February 18, 2005

"The Dollar and Israel's Future"

Merrill Lynch is now encouraging investment in Israel. This titan of investment banks predicts formidable growth in the Jewish state's economy. It sees the death of Arafat and the emergence of the new Palestinian leadership as bringing an end to Arab terrorism and a rise in Israeli economic growth. But this good news is diminished by the slippage of the American dollar and the inflationary demands of government spending.

The Bush administration is now asking Congress for eighty billion dollars in addition to the one hundred thirty billion dollars it previously asked for and allocated in the mire of what is now known as Iraqi policy. Bush’s budget plans for this year call for a two and one half trillion dollar expenditure, and that does not include the billions earmarked for Iraq. Economists say these figures bode for an inflationary crash caused by government borrowing.

In the past, America’s power stemmed from its economic strength. It was capable of influencing the destiny of nations, and in modern times, transformed militant states into peaceful and social democracies. Post war Germany and Japan are examples. The Marshall Plan for war-stricken European countries turned their devastation after the Second World War into might. The Europeans now sit on a monetary throne. The Euro, the EU's currency, is worth more than the American dollar. So powerful has Europe become that the new American Secretary of State went there to beg for support for America's Iraqi policy.

Political analysts once insisted that Europe’s antisemitism was the result of European economic humiliation. Jews, they falsely contended, had all the money. But antisemitism exists in today's monetarily mighty Europe where Jews represent a distinct minority. In France, the Jewish population is 600,000, more than any other country on that continent, but a much smaller percentage than the Muslim population; and in France, antisemitism continues to rage. Germany has growing Jewish numbers, but its 150,000 Jews are barely noticeable in comparison to the tens of millions of nonJews in that country. As Europe’s economic strength continues to climb, so does its hostility to Jews, reflecting both an opposition to Israel and a sympathy for Palestinian terrorism.

In America, the opposition to Israel may also be growing. The Republican party's economic philosophy in the past demanded less government spending. The Bush budget, however, exceeds that of any previous American administration. In an attempt to cut the budget, the president substantially decreased the funding for more than one hundred social programs. If the Bush budget continues to grow, I guarantee that we will hear a clamor to decrease funding to Israel and Egypt, both essential to maintaining peace in the Middle East.

Our Rabbis taught the importance of economic well-being. "Without flour, there is no Torah." Israel's security is inextricably bound to the American dollar and its strength worldwide. More than ever, as Americans and as Jews, we need to put our minds to work to finding solutions to benefit the economic well-being of America. In turn, the solutions we find will benefit the well-being of Israel. No less than the future of our people may be at stake.

Edited by Anna Olswanger

Shabbat Shalom