How Isolated is Israel?

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

Straight from the Jerusalem Boardroom #190, February 14, 2014

http://bit.ly/1bR3SHp

1.  A record of 5.3 million tourists in Israel in 2013.

2.  A record of $83.2BN foreign exchange reserves reflects the strength of Israel’s Shekel, while the currencies of the emerging markets plummet.

3.  A record of $2.3BN invested in 662 Israeli startups in 2013 (21% above 2012), according to KPMG and IVC (Globes, January 23, 2014).

4.  Over 250 multinational research & development centers operate in Israel (Globes, February 13).

5.  “Funds from the US, Europe and China are showing interest in dozens of Israeli companies that will be forced on to the auction block by Israel’s efforts to increase competition…. The sale [of dominant Israeli companies] is required by a law passed in December, 2013 to loosen the grip conglomerates have on the economy…. [Israel’s economic] growth is projected to outpace both the US and the euro area this year and next.  The stability of the Israeli economy, and its fundamentals, make it attractive to foreign investors…. You are buying not because of a crisis in Israel, but because there is a desire to boost competition (Bloomberg, February 4, 2014, Alisa Odenheimer and Sharon Wrobel).”

6.  Australia’s Woodside Petroleum, Ltd. will join explorations in Israel’s Leviathan offshore natural gas field, accepting a Memorandum of Understanding – to be completed by March 27 – which will provide the Australian giant with a 25% equity for $2.7BN (Globes Business Daily, February 10, 2014).  Norway is increasingly interested in Israel’s natural gas market.  Stavanger University concluded an agreement, in the energy-engineering area, with Israel’s Technion (Globes January 27). Cyprus negotiates a $3BN natural gas import from Israel.

7.  Intel’s CEO, Brian Krzanich on Intel’s 40 year operations in Israel: “It’s a microcosm of Intel, a complete Intel within a single country. It’s about the only place where you have a complete cross-section of the company in one country.”  Intel Israel features the largest research & development center outside the US;  $10.8BN investments and a $1BN annual cost (during the last decade) on sourcing goods and services; 9,800 employees (mostly research & development), including 800 hired in December 2013; $35BN exports, including $3.8BN in 2013; breakthrough developments which have advanced Intel’s global competitive edge, such as the 8088 processor, Pentium MMX, Centrino, etc. (Globes, January 27).

8.   Lockheed Martin’s Vice President of International Engineering and Technology, John Evans announced a joint investment, with EMC, in Israel’s cyber technologies: “We recognize evolving global needs, as well as the wealth of innovation taking place within Israel and its universities.” Orna Berry, Vice President and General Manager of EMC Israel: “Israel offers a unique combination of talent, innovation and pioneering spirit. We expect this collaboration with Lockheed Martin will help EMC continue to accelerate our important research & development and contribution to Israel’s mission to be a leader in innovation (Jerusalem Post, January 26).

9.  Steve Mills, IBM’s Senior Vice President announced that IBM is establishing a Cyber Center at Ben Gurion University, (Globes, January 28).

10.  Microsoft’s new CEO, Satya Nadella: “The research & development centers in Israel constitutes a strategic factor for Microsoft, enhancing our capabilities inn many areas. Our challenge is to leverage, in a most effective manner, the Israeli manpower (Globes, February 6).”

11.  The French giant, Electricite’ de France (EDF) wishes to participate in the construction of two major Israeli power stations (Globes, January 28).

12.  Altria (previously, Philip Morris Companies) acquired Israel’s Green Smoke (electronic cigarettes) for $110MN (Globes, February 5).

13.  The Israel-China company, ShellCase raised $118MN for its subsidiary, WLCSP, on the Shanghai Stock Exchange (Globes, February 11).  TheGerman giant, SAP, led a $47MN round of private placement by Israel’s Kaltura.  SAP was joined by the Silicon Valley-based Nokia Growth Partners, the Wilton, CT-based Commonfund Capital and Brazil’s Gera Ventures(Globes, February 13).  The Silicon Valley-based Accel Partners andInnovation Endeavors (the private fund of Eric Schmidt, Google’s Executive Chairman) led a $10MN round by Israel’s Aorato.  The London-based Index Ventures and the Silicon Valley-based Sequoia Capital led a $15MN round by Israel’s Adallom.

Wishing you Shabbat Shalom and a rewarding weekend,
Ambassador (ret.) Yoram Ettinger, Jerusalem, “Second Thought: A US-Israel Initiative”
www.TheEttingerReport.com.)

February 14, 2014 | 20 Comments »

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  1. yamit82 Said:

    Which Path to Persia?: Redux
    Part II: Syria, Libya, and beyond, Globalists prepare for second phase.

    ….

    The best way to minimize international opprobrium and maximize support (however, grudging or covert) is to strike only when there is a widespread conviction that the Iranians were given but then rejected a superb offer—one so good that only a regime determined to acquire nuclear weapons and acquire them for the wrong reasons would turn it down. Under those circumstances, the United States (or Israel) could portray its operations as taken in sorrow, not anger, and at least some in the international community would conclude that the Iranians “brought it on themselves” by refusing a very good deal.”

  2. yamit82 Said:

    Collapsing China 1997 Neo-Con report describes containing and collapsing China

    another link from your article(oldie but informative)

    It’s Official: “Arab Spring” Subversion is US Funded
    http://landdestroyer.blogspot.com/2011/04/official-arab-spring-subversion-us.html

    yamit82 Said:

    What China Knows That We Don’t: The Case for a New Strategy of Containment
    Robert Kagan

    Looks like China thwarted this effort. They probably read the plan and headed it off at the pass. 😛

  3. yamit82 Said:

    History: How the US Installed a Proxy “Brotherhood” Government in Egypt
    From Egypt to Syria, the Muslim Brotherhood does the West’s bidding

    a link within your article gave this 2007 article which I wish I had read years ago. Some of my speculations are outlines here back then.
    THE REDIRECTIONIs the Administration’s new policy benefitting our enemies in the war on terrorism?
    BY SEYMOUR M. HERSH
    http://www.newyorker.com/reporting/2007/03/05/070305fa_fact_hersh?currentPage=all

  4. @ bernard ross:

    I think you forgot the beginning-moves in the so called Arab Spring.

    History: How the US Installed a Proxy “Brotherhood” Government in Egypt
    From Egypt to Syria, the Muslim Brotherhood does the West’s bidding

    However, if anyone understood that the “pro-democracy” protesters were in fact US State Department-funded, trained, and equipped mobs providing cover for the attempted installation of the Muslim Brotherhood amongst many other potential Western proxies, the current political battle would make perfect sense.

    Weakening Egypt before NATO’s assault on Libya was a crucial step in ensuring the latter’s absolute destruction and the creation of what is now a Libyan terror-emirate shipping cash, weapons, and fighters east and west to destabilize and overthrow various governments on the Anglo-American’s long “to-do” list. The West’s ability to install a Muslim Brotherhood government in Egypt, with it’s substantial regional standing and influence would be a serious blow not only to Syria, but to Iran as well. The Muslim Brotherhood in Egypt is already echoing calls by the US and Israel for “intervention” in Syria.

    Along with Libya, Egypt and of course the Gulf States of Saudi Arabia, Qatar, the UAE, and with the possibility of the Brotherhood coming to power in Syria as well, a united front against Iran would be formed and prepared to fight a proxy war on the West’s behalf against the Islamic Republic.

    Such a reordering has not only been mapped out in US foreign policy documents like Brookings Institution’s “Which Path to Persia?” report, but mirror designs against China where all of Southeast Asia is slated for destabilization, regime change, and realignment to carry out the West’s ambitions to contain and even collapse a rising China.

  5. bernard ross Said:

    the problem at short range is that it detonates the rocket through heat but what if it carries bio or chem wmd?

    No problem it’s unlikely any wmd’s would be fired for such short distances it would more than likely kill the shooters as the intended victims. bernard ross Said:

    Op-Ed: India-Israel Defense Cooperation
    http://www.israelnationalnews.com/Articles/Article.aspx/14531#.Uv-QLvldXXo

    I think our potential oil and gas finds will keep India in our camp. Australia’s Woodside to acquire $2.7b stake in Israel’s Leviathan gas field
    Impending deal would give energy giant control over 25% of the massive natural gas reserve.
    If they get too close to Iran or begin to dump Israel for Iran then Israel pivots towards China India’s Great threat on her border and with Israeli advanced technology.

    China massively investing in Israel: http://www.liveleak.com/view?i=a23_1388181809 They want our technology and if they can’t steal it they will invest then steal our intellectual property. Chinese construction companies are operating here for the past 7-8 years and there are over 25,000 Chinese workers here.

    Are these vehicles completely made in Israel or are they subcontracted or are the parts made abroad and assembled in Israel?

    I think the engines Chassis and gears are imported the rest made and designed here. Israel has done the armor bodies on hundreds of American military vehicles that operated in Iraq and Afghanistan. I hear that it saved many American and coalition soldiers lives. My Company supplied electronic components to most of the High Tech sector in Israel even the IDF and IMI we were an approved vendor. In many cases I had to know the nature of the project and their functions. Many start-ups then are Israeli giants today.

    Every major and many minor High tech global who’s who is in Israel even companies that resisted coming here are now embedded solidly in our economic landscape.

    Few outsiders and most insiders not not aware of how strong we are economically. Take into consideration that we are way overtaxed and our military expenditures are the highest per capita to any other country and we have 25% of the population that contribute zero to our economy (Arabs and Ultra orthodox). If you discount those two sectors and pear down our military expenditures in reduced taxes Israelis are American equals. When we start to profit from oil and gas finds the average Israeli shoild have the highest standard of living in the world.

    Listen to Bennett in 5 year he built a company and sold it for $$$149 million dollars.. BB is envious. Ehud Barak just bought 5 separate apts in Tel Aviv for 12 mil now where did a guy who worked for the government most of his adult life amass such a fortune??? Some say on arms deals??? All of our leaders and potential leaders are bought before during or after their tenure in public office.

  6. @ yamit82:

    For now, the US Secretary has made his own request of Netanyahu and the Palestinian leader Mahmoud Abbas: He asks them to draw out the negotiations on his framework after its release over two years – that is up until late 2016 when the Obama administration ends. Abbas is against any prolongation of the process. He has so far agreed to an extension of no more than a year.
    http://www.debka.com/article/23668/Netanyahu-accepts-Kerry%E2%80%99s-%E2%80%9Cframework%E2%80%9D-in-principle-seeks-publication-delayed-to-Knesset-recess

    I have often believed that most of today’s Obama behavior is geared first to the needed dem win at the midterms in Nov this year and second at the 2016. I think this is the prime motivation for any decisions.

    He is getting his ducks all in a row in order to appeal to each of his electoral bases; the goal of Kerry and obama is the dem win of the 2014 and 2016 elections. Nothing need actually occur, just the electoral perceptions are necessary:

    1-His prime base is the anti war, pro diplomatic solution, pro moral diplomacy in human rights etc. For that base he must destroy the link which tied his admin to the arming and training of the Jihadis in Syria that was exposed in Benghazi. This link threatened to bring into question all past terror attacks on the US of AQ and would alienate him for m his main constituency. He accomplishes this by not arming the “rebels” and distancing himself from anything but a diplomatic approach to Syria. If he returns to arming the Jihadis it will be after trying diplomacy and will be sanitized to be “non AQ rebels”.
    2- the same with the Egypt relationship: for the elections he cannot now be seen to be supporting a military coup against an “elected” president.
    3- Same with Iran: diplomatic non war solution in time for nov elections. After that 2 years to next benchmark.
    4- same with Israel pal talks, they accept framework, “with reservations” for nov elections and Kerry is already asking to draw out the framework negotiations for 2 years for 2016.
    5-gay constituency back in the bag with Mcacauliffe refusing to defend the Virginia voters referendum of gay marriage ban and Obamas newly appointed federal judge string the ban down. Looks like a pre arranged set up.
    6- Pot lobby- he just approved a ruling that banks may deal with pot suppliers in legalized sates.
    7- immigration amnesty

    To that end Kerry is seeking to stretch out the process 2 more years after 2014 in time for 2016. The rest is window dressing. Hillary is busy distancing herself from her SOS record in time for 2016 and Kerry will get the Veep position.
    Obama will do enough to get his electorate back on board because they wont want to risk a change when they can see he appears to be doing something along the lines of why they elected him. His actions in the ME have not really harmed the “regional plans”. The GCC war against Irans proxies proceed and increase also moving to Iraq theater, Sisi is comfortably being financed by the GCC without US involvement. For all we know everyone may be getting something for sitting down and stalling.

    Report: Frustrated with Syria talks, Saudis to provide advanced arms to rebels
    According to Western and Arab diplomatic sources who spoke to the Journal, Riyadh intends to deliver advanced, Chinese-made shoulder-fired missiles that are capable of downing airplanes as well as Russian-manufactured 9M113 Konkur anti-tank missiles.
    http://www.jpost.com/Middle-East/Report-Frustrated-with-Syria-talks-Saudis-to-provide-advanced-arms-to-rebels-341496

    It has always been the GCC funding the syrian jihadis; the US aided with training and logistics in arms supply but the GCC did the paying. the CIA arranged the first big arms buy by the Saudis in Croatia. I wonder if there was ever really a contemplated invasion of Syria. The GCC arranged jihadis continue to operate as originally predicted prior to Obama “changes”. They went to Syria, lebanon and now Iraq. The Egyptian/Qatar/GCC leashing of Hamas started with Morsi and intensified under Sisi. It even appears that a possible US Egyptian plan to depose Hamas and give gaza to Abbas might also be in the works. I have always suspected that BB’s release of terrorists to keep abbas at the table indicated that the result of negotiations would be a pre arranged “nothing”, which could leave Abbas to claim at least he got the terrorists, or that BB was getting something HE wanted. I think that release was paying Abbas to stay for the time period.
    you know I like to think out of the box when nothing makes sense. Actually most of what is going on is surface drama as everything appears to continue as before. 🙂

  7. yamit82 Said:

    Laser War Israel unveils laser defense system to shoot down short-range rockets

    the problem at short range is that it detonates the rocket through heat but what if it carries bio or chem wmd?
    yamit82 Said:

    Indo-Israeli cooperation means more business for both sides

    Op-Ed: India-Israel Defense Cooperation
    http://www.israelnationalnews.com/Articles/Article.aspx/14531#.Uv-QLvldXXo
    yamit82 Said:

    ISDEF 2013 VideoReport

    Are these vehicles completely made in Israel or are they subcontracted or are the parts made abroad and assembled in Israe???

  8. Israel Defense News:

    India and Israel will jointly build an integrated anti-missile system to be deployed against Chinese nuclear and conventional missiles. Defense News reports from Defexpo.

    Indo-Israeli cooperation means more business for both sides

    With two of the major Israeli companies IAI and RAFAEL cleared from the bribery investigations that have casted shadows on business and dried out new contracts for months, the recent clearing of the Israeli companies form suspicion are likely to re-open the Indian wallets once again, moving forward with a number of programs that were on the waiting list for quite some time. Barak I is one of those programs. Admittedly an old (yet not obsolete) system, Barak I is still the principal point defense system protecting Indian surface combatants and the missile boats of the Israeli Navy. In recent years the missiles used for testing and training have gradually depleted war ready stocks, and the Navy desperately needs replenishment stocks that are likely to be released now, as the shadow of investigation cast away. Barak I is one of the systems protecting India’s ‘indigenous’ surface combatants, along with a number of associated radars and other combat systems provided by Elta, IAI and other Israeli and foreign suppliers. Another missile program currently underway is: blockquote> Barak 8, also known for its designation – MRSAM. The missile developed by IAI MBT and DRDO is positioned to be the ultimate anti-air medium-range weapon, designed to defeat any threat – ballistic, cruise, or guided missile that may challenge the protected vessel. The program has been delayed for considerable time. Although most of the delays are derived by technical and coordination issues between India and Israel, the program has shown progress recently and is expected to reach system integration testing soon.

  9. @ bernard ross:

    I accept that the main motivation is financial and in response israel should sell to the Chinese anything they want if the Indians go for the American offer. I am not so sure they will because they don’t want any American control or say in how those weapons will be used. Americas main ally is still Pakistan. All other things being equal between Israeli and American systems Israel, sells with no strings attached and America never sells without qualifying restrictions.

    Now this may be a sales game changer in favor of Israel:

    Israeli company to unveil laser-based rocket interceptor
    Iron Beam is designed to complement Iron Dome at very short ranges, intercepting smaller rockets, mortars and aircraft

    Laser War
    Israel unveils laser defense system to shoot down short-range rockets


    RAFAEL Develops a New High Energy Laser Weapon

    Israel must stop accepting American funding [even partially] for new development systems. We lose more in potential and real reexport sales by giving Americans both veto power over the sales and access to our own developed technology.

    A few years ago Israelo developed a laser system with Honeywell using chemical lasers but they were found to be too expensive and the project dropped or mothballed anyway a few hundred million was dropped on that project and I think Israel still possesses a prototype or two.

  10. Japanese Internet giant acquires Viber for $900 million
    Messaging app recently denied it was in talks with buyers; ‘Viber understands how people want to engage,’ Japan’s Rakuten says.

    Viber, the Israeli mobile application that allows users to make phone calls and send text messages for free, has been acquired by one of Japan’s largest Internet services companies for $900 million.

    Rakuten announced its acquisition of the pioneering messaging and VoIP company on Friday, marking an additional acquisition for the Japanese company, following a number of purchases in recent years.

    “Viber understands how people actually want to engage and have built the only service that truly delivers on all fronts,” said Rakuten Chairman and CEO, Hiroshi Mikitani in a statement.

  11. Do you notice how almost all of these deals involve American, Asian, or Australian companies? And the Euronazis think that they can cripple Israel? When one of their own (Cyprus) is now dependent on Israel for energy and security?

    I also wonder where the growth in tourism came from. If all the Euronazis are boycotting the uniquely evil, sub-human, Zionazi state of Israel, who is coming?

    If I am the Israeli Tourist Board, I would be working overtime to get Asian, African and Latin American Christians (many of whom are of the pro-Israel Pentecostal type) to visit. When President Goodluck Jonathan of Nigeria (yes, I know, what a name) visited Israel, more tha 2,000 Ibo Christian pilgrims came along. With Korea becoming increasingly Christian, there is another great source of tourists. Add in 100 million Filipinos (following on the efforts of Israel’s famous disaster relief team last fall after Typhoon Haiyan) as a potential market, and Israel can increasingly tell the Euros to go %$#! themselves.