#Tomorrow13 Stanley Fischer speaks to bloggers
Stanley Fischer is speaking to bloggers at the #Tomorrow13 conference in Jerusalem. He is the soon-to-be-retiring governor of the Bank of Israel.
Israeli economy starts with world economy. Low growth in Europe this year, US slightly better, but Israel's outside environment not good.
Israel also undertaking 'needed fiscal contraction to get the budget back.' Change in budget relative to year before is rather small but had to break promises. Look for 3.8% growth this year of which 1% will be impact of gas so 2.8% growth overall. Looking at 3-3.5% for 2014.
But we're at full employment - unemployment rate the lowest in 30 years.
Someone from Times of Israel asks if we have moral obligation to help 'Palestinians.' Fischer says we have moral obligation to help world, and economic growth for 'Palestinians' would probably be good for us. If we had free trade and a 'Palestinian' economy at peace, we would probably see a pickup in growth.
Someone asked about China and Fischer said that we don't need to be the ones to boycott China because of its human rights issue when no one else is.
Someone asked him about access to credit for small and medium enterprises. He said that some banks have put aside money for it but this is a worldwide problem.
There's a long line to ask questions so I will pass on that privilege. I wanted to ask about some of his statements about the
size of Haredi families. I think what he really meant was that we ought not to be paying people to have children. I would say that we ought to have a means test to decide who needs help to raise their children. The
yeled v'kelev crowd (one child and one dog) in North Tel Aviv that makes NIS 100,000 per month or more does not need the monthly subsidy. If so, he ought to say that. But that would enrage the chattering classes....
He's now talking about infrastructure priorities. He admits he doesn't know much about it, and the questioner, who keeps trying to get Fischer to say something about the JNF, is probably from the JNF. 'Nuff said. Have to talk to Elie Klein about limiting next year's blogger sessions to bloggers....
Someone asks him about solving Europe's economic problems. By the way. the rumor here is that Fischer will return to the US to be the governor of the Federal Reserve, so all of you stateside may be hearing a lot about him soon.
End of meeting.
Labels: President's Conference, Stanley Fischer, Tomorrow Conference
Haredi MK's respond to Fischer
Haredi MK's were
quick to respond to the
hateful statements made earlier on Wednesday by outgoing Bank of Israel Chairman Stanley Fischer. This is the from the first link.
"Blessed is the hareidi birthrate," stated, Member of Knesset Meir
Porush (United Torah Judaism Party) on Wednesday. "This preserves the
demographic balance of the Jewish State of Israel. It should be
encouraged," he added. MK Porush made the comments in response to a
speech by outgoing bank of Israel Governor Stanley Fischer. On Tuesday
Governor Fischer stated at an economic conference at
the Interdisciplinary Center of Herzliya that he was concerned about the
high birthrate of hareidi Israelis. He also commented on poverty and
unemployment within the hareidi sector. MK Yaakov Asher (United Torah
Judaism Party) added that Governor Fischer's words could be construed
as derogatory against the hareidi public. He stated, "demographics are
not always built according to the preferred economic data of the Bank of
Israel or Finance Ministry."
Indeed.
Labels: Haredim, Israeli economy, Meir Porush, Stanley Fischer
Bank of Israel Chairman: Haredi birth rate 'a problem'
Bank of Israel Chairman Stanley Fischer, who is resigning from his post, complained in his farewell address that the Haredi birth rate is '
a problem' (Hat Tip:
Aryeh Z).
“The economy is facing several challenges, which is basically a nice
word for ‘problems,’” Fischer told his audience. “Poverty is a central
issue. There is intolerable poverty in the hareidi and Arab sectors. It
must be dealt with.”
Hareidi and Arab lifestyles play a large part, he noted, citing low
participation in the workforce as an example. However, he said, the
state of Israel cannot use that as an excuse, but rather, must encourage
adults in those sectors to join the workforce.
Fischer then made a more controversial statement, “Another problem is
the demographic problem. The growth rate in the hareidi population is
4.2%, which means the hareidi population will double within 17 years.
The Arab population will double within 25 years, while the rest of the
population has a 1.7% growth rate, meaning it will double itself in 40
years.”
If the trends continue, he warned, secular Israelis will be in the minority within 50 years.
Polls show that only 20% of Israelis
self-define as secular. Fischer was apparently referring to all
Israelis who are not religious Muslims or orthodox Jews as secular.
Something tells me that Fischer didn't make comments like that when he was a banker in the US. He wouldn't have had a career left. But here in Israel, making comments that are worthy of
Der Sturmer is acceptable so long as the comments are limited to attacking Haredi Jews.
Labels: Haredim, racism, Stanley Fischer
Their 'worst financial crisis' evah....
Abu Mazen is praying that the 'Palestinian Authority' finds a way out of
its worst financial crisis evah (or at least since last month and until next month).
Ahmed Majdalani warned that a shortfall in the delivery of aid from Arab donor nations means the PA will be unable to pay employees their July salaries or pay off debts it owes to private businesses across the West Bank.
“It is the worst financial crisis experienced by the Palestinian Authority since its founding,” he told AFP.
“What is available to the Palestinian Authority at the moment in terms of funds is not enough to pay government employee salaries this month, with Ramadan approaching,” he said.
“It is not sufficient to pay the bills that the Palestinian Authority owes to private companies.”
I can think of some ways they can find some money. Let them take the terrorists off the payroll. Let them take the people they pay to do nothing in Gaza (including Hamas) off the payroll. Let them consolidate their 'security services' into less than five. Let them look for all that money that Arafat and Abu Mazen and others stashed in Switzerland. Let them take Suha Arafat off the payroll (how many 'Palestinian' employees can you pay with $500,000 a month?). Do I need to go on?
The executive committee of the Palestine Liberation Organization also warned on Saturday of the dire funding situation facing the West Bank government.
“The executive committee calls on all the brotherly Arab nations to contribute to the solution of the urgent financial crisis that the national authority faces,” it said.
“The continuation of this crisis will threaten both the Authority’s short and long-term development and the stability of its institutions,” the committee warned.
“The current financial situation is worse than any previous circumstances and requires rapid intervention,” it added.
So who helps them out? Not the Arab countries, but the dhimmis who 'lead' Israel (Hat Tip:
Bad Blue) (Full article
here).
Israel recently asked the International Monetary Fund for a bridge loan of a $100 million dollars that it planned to transfer to the Palestinian Authority to help prevent its financial collapse, but the IMF turned down the request.
The PA, which is not a state, cannot ask the IMF for help on its own. The plan therefore, was for Israel to take the loan on the Palestinians' behalf, have the PA repay the loan to Israel, and Israel would repay the IMF.
The IMF rejected the Israeli request, however, saying it did not want to set a precedent of a state taking a loan on behalf of a non-state entity.
And they're trying to find another 'solution.'
Despite the refusal, Fischer and Fayyad are trying to find an alternate solution.
Fischer and Fayyad know each other well from the period when the two of them worked at the IMF from the end of the 1990s until 2001. During those years Fayyad was the IMF representative to the PA and Fischer was the fund's deputy director. Both ended their terms at the IMF at about the same time; Fayyad was named finance minister in the PA government and Fischer went to the private sector, becoming Bank of Israel governor in 2005.
What guarantee would Israel have that it would not be holding the bag? Why is no one even discussing cutting all the waste (and payments to terrorists) in the PA's budget?
Labels: Abu Mazen, Palestinian Authority corruption, Palestinian Authority donors, Salam Fayyad, Stanley Fischer
Bank of Israel Governor: Israel's standard of living one third lower than the US
This should come as no surprise to anyone who travels back and forth between Israel and the US. Bank of Israel Governor Stanley Fischer told a conference on Sunday that
Israel's standard of living is one third lower than that of the United States.
Speaking at the Conference on Corporate Governance, Family Firms, and Economic Concentration at Hebrew University, Fischer said, "The Israeli economy is open, but there are aspects that are closed. It is very hard to find inexpensive cheese. Our real income is high, but our standard of living is not the same as in the US. There is a feeling that this is a result of over-concentration, but it is also connected to agriculture that is not over-concentrated, but that does benefit from much protection."
Fischer said that the problem of over-concentration is not characteristic of Israel alone, but rather of many countries around the world, and that Israel is similar to Singapore on this issue. He quoted an article he read in 2005 that claims that outside the US and the UK, there are large corporations controlled by powerful families that are making realistic and financial investments.
"This is the situation in Israel as well," Fischer said. "Israel is between Belgium and Hong Kong, just below Singapore. This is not an unusual situation, but that does not mean that it is the desired one. Even if you are like all the rest, that doesn't mean that you shouldn't aspire to be better."
Fischer continued, "There is a feeling that prices are too high, and this is connected to concerns that social gaps in Israel are widening, although the situation in the US is not too different."
What Fischer is alluding to is the fact that we spend a much higher percentage of our income on food than is spent in the US. It is often the case that you spend as much as one third of your net income here on food - and that's largely a result of the fact that there are relatively few imports, we are a small country, and there are a limited number of suppliers. I don't know why Fischer doesn't consider that over-concentration. In most cases the food import concessions are held by the same companies that produce the domestic food products who then keep the prices high. And it's not just cheese - it's everything.
The other issue Fischer does not address is over-taxation of consumption. Every time the government cuts one tax, it raises another rather than cut spending. Car import taxes still start at the same 116% that they did when I arrived here 20 years ago. The value added tax is a regressive tax that is at 16% and has ranged from 15.5% to 18% in the time I have been here (as bad as that sounds, in England it's 20%). It's a tax that turns every service provider into a tax collector and every purchase into a major decision. I realize that Fischer has little to say about tax policy, but he does have influence. I'd like to see him exercise it more.
Labels: Israeli economy, Stanley Fischer
Stanley Fischer disqualified due to age
Bank of Israel governor Stanley Fischer has been disqualified from running for the number one position at the International Monetary Fund. The IMF has an
age limit of 65. Fischer is 67.
In a statement, Fischer expressed regret that the IMF board decided not to change its rules to allow him to run.
He said his experience had made him a natural candidate to head the IMF at a time of ongoing challenges for the global economy. He called the age limit “irrelevant today.”
“The governor is convinced that the age issue is a technical one and a neglibible detail compared with the need to choose the most suitable candidate to lead the fund at the present time,” the statement said.
Fischer’s candidacy had been considered a long shot, primarily because the fund historically has been led by a European.
In a statement from Washington on Monday, the IMF said it would consider two candidates — front-runner Christine Lagarde, the French finance minister, and Agustin Carstens, Mexico’s central bank chief.
I guess that's the kind of moronic, unthinking decision one should expect from an organization that decides that the 'Palestinian Authority' is
ready to "conduct the sound economic policies expected of a future well-functioning Palestinian state," while said 'Palestinian state' has no economy of which to speak and is totally dependent on international aid.
Labels: International Monetary Fund, Stanley Fischer
Stanley Fischer in the running to be IMF chief
Bank of Israel chief
Stanley Fischer is considered a leading candidate to head up the International Monetary Fund.
Bank of Israel Governor Stanley Fischer announced he was in the race to become the next head of the International Monetary Fund.
Fischer, 67, is a widely respected economist credited with successfully guiding Israel's economy through the global crisis.
He is nevertheless something of a dark-horse candidate, as France's Christine Lagarde and Mexico's Agustin Carstens are generally considered the leading contenders.
Israel's Finance Minister Yuval Steinitz said he would be backing Fischer's candidacy.
"A unique, unplanned and possibly and once-in-a-lifetime opportunity has arisen to run for the head of the International Monetary Fund, which after consideration, I decided I wanted to pursue," Fischer said in a statement.
"I believe I can contribute to the IMF and to the global economy in this period after the crisis," he said a day after the deadline for nominations closed.
How strong a candidate is Fischer?
Consider this (Hat Tip:
Gary P).
Based on professional qualifications and cultural fit, Stanley Fischer is the perfect candidate for managing director of the IMF. He would likely prevail in an open, transparent and merit-based selection process. The question is whether European attempts to preclude this can still be overcome by countries that care about the legitimacy of the institution and the beneficial role it should play in the global economy.
I worked closely with Mr. Fischer at the IMF in the 1990s, and followed his careers both before and after that – as a brilliant member of MIT’s renowned economics faculty, as a thoughtful and inspirational chief economist at the World Bank, and as a successful governor of Israel’s central bank. On this basis I strongly believe that he ticks every box when it comes to IMF suitability – professional, cultural and personal.
Mr Fischer is a world-class economist, and among the very few that applies a sharp, and well-trained analytical mind to both policy and academic challenges. He is exceptional in another, and even more unusual way. He uses his brilliance to engage rather than intimidate. Indeed, he starts his interactions with other people on the assumption that they can enlighten him; and they feel at ease sharing their insights and interacting with him.
...
Indeed, Mr Fischer’s professional integrity is beyond doubt; and he commands great respect. Just witness his standing among Palestinians during his successful tenure as Israel’s central bank governor and despite a period of considerable tensions in Arab-Israeli relations.
Oh, by the way, the writer's name is Mohamed El-Erian.
So why might Fischer not get the job? Back to the first link.
But while he is eminently qualified for the IMF post, his candidacy would be a long shot, as the job traditionally goes to a European, which of course makes Lagarde the favourite.
The resignation of Strauss-Kahn however has sparked calls for someone from the emerging economies to be appointed, which would favour the bid of Carstens, Mexico's central bank chief.
Two other candidates, Kazakhstan's Grigory Marchenko and Trevor Manuel of South Africa, pulled out ahead of Friday's nomination deadline -- a move that underscored the widespread belief that Europe already had a done deal.
You don't expect the Europeans to give up what they see as an entitlement for the sake of the rest of the world, do you?
Labels: International Monetary Fund, Stanley Fischer
New bills to feature Rabin and Begin
Israel's new currency, which will come into use in 2012, will feature Yitzchak Rabin and Menachem Begin because they '
made peace' according to Bank of Israel director Stanley Fischer.
Fischer, whose political views have been notably center-left, explained that the decision was because they signed peace agreements with Yasser Arafat and Egypt. The decision needs Cabinet approval.
The new notes, with advanced anti-forgery techniques, will appear in 2012, replacing current images of Moshe Sharett, Israel’s second prime minister, Yitzchak Ben-Tzvi and Zalman Shazar, who were the second and third presidents of the country.
Fischer said Sunday morning that he approved using the pictures of Rabin and Begin because “they were policy makers who signed peace agreements with our neighbors, and it is important to note the historical landmarks for future generations.
...
Finance Minister Yuval Steinitz strongly objected to Fischer’s decision, which was made after receiving recommendations from a committee headed by retired High Court Justice Yaakov Turkel.
Besides Begin and Rabin, the new bills will continue to feature writer Shai Agnon, and will add the songwriter ‘Rachel.”
It will be interesting to see whether this cabinet will approve Rabin. I have my doubts.
Labels: Israeli currency, Menachem Begin, Stanley Fischer, Yitzchak Rabin
