel pool revenue, divided among them according to the size of their unit. The unit owner pays no annual maintenance fees. When the unit owner occupies his/her unit, a daily management fee of $50 to $65 is paid according to the size of the property.

Zakariya says, “We believe that our annual income will be high because we expect a high occupancy rate. Sun Bat Yam, with its magnificent convention center and unparalleled business facilities, will be very business oriented. A large part of the clientele will be made up of business people in general and those attending the conventions held in our complex in particular. This clientele will make the hotel less dependent on the seasonal fluctuations of the tourist season; consequently, our expected occupancy rate will be higher than the annual 71% occupancy in the Tel Aviv area. And increased occupancy means increased income.”

She adds, “With regard to their 90-day annual stay at the hotel, they will be required to reserve accommodation nine months in advance if they want to use their occupancy option in the high season, especially Passover, the High Holy Days or July and August. They will be able to have accommodation anytime they want, provided their unit — or at least a similar sized unit or a larger one — is available.”

For more information, go to Sun Bat Yam.

Stephen Barker

Silicon Valley Fund Investing in Israeli Startup to Streamline Startups [video]

Tuesday, January 5th, 2016

(JNi.media) The “500 Startups” Venture Capital Fund is investing in Israeli startup RapidAPI, which developed a platform to allow people with ideas for new applications to turn their initiative into reality quickly and easily. 500 Startups is the second largest startup accelerator in the global hi tech industry with an overall investment volume of $200 million. RapidAPI had already attracted investments from Dov Moran, the Israeli inventor of the USB memory stick, and Marius Nacht, founder and chairman of CheckPoint Software Technologies.

The RapidAPI startup was developed by Iddo Gino, 18, who’s been rolling millions in the hi tech industry employing people his parents’ age. “When I was about 11, I went with my dad to his workplace, and I sat with one of the programmers and saw all the cool stuff he was doing,” Iddo told Israel 21c back when he was but a lad of 17. “He showed me a program he made to sort out seating for his son’s bar mitzvah automatically. Then he gave me a book to learn how to program. And from there, one thing led to another.”

This time around, Gino noticed that most apps share common operations such as entering user name and password, purchases, and data keeping. So he developed all of these components as off-the-shelf products any developer can borrow and insert in their program without having to write a single line of original code.

Gino says he’s seen many good ideas getting stuck in the realization phase, which requires using highly paid coders. According to Gino, using RapidAPI can reduce development costs by as much as 70%, allowing many more developers to make their life’s dream come true and accelerate the development of many new applications.

Which is what the world needs.

JNi.Media

Warren Buffet Buys Out Israeli Firm for $2 Billion

Wednesday, May 1st, 2013

Warren Buffett’s Berkshire Hathaway is paying $2.05 billion for the remaining 20 percent of IMC International Metalworking Co, otherwise known as Isracar, completing the buyout that began with the giant $4 billion purchase of 80 percent of the company in 2006.

“We are delighted to acquire the portion of the company that was retained by the Wertheimer family when IMC first became a member of the Berkshire group of companies,” Buffett said Wednesday in a statement.

“As you can surmise from the price we’re paying for the remaining interest, IMC has enjoyed very significant growth over the last seven years,” Buffett, 82, said.

Isracar employs more than 2,000 people in Israel and 7,500 others around the world.

Buffett has literally fallen in love with Israel. The 2006 purchase of most of Isracar was Buffett’s largest-ever investment outside of the United States.

When he visited Israel prior to the spectacular purchase of the precision carbide cutting tools company, he said, “If you’re going to the Middle East to look for oil, you can skip Israel. If you’re looking for brains, look no further. Israel has shown that it has a disproportionate amount of brains and energy.”

Since then, an American-Israeli consortium drilling off the Haifa coast has made the world’s largest discovery of natural gas in the past 20 years, with a strong possibility of commercial quantities of oil.

Buffet’s purchase of the rest of Isracar on Wednesday helped strengthen the shekel against the dollar, with the going rate for a greenback now less than 3.58 shekels.

Tzvi Ben-Gedalyahu

What Israel Did for IBM and What IBM Did for Israel

Wednesday, April 24th, 2013

Doug interviews Meir Nissensohn, former general manager of IBM in Israel. Mr. Nissensohn explains why IBM came to Israel, what investment opportunities Israel offers to large, multinational companies and what these companies can give to Israel in return. Also find out why Israel has so many startup companies and why businesses and the Israeli economy continue to prosper on the second part of this week’s Goldstein on Gelt podcast.

Doug Goldstein, CFP®

The True Meaning of Financial Liberation

Sunday, March 24th, 2013

As Pesach approaches, the themes of freedom and liberation from slavery are prominent in a Jew’s mind. Indeed, the message of Pesach is one of the most powerful Jewish experiences, and many otherwise non-religious Jews find their way to a Pesach Seder.

Slavery in Egypt may seem like a distant memory to many Jewish Press readers, but take a moment to consider whether you are truly free. After all, doesn’t modern slavery come in the form of debt, overdraft, and heavy bills?

How free can you be facing bills, debts, long work hours and/or demanding employers? Can you consider yourself free if you spend nights worrying about how you will make it through the end of the month?

Maybe you and your spouse are both working full time. But those bills just keep coming in. You’re not even wasting your money on fancy vacations or designer clothes. Yet there seems to be a permanent hole in your bank account. Bills and expenses seem to pursue you wherever you go. You can feel like a slave.

Although everyone has his own story, one common thread to many families’ financial woes is that they aren’t managing their money properly. Unfortunately, money management and budgeting skills don’t occupy the same place on the school curriculum as math or history. As a result, many people never learn how to properly take care of their money, and they stumble and struggle to meet their daily expenses. Budgeting and financial planning need to be learned, no matter how old you are or at what stage of life you find yourself.

Successful finances require keeping track of spending and income. Start by keeping your receipts and noting down your daily expenses.

Learning to budget and plan efficiently can help liberate you from the slavery of overspending, fiscal disorganization, and debt.

Doug Goldstein, CFP®

Who Needs Insurance? (Podcast)

Wednesday, March 6th, 2013

In the second part of this week’s Goldstein on Gelt podcast, Doug gives important information about retirement, insurance, and pensions in Israel. If you’re an oleh or you are considering moving to Israel, find out which kinds of insurance would be most suitable for you and your family. Don’t miss out on these vital facts. Listen to this part of the podcast for more.

Doug Goldstein, CFP®

Printed from: http://www.jewishpress.com/blogs/goldstein-on-gelt/who-needs-insurance-podcast/2013/03/06/

Scan this QR code to visit this page online: