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The state of Israel’s high-tech


Challenged by a unique environment – top heavy on terrorism and war, but low on natural resources and rainfall – Israel has bolstered its do-or-die state of mind, with defiance of odds, risk-taking, frontier, pioneering, optimism, patriotism, can-do and out-of-the-box mentality. This has yielded a robust flow of game-changing commercial, defense and dual-use technologies.

These game-changing technologies include the world’s smallest (0.99mm) pill-size video medical camera, MobilEye AI car safety, Waze navigation, the Pressure Bandage, the “Arrow”, “Iron Dome” and “David Sling” missile defense systems, land-sea-air UAVs and mini, small and mid-size space vehicles. Also, the cherry tomato, drip irrigation system, SupPlant autonomous irrigation system, solar water heaters, Intel’s microprocessors, Microsoft’s anti-virus and Windows XP and NT, the USB flash drive Disk-on-Key, Firewall against malware and the ICQ instant messenger. In addition, there are the Israeli developed Watergen water from thin air, GrainPro Cocoons for African grain farmers, biological pest control, Laser keyboard, Voice-over Internet protocol, Face ID, Babylon computer translation, WeCU airport security, Rewalk for paraplegics, OrCam for the visually-impaired, etc.  

These Israeli developed technologies have been shared with the US, in particular, and the world, in general, enhancing global standard of living, communications, medicine, health, agriculture, irrigation, software technologies, cyber security, national security and homeland security.

Israel is one of the leading global high-tech hubs along with the Silicon Valley, San Francisco, Boston, Austin, Raleigh, Durham, Bangalore, Stockholm, Helsinki and London.


Some 400 foreign corporations – mostly from the US – have established research and development centers in Israel, leveraging its brain power and challenging experiences.  For example, John Deere and Monsanto agricultural tech; General Electric, Johnson & Johnson and Philips medical tech; Pfizer, Bayer and Merck pharmaceuticals; Texas Instruments, Intel, Applied materials, AMD, Marvell, Nvidia and Qualcomm semiconductors; General Motors, Ford Motor, Honda, Mercedes Benz and Skoda automotive; Microsoft, Oracle, McAfee, Autodesk and PTC software; Sony, Siemens, Samsung and LG electronics; AT&T telecommunications, Vonage and Fujitsu communications; IBM, HP and Dell computer tech; eBay, Google, Facebook, Yahoo and PayPal internet; Intuit, Citigroup, Mastercard, Visa and Barclays financial services; Motorola and Nokia telecom; Xerox and Hewlett Packard information tech;, PepsiCo food processing, Mitsubishi international trade, CA Technologies business-to-business, Sears retail, ASML photolithography, etc.  

According to PitchBook Financial Data, In 2022, Israel ($506 per capita) was second to Singapore ($695) in attracting venture capital investment per capita (including Warren Buffett’s Berkshire-Hathaway), compared to the US ($357), Switzerland ($273), Finland ($232), the UK ($190), the UAE ($168), Sweden ($157), Canada ($117) and France ($104).

And, according to Deloitte, “Israel is the world leader for the number of start-ups per capita.”

Israel leads the world in its research and development manpower per capita: 140 Israelis (per 10,000) and 85 Americans (per 10,000) are ahead of the rest of the world. 

Israel is second to the US in terms of scientific publications per capita.

Israel’s high-tech sector has played a key role in the transformation of Israel into a unique force and dollar-multiplier for the US. It has provided to the US game-changing commercial and defense technologies, which have enhanced the US economy and defense, bolstering its global technological edge.

Israel’s high-tech competitive edge

Israel’s high-tech workforce benefits from an annual flow of Jewish immigrants (Aliyah), who are trained in Israel, the US, Russia, Europe, Latin America and Australia, who join the Israeli graduates from institutions of higher learning.

Israel’s high-tech workforce absorbs veterans of the elite high-tech units of the Israel Defense Force, many of them scouted by the military among 10th and 11th graders, who are at the top of their class.

Israel’s military service trains high school graduates to make life and death decisions, be quick on their feet, innovate and improvise.

Israel’s commercial and military high-tech benefits from the intense, speedy and informal interaction and integrated synergy among the research, academic, military, commercial and defense sectors.

Israel’s robust demography – which leads the Free World with three births per Jewish woman and an unprecedented momentum of secular fertility – provides a tailwind for Israel’s economy.

According to the World Bank, 5.4% of Israel’s GDP is dedicated to research and development, the highest in the world, ahead of South Korea (4.81%), Sweden (3.53%), Belgium (3.48%), the US (3.45%), Japan (3.26%), Austria (3.20%), Switzerland (3.15%), Germany (3.14%), Denmark (2.96%), the OECD (2.96%), Finland (2.94%), Iceland (2.47%), France (2.35%), the Netherlands (2.9%), Norway (2.28%), Slovenia (2.15%), the Czeck Republic (1.9%), Singapore 1.89%), Australia (1.83%), the UK (1.71%) and Canada (1.7%).


Israel’s economy has surged dramatically in 1988-2022:

<From 4.4 million to 9.5 million people;
<From life expectancy of 75 to 82;
<From $37 billion to $490 billion GDP;
<From $8,000 to $52,000 GDP per capita;
<From $6 billion to $200 billion foreign exchange reserves;
<From 155% to 61% government debt to GDP ratio;
<From $10 billion to $160 billion exports;
<From 70,000 to 350,000 students in Israel’s colleges and universities.


Against the backdrop of the aforementioned information, Israel constitutes a unique case, which benefits from the law of increasing returns.  Israel’s ongoing wars against terrorism and conventional military forces have been bumps on the road to unprecedented growth.

According to George Gilderthe author of The Israel Test and a high-tech guru: “Israel is the global master of microchip design, network algorithms and medical instruments…water recycling and desalinization…missile defense, robotic warfare, and UAVs…. US defense and prosperity increasingly depend on the ever-growing economic and technological power of Israel. If we stand together, we can deter or defeat any foe…. We need Israel as much as it needs us.

Straight from the Jerusalem Boardroom #248
https://bit.ly/3u29k9g

Foreign investment in Israel’s high-tech companies surged to new heights in the 1st quarter of 2021 – $5.7bn in 172 deals – which is up 89% over the impressive 4th quarter of 2020 and double the volume of the 1st quarter of 2020.

2020 was the first year of surpassing $10bn in capital raised by the Israeli high-tech sector from investors in the US, Asia and Europe, who trust the maturity of Israel’s brain power. Investments in Israeli companies more than tripled in six years, reflecting the effective response by Israeli startups to the technological, medical, pharmaceutical, educational, social and digital challenges posed by Covid-19.

Israel’s economic performance in defiance of Covid-19 is presented by Dr. Adam Reuter, the Chairman and Founder of “Financial Immunities,” Israel’s largest financial-risk management firm, and the co-author of Israel – Island of Success:

  1. Israel has led the globe in the rapid administration of Covid-19 vaccinations due to effective negotiations with Pfizer and an efficient, country-wide medical infrastructure.
  2. Israel is the second lowest among OECD countries in the number of Covid-19 deaths per number of Covid-19 cases: 0.7% compared to the 2.3% OECD average. Israel features a young population (median age of 30 compared to the OECD’s 42) and an effective country-wide medical infrastructure, including top level HMOs and hospitals.
  3. Israel is ranked 12th from the bottom among the 37 OECD countries in the number of deaths per million inhabitants: 645 compared to 1,145 OECD average.
  4. The International Monetary Fund’s 2025 GDP growth forecast for OECD countries: Israel – 4%, OECD average – 2.2%, US – 1.8%, Australia – 2.5%, Ireland – 2.6%, France and Canada – 1.7%, the UK – 1.6%, Germany – 1.2%, etc.
  5. Israel’s 2020 GDP was reduced by 2.5%, compared to the OECD average reduction of 4.1%, South Korea – 1%, Norway – 0.8%, Australia – 2.6%, US – 3.5%, Japan – 4.8%, Germany – 5%, France – 8%, the UK – 10% reduction, etc. GDP growth was recorded in New Zealand – 2.4% and Ireland – 3.5%.
  6. In 2020, Israel was ranked 20th among the 37 members of the OECD in terms of GDP per capita, featuring $43,000 (GDP – $408bn), ahead of Japan, Italy and Spain, and very close behind the UK ($44,000) and France ($45,000).
  7. Israel’s debt-to-GDP ratio increased from 60% in 2019 to 72% in 2020, compared to the OECD’s average increase from 66% to 82%. The 2020’s debt-to-GDP ratio was 266% in Japan, Italy – 161%, the US – 131%, Germany – 73%, etc.
  8. Israel’s foreign exchange reserves-to-GDP ratio of 41% (3rd among the OECD countries) attests to its financial stability, and Israel’s capability to raise foreign credit promptly in a cost-effective manner. Israel’s foreign exchange reserves in March 2021 – $186bn.
  9. During the past decade, Standard and Poor (S&P) accorded Israel a positive credit rating trend, unlike the negative trend for the G-7 countries. In 2020, notwithstanding Covid-19, Israel’s credit rating (S&P) remained at AA.
  10. Some 380 global high-tech giants operate in Israel, including Microsoft, Amazon, IBM, Intel, Cisco, Apple, Verizon, Applied Materials, Dell, HP, Kodak, Oracle, Philips, SAP, Medtronics, GM, eBay, GE, etc. Israel leads the world in the ratio of research and development investment to GDP: 4.9%. 85% of this investment comes from the business sector.

 

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According to a July 17, 2023 Bloomberg report, a leading global investment bank, the NYC-based Jefferies Financial Group, Inc., “expects further growth in Israel’s tech sector despite political unrest over government plans to overhaul the judiciary….

“While there are considerable uncertainties, we anticipate Israel’s tech ecosystem growth and maturation will only accelerate, creating a dominant and necessary opportunity for investors…. The report expressed confidence that Israel’s tech industry will remain globally attractive….

“The volume and density of innovation has made Israel a mandatory destination for all leading investors and will likely create a disproportionate number of category-defining winners across sectors in the many years to come….”

Irrespective of the political turmoil associated with the judiciary controversy, the latest data indicates persistent growth of Israel’s high-tech sector, in particular, and Israel’s economy, in general.

According to Israel’s Central Bureau of Statistics, as presented on July 27, 2023 by a senior Israeli economist, Shlomo Maoz:

*Notwithstanding the dramatic decline in foreign investment in Israel’s high-tech sector, Israel’s high-tech export increased by 6.9% during the first 5 months of 2023, while domestic consumption of Israel’s high-tech products and services decreased by 0.2% during the same period.

*The recent depreciation of the New Israeli Shekel (compared with the US dollar) has benefitted Israel’s exports.

*Industrial production of the high-tech sector expanded during the first five months of 2023 by 5.6% more than the first five months of 2022, as reflected by the 3% growth in the number of high-tech workers during the first five month of 2023, and the 3.6% rise in the number of working hours during the first five months of 2023.  

*Israel’s defense export has surged due to the impact of the Russia-Ukraine war upon the demand for advanced Israeli military systems; the substantial increase of Germany’s defense budget, and Sweden’s and Finland’s decision to join NATO. In addition, there is the rising Chinese threat to India and the Pacific Ocean countries; and the sustained regional and global threat of Sunni (e.g., Moslem Brotherhood) and Shiite Islamic terrorism (Iran’s Ayatollahs).

*Israel is expected to double its natural gas production to 40 billion cubic meters during the next few years, in response to the growing demand  by Europe for alternative sources of natural gas, as it seeks to reduce reliance on Russian energy.  As a result, there has been growing interest by international energy companies to invest in Israel’s gas exploration. For example, Chevron Corp. and Israel’s NewMed Energy and Ratio Energies – the partners in the Israeli offshore gas project, Leviathan – are investing $568mn to build a 3rd pipeline.  

*Unemployment has declined to 3.5% (3% among women). In fact, a shortage of manpower is reported by hundreds of contractors and subcontractors, especially in export and defense-driven companies.

*Israel’s GDP grew by 3.2% during the first quarter of 2023, compared to 3.1% during the previous quarter, while industrial investment grew by 16.2% following a 4.8% decline during the last quarter of 2022.

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The state of Israel’s high-tech


Challenged by a unique environment – top heavy on terrorism and war, but low on natural resources and rainfall – Israel has bolstered its do-or-die state of mind, with defiance of odds, risk-taking, frontier, pioneering, optimism, patriotism, can-do and out-of-the-box mentality. This has yielded a robust flow of game-changing commercial, defense and dual-use technologies.

These game-changing technologies include the world’s smallest (0.99mm) pill-size video medical camera, MobilEye AI car safety, Waze navigation, the Pressure Bandage, the “Arrow”, “Iron Dome” and “David Sling” missile defense systems, land-sea-air UAVs and mini, small and mid-size space vehicles. Also, the cherry tomato, drip irrigation system, SupPlant autonomous irrigation system, solar water heaters, Intel’s microprocessors, Microsoft’s anti-virus and Windows XP and NT, the USB flash drive Disk-on-Key, Firewall against malware and the ICQ instant messenger. In addition, there are the Israeli developed Watergen water from thin air, GrainPro Cocoons for African grain farmers, biological pest control, Laser keyboard, Voice-over Internet protocol, Face ID, Babylon computer translation, WeCU airport security, Rewalk for paraplegics, OrCam for the visually-impaired, etc.  

These Israeli developed technologies have been shared with the US, in particular, and the world, in general, enhancing global standard of living, communications, medicine, health, agriculture, irrigation, software technologies, cyber security, national security and homeland security.

Israel is one of the leading global high-tech hubs along with the Silicon Valley, San Francisco, Boston, Austin, Raleigh, Durham, Bangalore, Stockholm, Helsinki and London.


Some 400 foreign corporations – mostly from the US – have established research and development centers in Israel, leveraging its brain power and challenging experiences.  For example, John Deere and Monsanto agricultural tech; General Electric, Johnson & Johnson and Philips medical tech; Pfizer, Bayer and Merck pharmaceuticals; Texas Instruments, Intel, Applied materials, AMD, Marvell, Nvidia and Qualcomm semiconductors; General Motors, Ford Motor, Honda, Mercedes Benz and Skoda automotive; Microsoft, Oracle, McAfee, Autodesk and PTC software; Sony, Siemens, Samsung and LG electronics; AT&T telecommunications, Vonage and Fujitsu communications; IBM, HP and Dell computer tech; eBay, Google, Facebook, Yahoo and PayPal internet; Intuit, Citigroup, Mastercard, Visa and Barclays financial services; Motorola and Nokia telecom; Xerox and Hewlett Packard information tech;, PepsiCo food processing, Mitsubishi international trade, CA Technologies business-to-business, Sears retail, ASML photolithography, etc.  

According to PitchBook Financial Data, In 2022, Israel ($506 per capita) was second to Singapore ($695) in attracting venture capital investment per capita (including Warren Buffett’s Berkshire-Hathaway), compared to the US ($357), Switzerland ($273), Finland ($232), the UK ($190), the UAE ($168), Sweden ($157), Canada ($117) and France ($104).

And, according to Deloitte, “Israel is the world leader for the number of start-ups per capita.”

Israel leads the world in its research and development manpower per capita: 140 Israelis (per 10,000) and 85 Americans (per 10,000) are ahead of the rest of the world. 

Israel is second to the US in terms of scientific publications per capita.

Israel’s high-tech sector has played a key role in the transformation of Israel into a unique force and dollar-multiplier for the US. It has provided to the US game-changing commercial and defense technologies, which have enhanced the US economy and defense, bolstering its global technological edge.

Israel’s high-tech competitive edge

Israel’s high-tech workforce benefits from an annual flow of Jewish immigrants (Aliyah), who are trained in Israel, the US, Russia, Europe, Latin America and Australia, who join the Israeli graduates from institutions of higher learning.

Israel’s high-tech workforce absorbs veterans of the elite high-tech units of the Israel Defense Force, many of them scouted by the military among 10th and 11th graders, who are at the top of their class.

Israel’s military service trains high school graduates to make life and death decisions, be quick on their feet, innovate and improvise.

Israel’s commercial and military high-tech benefits from the intense, speedy and informal interaction and integrated synergy among the research, academic, military, commercial and defense sectors.

Israel’s robust demography – which leads the Free World with three births per Jewish woman and an unprecedented momentum of secular fertility – provides a tailwind for Israel’s economy.

According to the World Bank, 5.4% of Israel’s GDP is dedicated to research and development, the highest in the world, ahead of South Korea (4.81%), Sweden (3.53%), Belgium (3.48%), the US (3.45%), Japan (3.26%), Austria (3.20%), Switzerland (3.15%), Germany (3.14%), Denmark (2.96%), the OECD (2.96%), Finland (2.94%), Iceland (2.47%), France (2.35%), the Netherlands (2.9%), Norway (2.28%), Slovenia (2.15%), the Czeck Republic (1.9%), Singapore 1.89%), Australia (1.83%), the UK (1.71%) and Canada (1.7%).


Israel’s economy has surged dramatically in 1988-2022:

<From 4.4 million to 9.5 million people;
<From life expectancy of 75 to 82;
<From $37 billion to $490 billion GDP;
<From $8,000 to $52,000 GDP per capita;
<From $6 billion to $200 billion foreign exchange reserves;
<From 155% to 61% government debt to GDP ratio;
<From $10 billion to $160 billion exports;
<From 70,000 to 350,000 students in Israel’s colleges and universities.


Against the backdrop of the aforementioned information, Israel constitutes a unique case, which benefits from the law of increasing returns.  Israel’s ongoing wars against terrorism and conventional military forces have been bumps on the road to unprecedented growth.

According to George Gilderthe author of The Israel Test and a high-tech guru: “Israel is the global master of microchip design, network algorithms and medical instruments…water recycling and desalinization…missile defense, robotic warfare, and UAVs…. US defense and prosperity increasingly depend on the ever-growing economic and technological power of Israel. If we stand together, we can deter or defeat any foe…. We need Israel as much as it needs us.

Straight from the Jerusalem Boardroom #248
https://bit.ly/3u29k9g

Foreign investment in Israel’s high-tech companies surged to new heights in the 1st quarter of 2021 – $5.7bn in 172 deals – which is up 89% over the impressive 4th quarter of 2020 and double the volume of the 1st quarter of 2020.

2020 was the first year of surpassing $10bn in capital raised by the Israeli high-tech sector from investors in the US, Asia and Europe, who trust the maturity of Israel’s brain power. Investments in Israeli companies more than tripled in six years, reflecting the effective response by Israeli startups to the technological, medical, pharmaceutical, educational, social and digital challenges posed by Covid-19.

Israel’s economic performance in defiance of Covid-19 is presented by Dr. Adam Reuter, the Chairman and Founder of “Financial Immunities,” Israel’s largest financial-risk management firm, and the co-author of Israel – Island of Success:

  1. Israel has led the globe in the rapid administration of Covid-19 vaccinations due to effective negotiations with Pfizer and an efficient, country-wide medical infrastructure.
  2. Israel is the second lowest among OECD countries in the number of Covid-19 deaths per number of Covid-19 cases: 0.7% compared to the 2.3% OECD average. Israel features a young population (median age of 30 compared to the OECD’s 42) and an effective country-wide medical infrastructure, including top level HMOs and hospitals.
  3. Israel is ranked 12th from the bottom among the 37 OECD countries in the number of deaths per million inhabitants: 645 compared to 1,145 OECD average.
  4. The International Monetary Fund’s 2025 GDP growth forecast for OECD countries: Israel – 4%, OECD average – 2.2%, US – 1.8%, Australia – 2.5%, Ireland – 2.6%, France and Canada – 1.7%, the UK – 1.6%, Germany – 1.2%, etc.
  5. Israel’s 2020 GDP was reduced by 2.5%, compared to the OECD average reduction of 4.1%, South Korea – 1%, Norway – 0.8%, Australia – 2.6%, US – 3.5%, Japan – 4.8%, Germany – 5%, France – 8%, the UK – 10% reduction, etc. GDP growth was recorded in New Zealand – 2.4% and Ireland – 3.5%.
  6. In 2020, Israel was ranked 20th among the 37 members of the OECD in terms of GDP per capita, featuring $43,000 (GDP – $408bn), ahead of Japan, Italy and Spain, and very close behind the UK ($44,000) and France ($45,000).
  7. Israel’s debt-to-GDP ratio increased from 60% in 2019 to 72% in 2020, compared to the OECD’s average increase from 66% to 82%. The 2020’s debt-to-GDP ratio was 266% in Japan, Italy – 161%, the US – 131%, Germany – 73%, etc.
  8. Israel’s foreign exchange reserves-to-GDP ratio of 41% (3rd among the OECD countries) attests to its financial stability, and Israel’s capability to raise foreign credit promptly in a cost-effective manner. Israel’s foreign exchange reserves in March 2021 – $186bn.
  9. During the past decade, Standard and Poor (S&P) accorded Israel a positive credit rating trend, unlike the negative trend for the G-7 countries. In 2020, notwithstanding Covid-19, Israel’s credit rating (S&P) remained at AA.
  10. Some 380 global high-tech giants operate in Israel, including Microsoft, Amazon, IBM, Intel, Cisco, Apple, Verizon, Applied Materials, Dell, HP, Kodak, Oracle, Philips, SAP, Medtronics, GM, eBay, GE, etc. Israel leads the world in the ratio of research and development investment to GDP: 4.9%. 85% of this investment comes from the business sector.

 

Straight from the Jerusalem Boardroom #247

According to Dr. Adam Reuter, the Chairman and Founder of “Financial Immunities,” Israel’s largest financial-risk management firm, and the co-author of Israel – Island of Success:

  1. A direct correlation exists between the level of Nasdaq, on the one hand, and the strength of Israel’s Shekel, on the other hand. The higher the level of Nasdaq, the more US funds are available for investment in Israel’s hightech sector. Israel has become a unique source of innovative research and development – as well as an engine of export enhancement – for major US hightech companies.
  2. Israel’s export is expected to approach an all-time high of $132BN in 2020 – while import has declined substantially – due to the surge of the hightech sector. 10% of Israel’s working manpower is directly employed by the hightech sector (double the level employed in other OECD countries) with a substantial number of people, who are indirectly involved in hightech.
  3. Direct foreign investment in Israel in 2020 is 20% higher than 2019 – approaching $25BN, of which $9.5BN-$10BN are hightech investment (20% higher than 2019). Since 2000, US businesses and individuals have invested over $100BN in Israel’s hightech sector.
  4. Israel’s foreign exchange reserves as a percentage of GDP is 3rd among OECD countries. Israel’s total foreign exchange reserves are at an all-time high at $170BN, of which $17BN was acquired in 2020. Notwithstanding the unprecedented dollar acquisition by Bank of Israel – but due to the unprecedented level of foreign investment – Israel’s Shekel is gaining strength: 3.81 per US Dollar on March 17, 2020 and 3.23 on December 22, 2020.
  5. Israel’s national debt-to-GDP ratio was 60%, before the arrival of COVID 19, compared to 109% for the USA. In December 2020, it is 76%, compared to 131% for the USA.
  6. Israel’s public savings in 2020 has increased by 1.4% compared to 2019.
  7. The IMF’s outlook report for 2025: Israel – 4% GDP growth ($500BN annual GDP), Turkey, Columbia, Latvia and Estonia – 3%, Ireland and Australia – 2.5%, OECD average – 2.1%, Sweden – 2%, USA – 1.75%, France – 1.7%, Canada – 1.7%, Switzerland – 1.3%, Germany – 1.2%.
  8. Standard & Poor’s (S&P) international rating agency reaffirmed Israel’s credit rating of a stable AA-, despite the impact of COVID 19, the growing budget deficit and domestic political instability, but due to Israel’s thriving hightech industries, strong external accounts, the deep pool of domestic savings, the effects of the recent peace accords and the expansion of natural gas investment and export (e.g., Chevron’s acquisition of Nobel Energy’s offshore assets in the Eastern Mediterranean, which has geopolitical and economic implications).

Fitch and Moody’s international rating companies sustained their stable A+ and stable A1 credit ratings for Israel, respectively.

  1. Israel’s peace treaties with the United Arab Emirates and Bahrain are expected to add 0.25% ($1BN) to Israel’s GDP through agricultural and hightech export, hightech investment, oil import and mutual tourism.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Straight from the Jerusalem Boardroom #245

  1. 2000 to 2019:

*Population – from 6.2 million to 9.1 million (47% growth);
*Gross Domestic Product (GDP) – from $132BN to $404BN (206% growth);
*GDP per capita – from $21,000 to $44,000 (110% growth);
*Export – from $47BN to $117BN (149% growth);
*Women in the workforce – from 48% to 60% (25% growth);
*University/college students – from 70,000 to 316,000 (351% growth);
*Incoming tourists – from 2.31 million to 4.87 million (108% growth);
*Water desalination – from 2% to 26% (1,300% growth);
*Foreign exchange reserves – from $24BN to $119BN (396% growth);
*Government debt per GDP – from 77% to 58.5% (24.7% reduction);
*US “aid” per GDP – from 2.3% to 1% (57% reduction);
*Defense budget per GDP – from 9% to 5% (44% reduction);
*Tax burden – from 43% to 32% (26% reduction);
*Number of vehicles per 1,000 people – from 277 to 396 (43% growth);
*Emigrants per 100,000 people – from 340 to 160 (51% reduction).

Source: Dr. Adam Reuter, the Chairman and Founder of “Financial Immunities,” Israel’s largest financial-risk management firm, and the co-author of Israel – Island of Success.

  1. In 2010-2019, Israel’s hightech sector raised $39.1BN, mostly from foreign investors. In 2019, Israel’s technology sector raised $8.3BN, 30% over 2018, and compared to $2.1BN in 2010. In 2019, Artificial Intelligence firms raised $3.7BN (Globes Business Daily, January 9, 2020).
  2. In 2019, the Tel Aviv Stock Exchange featured more than 55% rate of return in the hightech sector, 70% in real estate and almost 30% in banking. In 2019, the total of hightech exits reached $10BN – twice as in 2018 – with a 30% rise in the number of transactions. The hightech sector rose 63% in 2019, twice as high as NASDAQ, and 200% since mid-2011.

The sustained growth of the hightech sector, during the recent 25 years, has been a byproduct of the unique interaction among Israel’s educational, (defense and commercial) industrial, military and academic/research infrastructures, bolstered by Israel’s brain-power and government assistance (Globes, January 20).

  1. Insight Partners, the NY-based venture capital fund, acquired Israel’s Armis (cyber and IoT – interrelated computing devices) for $1.1BN. In October 2019, Insight set, in Israel, its first overseas office. Since 1995, Insight invested $700MN in Israeli hightech companies.
  2. Koch Industries’ KDT Medical Investments increased its holding in Israel’s Insightec (medical equipment) by $100MN, in addition to a previous investment of $150MN (Globes January 7).

Previous issues of the Jerusalem Boardroom: https://bit.ly/2RAykCG

Straight from the Jerusalem Boardroom #244 
Prior issues of the Boardroom: https://bit.ly/2EV9Td2

  1. According to PriceWaterouseCoopers, the 2019 volume of Israeli hightech exits (companies that were sold or held stock exchange offerings), totaled $9.9BN, compared to $4.9BN in 2018, $7.4BN in 2017, $14.9 in 2014, $7.6BN in 2016 and $1.2BN in 2010. If 10 follow-on deals are included (companies acquired more than once, or acquired after public offering), then the 2019 volume surges to $22BN. $4.5BN of the 2019 exits were in computing services and corporate software, $2.3BN in the chips sector, $1.7BN in life sciences, and $1BN in the Internet sector.

The past decade featured 587 exits, totaling $71BN. If follow-on deals are included, the total surges to $108BN.

Major US corporations persist in leading the acquisition of Israeli hightech companies – $8.9BN in 2019 (Globes Business Daily, December 24, 2019).

The substantial flow of private US investment – establishing, in Israel, multitude of research and development centers – reflects Israel’s unique contribution to the US economy in terms of research and development, enhanced US competitiveness in the global market, increased exports of US products and expanded base of US employment.

  1. Intel invested $2BN in the acquisition of Israel’s 3-year-old Habana Laboratories, which develops chips for Artificial Intelligence applications. It is Intel’s 13th acquisition of an Israeli company (Bloomberg, December 16). Intel has operated in Israel since 1974, employing 12,000 people in one manufacturing plant and four research and development centers.
  2. Texas-based Noble Energy, which operates Israel’s largest offshore natural gas field, Leviathan, will start supplying the local Israeli market by the end of December. In January, 2020, Noble Energy and Israel’s Delek Drilling will start exporting natural gas to Egypt, as prescribed by a $20BN deal – of 85 billion cubic meters (3 trillion cubic feet) – concluded with Egypt. Egypt will be able to export the imported natural gas following its liquefaction (Al-Monitor, Dec. 13) in Egyptian installations.
  3. Key Israeli economic factors in 2020:

*Interest rate is expected to remain low (around zero);
*Inflation is expected to remain low (around 2%);
*The ratio of national debt to gross domestic product is expected to remain low (around 60%, compared to the US – 60% and Japan – almost 250%);
*Expanding employment and all time low unemployment (4% and below);
*Expanded employment of ultra-orthodox Jews and Arabs;
*Annual economic growth is expected to be sustained at 3%-3.5%;
*Israel’s Shekel is expected to remain strong (around 3.4 per dollar);
*Overseas investment in Israel’s hightech will persist at high levels;
*Export of high added-value commercial and military products will keep growing, irrespective of the strong Shekel;
*Offshore natural gas export (to Egypt and in the long run to Europe) will alleviate the burden of the 2019 growing budget deficit, which will require across-the-board budget cuts;
*Israel’s demography will remain robust (high Jewish fertility rate and growing net-immigration/Aliyah);
*Israel’s solid economy provides for a friendly debt-financing environment.
(Globes, December 17).

  1. Some 140 airliners land in Israel, reflecting the sizeable number of Israelis flying abroad (8.5MN in 2019) and tourists (4.5MN in 2019). Israel’s population is 9 million. The volume of passengers to/from Israel grew by 9% in 2019, compared with a 5% global growth. It contributed $16BN and 184,000 jobs to Israel’s economy. Direct flights were initiated from Israel to Las Vegas, Chicago, Brazil and Chile, and additional direct flights are expected, in 2020, to Dallas, Tokyo and Australia (Globes, Dec. 24, 2020).

 

 

 

 

Straight from the Jerusalem Boardroom #243

  1. According to Standard & Poor, Fitch and Moody’s – the world’s top credit rating companies – Israel and Australia are the only two Western countries whose 2019 credit rating (reflecting economic growth) is higher than it was before the global economic meltdown of 2007/2008. Currently, Israel is rated AA- by Standard & Poor, A+ by Fitch and A1 by Moody’s.
  2. According to the London Economist (November 5, 2019), despite short-term political uncertainty, Israel’s economic growth is sustained by a strong domestic consumption, an expansion of natural gas explorations, findings and export, and the continued dynamism of the hightech sector, which has attracted substantial foreign investment. For example, Intel announced its plan to invest $11BN in a new export-oriented semiconductor manufacturing facility in Israel [as a follow up to the 2016 acquisition of Israel’s Mobileye for $15.3BN and investment in scores of Israeli startups].
    Israel’s economy features low unemployment (3.7%) and rising real wages. Exports are expected to rise despite the relative global economic slowdown, and independent of the continued appreciation of the Shekel (the strongest currency against the US dollar), but due to the initiation of natural gas exports.
    GDP growth is expected to slow to 2.9% in 2020, before recovering to 3.8% in 2021 and 4% in 2022.
  3. The NYC-based Centerbridge Partners and Greenwich, CT-based Gallatin Point Capital acquired 32.5% of Phoenix (Israel’s 2nd largest insurance group) for $450MN (Globes Business Daily, Nov. 5, 2019). Germany’s insurance giant, Munich Re, invested $250MN in Israel’s Next Digital Insurance startup, which was founded in 2016 by entrepreneurs who in 2014 sold their previous startup, Check, to the Silicon Valley-based Intuit for $360MN (Globes, October 8). The Greenwich, CT-based General Atlantic led a $165MN investment in Israel’s Riskified, which develops software preventing fraud and verifying consumer identities (Wall Street Journal, Nov. 5). Israel has become Europe’s Silicon Valley. During the first half of 2019, German investors accounted to 30% of the number of European deals in Israel’s ecosystem, including a branch of Merck, the global pharmaceutical giant. While German investment profile is dwarfed by the USA, 60% of the leading Frankfurt Stock Exchange companies have Israeli branches, seeking Israeli technologies, surging since 2016. In 2018, German investors were 4th in the number of Israeli deals – 5% of total deals foreign investment – between the UK’s 7% and China’s 4% (Globes, August 12).
  4. Egypt’s Middle East News Agency reported on November 11, 2019 that Noble Energy and Israel’s Delek Drilling, the operators of Israel’s largest natural gas fields, established a $518MN joint venture with Egypt’s Dolphinus Holdings, which will pave the way for Israeli natural gas exports to Egypt (85.3BN cubic meters over 15 years), starting on January 1, 2020.
  5. The Greece-based Energean Oil & Gas (jointly with Israel’s Opportunity Energy Resources) published the results of its appraisal drilling in Israel’s Karish North Discovery, estimating recoverable resources of 0.9 trillion cubic feet (25 billion cubic meters) of natural gas plus 34MN barrels of light oil/condensate (natural gas liquids), in addition to 2.4 Tcf (68 BCM) and 33MN barrels of light oil/condensate discovered previously. Energean recently obtained licenses for four additional marine exploration sites. 12 more offshore drilling licenses issued to overseas operators, including Britain’s Cairn Energy and Pharos Energy.
  6. 600 of Israel’s 8,000 startups are focused on transportation-related solutions. Israel has become a leading global hub for smart mobility, according to David Liniado, Vice President of the Atlanta-based Cox Automotive Mobility. Cox is expanding partnership with Israeli startups, including a joint research & development center with Drive TLV, which involves Volvo, Honda and Hertz. The Paris-based Faurecia (114,000 employees in 35 countries), a world leader in automotive technology invested in Israel’s Guardknox, a cybersecurity company, reinforcing passengers’ safety and data security.
    Ford is setting up an Israeli research & development center, as a follow up to the 2016 acquisition of Israel’s SAIPS, which specializes in computer vision and self-driving car learning. Intel and Nvidia established research & development centers in Israel, which develop chips for autonomous vehicles. GM founded its research & development center in Israel in 2008. BMW is about to introduce its own Israeli research & development center, as did Volkswagen in 2018. Over 20 global carmakers and suppliers are involved with Israeli research & development centers, leveraging Israel’s brain power.

Straight from the Jerusalem Boardroom #242

According to the British daily Financial Times (August 28, 2019), the Israeli shekel ranks as the best performing currency against the US dollar among 31 major currencies tracked by Bloomberg, up almost 6%, as fund managers have sought refuge from global economic turmoil. The shekel had strengthen thanks to Israel’s perceived status as an emerging markets’ safe haven and improved economic fundamentals such as:

*A long term expansion in employment;
*Current account surpluses;
*A fall in the Debt-to-GDP ratio under a 16-year-old fiscal stabilization program;
*Bank of Israel raised interest rate once since 2011, allowing it to hover near zero (0.25%) for years, as the economy reaches near full-employment.

The British daily quotes Win Thin, Head of Currency strategy at New York’s Brown Brothers Harriman: “Israel is one of the best of the lot among emerging markets.  It is stable and away from the fray of the trade wars. It has just been a good solid story.”

The Financial Times adds: “The haven status appears to be decoupled from political instability, including growing tensions with Iran; air and drone strikes attributed to the Israeli military in Syria, Lebanon and Iraq; inconclusive elections last April, and the possibility of Prime Minister Netanyahu facing indictment for alleged bribery and fraud.

“But, as investors fret about a global recession, the country’s tech-heavy export-driven economy has remained relatively immune.  High-value exports, including military hardware, are generally unaffected by sudden appreciation in local currency, and are often priced in US dollars to begin with.

“Foreign investment has held steady… and Israel continues to prepare for exports from natural gas deposits that are coming online, including a $15BN contract to supply Egypt by early 2019. Such positive factors are pushing the shekel higher.

“This year’s next best performing major currencies, after the shekel, are the Russian rouble, Japanese Yen and the Canadian dollar.”

Straight from the Jerusalem Boardroom #241

  1. The sustained growth of Israel’s economy for 15 consecutive years – 3.1% and 3.3% growth projected for 2019 and 2020 respectively – the flow of foreign investment to Israel’s hightech industries, the expanding production of natural gas in Israel and low unemployment (3.6%), have led Standard & Poor’s credit rating agency to reaffirm Israel’s AA- rating with stable economic outlook, notwithstanding Israel’s growing budget deficit (3.8% of GDP) and the current electoral turmoil (The Marker, August 5, 2019).
  2. The downturn of Arab economies is presented by Dr. Adam Reuter, Chairman and Founder of Financial Immunities, Israel’s largest financial risk management firm. According to Dr. Reuter, more than ¾ of the Arab countries face a severe economic crisis, which has also afflicted the wealthy Persian Gulf countries due to the significant decline of the price of oil, their over-reliance on oil production, and the intensified lethal threat by Iran’s Ayatollahs. Seven Arab countries face the potential of insolvency (Morocco, Oman, Bahrain, Jordan, Egypt, Iraq and Lebanon), and six additional Arab countries experience a de-facto bankruptcy (Syria, Libya, Sudan, Yemen, Tunisia and Algeria).

The reduced price of oil has been generated, substantially, by the dramatic expansion of oil and natural gas exploration in the US (e.g., shale oil, directional and horizontal drilling, fracking, etc.), which has transformed the US from the world’s largest oil importer to the largest oil and natural gas producer and the third largest oil exporter. The US is increasingly becoming the leader of the global oil industry, which has minimized the impact on the price of oil by the collapse of two major oil exporting countries, Iran and Venezuela (Globes, August 6).

  1. The San Francisco-based CRM (Customer Relationship Management) tech giant, Salesforce, acquired the Francisco Partners-owned Israeli company, Clicksoftware, for $1.35BN. Francisco Partners acquired Clicksoftware in 2015 for $438MN. Previously, Salesforce acquired the following Israeli companies: Datorama – $850MN in July 2018, Bonobo – $50MN in May 2019, Implisit – tens of millions in May 2016 and Navajo – $30MN in August 2011 (Globes, August 9). Amazon acquired Israel’s E8 Storage for $50MN-$60MN, which will be integrated into Amazon’s Israeli research and development center – Annapurna Labs, which was acquired for $350MN in January 2015. In January 2018, Amazon acquired Israel’s CloudEndure for $250MN (Globes, August 1).
  2. Japan’s Softbank led a $200MN investment in Israel’s Cybereason – which has a $1.5BN market value – along with the aerospace and defense giant Lockheed-Martin, Boston-based Spark Capital and Menlo Park and Cambridge-based CRV (Charles River Ventures). Softbank’s previous investment in Cyberseason was $150MN (Globes, August 7). Israel’s Monday.com raised $150MN (market value – $1.93BN) in a second round of private placement led by the Palo Alto-based Sapphire Ventures, the Philadelphia and Hong Kong-based Hamilton Lane and Boston-based HarbourVest Partners (Globes, July 31). Israel’s Lightricks raised $135MN (market value – $1BN) in a round of private placement led by Goldman Sachs along with the NYC-based Insight Venture Partners (Globes, August 1). Israel’s Inmode raised $70MN on NASDAQ at a market value of $450MN (Globes, August 12). Volvo, Toyota and the Greenwich, CT-based W.R. Berkley Corporation invested $31MN investment in Israel’s UVeye (Under Vehicle Eye). The Geneva-based Forestay Capital led a $15MN round of private placement in Israel’s vCita (Globes, July 23).

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The legacy of Moses and the Abolitionist movement

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US-Israel kinship 3: The Hebrew language embrace by the US intelligentsia

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The US-Israel kinship 2: the US Founding Fathers, Moses and the Bible

The US Founding Fathers were inspired by the legacy of Moses in their formulation of the US civic system, including separation of powers and checks and balances. For example, the Biblical Jubilee served as a role model of liberty; hence, the engraving of the essence of the Jubilee on the Liberty Bell: “Proclaim liberty throughout all the land unto all the inhabitants thereof (Leviticus 25:10).” The bust of Moses faces the Speaker of the House of Representatives, and the statues and engraving of Moses and the Ten Commandments feature in the halls of the US Supreme Court.
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Israel’s control of the mountain ridges of Judea & Samaria advances US interests

Since 1967, Israel has controlled the mountain ridges of Judea & Samaria, which has transformed Israel from a non-deterring, terror and war inducing country to a stronger, war and regional terror-deterring country. Thus, Israel has become a critical line of defense for the pro-US Hashemite regime in Jordan. Israel’s enhanced posture of deterrence extends the strategic hand of the US with no need to deploy additional US soldiers.

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SCHEDULE LECTURES & INTERVIEWS

Demography

2023 Inflated Palestinian Demography

Official Palestinian demographic numbers are highly-inflated, as documented by a study, which has audited the Palestinian data since 2004:

*500,000 overseas residents, who have been away for over a year, are included in the Palestinian census, contrary to international regulations. 325,000 were included in the 1997 census, according to the Palestinian Central Bureau of Statistics, and 400,000 in 2005, according to the Palestinian Election Commission. The number grows steadily due to births.

*350,000 East Jerusalem Arabs are doubly-counted – by Israel and by the Palestinian Authority. The number grows daily due to births.

*Over 150,000 Arabs, who married Israeli Arabs are similarly doubly-counted. The number expands daily due to births.

*A 390,000 Arab net-emigration from Judea & Samaria is excluded from the Palestinian census, notwithstanding the annual net-emigration since 1950.   For example, 15,466 in 2022, 26,357 – 2019, 15,173 – 2017 and 24,244 – 2014, as documented by Israel’s Population and Migration Authority (exits and entries) in all the land, air and sea international passages.

*A 32% artificial inflation of Palestinian births was documented by the World Bank (page 8, item 6) in a 2006 audit.

*The Judea & Samaria Arab fertility rate has been westernized: from 9 births per woman in the 1960s to 3.02 births in 2021, as documented by the CIA World Factbook. It reflects the sweeping urbanization, growing enrollment of women in higher education, rising marriage age and the use of contraceptives.

*The number of Arab deaths in Judea & Samaria has been under-reported (since the days of the British Mandate) for political and financial reasons.

*The aforementioned data documents 1.4 million Arabs in Judea and Samaria, when deducting the aforementioned documented-data from the official Palestinian number (3 million).

In 2023: a 69% Jewish majority in the combined area of Judea, Samaria and pre-1967 Israel. In 1947 and 1897: a 39% and 9% Jewish minority. In 2023, a 69% Jewish majority benefiting from fertility tailwind and net-immigration.  Arab fertility is Westernized, and Arab net-emigration from Judea and Samaria.  No Arab demographic time bomb. A Jewish demographic momentum.

    More data in this article and this short video.
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Iran

Iran’s Ayatollahs poke the US in the eye

(more information available here by)

Ambassador (ret.) Yoram Ettinger, “Second Thought: a US-Israel Initiative”
July 26, 2023

The British “Cambridge Middle East and North Africa Forum” reported that “On January 11, 2023, Iran’s naval commander announced that before the end of 2023, Iran would station warships in the Panama Canal [which facilitates 5% of the global maritime trade].”  

According to the December 1823 Monroe Doctrine, any intervention by a foreign power in the political affairs of the American continent could be viewed as a potentially hostile act against the US. However, in November 2013, then Secretary of State John Kerry told the Organization of the American States that “the era of the Monroe Doctrine is over.”

Is Iran’s dramatic and rogue re-entrenchment in Latin America underscoring the relevance/irrelevance of the Monroe Doctrine? Does it vindicate John Kerry’s assessment?

Latin America and the Ayatollahs’ anti-US strategy

*Since the February 1979 eruption of the Islamic Revolution in Iran, the Ayatollahs have leveraged the US diplomatic option (toward Iran’s Ayatollahs) and the accompanying mega-billion dollar benefit (to Iran’s Ayatollahs) as a major engine, bolstering their anti-US rogue policy, regionally and globally.

*The threat posed to the US by Iran’s Ayatollahs is not limited to the survival of the pro-US Arab regimes in the Middle East and the stability of Central Asia, Europe and North and West Africa. The threat extends to Latin America up to the US-Mexico border. The Ayatollahs poke the US in the eye in a most vulnerable geo-strategic area, which directly impacts the US homeland.    

*Iran’s penetration of Latin America – the backyard of the US and its soft belly – has been a top national security priority of the Ayatollahs since assuming power in February 1979. The Ayatollahs’ re-entrenchment in Latin America has been assisted by their Hezbollah proxy, driven by their 1,400-year-old mega imperialistic goal (toppling all “apostate” Sunni regimes and bringing the “infidel” West to submission), which requires overcoming the mega hurdle (“the Great American Satan”), the development of mega military capabilities (conventional, ballistic and nuclear) and the adoption of an apocalyptic state of mind.

*Iran’s penetration of Latin America has been based on the anti-U.S. agenda of most Latin American governments, which has transcended the striking ideological and religious differences between the anti-US, socialist, secular Latin American governments and the fanatic Shiite Ayatollahs. The overriding joint aim has been to erode the strategic stature of the US in its own backyard, and subsequently (as far as the Ayatollahs are concerned) in the US homeland, through a network of sleeper cells.

*Iran’s penetration of Latin America has been a hydra-like multi-faceted structure, focusing on the lawless tri-border-areas of Argentina-Paraguay-Brazil and Chile-Peru-Bolivia, as well as Venezuela, Cuba and Nicaragua and all other anti-US governments. It involves a growing collaboration with all regional terror organizations, the leading drug cartels of Mexico, Columbia, Brazil and Bolivia, global money launderers and every anti-US government in Latin America. Moreover, the Ayatollahs have established terror-training camps in Latin America, as well as sophisticated media facilities and cultural/proselytizing centers. They have exported to the region ballistic technologies, predator unmanned aerial vehicles and tunnel construction equipment.     

Latin America and the Ayatollahs’ anti-US tactics

*According to the Cambridge MENAF (ibid), the Brazilian navy reported that two Iranian warships have been granted permission to dock in Brazil. Experts speculate that the vessels could reach the Panama Canal as early as mid-February 2024. The presence of Iranian warships in the Panama Canal threatens not only Western security, but the safety and reliability of one of the world’s key trade routes.  

“The gradual permeation of Iranian influence across Latin America over the past 40 years is a significant phenomenon, which has paved the way for this recent strategic move by Teheran. Attention is concentrated toward Iran’s criminal and terrorist network [in Latin America] via Hezbollah operations….”

*Wikileaks cables claim that Secret US diplomatic reports alleged that Iranian engineers have visited Venezuela searching for uranium deposits…. in exchange for assistance in their own nuclear programs. The Chile-based bnAmericas reported that “Iranian experts with knowledge of the most uranium-rich areas in Venezuela are allegedly extracting the mineral under the guise of mining and tractor assembly companies…. Planes are prohibited from flying over the location of the plant…. The Iranian state-owned Impasco, which has a gold mining concession in Venezuela, is linked to Iran’s nuclear program. Its Venezuela mine is located in one of the most uranium-rich areas, which has no-fly restrictions….”     

*According to the June 2022 Iran-Venezuela 20-year-agreement (military, oil, economy), Iran received the title over one million hectares of Venezuelan land, which could be employed for the testing of advanced Iranian ballistic systems. Similar agreements were signed by Iran with Cuba, Nicaragua and Bolivia.  

*Venezuela has issued fraudulent passports, national IDs and birth certificates to Iranian officials and terrorists, avoiding international sanctions and blunting counter-terrorism measures. The Iran-Venezuela air traffic has grown significantly, although tourism activity has been marginal….

*Since the early 1980s, Iran’s Ayatollahs have leveraged the networking of Hezbollah terrorists in the very large and successful Lebanese communities in Latin America (and West Africa). Hezbollah’s narcotrafficking, money laundering, crime and terror infrastructure have yielded billions of dollars to both Hezbollah and Iran. The US Department of Drug Enforcement Administration (DEA) estimates that Hezbollah earns about $2bn annually through illegal drug trafficking and weapon proliferation in the Tri Border Area of Argentina, Paraguay and Brazil, expanding ties with the most violent drug cartels in Latin America, including Mexico’s Los Zetas, Colombia’s FARC and Brazil’s PCC, impacting drug trafficking, crime and terror in Europe, Africa and the Middle East. Iran has intensified its Hezbollah-assisted intelligence missions against US and Israeli targets in Latin America and beyond. Hezbollah has leveraged its stronghold, the Bekaa Valley, in Lebanon, which is one of the largest opium and hashish producing areas in the world.  

The bottom line

The track record of the Ayatollahs, including the surge of their rogue presence in Latin America, documents the self-destructive nature of the diplomatic option toward Iran – which has served as a most effective tailwind of the Ayatollahs’ anti US agenda – and the self-defeating assumptions that the Ayatollahs are amenable to good-faith negotiation, peaceful-coexistence with their Sunni Arab neighbors and the abandonment of their 1,400-year-old fanatical imperialistic vision.

Judea & Samaria

Israel-Saudi accord and Israel’s control of Judea & Samaria (video)

Ambassador (ret.) Yoram Ettinger, “Second Thought: a US-Israel Initiative”
September 15, 2023, https://www.israelnationalnews.com/news/377022

*The platform of an Israel-Saudi accord is the volcanic, violent and unpredictably tenuous Middle East, not Western Europe or No. America;

*Saudi Arabia is driven by Saudi – not Palestinian – interests;

*Unlike the State Department, Saudi Arabia accords much weight to the rogue Palestinian track record in the intra-Arab arena, and therefore limits its support of the proposed Palestinian state to (mostly) talk, not to walk; *An accord with Saudi Arabia – in the shifty, tenuous Middle East – is not a major component of Israel’s national security. On the other hand, Israel’s control of the mountain ridges of Judea & Samaria is a prerequisite for Israel’s survival in the inherently turbulent, intolerantly violent Middle East, which features tenuous regimes, and therefore tenuous policies and accords.

Jerusalem

United Jerusalem – a shared US-Israel legacy and interest

US departure from the recognition of a United Jerusalem as the exclusive capital of the Jewish State, and the site of the US Embassy to Israel, would be consistent with the track record of the State Department, which has been systematically wrong on Middle East issues, such as its opposition to the establishment of the Jewish State; stabbing the back of the pro-US Shah of Iran and Mubarak of Egypt, and pressuring the pro-US Saudi Arabia and the United Arab Emirates, while courting the anti-US Ayatollahs of Iran, Saddam Hussein, Arafat, the Muslim Brotherhood, Hamas, the Palestinian Authority and the Houthis of Yemen; transforming Libya into a platform of global Islamic terrorism and civil wars; etc..

However, such departure would violate US law, defy a 3,000 year old reality – documented by a litany of archeological sites and a multitude of documents from Biblical time until today – spurn US history and geography, and undermine US national and homeland security.

United Jerusalem and the US law

Establishing a US Consulate General in Jerusalem – which would be a de facto US Embassy to the Palestinian Authority – would violate the Jerusalem Embassy Act, which became US law on November 8, 1995 with substantially more than a veto-override majority on Capitol Hill.

According to the Jerusalem Embassy Act, which enjoys massive support among the US population and, therefore, in both chambers of Congress:

“Jerusalem should remain an undivided city in which the rights of every ethnic and religious group are protected….

“Jerusalem should be recognized as the capital of the state of Israel; and the United States Embassy in Israel should be established in Jerusalem….

“In 1990, Congress unanimously adopted Senate Concurrent Resolution 106, which declares that Congress ‘strongly believes that Jerusalem must remain an undivided city in which the rights of every ethnic and religious group are protected….’

“In 1992, the United States Senate and House of Representatives unanimously adopted Senate Concurrent Resolution 113… to commemorate the 25th anniversary of the reunification of Jerusalem, and reaffirming Congressional sentiment that Jerusalem must remain an undivided city….

“In 1996, the state of Israel will celebrate the 3,000th anniversary of the Jewish presence in Jerusalem since King David’s entry….

“The term ‘United States Embassy’ means the offices of the United States diplomatic mission and the residence of the United States chief of mission.”

United Jerusalem and the legacy of the Founding Fathers

The US Early Pilgrims and Founding Fathers were inspired – in their unification of the 13 colonies – by King David’s unification of the 12 Jewish tribes into a united political entity, and establishing Jerusalem as the capital city, which did not belong to any of the tribes (hence, Washington, DC does not belong to any state). King David entered Jerusalem 3,000 years before modern day US presidents entered the White House and 2,755 years before the US gained its independence.

The impact of Jerusalem on the US founders of the Federalist Papers, the Declaration of Independence, the Constitution, the Bill of Rights, the Federalist system and overall civic life is reflected by the existence, in the US, of 18 Jerusalems (4 in Maryland; 2 in Vermont, Georgia and New York; and 1 in Ohio, Michigan, Arkansas, North Carolina, Alabama, Utah, Rhode Island and Tennessee), 32 Salems (the original Biblical name of Jerusalem) and many Zions (a Biblical synonym for Jerusalem and the Land of Israel).  Moreover, in the US there are thousands of cities, towns, mountains, cliffs, deserts, national parks and streets bearing Biblical names.

The Jerusalem reality and US interests

Recognizing the Jerusalem reality and adherence to the 1995 Jerusalem Embassy Act – and the subsequent recognition of Jerusalem as Israel’s capital, the site of the US Embassy to Israel – bolstered the US posture of deterrence in defiance of Arab/Islamic pressure and threats.

Contrary to the doomsday assessments by the State Department and the “elite” US media – which have been wrong on most Middle East issues – the May 2018 implementation of the 1995 law did not intensify Palestinian, Arab and Islamic terrorism. State Department “wise men” were equally wrong when they warned that Israel’s 1967 reunification of Jerusalem would ignite a worldwide anti-Israel and anti-US Islamic volcanic eruption.

Adherence to the 1995 law distinguishes the US President, Congress and most Americans from the state of mind of rogue regimes and terror organizations, the anti-US UN, the vacillating Europe, and the cosmopolitan worldview of the State Department, which has systematically played-down the US’ unilateral, independent and (sometimes) defiant national security action.

On the other hand, US procrastination on the implementation of the 1995 law – by Presidents Clinton, Bush and Obama – eroded the US posture of deterrence, since it was rightly perceived by the world as appeasement in the face of pressure and threats from Arab/Muslim regimes and terrorists.  As expected, it radicalized Arab expectations and demands, failed to advance the cause of Israel-Arab peace, fueled Islamic terrorism, and severely undermined US national and homeland security. For example, blowing up the US Embassies in Kenya and Tanzania and murdering 224 persons in August 1998; blowing up the USS Cole destroyer in the port of Aden and murdering 17 US sailors in October 2000; the 9/11 Twin Towers massacre, etc.

Jerusalem and Israel’s defiance of US pressure

In 1949, President Truman followed Secretary of State Marshall’s policy, pressuring Israel to refrain from annexing West Jerusalem and to accept the internationalization of the ancient capital of the Jewish people.

in 1950, in defiance of brutal US and global pressure to internationalize Jerusalem, Prime Minister David Ben Gurion reacted constructively by proclaiming Jerusalem the capital of the Jewish State, relocating government agencies from Tel Aviv to Jerusalem, and settling tens of thousands of Olim (Jewish immigrants to Israel) in Jerusalem. He upgraded the transportation infrastructure to Jerusalem, erected new Jewish neighborhoods along the 1949 cease fire lines in Jerusalem, and provided the city land reserves for long-term growth.

In 1953, Ben Gurion rebuffed President Eisenhower’s pressure – inspired by Secretary of State Dulles – to refrain from relocating Israel’s Foreign Ministry from Tel Aviv to Jerusalem.

In 1967, President Johnson followed the advice of Secretary of State Rusk – who opposed Israel’s 1948 Declaration of Independence – highlighting the international status of Jerusalem, and warned Israel against the reunification of Jerusalem and construction in its eastern section. Prime Minister Levi Eshkol adopted Ben Gurion’s statesmanship, fended off the US pressure, reunited Jerusalem, built the first Jerusalem neighborhood beyond the 1949 ceasefire lines, Ramat Eshkol, in addition to the first wave of Jewish communities in Judea and Samaria (West Bank), the Jordan Valley and the Golan Heights.

In 1970, President Nixon collaborated with Secretary of State Rogers, attempting to repartition Jerusalem, pressuring Israel to relinquish control of Jerusalem’s Holy Basin, and to stop Israel’s plans to construct additional neighborhoods in eastern Jerusalem.  However, Prime Minister Golda Meir refused to rescind the reunification of Jerusalem, and proceeded to lay the foundation for additional Jerusalem neighborhoods beyond the 1949 ceasefire lines: Gilo, Ramot Alon, French Hill and Neve’ Yaakov, currently home to 150,000 people.

In 1977-1992, Prime Ministers Menachem Begin and Yitzhak Shamir defied US and global pressure, expanding construction in Jerusalem, sending a clear message: “Jerusalem is the exclusive and non-negotiable capital of Israel!”

“[In 1978], at the very end of [Prime Minister Begin’s] successful Camp David talks with President Jimmy Carter and President Anwar Sadat, literally minutes before the signing ceremony, the American president had approached [Begin] with ‘Just one final formal item.’ Sadat, said the president, was asking that Begin put his signature to a simple letter committing him to place Jerusalem on the negotiating table of the final peace accord.  ‘I refused to accept the letter, let alone sign it,’ rumbled Begin. ‘If I forgot thee O Jerusalem, let my right hand forget its cunning,’ said [Begin] to the president of the United States of America, ‘and may my tongue cleave to my mouth’ (The Prime Ministers – An Intimate Portrait of Leaders of Israel, 2010)”

In 2021, Prime Minister Bennett should follow in the footsteps of Israel’s Founding Father, Ben Gurion, who stated: “Jerusalem is equal to the whole of the Land of Israel. Jerusalem is not just a central Jewish settlement. Jerusalem is an invaluable global historical symbol. The Jewish People and the entire world shall judge us in accordance with our steadfastness on Jerusalem (“We and Our Neighbors,” p. 175. 1929).”

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Jewish Holidays

Sukkot (Feast of Tabernacles) Guide for the Perplexed, 2023

Ambassador (ret.) Yoram Ettinger, “Second Thought: a US-Israel initiative”
Based on ancient Jewish sages, September 26, 2023

More on Jewish holidays: Smashwords, Amazon     

1. Sukkot, the Feast of Tabernacles (September 30 – October 7, 2023) derives its name from the first stop of the Exodus – the town of Sukkot – as documented in Exodus 13:20-22 and Numbers 33:3-5. Sukkot was also the name of Jacob’s first stop west of the Jordan River, upon returning to the Land of Israel from his 20 years of work for Laban in Aram (Genesis 33:17).

2. Sukkot is a Jewish national liberation holiday, commemorating the Biblical Exodus, and the transition of the Jewish people from bondage in Egypt to liberty, the ongoing Jewish ingathering to the Land of Israel, and sovereignty in the Land of Israel, which inspired the US Founding Fathers and the Abolitionist Movement.

The construction of the Holy Tabernacle, during the Exodus, was launched on the first day of Sukkot (full moon).

3. Sukkot is the 3rd 3,300-year-old Jewish pilgrimage holiday (following Passover and Shavou’ot/Pentecost), highlighting faith, reality-based-optimism, can-do mentality and the defiance of odds.  It is also the 3rd major Jewish holiday – following Rosh Hashanah and Yom Kippur – in the month of Tishrei, the holiest Jewish month. According to Judaism, 3 represents divine wisdom, stability and peace. In addition, the 3rd day of the Creation was blessed twice; God appeared on Mt. Sinai 3 days after Moses’ ascension of the mountain; there are 3 parts to the Bible (the Torah, Prophets and Writings); the 3 Jewish Patriarchs; the 3 annual pilgrimages to Jerusalem, etc. 3 is the total sum of the basic odd (1) and even (2) numbers, symbolizing strength: “a three-strand cord is not quickly broken (Ecclesiastes 4:12).

4. Sukkot underscores the gradual transition from the spiritual state-of-mind during Rosh Hashanah and Yom Kippur to the mundane of the rest of the year, and from religious tenets of Judaism to the formation of the national, historic and geographical Jewish identity.

5. The 7 days of Sukkot – which is celebrated in the 7th Jewish month, Tishrei – are dedicated to 7 supreme guests-in-spirit and notable care-takers (Ushpizin in Aramaic and Hebrew): Abraham, Isaac, Jacob, Joseph, Moses, Aaron and David. They were endowed with faith, reality-based-optimism, humility, magnanimity, principle-driven leadership, compassion, tenacity in the face of daunting odds and peace-through-strength.  

6. Sukkot features the following four species (Leviticus 23:39-41): 1 citron (representing King David, the author of Psalms), 1 palm branch (representing Joseph), 3 myrtle branches (representing the three Patriarchs) and 2 willow branches (representing Moses and Aharon, the role models of humility), which are bonded together, representing the unity-through-diversity and strength-through-unity.

They embody four leadership prerequisites: a solid backbone (palm branch), humility (willow), a compassionate heart (citron) and penetrating eyes (myrtle). 

These species also represent the agricultural regions of the Land of Israel: the southern Negev and Arava (palm); the slopes of the northern Golan Heights, Upper Galilee and Mt. Carmel (myrtle); the streams of the central mountains of Judea and Samaria, including Jerusalem (willow); and the western coastal plain (citron). 

7. Traditionally, Sukkot is dedicated to the study of the Biblical Scroll of Ecclesiastes (Kohelet, קהלת in Hebrew, which was one of King Solomon’s names), written by King Solomon, which highlights humility, morality, patience, learning from past mistakes, commemoration and historical perspective, family, friendship, long-term thinking, proper timing, realism and knowledge.

The late Senator Robert Byrd (D-WV), the longest serving US Senator, often quoted Biblical verses, in general, and Ecclesiastes, in particular. For example, on November 7, 2008, upon retirement from the chairmanship of the Senate Appropriations Committee, he stated: “’To everything there is a season and a time for every purpose under heaven.’ Those Biblical words from Ecclesiastes 3:1 express my feelings about this particular time in my life.”  On September 9, 1998, Senator Byrd made the following Senate floor remarks on the Lewinsky affair: “As the book of Ecclesiastes plainly tells us, ‘There is no new thing under the sun.’  Time seems to be turning backwards in its flight. And, many of the mistakes that President Nixon made are being made all over again.” 

8. During the holiday of Sukkot, it is customary to highlight humility by experiencing a seven-day-relocation from one’s permanent dwelling to the temporary, humble, wooden booth (Sukkah in Hebrew) – which sheltered the people of Israel during the Exodus.

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Golan

US interests and Israel’s control of Judea & Samaria (West Bank)

A new 8-minute-video: YouTube, Facebook

Synopsis:

*Israel’s control of the topographically-dominant mountain ridges of the Golan Heights, Judea and Samaria has enhanced Israel’s posture of deterrence, constraining regional violence, transforming Israel into a unique force-multiplier for the US.

*Top Jordanian military officers warned that a Palestinian state west of the Jordan River would doom the pro-US Hashemite regime east of the River, transforming Jordan into a non-controllable terrorist heaven, generating an anti-US domino scenario in the Arabian Peninsula.

*Israel’s control of Judea and Samaria has eliminated much of the threat (to Jordan) of Judea and Samaria-based Palestinian terrorism.

*Israel’s posture of deterrence emboldens Jordan in the face of domestic and regional threats, sparing the US the need to deploy its own troops, in order to avoid an economic and national security setback.

*The proposed Palestinian state would become the Palestinian straw that would break the pro-US Hashemite back.

*The Palestinian track record of the last 100 years suggests that the proposed Palestinian state would be a rogue entity, adding fuel to the Middle East fire, undermining US interests.

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Islamic Terrorism

Iran’s Ayatollahs poke the US in the eye