Stanley Fisher has finally raised the question of what is hiding behind the strange momentum of the Shekel.
It is my opinion, that overall, it is not good for the Israeli economy that the shekel is so strong in relation to the dollar. But more importantly, to this layman, it doesn’t make sense that the shekel is so strong compared to the dollar. That the dollar started to finally weaken when there was thought that Olmert might resign, and then slid back up, when we realized that he wouldn’t, may be entirely coincidental – or not.
Fisher discussed the rising inflation and rising shekel and recommended no government moves to correct it such as ceilings or controls, as they would just cause more damage. He is probably right, but read the next sentence…
Fisher said something I found to be extremely scary.
"The recent sharp appreciation of the shekel was unexpected, and although we have not found any evidence for claims of speculative activity in the exchange rate, it is hard to explain it," said Fischer.
In short, Fisher doesn’t understand why the shekel has gotten so strong.
But, Fisher suspects that someone may be playing with the shekel, but he can’t find any definitive proof of it (yet).
Well Stanley, you may be catching on, and in that case the government must take the right step to protect itself.
And I want to throw the name George Soros at you as suspect number 1.
I’ve discussed Soros’s interest in the Shekel in October last year. And his interest in Israeli politics which can be summed up in one sentence he said “There are strong voices arguing that Israel must never negotiate from a position of weakness. They are wrong.”
Soros has managed to bring down the economies of countries and major banks with his currency speculation; His strong, radical-left agenda, and anti-Zionist position would make Israel a delightful target for his currency speculations and dangerous philosophy that Israel should be weak.
And that is what JoeSettler thinks is going on right now.
So Stanley, start considering the obvious, and start taking measures to protect us against from the crash that Soros may have planned for us.
Wherever I am, my blog turns towards Eretz Yisrael טובה הארץ מאד מאד