Fischer flatters but offers no solutions

Stella Korin-Lieber

Stanley Fischer flattered both the government and the protesters, but offered no constructive advice.

Very nice indeed. The national savior emerged from his room and with smooth elegance did exactly what the guidebook says to do to survive in stormy weather: move between the raindrops, strike and stroke, offer carrot and stick, economics and philosophy, and say we love you. But nothing that can be taken from the grocery store of solutions, or relied on. None of the parties can rely on him: not the prime minister, who is acting under pressure; not the finance minister, who sounds full of himself; not the tent protesters, who seem to be the beneficiaries.

When all the parties are set in their ways and don’t know what to do tomorrow morning, some one has to step up to the plate and drive them forward. Today, it turns out that Governor of the Bank of Israel Prof. Stanley Fischer is not that man. Maybe our expectations of Israel's responsible adult were too great, maybe he is too old, maybe too responsible, but also too remote, which is how he seemed in today's press conference.

Fischer meticulously doled out the rations. It appeared that he and his staff took care to accurately measure the length of the stick, its height and power against caressing touches. No one will benefit, and no one will be left out.

Fischer flattered the government - "We have an excellent government"; but he also reprimanded it - "There is a feeling that the government is not working for the interests of the middle class". He defended it - "The government should be given time to solve the problem"; but he also criticized it - "Plans do not carry themselves out, someone has to be on the ground and implement them."

Fischer also flattered the Ministry of Finance - "It is the Ministry of Finance's job to protect the public coffers. It is doing this honorably and effectively. [Minister of Finance Yuval] Steinitz and his officials are protecting the economy'; but he also warned, "It is necessary to focus on the concerns of the young people and be serious."

Fischer said of the demonstrators, "They are the nation's backbone. They are the people who greatly contribute to the economy and the country, to its culture and high tech." But he also said, "Some of their demands are political. But people who want to influence politics cannot only work through protests."

Surprise! Fischer was surprised. If he was favorably surprised by the caring, the enthusiasm, and the charm of the young men and women in the tent protests, well and good. But if he was surprised by the fact the protest, its strength and its anger, then maybe he did not really read right the Bank of Israel reports, let alone his own speeches about the catastrophe of home prices.

Fischer believes that the lack of competition is the main cause of the high cost of living. He has overseen Israel's banking system for six years between the hammer and the anvil, but nothing has changed the absence of competition in the banking system or in the high cost of its operations. So please decide, sir.

We won't forget the fear mongering or the threats. If it were not enough for Prime Minister Benjamin Netanyahu to mention the threat of Iranian nukes at every socioeconomic event in order to justify his over-attention to other people's affairs, we now have Fischer threatening, "We're entering a difficult time because of the global economic conditions. Therefore, we must not breach the budget framework, because we'll pay a very heavy price…. We see what's happening in countries that didn’t deal with their budgets."

A very nice speech. We can survive with him and without him. There was no news, no path, no structure. A pity.

Published by Globes [online], Israel business news - www.globes-online.com - on August 1, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018