24 March 2011

Preparing for the Economic Holocaust that Will Strike the World

בס''ד

Originally published in my Notes section at Facebook; Copyright ©, R. Kossover 2010

by Reuven Kossover on Tuesday, December 28, 2010 at 10:48pm

It should be evident by now to all but the most blind that the world is facing an economic holocaust.  The euro, wracked by the budgetary debt of the European nations on the periphery of the "eurozone", threatens collapse.  The US dollar is so swamped by American debt that it is only a matter of when, and not if, it will lose its status as a reserve currency in international commerce.    When this happens, all the dollars floating around will either be refused by foreigners or accepted at deep discounts.  Strong inflation in commodities, not seen in years,  is already striking the United States  as I type this note.  Once that reserve status leaves the dollar, hyper-inflation will begin to strike the United States.  Those of us who live in Israel need to prepare for the day when the fiat shekel, based on nothing but trust and the stability of the dollar, will be a thing of the past.

Paris David Blumenthal is attempting to accomplish such a preparation.

He is putting together an organization, known in English as "Gold Leaf", to be a think tank to deal with the issues at hand.  This is a translation from the Hebrew of the program of "Gold Leaf" as he sent it to me.  I have made some small adjustments to the Google translation.

Have you ever thought why the cost of a liter of gasoline is twice as high as in Israel as in the United States? Or why did you pay three to four times as much for shoes in this country, than you would have bought them in the United States?  I assume most readers are aware of what the new vehicle purchases in Israel are more than double anywhere else. Folks, it's not just an exorbitant tax regressive VAT 16%, which stifles the Israeli economy and drives up the cost of living; it is also import taxes and taxes on a commodity that are hidden from the public's knowledge, as well as regulated monopolies to annoy Israel total economic situation .

When millions of Jews do not want to live here because of extreme taxation, Israel loses the gross domestic product their absence causes.  Because those Jews are not here, our demographic position remains insecure, and arouses animosity in our isolation because it appears that there is no military arsenal that can handle the enmity of the nations surrounding us.

Comprehensive Solution

  1.  Tax cuts
  2.  Cut costs
  3.  Make more affordable housing
  4.  Encourage more people to join the workforce by:
  • A - reduction in welfare
  • B - Establishing a negative income tax
  • C- Duty service reform to enable the ultra-Orthodox to serve
  • D- Improving Education

Obviously, this is not the entire solution.  There is more to be figured out, a lot more.  There is a banking system to re-invent, as the international banking system will collapse.  There is the need to educate the public concerning the development of a shekel based on silver or gold, a solid currency that will not be dependent on the economic stability of other nations.   There is the need to develop an economic model that will reduce the income disparities between the mass of Israelis and the 20 or so families who control the economy right now.  Tax cuts mean privatizing many functions that government now handles.  Cost cuts are accomplished by getting rid of the dead hand of bureaucratic interference in such mundane things as routing intercity buses, to cite just one example, so there is real competition, and real improvements in service.

That is why this is to be a think tank, a vital think tank with bubbling solutions to make all of our lives better.  If the circumstances force it, it can develop into a political party.  But that is for the future to dictate.

In the meantime, I strongly recommend that anyone who likes this program join Gold Leaf at http://www.facebook.com/pages/Gold-Leaf-ly-zhb/116019365134719?v=info
   

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