While Israel’s economy is facing the consequences of the global economic meltdown (e.g., unemployment is rising at 7%, gasoline price is surging):

1. According to the August 24, 2012 “Commentator” article by Peter Glover and Michael Economides,

as the tension between Israel and Iran ratchets up, an interesting sub-text has developed over the role of Iran’s traditional backer, Russia…. 20 million metric tons of liquid natural gas (LNG) exported each year from the eastern Mediterranean into Europe [a reference to the supposed potential of Israel’s and Cyprus’ offshore natural gas reserves] would amount to about one third of current Russian exports…. Putin’s Kremlin is clearly rattled by the threat of decline for that which underpins Russia’s entire economy: its energy hegemony…. Russia supplies a quarter of all Europe’s (rising) natural gas demand…. But there is now a new kid on the block that could pose a very clear and present threat to Russia’s vital European market: Israel, along with Cyprus, and their upcoming potential status as gas exporting energy superpowers…. During Putin’s recent visit to Israel, he and Netanyahu agreed to form a junior company to [Russia’s] Gazprom that would help develop Israel’s Leviathan gas field in the eastern Mediterranean…. Iran is suing Russia in the Court of Arbitration in Geneva for cancelling a contract to sell five divisions of the S-300 long-range anti-aircraft missile system…. the Kremlin appears to have higher economic and political priorities. Chief among them: ensuring its vast energy resources help it to remain a global superpower…

2. The Menlo Park-based Sequoia Capital, which is a leading global high tech venture capital fund, is dedicating $200MN for its 5th Israeli-dedicated fund. The 1st fund was established in 1998 ($30MN), followed by $150MN, $200MN and $200MN funds (Globes Business Daily, August 24, 2012). The Palo Alto-based Accel Partners, another leading global high tech venture capital fund and a frequent investor in Israeli high tech companies, invested $3MN in Israel’s Mobile Spaces (Globes, Aug. 27).

*3. Will Congress rise to the occasion, legislating the US-Israel Water Cooperation Act in the areas of water technologies, water industries, water conservation, water supply and consumption, water quality, irrigation, sewage recycling, desalination, water security, etc.?

The current drought afflicting the United States, which has spread to more than half of the continental United States, is the most widespread drought in more than half a century…. The US government has declared nearly 1,300 counties across 29 states a federal disaster area…. Head of the Desalination Department in Israel’s Water Authority claims Israel can help: “Educating people to use less water… The average consumption of water in the US per person is 3 or 4 times of Israel’s…. [More] efficient irrigation systems: 90-95% of agriculture in Israel uses drip irrigation as opposed to only 5% in America…. Proper maintenance of water pipes – there is a 20% average leakage rate on water pipes in the US, not quite as bad as London’s 40% average leakage, nonetheless twice the amount of Israel’s leakage…. Regarding sewage water – about 80% is reused in Israel for irrigation, as opposed to America’s 1%…” (Arutz 7, Gideon Israel, July 25).

From Yoram Ettinger’s newsletter, Straight from the Jerusalem Boardroom, which can be found at the Ettinger Report. 

Israel is equipping submarines built in Germany with nuclear-tipped cruise missiles, according to an in-depth report in Der Spiegel magazine.

The magazine also reported Sunday that the German government has known about Israel’s nuclear weapons program for decades, despite its official denials.

Last month, Israel received from Germany its fourth Dolphin–class submarine, which is slated to become operational in 2013.

Germany has largely funded Israel’s purchase of the submarines.

According to Spiegel, Israeli Defense Minister Ehud Barak told the magazine that Germans should be “proud” that they have secured the existence of the state of Israel “for many years.”

Israel has neither confirmed nor denied that it has a nuclear weapons program.

The German government recently signed a contract for the delivery of the sixth vessel, with one-third of the cost being subsidized by Germany. The delivery of the sixth sub has been conditioned on Israel’s stopping construction in the settlements and allowing the completion of a sewage treatment plant in Gaza which is partially financed by Germany.

A new Israeli invention is taking recycling to the extreme, turning bits found in sewage water into paper.

In a report by Ynet News, Dr. Refael Aharon of Applied CleanTech explained that 10% of drainage coming out of homes through pipes is comprised of “solid substances” such as food leftovers, toilet paper, and fiber from laundry machine cycles.  Up until now, the filtration of those substances out of the system in order to recycle the water has been expensive.

With Applied CleanTech’s new system, half of Israel’s solid substances will be filtered out , dried, purified and sanitized and turned into cellulose, which will then be turned into paper.  The process will also reduce electricity and chemical costs for purifying water.

One such program is already in place in southern Israel, according to the report, where paper is being reduced at rates far below that of traditional recycled paper.