Thursday, July 13, 2017

The Bank of Israel prepares for a war on consumers and a 5 bus trip from Jerusalem to Support Hebron

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Yehuda Lave, Spiritual Advisor and Counselor

Compromise Where Appropriate

Some people keep quarrels running for much longer than is necessary, due to their refusal to compromise.

While we shouldn't compromise on fundamental values, it is wise to compromise on personal preferences - for the sake of maintaining peace with others.

In last week's parsha we had the death of Aaron. Aaron was famous for trying to make peace with others. When he died the bible says that the whole community mourned him. That wasn't true for Moses, who was not loved by the whole community. The importance of compromise.

Love Yehuda Lave

After the horrendus UNESCO decision last week, many organizations pulled out all the stops for an impromptu trip to Hebron to support the Jewish heritage in our first city in Israel bought by our Father Abraham

The Bank of Israel prepares for a war on consumers

If consumer debt is going out of control, look for the causes in the wage scale and in the prices of food, gasoline, utilities and insurance before punishing the Israeli working class.

Dr. Harold Goldmeier, 26/06/17

The writer is a former Research and Teaching Fellow at Harvard University where he received his doctorate. He served in the administrations of three U. S. Governors, is a business management consultant with a personal interest in education and NGOs. He is writing an e-Book on Healthcare Insights.More from the author ►

I just read a frightful interview Globes conducted and posted to its web site on June 15, 2017, with the Supervisor of Israel's banks, Hedva Ber.  

Supervisor Ber warns consumer debt is rising at too rapid a pace and approaching "out of control." Thus, her office is considering stringent measures to brake consumer borrowing. It sounds like the Supervisor's office is preparing to declare war on Israel's already financially strapped and struggling citizens. Household debt (not for mortgages) tops NIS 511 billion. NIS 325 billion is collateralized by equity in houses. 

A statement followed soon after the Ber interview from Bank Of Israel Governor Flug. declaring that the economy is supported by only 9% of the population. It may be fueling better international relations, stymying the international boycott movement, and creating hundreds of millionaires and billionaires, but the organization and exclusiveness of the economic miracle are concomitantly leaving working people behind; things are looking grim.

Household debt is caused by too little income to pay for food, clothing, utilities, health insurance, prescriptions, etc.  A Taub Center staff report (February 28, 2016) confirms that, "Israelis feel it in their pocketbooks—living in Israel is expensive. High prices on basic necessities combined with low wages relative to other developed countries lead many Israelis to struggle to make ends meet." 

Household debtors are not enemies of the State. They are survivors.
For example, it is widely reported Israelis pay 48% more for toiletries than consumers abroad; food prices are 25% higher than in Europe; Israeli made chocolate costs more in Israel than in Europe. Israel's teachers' salaries rank at the bottom of 34 other developed countries; worse in terms of purchasing power parity, and below salaries of Mexico's teachers. 

The Missives

Ber warns her Banking Supervision Department will not stand idly by watching debt grow.  "We have reached the point where we have to be careful," and if these conditions persist, "we'll intervene. We have many tools, and we won't hesitate to use them."

Sounds like the language President Trump uses towards ISIS and North Korea.

The Shattering Reactions

I won't speculate how and when the Ber will take action, but there will be severe consequence for the Israeli people. 

A credit crunch will 

·    Spark consumer credit shock spreading amongst the working poor, unemployed and underemployed. These classes make up the bulk of the borrowing public
·    Loans from banks will dry up and fees for loans will sharply increase
·    Citizens are likely to default on existing loans and mortgages in favor of putting food on the table, buying medicines, and paying expenses for children
·    The numbers of homeless will increase and small businesses go under
·    People will cutback on retail purchases 
·    Mortgage defaults will drag down housing prices and undermine bank solvency
·    Monthly interest rates for mortgages are already on the rise tied to a tenacious web of international benchmarks: LIBOR, foreign currency rates and more; concomitantly, people depending on overseas income from work and family watch the dollar and pound exchange rates tumble exacerbating the deteriorating living standard in Israel forcing 
·    More Israelis to throw-in-the-towel, and join the approximately 1.5m Israeli Jewish ex-pats (@12% of the population) living overseas and the 
·    30% of olim who leave Israel within three to six years because of the economic hardships
·    Tighter credit and the US lowering its corporate tax rate to 15% will encourage Israeli companies to relocate with their jobs

Good Intensions Are Not Enough

Let's hope Ms. Ber and her colleagues don't initiate the actions they threaten that blame the victims for unsustainable consumer credit levels.

Let's urge her to close the flaring income gap between rich and poor that presents more of a threat to Israeli society. 10% of Israeli children already go to bed hungry (14,513 in 2006 compared to 17,677 in 2017), according to Israel National Council for the Child. 

Household debtors are not enemies of the State. They are survivors. Ms. Ber, keep that in mind. To quote a famous American, "The nation is prosperous on the whole, but how much prosperity is there in a hole?"


Why You Love Capitalism --Dennis Prager

Coal-hating liberals don't seem to understand that coal is needed to make STEEL, and without steel, modern society can't function at all –


1. In my many years I have come to a conclusion that one useless man is a
shame, two is a law firm, and three or more is a congress.
-- John Adams

2. If you don't read the newspaper
you are uninformed,
if you do read the newspaper
you are misinformed.
-- Mark Twain

3. Suppose you were an idiot.
And suppose you were
a member of Congress.
But then I repeat myself.
-- Mark Twain

4. I contend that for a nation to try
to tax itself into prosperity is like a
man standing in a bucket and
trying to lift himself up by the handle.
--Winston Churchill

5. A government which robs Peter to pay Paul can always depend on the
support of Paul.
-- George Bernard Shaw

6. A liberal is someone who feels a
great debt to his fellow man,
which debt he proposes
to pay off with your money.
-- G. Gordon Liddy

7. Giving money and power to
government is like giving whiskey
and car keys to teenage boys.
-- P.J. O'Rourke, Civil Libertarian

8. Government's view of the
economy could be summed up
in a few short phrases:
If it moves, tax it.
If it keeps moving, regulate it.
And if it stops moving, subsidize it.
--Ronald Reagan (1986)

9. I don't make jokes.
I just watch the government
and report the facts.
-- Will Rogers

10. If you think health care is
expensive now, wait until you
see what it costs when it's free!
-- P J. O'Rourke

11. No man's life, liberty, or
property is safe while the
legislature is in session.
-- Mark Twain (1866)

12. Talk is cheap, except when
Congress does it. -- Anonymous

13. The inherent vice of capitalism is
the unequal sharing of the blessings.
The inherent blessing of socialism
is the equal sharing of misery.
-- Winston Churchill

14. The only difference between a
tax man and a taxidermist is that
the taxidermist leaves the skin.
-- Mark Twain

15. There is no distinctly
Native American criminal class,
save Congress.
-- Mark Twain

16. What this country needs are
more unemployed politicians
--Edward Langley,
Artist (1928-1995)

17. A government big enough
to give you everything you want,
is strong enough to take
everything you have.
-- Thomas Jefferson


1. You cannot legislate
the poor into prosperity,
by legislating the wealthy
out of prosperity.

2. What one person receives without
working for, another person must
work for without receiving.

3. The government cannot give to
anybody anything that the
government does not first take
from somebody else.

4. You cannot multiply wealth
by dividing it.

5. When half of the people get
the idea that they do not have to work,
because the other half
is going to take care of them,
and when the other half gets
the idea that it does no good to work,
because somebody else
is going to get what they work for,
that is the beginning
of the end of any nation!

DikDuk Challenge Parshas Chukas (by Rabbi Gold)

See you tomorrow

Love Yehuda Lave

Rabbi Yehuda Lave

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