Israel's Fischer urges continued tax cuts

Pretty soon Israel is going to be more capitalist than America
Nov. 21, 2008

I love Stanley Fischer, governor of the Bank of Israel. He said something yesterday so logical as he was commenting on the economic stimulus package before the parliament: Cut taxes, stimulate the economy, give the public disposable income. And, to practice what he preaches, Fischer cut interest rates here to 3 percent.

Such logic, however, appears to be lost on the United States of bailouts and NYC’s Mayor Taxman Bloomberg, allegedly trying to “save” the American economy.

It is vital that all possible measures be taken, within the budgetary framework, to encourage real activity in the economy, and to give the business sector, especially small and mid-size businesses, easier access to credit facilities,” Fischer said. “It is important to move forward with the planned reduction in tax rates alongside these measures.”

This is the opposite direction in which the U.S. is moving. Israel’s government and economy has its roots in socialism. But between Benjamin Netanyahu as finance minister and now Fischer, the country is reducing government regulation and has broken up government-run monopolies, trying to increase competition.

Don’t get me wrong: Israel still has a national health care system, and it is not recommended. And the banks here still charge 70 fees for services, down from 300! Israel is far from capitalist. But Fischer seems to know a lot better how to simulate the economy as opposed to the bailout Senate and Congress in D.C.

Olmert heading to Washington to see Bush - but why?

Could Iran be high on the agenda?
Nov. 21

Could I ask any more rhetorical questions? Don’t answer.

Israeli Prime Minister Ehud Olmert will be meeting with US President George W. Bush on Monday. But why? Both men are lame duck leaders. However, with the latest news that Iran has enough uranium for at least one nuke, the buzz is Israel is that the two will discuss a strike on an Iranian nuclear facility. Quick before Jan. 20!

White House Spokeswoman Dana Perino simply said on Thursday that Bush "looks forward to discussing with the prime minister the strong bilateral relationship between the United States and Israel, our continuing, mutual efforts to bring peace to the Middle East and a wide range of regional and international issues."

The meeting was initiated by Bush.

"The prime minister welcomes this opportunity to meet with the president and to express his most sincere appreciation for the eight years of American friendship and American support for the state of Israel," said Regev. "The prime minister believes firmly that George Bush is not only a friend of Israel, he also views the president as a personal friend."

But the plot thickens: The Time of London (known to be wrong or exaggerated in several instances of sensational Israeli news) reported that chances of an Israeli preemptive strike against Iran's nuclear facilities have significantly increased in recent weeks.

The report comes a day after the a UN nuclear watchdog group said that Iran would have enough highly enriched uranium to produce its first nuclear weapon by the end of 2009.

But have no fear, the Israeli Air Force is ready to attack Iran's suspected nuclear weapons project, according to Commander Ido Nehushtan in an interview published in Der Speigel on Tuesday.

"We are prepared and ready to do whatever Israel needs us to do and if this is the mission we're given then we are ready," Nehushtan said. “If I understand it correctly, all options are on the table ... The Air Force is a very robust and flexible force. We are ready to do whatever is demanded of us."

Meanwhile, Israel’s Foreign Ministry said this simply “illustrates Iran's continuous violation of UN Security Council resolutions. The report emphasizes and clarifies military aspects of Iran's nuclear activities.”