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| Subject: A good case study in the failure of the american economic model | |
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Author: jw |
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Date Posted: 07:06:06 03/12/07 Mon In reply to: Bev 's message, "The haliburton IAP connection 2nd half of above post" on 17:12:45 03/09/07 Fri In recent years the israeli government has adopted the american economic model of privatization and cutting social benifits, the economy is doing great while the majority of the people suffer, israel now has the worst wealth gap in the western world, although most israelis still have better access to health care and public services than americans. There is an odd twist to the israel situation, in israel it is the religious parties that are the most left wing when it comes to economics, they strongly support high levels of social spending. Also, the israeli labor party and other left wing parties havw been instrumental in trying to dismantle the social safety net and turn the country into an oligarchy. In israeli society, the religous are growing extremely fast, they have very high birth rates, and they will take control of the country in a generation. The current israeli prime minister is the most unpopular prime minister they have ever had, just like bush is the most unpopular president america has had in modern times. There was also a scandal last year with military preparedness, similar to the de-funding of the military by the bush administration in order to give money to the rich and big business. This article is very head-on in showing how a few very weathy business crooks have taken over a formerly proud, democratic country, and the connection between the business crooks of america and the business crooks of israel. In israel, this happened many times in history, the bible is largely about how wealthy individuals destroyed society, until God brought redemption, may america also merit this redemption, it is something for us to work on. >2005 - CERBERUS PURCHASES SECOND-LARGEST BANK IN >ISRAEL, COMPLETING THE PRIVATIZATION OF THE ISRAELI >BANKING SYSTEM > >Cerberus group, which in 2005, acquired the second >largest Israeli bank, Leumi Bank, completing a process >of privatization of the Israeli financial sector >pushed by the Right-wing Likud Party and its successor >under the present Prime Minister, Ehud Olmert. > >Cerberus holding Leumi Bank privatized Israeli banks - >IAP privatized VA hospitals > >Strange symmetry to this, isn't there? Perhaps, no >coincidence to any of it. Here's why. You have to read >a seminal neocon document written in 1997 for >then-Israeli PM Netanyahu by the guys who went on to >run the Office of Special Plans (OSP), Feith, Wurmser, >and Perle. That paper, "A CLEAN BREAK: A New Strategy >for Securing the Realm" -- >target=_blank >href="http://www.iasps.org/strat1.htm">http://www.iasps >.org/strat1.htm -- lays out a battle plan for >conquering the Mid-East, starting with Iraq and >Lebanon as means to undermine and discourage Syria, >and then, finally, a forced reorientation of the >region¡¦s enormous Shi¡¦a population away from Iran >and the elevation of the Heshemite Kingdom of >Morocco¡¦s King Hussein. The point of all this isn't >just military conquest, and the elimination of >regional threats, it's actually to set the >preconditions for a PRIVATIZED Israeli economy, and >the "clean break" is with Israeli's social-democratic >past. It is also meant to map out a profound shift in >Israel¡¦s relationship with the United States, away >from a traditional client state that submits to >Washington, with the elevation of Israel into a new >regional Superpower. The Clean Break is a daringly >blunt statement of those commercial, ideological and >strategic ambitions: > > >Israel has a large problem. Labor Zionism, which for >70 years has dominated the Zionist movement, has >generated a stalled and shackled economy. Efforts to >salvage Israel¡¦s socialist institutions¡Xwhich >include pursuing supranational over national >sovereignty and pursuing a peace process that embraces >the slogan, "New Middle East"¡Xundermine the >legitimacy of the nation and lead Israel into >strategic paralysis and the previous government¡¦s >"peace process." That peace process obscured the >evidence of eroding national critical mass¡X including >a palpable sense of national exhaustion¡Xand forfeited >strategic initiative. >SNIP >Syria challenges Israel on Lebanese soil. An effective >approach, and one with which American can sympathize, >would be if Israel seized the strategic initiative >along its northern borders by engaging Hizballah, >Syria, and Iran, as the principal agents of aggression >in Lebanon, including by: >SNIP >„X striking Syrian military targets in Lebanon, and >should that prove insufficient, striking at select >targets in Syria proper. >SNIP >Israel can shape its strategic environment, in >cooperation with Turkey and Jordan, by weakening, >containing, and even rolling back Syria. This effort >can focus on removing Saddam Hussein from power in >Iraq ¡X an important Israeli strategic objective in >its own right . . . Since Iraq's future could affect >the strategic balance in the Middle East profoundly, >it would be understandable that Israel has an interest >in supporting the Hashemites in their efforts to >redefine Iraq. >SNIP >King Hussein may have ideas for Israel in bringing its >Lebanon problem under control. The predominantly Shia >population of southern Lebanon has been tied for >centuries to the Shia leadership in Najf, Iraq rather >than Iran. Were the Hashemites to control Iraq, they >could use their influence over Najf to help Israel >wean the south Lebanese Shia away from Hizballah, >Iran, and Syria. Shia retain strong ties to the >Hashemites: the Shia venerate foremost the Prophet¡¦s >family, the direct descendants of which ¡X and in >whose veins the blood of the Prophet flows ¡X is King >Hussein. >SNIP >Forging A New U.S.-Israeli Relationship >In recent years, Israel invited active U.S. >intervention in Israel¡¦s domestic and foreign policy >for two reasons: to overcome domestic opposition to >"land for peace" concessions the Israeli public could >not digest, and to lure Arabs ¡X through money, >forgiveness of past sins, and access to U.S. weapons >¡X to negotiate. This strategy, which required >funneling American money to repressive and aggressive >regimes, was risky, expensive, and very costly for >both the U.S. and Israel, and placed the United States >in roles is should neither have nor want. >Israel can make a clean break from the past and >establish a new vision for the U.S.-Israeli >partnership based on self-reliance, maturity and >mutuality ¡X not one focused narrowly on territorial >disputes. Israel¡¦s new strategy ¡X based on a shared >philosophy of peace through strength ¡X reflects >continuity with Western values by stressing that >Israel is self-reliant, does not need U.S. troops in >any capacity to defend it, including on the Golan >Heights, and can manage its own affairs. Such >self-reliance will grant Israel greater freedom of >action and remove a significant lever of pressure used >against it in the past. > >To reinforce this point, the Prime Minister can use >his forthcoming visit to announce that Israel is now >mature enough to cut itself free immediately from at >least U.S. economic aid and loan guarantees at least, >which prevent economic reform. . As outlined in >another Institute report, Israel can become >self-reliant only by, in a bold stroke rather than in >increments, liberalizing its economy, cutting taxes, >relegislating a free-processing zone, and selling-off >public lands and enterprises ¡X moves which will >electrify and find support from a broad bipartisan >spectrum of key pro-Israeli Congressional leaders, >including Speaker of the House, Newt Gingrich. >SNIP >Israel¡¦s new agenda can signal a clean break by >abandoning a policy which assumed exhaustion and >allowed strategic retreat by reestablishing the >principle of preemption >SNIP >Israel¡¦s new strategic agenda can shape the regional >environment in ways that grant Israel the room to >refocus its energies back to where they are most >needed: to rejuvenate its national idea, which can >only come through replacing Israel¡¦s socialist >foundations with a more sound footing; and to overcome >its "exhaustion," which threatens the survival of the >nation. >Ultimately, Israel can do more than simply manage the >Arab-Israeli conflict though war. >SNIP > > >*** > >The rush to privatize many of the functions of the >Pentagon, including the VA system, is really the same >strategy as that advocated by Feith, Perle and Wurmser >in their strategic vision for Israel in 1997. Seize >upon the opportunities created by a series of wars in >the Mid-East that expand the military, and then >privatize that economic engine. That is at heart a >fascist vision. That, in short, is what has been going >on in the United States during the Bush-Cheney era. >It's military Keynesianism turned into a killing and >maiming machine for profit. >So, this is the Israeli state they ended up with, led >by Kadima¡¦s Ehud Olmert, a Tool of Oligarchs, with >Cerberus-Gabriel at the head of the table. > > >Forbes Reinforces Claim That Kadima is Tool of >Oligarchs > >by Ezra HaLevi > >(IsraelNN.com) >According to the report, the business groups are >controlled by the following families: Sami Ofer, Nochi >Dankner, Shari Arison, the Cerberus-Gabriel >consortium, Charles Bronfman, Yitzchak Tshuva, the >Saban group, Lev Leviev, Matthew Bronfman, Tzadik >Bino, the Borovich family, and Eliezer Fishman. The 12 >families own 60 percent of the aggregate market value >of all Israeli public companies (excluding the even >larger Teva Pharmaceutical Industries), Forbes >reported. > >The report goes on to say that the families have >constructed their empires, which consist of Israel's >largest companies, using organizational structures >that have long ago been done away with in the Western >world. > >The report explains that the groups have an inordinate >amount of control over Israel's economy, political >leaders and media due to the structuring of their >holdings as pyramids ¡V meaning several layers of >companies each own others beneath them but are all >beholden to the leading families. Such a phenomenon >was eliminated in the US in the early 20th century >through restrictions on ownership and the double >taxation of dividends a company paid its owner company. > >~snip~ > >href="http://www.israelnationalnews.com/News/News.aspx/ >101391">http://www.israelnationalnews.com/News/News.asp >x/101391 > > >*** > >In that light, consider the article about the conflict >surrounding the Serberus-Leumi group privatizing the >Israeli banking system. Bear in mind that Israel¡¦s >banks, including Leumi, had been bailed out by the >government in the disastrous year of 1983, after Ariel >Sharon led the IDF into an ill-fated and incompetently >led invasion of Lebanon. An ¡§optional¡¨ war that >resulted in the massive withdrawal of international >capital, and a steep recession in Israel¡¦s reputation >and fortunes: > > > >href="http://209.85.165.104/search?q=cache:RhAPCyu8hiMJ >:www.h">http://209.85.165.104/search?q=cache:RhAPCyu8hi >MJ:www.h ... >Leumi on the way to going global > >By Nehemia Shtrasler > >A historic decision will be made next week. The Bank >of Israel will announce whether it approves the sale >of Bank Leumi to the Cerberus-Gabriel consortium. This >would mark the end of the long process of privatizing >Israel's banking system. > >As early as November 2005 a tender was issued for the >bank's sale, and it was won by Cerberus-Gabriel. The >consortium offered to pay NIS 4.62 billion for a >controlling stake of 20 percent in the bank - a very >high price indeed. But the consortium failed to close >the deal because the Bank of Israel did not approve >its becoming a controlling partner. > >Advertisement > >The decision will now be made by the Bank of Israel >Governor, Professor Stanley Fischer, who has said in >internal meetings that this is one of the most >difficult decisions he has been asked to make. At >those same meetings, Rony Hizkiyahu, the new >Supervisor of Banks, said that he wished the problem >with the New York branch of Bank Leumi were resolved >because then there would be no obstacle to selling the >bank to the consortium. Indeed, this is the only >problem that is keeping Cerberus-Gabriel from Bank >Leumi, the subsidiary in New York. > >According to American law, the Cerberus-Gabriel >consortium will not be able to hold the bank in New >York because it is invested in non-financial sectors. >According to American rules, it is not permitted to >have industrial and real estate holdings and also a >bank - out of concern for possible conflict of >interest. > >During those same internal meetings at the Bank of >Israel a number of proposals were put forth for a >solution to the problem. For example, to sell Leumi >New York, and in its place set up a financial entity >that could offer business loans but not be able to >accept deposits or offer retail banking services. The >problem is that such a financial firm will not operate >under the supervision of the Federal Reserve (because >it is not a bank). As for Israeli supervision, it will >not be easy to keep an eye on a company that is >situated so far away. > >SNIP > > > >Indeed, the deal went through and the regulatory >obstacles removed to the privatiziation that is pushed >by Prime Minister Olmert, one of the leading >proponents of the scheme, as this article makes clear: > > > > >href="http://www.fundstreet.org/2005/12/cerberusgabriel >.html">http://www.fundstreet.org/2005/12/cerberusgabrie >l.html >December 13, 2005 >Cerberus-Gabriel hedge fund buys stake in Leumi Bank >Israel is on its way to privatization. The banking >sector is amongst the first ones to take a step in >this direction. Bank Leumi was in the market recently >and attracted bids from several players. Bidder names >include strategic investors like Lev Leviev, IDB and >Bill Davidson and also financial contenders like UBS, >Deutsche Bank and Citibank. However the winner was an >American Hedge fund, Cerberus-Gabriel. > >Cerberus-Gabriel has purchased 9.9% of the shares of >the bank. The purchase of this stake was for >approximately $500 million. The fund also has the >option of buying an additional 10.01% in the bank. >This will bring the total shares quantum to 20% and is >roughly valued at $1 billion. This option of >additional purchase has to be utilized with in the >next one and a half years. > >Ehud Olmert, Finance Minister of Israel, is reportedly >quite satisfied with the outcome. He feels that this >is a positive development and will help the over all >Israeli economy. He is amongst the top promoters of >privatization move. In his statement he also mentioned >that the purchase will ensure healthy competition >between the banks and will definitely contribute a lot >to the local market. > >Another person quite happy with the development is >Yaron Zelekha, the treasury's accountant-general, who >led the tender. He sees it as fulfillment of the >promise made to the people of Israel about >privatization of the entire banking system in 2005. > > >CONCLUSION > >The MZM-Cunningham case involves the funneling of >foreign money to the GOP >through a neocon controlled hedge fund, Cerberus >Capital Management, that was dispersing money to a >number of key GOP figures and organizations in various >ways, including Bush, Rumsfeld, a number of GOP >Congressmen, and the RNC. The case is also tied up >with the Walter Reed scandal, and the effort to >privatize many Pentagon and CIA functions, which >resulted in catastrophic failures at both. See, >href="http://www.democraticunderground.com/discuss/dubo >ard.ph">http://www.democraticunderground.com/discuss/du >board.ph ... > > >Let's recap: a corrupt Israeli PM - has a stake in a >corrupt Israeli bank- owned by a corrupt Wall Street >global hedge fund - which owns a corrupt US defense >contractor - which contributes to corrupt GOP >Congressmen - who also receive money from another >corrupt defense contractor - that defense contractor >produced faulty intel under contract to a corrupt CIA >Assn't Director - that faulty intel was used to >justify a corrupt US Administration's case for >invading Iraq - that was planned and executed by >corrupt neocons inside DoD who had written a proposal >years earlier to wage wars to privatize the Israeli >economy. > >What a tangled web. One wished Chairman Waxman¡¦s >staff and other Congressional investigators the >strength of Hercules in taking down the Three-headed >Dog, Cerberus, that guards the gates to Hell. > >_______________________________________________________ >____________ > >2007. Mark G. Levey. Fair use applies. >Acknowledgement: Some material compiled from a >research thread at Democratic Underground.com, with >particular thanks to ¡§bobthedrummer¡¨ and ¡§Emit¡¨, >and other DU researchers: >target=_blank >href="http://www.democraticunderground.com/discuss/dubo >ard.ph...">http://www.democraticunderground.com/discuss >/duboard.ph... [ Next Thread | Previous Thread | Next Message | Previous Message ] |