Israeli Bank Governor: “The Situation Is Difficult and Bad”

Dr. Michael LaitmanOpinion (Stanley Fischer, Governor of the Bank of Israel): [Dr. Laitman’s comments are in bold.]

“The International Monetary Fund predicts 3.3% growth in the global economy this year, and when I was at the IMF ten years ago we considered 3.5% growth in the global economy as the borderline between normal growth and recession. We are on the brink of a global recession.”

My Comment: We have been talking about the crisis for years; there is nothing new. It speaks only of shortsightedness.

“The big question is whether there will be a recession in Europe or whether we are facing a financial crisis. If there is a financial crisis in Europe, then so many things could happen such as Greece going bankrupt, or actually leaving the euro bloc with other countries following after. It’s hard to know.”

My Comment: The crisis will be financial; so be prepared for the worst because today none of the “decision makers” thinks about the transition towards an integral economy.

“The good part of the story is that they realize that they too don’t know what will happen to them if they keep the current framework. I was certain when I returned from the IMF Annual Meeting that the situation was difficult and bad, and they that didn’t understand what was happening there. Meanwhile, the European Central Bank has taken creative steps to deal with the liquidity and debt problem. There’s an improvement, but there is still uncertainty.”

My Comment: They will do nothing and will be able to do nothing, as has been the case in recent years due to lack of understanding of the trend of human development.

“Yossi Bachar [Israel Discount Bank Chairman] wants to send me messages, and finds it more convenient to use this stage. That’s fine. He wants to tell me that the capital adequacy ratio must not be raised. So I say to him: The Bank of Israel must not avoid raising it. There is the question of the rate of increase; we are aware of the problem, and I’m not fond of the expression ‘choking credit’, because that creates an unpleasant feeling, as though I’m strangling something, and I find that distasteful. We are aware of the problem.”

My Comment: This might be possible for a different small country, but not for Israel because it has the method of correction of the world, and without its interference the world will continue to slide down towards a Nazi regime and a world war.

“I respect Judaism, but this must change, the situation in which the Haredim [ultra-orthodox Jews], the fastest growing section of the population, does not participate in the workforce. Fewer than 40% of them work. This cannot continue, and it must be stopped. If it continues in the long term, it will be very hard for the economy to provide what people expect: life at a respectable standard.”

My Comment: If they enter the market now, you will get another half a million unemployed people, which will cost much more than today. We need to restrict various “political” subsidies instead of inviting them to the labor market.

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