Israel’s economic protests are the best news ever
The Arab media, the BBC, and a host of other voices unfriendly to Israel compare the cottage-cheese-and-rent protests on Rothschild Boulevard to the “Arab Spring” (which I characterized from the outset as a harbinger of societal collapse). It does not seem to occur to the punditeska that Israel has never had a national political fight over economic history, for an obvious reason: Israelis were too worried about security issues to bother about the price of cheese. Never mind that Israel, one of the world’s most successful economies, has little in common with its neighbors, whose problem is that Chinese pigs will be fed before Arab peasants. The fact that the Israeli left has chosen to take a stand on economic issues shows that the national-security consensus around Prime Minister Binjamin Netanyahu is impregnable.
The Israeli left isn’t stupid. With Syria in civil war and Egypt in a chaotic march towards Islamism, there simply aren’t any Arabs with whom a rational discussion can be held about a comprehensive peace agreement. The Palestine Authority cannot find its footing in this quicksand; it cannot even find funding, for aid from Arab states has slowed to a fraction of last year’s levels. The PA can’t meet its payroll in consequence. Israel’s much-vaunted diplomatic isolation seems a distant memory with China’s army chief of staff visiting the country, and the China Daily proclaiming “China, Israel vow to improve military ties.”
Whatever happens in Egypt–and it almost certainly will be ugly–Israel’s neighbor will be consumed by economic crisis for years and forced to cut military spending. Syria’s army is too busy killing Syrians to bother with Israelis. One doesn’t want to sound cynical, but by making Arab life cheap, Basher al-Assad has made it much harder for the world to denounce collateral damage inflicted by Israel should it require an intervention in Gaza or Lebanon.
As I argued last April, Israel’s strategic position has improved immeasurably in consequence of the Arab revolts. Iran is still a deadly threat, but Iran must now contend with a Sunni alliance intent on containing it. Whether or not Assad survives in power, Syria will be crippled as an Iranian ally.
Netanyahu can sit in his office in Jerusalem and offer to go to Ramallah and negotiate without preconditions, while the Palestinians run in tighter and tighter little circles. And no-one on the Israeli left can complain about it. Whom is he supposed to talk to?
So the Israeli left has thrown its resources into a protest over the high price of housing. We in the United States should be so lucky. Come over here, and see what it’s like when home prices collapse. The impetus behind the protest is that the pie has suddenly become much bigger, and the economic laggards want a bigger share of it. That’s a high-class problem to have, compared to Egypt, which imports half its caloric intake and is running out of foreign exchange.
And it might be added that the Israeli protesters are enjoying themselves in a great open-air carnival along Rothschild Boulevard, one of the most pleasant avenues in the Mediterranean world. It’s hard to confuse that with Tottenham.
Mr. Goldman,
As much as I enjoy your writing and insights, the protests in Israel are a sign for a society that lost meaning. The people are demanding “Social Justice”, not because they care about the state of society in general, but because the current state hurts them individually. And just like any other gentile society, the Israeli one will tear itself apart because of the endless urge for more lavish life-style.
As Dr. Oswald Spengler once noted, the Jews are too connected to the West and will fall with it. The only way to avoid this grim future is if the State of the Jews will become a Jewish State, but I’m in doubt if that will happen on it own.
The “Left” demanding “Social Justice” is the Left of the Arab Communist party Baalad, the NIF and others receiving their funding from the likes of Soros’ JStreeters and the Norwegian government.
The actual Israelis protesting about the cost of housing and other issues were aghast when one of the progressives started demanding free schooling from 3 months as they watch the “Social Justice” results of Greece, Britain and other European socialist experiments come to fruition.
Welcome to PJM!!
Well, it’s good to hear that the leader of the free world, Benjamin Netanyahu, is benefiting from the spastic interventions of the clown prince of the west, Barack Obama. Little Lenin’s golden touch has already begun transforming Egypt as it has so far done in the country he hates. And now that Syria is on his radar, let the suffering multiply.
Welcome to PJM, Mr. Goldman.
‘The Israeli left isn’t stupid ‘
No,they’re suicidal.Even the IDF has gotten into the act.
The IDF’s recommendations include allowing several mitigations vis-à-vis the Palestinian Authority and its security forces, mainly allowing more weapons into the West Bank from Jordan.
As the Arab,Islamic world are busy with what they do best,their internecine carnage lets not forget that one thing would unite them rather quickly,a mother of all wars against Israel and the ‘infidel’ Jews.
As the citizens of Syria call for the death of Assad if he knows his days are numbered he can kill two birds with one stone,strike Israel and let Israel strike back his ungrateful citizens for him.
That’s the Arab mindset.
A perfect time to hit would be when Israel is distracted inspecting the accumulation of lint in their navel.
Instalanche.
Glad you’re at PJM. Looking forward to your columns…
I always read Spengler.
David,Always a pleasure to read you at ATOL
‘The Israeli left isn’t stupid’
No,they’re suicidal.Even the IDF has gotten into the act.
From YNET today ;
“The IDF’s recommendations include allowing several mitigations vis-à-vis the Palestinian Authority and its security forces, mainly allowing more weapons into the West Bank from Jordan.”
As the Arab,Islamic world are busy with what they do best,their internecine carnage lets not forget that one thing would unite them rather quickly,a mother of all wars against Israel and the ‘infidel’ Jews.
As the citizens of Syria call for the death of Assad if he knows his days are numbered he can kill two birds with one stone,strike Israel and let Israel strike back his ungrateful citizens for him.
That’s the Arab mindset.
A perfect time to hit would be when Israel is distracted inspecting the accumulation of lint in their navel.
Your column is wonderful news! And after all the coverage of Steyn’s After America, after all the years of thinking Israel is doomed, well just this, Mr Goldman: you have made my day a happier one!
With the offshore oil and gas discovery in Israeli control, on top of the disintegration of various of their enemies, it looks like Israel can afford to buy what they don’t manufacture themselves when it comes to weapons. That being the case it would seem that Netanyahu can tell the European left and Obama’s nimrods to take a hike??
It’ll be two years or more before gas in the newly discovered fields comes online and Israel can tell Egypt to choke on their gas. And maybe a few more years until shale oil extraction process is proven out (assuming the environmentalists don’t scotch the pilot). Some estimate Israel’s shale oil potential approximates that of Saudi Arabia’s reserves. I hope that proves true as it’ll be a game changer.
Yet another Israeli advantage is water. Even as we continue to pray for those seasonal rains, within three years Israel should be capable of supplying 75% of its fresh water needs using desalination. Israel’s neighbors can’t say the same.
Nice to see you here Spengler. This is my first time posting here.
Great analysis of the current situation in Israel. One little quibble here. I wouldn’t agree with your comment that the Israeli left isn’t stupid. Unfortunately, the historical record suggests they are.
On the other hand, the punditocracy is worse than stupid, and we needn’t waste any time thinking of more accurate words to describe their lack of analytical acuity. Glad you pointed out, the first that I am aware of, that Israel’s strategic position has never been better and the idea that it is “isolated” is sheer nonsense. The only way Israel can be considered isolated is if you think the vote of 110 kleptocratic third world despotisms in the UN General Assembly for a PLO state makes the slightest bit of difference in the real world. It doesn’t.
As you suggest, the Arab states are the ones that are isolated and what we see is that, increasingly, fewer and fewer international players want to get involved in their messes. They are slowly sinking to the foggy bottom of the lake, and no one wants to go near them with a barge pole.
Good luck in your new venue.
Thank you, Ellen. I prefer my neologism punditeska, as in soldateska.
hi there! the protests are very goog for Israel; here are two problems that these brave protesters are asking for:
1- the dirty settlement building and the restof the orthodox jews who do not work and get huge entitlements at the expense of hard working israealis. this should be stopped. enough od studying the torah!
2- while Israel is a free economy it s not like the states. a handful of families through a very itricate web control 40% of the economy and that MUST stop.
just like our government who is in bed with the Saudis, the Israeli government is in bed with thos families. so what is the solution:
coalition government are a failure at best like the Italian government. so the brave people of Israel must put an end to this. this requires getting rid of all the blood sucking religoius orthoodox Jews. it is hard but doable.
the Israeli people also should get rid of the same a..holes who have been running the show and get some fresh blood involved. it is the same sad story:
Netenhue is prime minister, then there is a different government then he is defense minister, then olmert becomes the PM and then lieberman runs the show and then Tsipi gets involved etc… need fresh blood! the israeli governmet is just as pathetic as the Greek government.
as for negtiating with the palastinians: Israelis should give and inch of terretory to the palastinins. not one inch. let those scum live right there and that is it. and this is coming form a muslim. welcome!
the Israelis sho
You’re an ex-Muslim, right?
Not sure the word ‘brave’ (‘brave protesters’) is adequate here since they don’t risk anything. As long as they don’t riot and get physically violent or destructive nothing will happen to them. Any comparison to the Arab Spring, though popular, is a mockery of the true Arab bravery (whether we’d like the consequnces is another matter, but their bravery is commendable). Israel is a democracy. I can demonstrate for anything tomorrow if I like to. And if they want new blood they can run for office. But much of the leadership has a socialist agenda, and while there’s public support for the demonstrations I’m not sure the same people will vote for a socialist party. Also the demonstrations drew really large crowds mainly in central Israel, which is the richest region in the country. In my city, the largest in the south and poorer than Tel Aviv, it drew about 20,000 people, which is pathetic. The poorer people of course support many of the immediate goals, such as solutions for housing prices and high living costs in general and reforming the health care system, but seem less inclined to support all the talk about stinking capitalists, a revolution and changing the system completely.
You confuse the Orthodox with the Ultra-Orthodox. The Ultra-Orthodox see religious studies as the highest purpose in life for everyone who can, and are at odds with the state based on theology. The Orthodox, on the other hand, value both Torah and science and are a productive sector of the Israeli society. Both, even put together, comprise a smaller minority than the Arabs, or even just the Muslim Arabs (16% of the population) who are also depended on benefits.
But the largest burden on the budget is, of course, the security budget. That is a real dilemma since, for instance, just last night there was another rocket attack on my town. And if we’ll be forced to withdraw from Judea and Samaria there will be rockets coming from there too. Together with Hizballah in the north they can cover the entire country. That is certain to paralyze it. And then there’s Iran. And we don’t know where the “Arab Spring” will lead the region. So what are you going to invest in first – defense or subsidized housing?
Dear Ellen:
while some of the Israeli left are very stupid, some are not…
The current protest comes from the reforms introduced in the 80s, when people saw that the leftist model didn’t work (remember the hyper inflation. I remember going to buy a mink coat with a suitcase full of liras, shades of Weimar Germany!)
What happened then is that the government lowered the income tax but raised the VAT. They also lowered the advantages that were going to groups like veterans, teachers etc.
Today the middle class not linked to high tech is struggling. The price of apartment in the gush Dan where they want to live is too high for them. The cost of (non-deductible) child care makes it difficult for the women to work and bring a second income. The situation is a bit akin to what happened in silicon valley where the price of real estate priced out the teachers, firemen and police needed.
They’ll find a solution now…
Regarding the incredible stupidity of Israeli punditocracy, as well as the Israeli inability to do infowar, am I the only one with the urge to mail a copy of John Ringo’s book The Last Centurion to every member of the Knesset with a note attached saying “Read and learn”?
They are slowly sinking to the foggy bottom of the lake, and no one wants to go near them with a barge pole.
Except the State Department?
Welcome Spengler to PJM! Another star on the banner, another stick in the eye of the NYT.
Spengler at PJM! Hurray!
Welcome David: Always enjoyed your gimlet-eyed take on geopolitics and finance in the Asia Times — even when it was gloomy or scared the dickens out of me. Looking forward to seeing more of it here.
David
I’ve been following you for years, great to see you at Pajamas
The China part is especially interesting. President Obama damaged many of America’s allies, and I was wondering what will happen with Israel as the US seems to gradually switch sides. It won’t be the first time in Israel’s history. France used to be our ally and switched to the Arab/Muslim side. The Israeli solution was to be useful enough to the US for it to replace France as our big boy ally. Now when the US seems about to go French on us, I wondered who or what could replace it, in case it indeed happens. I can think of a couple of combinations that include India, but unfortunately that isn’t very practical at present. India is going stronger, but isn’t half as ambitious as China, so it’s more likely to join the the crowd on the matter of Israel. China is far from ideal – it’s a merciless dictatorship, and any technology we sell it will find its way to our enemies, but it’s certainly capable of and willing to defend its allies, and what other choices do we have? China is the only practical alternative and beggar can’t be choosers. We’re too weak to confront the entire world alone. If the US drops us China will be the replacement. The price will be, of course, military technology and intelligence that will enhance China’s military capabilities.
Gee, that’s just a wonderful analysis. You’re far better off with the Russians. I’m sure China’s gonna love Israel’s eventual move to prevent Latikia from becoming an Iranian naval base right next to the military base they plan to build for the IRI and Assad. Boy those Pakistan nuclear subs plans look welcoming too. Let’s talk about the present investment the US is making on Israeli missile defense. Really, a rather questionable post…with what gain, handouts from China?
Oh, and David I look forward to your articles. I do think now is not the time for Israel to be sitting on its hands. Iran is far from finished to Israel’s north and has just begun to plumb the southern reaches. I rather doubt the Israeli navy has the capacity presently to guard the future Med energy facilities and stop future aggression in the Red Sea and the Gulf.
Indeed, many things are presently in motion whether visible or not….
http://pajamasmedia.com/michaeltotten/2011/08/16/assad-wages-war-on-non-alawites/
P.S. My first paragraph refereed to Pnina’s comment and not the article at the top of the thread….
Not handouts from China, but joint military projects. They are interested in Israeli technology for a long time now. What else do you suggest we do if the US turns its back on us? Simply drop dead? I hear all the time the American-Israeli defense cooperation is greater than ever, but that doesn’t translate into politics. I have absolutely no idea what Obama might do next, particularly if re-elected. The US still has a lot of influence internationally and if the American president practically adopted the Arab positions what can we expect from the rest of the world? Obama demanded Israel will make final concessions (going back to the 67 armistice lines) as a precondition for negotiations with the Arabs, while not demanding anything from the Arabs. This is suicide for us. It makes no sense to give up all our bargaining chips in advance to an enemy that doesn’t even mean peace and in return for nothing. So what will happen if we’ll continue to refuse? If Obama is reelected he will not have to worry about another term. What means will he use to try and force us then? And what options will we have?
Israel is a small country with limited resources, and Obama is a proof that the American alliance is not as secure as many Israelis imagined. Even if it won’t be Obama, who knows what kind of ideologue the Ameicans might elect next? It’s not like the media is telling them everything they need to know. The purpose of the media is to prevent a Republican win, so for what we know the Americans might next elect some kind of Hugo Chavez without even knowing it. So Israel does need to think and plan for a day the US drops us. It may or may not happen, but we do need to plan for it. So what would you suggest?
Russia and China are equally involved in arming our enemies, but Russia isn’t interested in us and China is. Say the US drops us, what are our alternatives? As I said China will likely sell our own technology to our enemies (they already did with the relatively low level technology we sold them). But say the US drops us and we become an ally of China. China isn’t an enemy of Israel, it’s a rival of America. If the US drops Israel the chess board changes, Israel will not be on the rival side anymore. China wants to invest in developing military capabilities to equal the US. We might not be able to help them equal the US, but we sure can help them improve their capabilities, which is why they’re interested in us. That won’t make them stop arming our enemies and furnishing the Iranian nuclear project, but that is happening anyway. It’s not like the Americans are serious about stopping the Iranian nuclear project, even though it threatens all of their regional allies, and even Europe, and possibly the US itself (through the cooperation with Venezuela). If anything at all we might have more leverage on China as a useful ally. As long as we’re useful to them they might at least agree not to sell our own technology to our enemies and actually stick to it.
Again, what would you suggest we do if the US turns its back on us? Simply do whatever the US demands even if it means a mortal threat to us? Or maybe just do nothing while we suffocate under international sanctions and boycotts as well as lose our military edge? China isn’t a good alternative, but under such circumstances it might be the only alternative. There’s no other power that is both interested in us and is willing and able to set its own policies against international trends and pressure.
Oh, Russia is plenty interested in Israel, for a number of reasons. One is that a lot of the people who designed the current generation of Russian weapons systems presently reside there. Russia (as I’ve pointed out in the past) is buying drones from Israel, and trying to sell Israel its SAM’s and fighter-bombers. The point is that Israel still has excellent military cooperation with the US, and will do nothing to weaken that relationship for the time being. And I’m not going to spin hypothetical scenarios here…
Well, I’m glad to hear Russia is more interested than I thought. And of course Israel wouldn’t do anything to jeopardize the relations with the US. There’s no chance Israel will drop the US, huh huh. I was only speculating on what might happen if the US dropped us. I admit it has nothing much to do with your article except the mere mention of the Chinese visit in it.
France used to be our ally and switched to the Arab/Muslim side.
French-Israeli relations are quite good. Sarkozy has refused to meet with any leader who does not recognize Israel and trade ties improve each year. The only way you could possibly claim France is not an ally is if you believe allies are sycophants who never ever disagree with you.
France used to be our main ally like the US is today, although the relations were not as deep and strong (the relations with the US are multi-faceted and really go deep in a way that breaking them up will not be easy). It used to be our main arms supplier. The Israeli air force was made of Mirage aircrafts. It dropped us in the late 60s and later built Saddam Hussein’s nuclear reactor. That’s what I meant. We have trade relations with many countries, that still doesn’t make them allies. Europe is still our greatest export market, but it’s a well known secret among AIPAC activists that the strongest pro-Arab lobby in Washington, stronger than the Saudi lobby, are the Europeans. So are they allies? No. They’re just countries we have business with, like many other countries.
YAY! Spengler is HERE. Saves me several clicks a day, heh…
What I would take away from the Chinese visit is that with the Arab world in chaos, China pragmatically recognizes that Israel is the island of stability in the region as well as an important trading partner. But Israel will put relations with the US ahead of any advantage with China, which means that China won’t get the benefit of some of Israel’s high-tech defense products. It’s often been said, and correctly, that military cooperation between the US and Israel is better than ever. And Israel has good reason to hope that it will be dealing with a friendlier White House in 2013.
The US looks with some displeasure at Israeli military sales to China. (So do I, for that matter.) About 10 years ago the US killed a deal for Israel’s Phalcon surveillance plane (think smaller AWACS), and Israel paid China a serious penalty to cancel the deal. Israel was also compelled to kill the Harpy UAV upgrades. Israel today runs all military deals to China by the US for approval, even those (like the Harpy) that contain no US technology.
Israel continues to shift beyond the US and Western Europe for both trade and diplomatic support. They’ve established trade deals with countries in South America that the US has yet to submit for ratification. Trade with Eastern Europe and the Black Sea states continues to improve, as does that with both China and India. (Israel is today India’s #1 or #2 supplier of military hardware.) China is especially interested in Israeli high-tech, but prefers that it be transplanted to China, which is happening as small Israeli firms set up development and manufacturing facilities there.
It’s not just Israel however that’s looking beyond the US for support. Saudi Arabia, for example, no longer believes it can rely on the US (mostly over the Iran question), so it’s looking more toward Russia and China.
Too true, but take a look back at the technology Clinton allowed to pass into the hands of the Chinese; all that spectacular nuclear and rocketry stuff.
And it was nothing for the US to sell to the Arabs the F16 after all the Israeli improvements.
And all those Americans screaming about the 3 billion in aide to Israel while the illegals and co., are sending some 45 billion to Mexico each year for the “short back and sides” they do on American gardens.
“…whose problem is that Chinese pigs will be fed before Arab peasants. …”
is an exquisite frame so I hope I can use that as a quote instead of my clumsier “half of Egypt will be staging food riots by Christmas”
I do hope you will explore the China-Israel relationship, which I expect is more about non-military technologies.
China is such a conundrum – aligning with Pakistan; making Iran an economic hostage.
I love that the muslims have to rely on the pork-lovers of China and Russia.
“As I argued last April, Israel’s strategic position has improved immeasurably in consequence of the Arab revolts. Iran is still a deadly threat, but Iran must now contend with a Sunni alliance intent on containing it.”
As brilliant as I think you are, you are too casual about the Iranian threat. I think the Mullah’s religious fanaticism, combined with Naziish genocidal Jew-hatred is the most dire threat Jews have faced since the original Nazis. If they get the bomb, they will use it on Israel, consequences be damned.
David,
“there simply aren’t any Arabs with whom a rational discussion can be held about a comprehensive peace agreement”
Ya think?
Arabs…Peace
huh huh, thats funny!
Israel is a democracy. The good news is that Labor collapsed. While once security belongs to Bibi Netanyahu (like it once did to Arik Sharon), there’s not much the left can do. They’ll have some voters. But in the parliamentary system the price of cottage cheese and rent, isn’t going to bring Netanyahu’s government down.
Let alone that there’s now more building over the green line … in neighborhoods that will always be Jewish. But that belong to the SETTLER’s. This is what’s really driving the left crazy!
What will happen in September? Well, for one thing. (Or maybe two things.) But Egypt and Syria are dipping into their own arsenals. This stock was once a very big threat to the Israelis. (So by talking to the Chinese … it’s possible the Chinese won’t be so fast in re-arming either Assad or the Egyptians? Where would the Egyptians get money? The other unknown, ahead, is Belgium. (Soros wants the Greeks and the Portuguese to “voluntarily” withdraw from the EU. Will they?)
Right at the beginning, in 1948, Ben Gurion had Moshe Dayan firing at the Altalena. It was going to be Ben Gurion’s way. And, at least back then the socialistic model let the survivors of the Holocaust pull together.
But the threads frayed.
Golda Meir’s biggest mistake (besides Bar Lev), was her attacks against Arik Sharon. And, her belief that he wasn’t on “her” side. 1973′s Yom Kippur War did not enhance her reputation, but the opposite. And, it took Arik Sharon until 1977, to boost Menachem Begin into place. With the Likud. And, with Jimmy Carter in the White House. Then Sadat was murdered. (Few know that Sadat wasn’t considered “white enough” for the Egyptian mentality. Now? It’s Mubarak’s turn to plunge.)
I wouldn’t have picked a parliamentary system. Ben Gurion did. This sticks politics into the nastiest of businesses. Just look what the conservatives did to Margaret Thatcher. Look at Sarkozy. And, wonder what it’s like in France. Where every party sticks its hands out, embracing power. By lending their one or two seat stinking votes.
America is so very different! Because, here, if you get a little above 50% of the vote, you get the whole pie.
And, Obama? He dithers. But I ask you, what’s Hillary doing? State’s a very antisemitic crew. But they have their hands full right now. And, by 2016? IF Hillary stays put? Where’s her reputation going to go?
Eventually, all politicians lose something even while it looks like they know how to stay on top.
There’s no downside when some Israelis complain about housing of cottage cheese. All the foreign press wants to be in Tel Aviv. It’s just a circus. It’s just a show. For now.
hi Spengler
Charleston says hi too
Let me join the others in welcoming you to PJM.
I’ve enjoyed your articles in the Asia Times for years. So I’ll be checking your posts out regularly.
Wonderful to see you here, Spengler. I’ve been an admirer for many years.
Spengler at Pajamas!
Oh Frabjous Day, Calloo, Callay!
PJM just keeps drawing in the good uns –
Hoorah! I was following some of the discussion at First Things. Glad to know you are here. Will be back regularly.
Welcome, Spengler!
It is very amusing to watch the two sides of the Jewish coin hash it out. I am a NYC Christian, who has had a ton of experience with both sides. All my Jewish friends are very Conservative. They make Rick Perry look anemic. My Jewish schoolteachers, on the other hand, have been literal Communists.
In America, everyone says Jews vote Democrat. I’m sure lots do, but I have never gotten to really know a liberal Jew. We know they exist, but the anbiguous situation has always caused both conservatives and leftists to claim Jews as their own.
It is an interesting juxtaposition to see even Israelis, who should really be focused on Arab craziness, fighting among themselves. Idealogical purity is wonderful, but it shouldn’t be a death pact.
Is it this dichotomy that enabled so many horrible scenes in history? I do not know. But I have never seen, in my lifetime, any Jew who was nearly so unreasonable to others as they are to other Jews. Family arguments are the most bitter, but don’t fight in public. It’s unseemly. Yahweh would not approve.
I hope that this venue will allow you to continue not only your political analysis but also touch on your continued observations of both religious and cultural issues. Good to see you on a larger venue and hope that the editorial board doesn’t rob the rest of the world of your really great sense of dark humor.
Welcome, Spengler.
I am not at all surprised that the Israelis are looking to broaden relations with China. Just a reminder to the U.S. that Israel has options, too.
Still waiting for the Iranians to make that phone call to Nasrallah and kick off the Next Round of the 2006 Missile War. Only this time, no Olmert.
Good to read Spengler in Pajamas. On the surface it all sounds simple, but not so fast. Bibi is clawed in a vice. The protest movement, the new Tachtenberg Advisory Group on Housing, Tax and other social ills, is packed with Lefties. He will not be able to dismiss their solution like Obama ignored his two stooges on tax reforms. The street is motivated by decades of unfair distribution of resources that favor the “settlers” who represent less than 10% of the population, yet they with the religious types devour any fat that is produced, because they rely on benefits for their many children, housing discounts, and other “specials” instituted by the corrupt and disreputable Labor Party way back during the days of Ben Gurion, this goes back to 65 years. he could not keep the racist Labor in power thieving for 30 years. For a governing coalition he had to give many favors, which included for example wavers from military service for those pursuing the studies of the Torah! So the boys who graduated from high school go the the IDF (no choice here) and serve 3 years in uniform, many do guard duties protecting the numerous settlements, the roads and the borders. When they leave, they have no money, cannot pay tuition, cannot marry, cannot buy a small appartment and many are called every year to serve 30 days in combat units, again guarding the settlements. This unfair distribution of the burden is at the heart of the dispute. If more resources could be allocated to repair the social imbalances none of this display would have happened. Bibi is in a bind. He could easily lose his government. Those who believe they know more and are in position to opine from the U.S on matters they know little about, take a chance! It happened before to Ben Gurion,(1965) to Rabin (1975) and to Bibi (1998 with help from Clinton’s nasty crew/Greenberg-Carville Inc.)This is the Left’s last stand, they are completely vanquished, shattered, poor and insignificant, but they have the cadres creeping out from every department of each university, Kibbutzim and entertainment, ready to storm the seat of power. It will not get bloody, but Bibi could become a has been in a short order.
Oh, please, give me a break. It’s neither the Ultra-Orthodox nor the settlers that will make or break our budget. Blaming it all on the “religious types” is ridiculous. It’s really typical of the left – it’s the filthy capitalists and the religious that cause all the problems, if only we could do away with them…
I’m not saying the excesssive benefits aren’t a burden, but they’re not the only sector that doesn’t serve in the army, has many children, contributes less to the productive sector and gets excessive benefits. And then there’s the huge security budget. Imagine if we could invest in security no more than the average Scandinavian country. Wouldn’t that solve all the problems? And what about the cartel methods used by our big businesses? No competition will make the price of cheese go through the roof. To make things short, there are many factors contributing to the current situation, including the global recession, global rise in oil and food prices, the gas crisis with the new and improved Egypt and more.
Israel Hayom, a daily in Hebrew, 08-17-2011, Page 14, (bottom) today’s edition, confirms with detailed explanation how the radical left has penetrated the protest movement and mans many of the key positions. They control themedia, the message and the funding. An earlier take by Jonathan Spyer On August 15, 2011, explained the activities of the New Israel Fund, a front organization which in my humble opinion gets assistance from various American based Leftist outfits, many endemic to the well being of Israel. The Israeli left, was kissing cousins of the Euro left in the 50′s, cozy with Stalin, and helpful in some cases to the KGB. It is a tradition. They are in for the ride which ever way it goes, but it does not diminish from the fact that there are real problems which Bibi appears to willfully ignore. He could never master the art of ingratiating himself with the common man. P.M begin was very popular among the voters who elected him and projected a certain warmth and generosity, whic is sorely lacking with Bibi. A career apartchnik!
With regard to the Israeli media did anyone notice that Ynet gave M. J. Rosenberg (of Media Matters) a platform to trash Glenn Beck who will going to Israel for August 24th, rally?
Glenn Beck Exploiting Israel
It’s not enough that Haaretz is the NYT of the Middle East but the Ynet crowd are just as ignorant of the Trojans.
I miss Spengler at First Things. Hopefully, David, he will continue some of the themes he developed there along with writing on global political economy.
The Mountain Came to Mohammed! Welcome!!
The missing ingredient to these scenario’s are Banking and Currency systems;
Saudi Arabia could care less what the USA thinks or does, the US dollar is based on Saudi Petroleum reserves since 1971 (Petro Dollar system). Saudi royal family controls large portion of US equity and Real Estate markets because of this, Citi solutions Bank in NYC is wholly owned Saudi petroleum reserve liquidity system…hundreds of Billions that move in and out of equity and security markets.
The USA can never cross Saudi Interests because of this.
China’s banking system is somewhat insulated and removed from European and American pending economic disasters…their exposure to the US dollar is less than 3% of their cash and hard asset reserves. What will hit them are loss of export markets, but frenzied building of middle class ( 300 Million people will enter the Chinese middle class in the next 6 years) and resulting domestic demand for goods will certainly offset to a degree drop in exports. It was the creation of the US middle class after WW2 that created an economic miracle in US, it will do the same for China but in faster time frame.
Unfortunately the economic miracle was squandered by Washington in the 70′s-90′s, these effects are now making themselves visible.
Russia, also is insulated from Western banking system. The energy contracts between Russia and China are no longer settled in USD, which is bad news for the USD. The energy contracts between Russia and the Europe will start being settled in Euro’s soon, and this is further bad news for the USD.
Europe is on verge of Euro Collapse, and this will result in further pressure on the US Economy. From 2007-2009 there was 16 Trillion in cash sent from US federal Reserve to European Central banks to keep the Euro and Central banking afloat. This will be required again in 2012-1014. How this will affect the USA is hard to tell, but we will certainly increase the odds of a deeper economic crisis.
India has its own serious problems, their caste system, their banking and government are underdeveloped and still operating under inefficient systems and procedures. China has had the agricultural revolution, the economic revolution, the cultural revolution…China shook off off its chains…India must do the same and remove chains holding the Nation back. Until it does this it will not achieve its potential.
How does Israel fit into this Global Financial environment.. so far Israel has fared pretty good, like most economies operated in rational and regulated manner as opposed to the credit idiocy and deregulated system of Euro-American banking. Just like Canada and Australia, Israel has resources to offer the world. This will always attract investors, and banking support.
That Israel is moving towards China is not surprising, they have much more in common that not, mainly economic interests. This will trump all other issues.
China generally does not interfere with a Country’s politics or religion, it see’s trade as common factor and will do business with whomever has business interest. Israel does business for the same reasons, there is much trade between Israel and Iran, above and below board. It is the way of the world, if business can be done it will trump all other factors.
The way the world is shaking out, Israel is well positioned to move ahead with China on mutual business interests, as China will finance Israeli energy and desalination / large construction projects in return for Technology and trade.
It is the US own failure’s that are leading to its collapse, but the rest of the world is already taking steps to insulate itself from the damage. Israel must be no different
Yet another intelligent, thoughtful voice appears at Pajamas Media. Looking forward to reading your coming articles.
David, aka Spengler, welcome to PJM… I’ve been a fan of your work for some time now, over at Asia Times. Even when I disagree with you, your work is always stimulating and worthwhile. Eric R., we are in agreement that the Iranians are ot to be taken lightly; while there are reformist moderates in what used to be called Persia, the mullahs and President Ahmedinejad are the closest thing we have to modern-day Nazis, and their potential to threaten the rest of the world should be evaluated in that light. It is certainly an open question whether nuclear deterrence will work with an enemy who regards death as a promotion.
Actually I live part time in Israel, and the Israeli real estate situation is such that the prices are too high for most people because while the prices of houses is comparable to the United States (and in some cases much higher), the average salary is way below American salaries. In addition, there is also a terrible shortage of housing in Israel, so that the rents have also increased dramatically during the last 5 years.
The cause of the housing shortage in Israel is because not enough housing is being built, and this is to the advantage of property owners. The Israeli government should build many more affordable buildings, skyscrapers, to solve this problem.
The cause of the revolt is that the separation between the upper and lower classes increased so much during the economic boom that a lot of people actually became unable to survive when everything is becoming more expensive relative to their income that has not gone up much. The enormous growth is unevenly distributed, and there is absolutely no way the below average income group (= majority, since median < average) can compete with the upper class (defined as the above average income group.)
The Israeli Left isn’t stupid? I don’t know how you define stupid. Others here have commented that the Israeli Left is not stupid but suicidal. There’s an element of truth in that, I suppose. Personally, I don’t even think the Israeli Left is sane. They’ve descended into the realm of mental derangement & they’ve become pathological liars. This attempt to hijack legitimate issues re: the high cost of living is simply despicable.
Of course, tagging along for the ride is that miserable opportunist, the bitter Tzippi Livni of Kadima.
The protest, however, raises very legitimate issues about the structure of the Israeli economy although very few care to examine in depth the actual root causes – Oligarchy, Bureaucracy, Crony Capitalism, & Corrupt Public Sector Unions.
Terry I do so agree with you. Tzipi Livni can’t open her mouth with trying to trash PM Netanyahu, she has literally nothing else to say. My take on the situation is that the completely non-credible left saw the cottage cheese protest, which I thought was an excellent consumer show of force, and they thought, “hey we can do that!”, and voilà the tent city protests were formed. So here we have one of the strongest economies in the western world right now, and the left is trying to bring it down. Unbelievable! I hope that Netanyahu and get through this maze, the way he got past the Obama troubles.
Welcome to Pajamas Media, David/Spengler! PM is becoming one-stop shopping!
One point I disagree with: Assad’s butchery won’t buy Israel any media cover if they have to go back into Gaza, any more than Hafez el Assad’s butchery of Hama bought Arik Sharon any cover back in 1982, when he was accused of abetting the massacres in Sabra and Shatilla. The media is way beyond being embarrassed over their double standard. Arab life is always cheap. But alleged Israeli atrocities? Priceless.
Dear Spengler,
With respects, it is a mistake to view the economic protests which have been taking place in Israel as exclusively a phenomenon of the left, although many of the more prominent self-appointed spokespersons of the protesters seem to come from the left side of the political spectrum.
The protesters actually have a lot in common with the TEA Party in the United States. They want the cost of living in Israel to go down, but in practice that mostly means lowering indirect taxes, such as Israel’s 16% Value Added Tax, high import taxes on gasoline and petroleum products and clinically insane levels of customs and purchase tax on imported automobiles (which is to say – all of them since there are no cars manufactured in Israel).
Then there is the high cost of housing, for which there are a few causes. The first is not really something the government can or should want to control: the heavy demand for housing in Israel due to high fertility rates and natural population growth on the one hand and the purchase by thousands of French Jews of homes in Israel as a bolt hole in preparation for the day when anti-Semitism will force them to leave France. The second is definitely the product of Israeli government policy, a holdover from the “bad old days” of Mapai Statism: The scarcity of demand due to a government (Israel Lands Authority) monopoly over about 90% of available land in Israel and a restrictive land use policy under which the government releases government owned land for construction purposes at prices and in quantities calculated to maximize revenues. Wanting that statist cartelist policy changed is more TEA Party than Socialist Party in orientation.
High customs and other import taxes on imported building materials and construction equipment also contribute to the high cost of housing as does the 16% VAT on the sale of newly constructed housing. Opposing all of this is also closer to TEA Party thinking than classical Socialist or Social Democratic policy.
Changing those policies will lower the cost of housing and make life easier for our young couples, University students and IDF veterans (and for their parents who would like to see their children able to afford a place where they can live and establish a family of their own). The politically left- center- right breakdown of this vast mass of individuals parallels the general outlook of Israeli society, and is certainly not limited to the left wing of the Israeli public. Left, right and center, we all want our kids to be able to afford to move out of the house and get married.
Uzi,
Thanks very much for the color on Israel’s land policy.
I haven’t been in Israel since the protests began, but my sources on the ground, many of them professional observers, tell me that the Rothschild Boulevard sit-in was a hard left affair from the beginning. It’s one thing to push legislation in the Knesset to correct economic policies that distort markets, and another to create a ruckus in the streets. Even the Tea Party doesn’t pitch tents in Lafayette Park.
As for VAT on imported goods: as my old business partner Jude Wanniski wrote a generation ago in “The Way the World Works,” the optimal tax rate in wartime might be 100%. Israel is not a normal economy given its unusually high defense requirements and needs high taxes to support its military. The VAT makes virtually all imported goods expensive (which is why Israelis drive smaller cars relative to their incomes than most other people). I don’t see any painless way to solve the problem.
For another take on the left-wing origins of the housing protests, see Jewish Ideas Daily this morning:
http://www.jewishideasdaily.com/content/module/2011/8/17/main-feature/1/whats-behind-israels-middle-class-revolt/e
Mr Goldman.
Thanks for the link. The list of ”leaders” of the protest reads like a who’s-who of the Israeli radical far left. The role of the Israeli media should not be down-played either.
The above comment by Uzi was completely off-base, typical of the lack of knowledge about the Israeli economy by Israelis & their lack of knowledge about Economics in general. I only wish the protest was an Israeli version of the Tea Party; instead it’s more like the return of the Bolsheviks.
Terry,
Uzi was not completely off base, in my view, but one has to distinguish between the “what” and the “how” of the protests. There are legitimate questions about regulation, but the street protests are a leftie tantrum.
Indeed, there are legitimate questions re: over-regulation but the antidote to poison is not more poison. Many of the protesters are calling for rent subsidies, rent control, & public housing.
What we hear are vague slogans about ”social justice” – code for socialism & income redistribution. Most certainly, there is no protest against our corrupt public sector unions, gee, isn’t that a surprise?
The legitimate objects of protest are mostly ignored – why no protests against our semi-monopoly banks, our supermarkets that rip us off every time we shop for food, the incredibly inefficient Electric Monopoly, giant food cartels, etc. etc. ? No, the protest is directed only at Netanyahu who, as it happens, is more free market than most Israeli politicians.
The original cottage cheese boycott is now ignored even though it was apolitical, spontaneous, focused, & with achievable goals.
Just out of curiousity, are you familiar with Daniel Doron, the Israeli economist?
From my vantage point it was the Histadrut hyenas who led the charge for the band wagon a day or so after the first tent, followed by Soros’ minions and Baalad’s kosher sector with the media smokescreen misleading the public.
That’s about right, very accurate, actually.
It may be that the Israeli Left is neither stupid nor suicidal, but honestly mistaken. Unfortunately, letting down their defenses is a mistake the Israelis will only be allowed to make once.
As long as there is no serious undermining of those who would influence Netanyahu to keep Israel from committing suicide, then I guess there is no harm done by the Israel economic protests.
But while the short term of the Arab “springs” may even have the upsides the writer mentions, I fear the long term will be populist, dictatorial and worse.
My feeling is that the writer seeks to find a silver lining where there is none.
Congratulations on the blog David.
As long as Israel takes the high road I believe it will be fine. Given the current situation in the Middle East, many opportunities should present themselves for minds to be changed without scorching the earth there.
http://freepages.genealogy.rootsweb.ancestry.com/~josephkennedy/Sherman_1864.htm
With Egypt and Turkey improving relations with Iran thanks to increasing Muslim Brotherhood – AKP Islamist influence, the “Sunni alliance” you speak of has become significantly weaker than it was before the Arab Spring. Saudi Arabia and…?
Welcome Spengler,
I have read you in Asia Times often enough, even translated a thing or two to my blog in Swedish without asking for permission….. Plan on translating the article about the Bankruptcy of Egypt too, if I may. And after my first visit to Israel in 1971, when it was an underdeveloped country just as today’s demonstrators want, I still had a pleasant time. Since 1990 I have written about Israel in Swedish media as I am a Swede, and the last few years in my blog. I am NOT a leftie which makes me rather uncommon here in Scandinavia. I am not even Jewish, thou I do not call myself Christian either anymore, because it is too much associated with anti-semitism today.