Updated: Israel Is Doing Just Fine Financially (& On Illegal Immigration)

Business, Economy, Israel, Technology

“The Med’s Best Kept Secret”: “Israel today has become a vibrant, functioning jewel of a nation tucked into the eastern flank of the Mediterranean. Tel Aviv looks more like San Diego or Barcelona than Baghdad or Kabul.” … it maintains “a stable macroeconomic structure and a strong high-tech sector.” …

“What’s the secret? Ayelet Nir, chief economist at IBI, an Israeli investment firm, lists six major reasons Israel’s economy has done well of late:

A very conservative banking system–without most of the complex and problematic financial instruments found in the United States.

No mortgage crisis in a country where putting 50 percent down isn’t unusual, and banks often ask for guarantors.

A current account surplus since 2003.

Negligible inflation.

Prudent governmental fiscal policy.

Healthy integration into the world economy.

“Israeli technology has certainly been a big part of the Internet age. The cell phone? Developed in Israel. Ditto for most of the Windows NT operating system and for voice mail technology. Pentium MMX Chip technology? Designed in Israel. AOL Instant Messenger? Developed in Israel. The list goes on. Firewall security software originated in Israel. The latest breakthrough is the “PillCam,” a video camera that can be swallowed and aids physicians in diagnosing intestinal cancer.”…

How has Israel managed to do so well in high-tech? Every Israeli high-tech player can recite the national data like a bleacher bum spitting out baseball statistics:

Israel produces more science papers per capita than any other country.

Israel lags behind only the United States in number of companies listed on NASDAQ.

Twenty-four percent of Israel’s workforce has a university degree; only the United States and Holland have a higher number.

Israel leads the world in scientists and technicians per capita.”

Read the complete article.

Update: Israel is doing something else right: deporting illegal immigrants without much fuss.

"In The Eye Of The [Economic] Storm"

Debt, Federal Reserve Bank, Inflation

The Wall Street Journal has a dilemma. How does an anti-Obama, Keynesian outfit treat the putative economic recovery. Here’s the compromise: “We’re not going to have a strong recovery … It’s likely going to be a pretty sluggish affair.”

The truth is much worse. But you already knew it. A couple of weeks back I warned against accepting the media-congressional-presidential complex’s contention that slight upticks in the GDP were indicators of a recovery. In “…Like A Housewarming For The Homeless” I explained that,

the GDP statistic is consumption-driven: it measures the kind of economic Brownian motion of which less is required. ‘This statistic is constructed in accordance with the view that what drives an economy is not the production of wealth but rather its consumption,’ confirms (Austrian) economist Frank Shostak. ‘What matters here is demand for final goods and services. Since consumer outlays are the largest part of overall demand, it is commonly held that consumer demand sets in motion economic growth.’

The temporary bump in the economy is due to the halcyon stimulative high—the effects of all the fiat funny-money floating around and further distorting production patterns.

Says Peter Schiff, the Austrian economics wizard who has yet to be wrong: We are now in an even deeper hole than when the crisis began. Rather than wrapping up a recession, we are actually sinking into a depression. If things look better now, it’s just because we are in the eye of the storm“:

By interfering with the unpleasant forces of the recession, we simply trade short-term gain for long-term pain. By propping up inefficient companies that should fail, we deprive more effective companies of the capital they need to grow. By holding up over-valued asset prices, we prevent the prudent or less well-off from snatching them up and, in doing so, creating a new price equilibrium based upon reality. By maintaining artificially low interest rates, we discourage the very savings that are so critical to capital formation and future economic growth. In addition, the false economic signals the Fed sends the market prevent a more efficient re-allocation of resources from taking place and leads to even more bad economic decision being made. By running such huge deficits, we further crowd-out private enterprise by making it harder for businesses to invest or hire

The verbose Donny Deutsch, a lefty business-cum-mediaman, who’s proving too much of a rightist for the front fems who anchor MSNBC programs, declared the “Clunkers for Cash” give-away, wealth-distribution initiative an example of economic innovation. Inoculate yourselves:

The recently passed “cash for clunkers” program (currently on-hold, as it ran out of funding in one week) is a perfect example of how government policy can make the economy worse. By incentivizing Americans to destroy fully paid-for cars so they can go deeper into debt buying brand new ones, the government weakens an already crippled economy. The last thing we want to do is subsidize Americans to go deeper into debt by buying more stuff. Don’t they realize that is precisely the behavior that got us into this mess?

Think about it this way. If your friend were in trouble because he had too much debt, would you encourage him to take on even more? Wouldn’t a real sign of progress be a reduction of debt, even if he had to cut back on his everyday expenses? What is true for an individual is also true for a collection of individuals, even if they call themselves a ‘government.’ If, as a country, we are even deeper into debt now than we were before, we are worse off. Period. The fact that the additional debt enabled better short-term GDP numbers is a long-term negative.

“In The Eye Of The [Economic] Storm”

Debt, Economy, Federal Reserve Bank, Inflation

The Wall Street Journal has a dilemma. How does an anti-Obama, Keynesian outfit treat the putative economic recovery. Here’s the compromise: “We’re not going to have a strong recovery … It’s likely going to be a pretty sluggish affair.”

The truth is much worse. But you already knew it. A couple of weeks back I warned against accepting the media-congressional-presidential complex’s contention that slight upticks in the GDP were indicators of a recovery. In “…Like A Housewarming For The Homeless” I explained that,

the GDP statistic is consumption-driven: it measures the kind of economic Brownian motion of which less is required. ‘This statistic is constructed in accordance with the view that what drives an economy is not the production of wealth but rather its consumption,’ confirms (Austrian) economist Frank Shostak. ‘What matters here is demand for final goods and services. Since consumer outlays are the largest part of overall demand, it is commonly held that consumer demand sets in motion economic growth.’

The temporary bump in the economy is due to the halcyon stimulative high—the effects of all the fiat funny-money floating around and further distorting production patterns.

Says Peter Schiff, the Austrian economics wizard who has yet to be wrong: We are now in an even deeper hole than when the crisis began. Rather than wrapping up a recession, we are actually sinking into a depression. If things look better now, it’s just because we are in the eye of the storm“:

By interfering with the unpleasant forces of the recession, we simply trade short-term gain for long-term pain. By propping up inefficient companies that should fail, we deprive more effective companies of the capital they need to grow. By holding up over-valued asset prices, we prevent the prudent or less well-off from snatching them up and, in doing so, creating a new price equilibrium based upon reality. By maintaining artificially low interest rates, we discourage the very savings that are so critical to capital formation and future economic growth. In addition, the false economic signals the Fed sends the market prevent a more efficient re-allocation of resources from taking place and leads to even more bad economic decision being made. By running such huge deficits, we further crowd-out private enterprise by making it harder for businesses to invest or hire

The verbose Donny Deutsch, a lefty business-cum-mediaman, who’s proving too much of a rightist for the front fems who anchor MSNBC programs, declared the “Clunkers for Cash” give-away, wealth-distribution initiative an example of economic innovation. Inoculate yourselves:

The recently passed “cash for clunkers” program (currently on-hold, as it ran out of funding in one week) is a perfect example of how government policy can make the economy worse. By incentivizing Americans to destroy fully paid-for cars so they can go deeper into debt buying brand new ones, the government weakens an already crippled economy. The last thing we want to do is subsidize Americans to go deeper into debt by buying more stuff. Don’t they realize that is precisely the behavior that got us into this mess?

Think about it this way. If your friend were in trouble because he had too much debt, would you encourage him to take on even more? Wouldn’t a real sign of progress be a reduction of debt, even if he had to cut back on his everyday expenses? What is true for an individual is also true for a collection of individuals, even if they call themselves a ‘government.’ If, as a country, we are even deeper into debt now than we were before, we are worse off. Period. The fact that the additional debt enabled better short-term GDP numbers is a long-term negative.

Updated: WikiLibel (Pitfalls Of Populism In Data)

Africa, Free Speech, Internet, libertarianism, Propaganda, Pseudo-history, South-Africa

Wikipedia is the Southern Poverty Law Center of online “resources.” It is an example of why populism in data is a piss-poor idea. Any rightist who’s had to fight that outfit for the removal of libel and lies knows of what I speak.

In short, Wikipedia is the encyclopedia of and for the Age of the Idiot. (And the malevolent.) Of course, libertarians love it—and their motives are lefty, as is often the case: Behold spontaneous order! (More like disorder.) The fact that millions of people have mastered enough technology to post online falsities masquerading as fact about those they dislike is no more significant to freedom than the fact that billions of humans have a bowel movement every day. So there!

And, as Derb demonstrates, Wikipedia makes “correcting” very difficult indeed. personally, I’ve opted for letters c/cd to a lawyer (and when I obtain proof traceable to the woman I suspect of saucing up the barely true tales posted about me … it won’t be pretty).

Truth in advertising is the issue here. Wikipedia needs to be labeled differently. It cannot be allowed at once to post lies and pose as a purveyor of truth. Right now, it uses its credibility as an encyclopedia to damage the good name of a person and present it as fact. Think of the debate over holocaust denial. Free speech always. The only question vis-a-vis denial is how and where you file it. In the library, the Dewey Decimal Classification for denial ought to be “Pseudo-history.” Right now Wikipedia bios fuse fact with fiction, yet this amalgam is filed as fact. This dubious syndicate needs to be “reclassified” itself. (Ideas?)

So far generalities. Now to more particulars. Today I was researching Dr. Mangosuthu Buthelezi for a section of my interminable book. Without going into detail, the Zulu chief is one of the good guys of South Africa; Mandela’s mafia—the ANC—is the bad element. Of course, Buthelezi being a free market man, who fought for the devolution of power rather than its concentration in a dominant-party state (the endgame of the ANC and its Anglo-American buddies)—he was tarred as the bad guy by the same axis of evil.

And by WikiLibel. As far as I know, “necklacing,” the indigenous practice of placing a car tire around a putative offender’s neck and igniting it with gasoline, was invented by the ANC as a method of punishing collaborators. Nelson’s wife, Wini Mandela, was an avid practitioner. No, I’m not claiming there was never any cross-fertilization in the ethnic war between the Xhosa (ANC/Mandela) and the Zulu (Buthelezi). However, the ANC should take credit for inventing and perfecting this technique.

But not according to our falsifiers, who give Buthelezi the good old WikiLibel treatment.

Update (August 3): AGGRESSION AGAINST NON-AGGRESSORS. A syndicate poses as a transmitter of immutable fact. The outfit’s process allows for the repeated trashing of vulnerable individuals in its bio section—vulnerable because mass support is not behind them. Individuals enjoying the support of the masses and their crooked cognoscenti are spared. All this under the guise of truth and objectivity.

As I predicted, those whose life’s work is in undermining ordered liberty, and elevating the virtues of populism and anarchy, rush to the defense of this bully pulpit. I speak of libertarians, naturally.

Their analytical tools? Accuse the “little woman” (moi) of personalizing the matter, sulking, and not being willing to, periodically, forfeit her good name and the integrity of her record on the alter of the Collective Good—namely data disseminated by the masses.

Predictable.

It doesn’t take much mental acuity (entirely lost in the herd instincts of my interlocutors) to distill the argument of this post. All one has to do is READ IT. Again.

What moved me to write was not my ongoing libel by Wikipedia, but the blatant, malicious, cunningly embedded slander in the bio of Prince Mangasutu Buthelezi. The latter is one of the good guys of South Africa, RIP. Yet the Zulu royal has been tarred over the decades by westerners—from the state department, to the New York Times to every petty diplomat blindly doing the business of democracy in that part of the world.

In their support for Saint Nelson and the revolutionary ANC—Acorn with machetes—the majority of libertarians (not all, mind you) have been as zealous as the neoconservatives. So sure, they’d dismiss my motives for writing this post. What do these plebs, every bit as ahistoric in their sympathies as the neoconservatives, know of Buthelezi?

According the WikiLibel, the grisly tradition of necklacing (see above), originated with the prince and his political party. Wrong. Necklacing was invented and perfected by the Saint’s syndicate and put to use by his wife.

If you’re not really famous—anointed by the intellectual monopoly in the Age of the Idiot—and WikiLibel doesn’t look too shabby if it lies about you; then they’ll sanction your maligning. Good luck in trying to remove the libel. Read Derb’s experience, one among many. Otherwise you, a non-aggressor, is aggressed against and it’s up to you to keep fending off attacks you did not provoke. How excellent

Some anarchists have no problems with libel, and even advance arguments for it. Free speech baby. Fist in the air; power to the pitchfork wielders.

I predicted libertarians would ooze all over this particular spontaneous bowel movement. I was right.