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Tags: israel | europe | investors | money

Sell EU Short — Buy Israel Long

Sell EU Short — Buy Israel Long

Denis Kleinfeld By Sunday, 15 November 2015 05:07 PM Current | Bio | Archive

Contrary to the prevailing wisdom of Wall Street and Washington, D.C., investors should sell the EU short and buy Israel long. 

The European Union is in an economic, social, and political maelstrom. To paraphrase Albert Einstein, the political mindset that created these problems cannot possibly solve them.

The EU's  errant economic policies are based on advancing socialist ideals long ago refuted, delusional dreams of creating a classless multi-cultural society,  and powered by hopes of sustainable, carbon-free energy unchained from the forces of Mother Nature. 

It is self-evident from the news reports from Paris and every other European city they lack the grit to protect their borders and secure the safety of their rightful citizens.

The financial systems of both the EU and its member states are hopelessly bankrupt. They hold nonstop rounds of meetings of politicized economic forums and study groups by an endless supply of ministers, deputies, and commissioners. Then continue doing more of the same.  

As they say in Texas, all hat and no cattle.

The EU objective of the fiscal union was doomed from the start. In their political eagerness to move beyond mere enabling the flow of goods and financing across borders, they allowed Greece, Italy, Portugal and other countries to fudge their national accounts justifying the claim of meeting the minimum required national fiscal standards.

Basically, the EU was formed on the Hail Mary Pass Theory of economics.

Unlike Doug Flutie, the quarterback for Boston College who tossed "The Pass" beating the University of Miami in 1984, the EU pass has not been caught.

The EU just fumbles the economic football play after play.  As other commentators have said,   the EU is a vast, bloated bureaucratic empire imposing suffocating rule over its member nations.

And what of the member states?

The EU and its member states are hopelessly in conflict with the private sector. They are mandating harmonization of tax and automatic exchange of private financial information among governments bureaucracies while fiercely competing to attract new business by offering tax incentives and enacting legislation to protect the privacy of financial information.

It's not working

Bureaucratic straight-jacket type regulation stifles their citizens’ entrepreneurial spirit.  New business creation is just about zilch.  Their farmers exist only with government subsidies. They have become welfare states that support themselves by selling off their inheritance. 

The European countries embrace Muslim immigration policies dramatically altering the character of their countries. Simply, within our lifetime European culture, moral principles, and historical values may be but a memory.  They are losing their soul.

Clearly there are large numbers of people for which Islam has evolved into a religious belief.

They have become part of the modern world.

However, the greater number of Muslims still follows a community held belief of Islam that can be reasonably described as a paramilitary theocracy rather than a religion.   

This community creates the safe zone, the incubator, where the most violent of the believers can carry out terrorist actions like the massacre in Paris.   Many of this community disagree with the methods — but they fully agree on the ultimate goal of a Europe dominated by Sharia law. 

The EU failed to stop the crisis in Kosovo, refuses to stand up to Russia, and is afraid to protect its borders.

Europe is militarily weak, economically insolvent, and morally bankrupt.

Investors thinking about buying into the EU should go short. 

Israel stands in stark contrast to the EU.

Israel is America's strongest and loyalist ally. 

It is a democratic multi-cultural country which practices tolerance as part of its historical core Jewish beliefs. It is a country based on a strong moral philosophy which underpins every industrial country in the Western world. 

Against the entire Muslim world actively trying to destroy it, Israel can defend itself.

It has the means and the will.  Israel knows about security.

Its security is undermined by the pro-Arab bias of the European states, the current US administration, and, as usual, the US State Department.  Even with this edge, the Arab countries avoid taking on Israel in a straight up fight. 

Iran remains a problem for Israel, Western Europe, and the United States.

The Iranians understand that Israel has the capability and resolve to reduce Iran to a 10 million year wasteland. 

The United States and Western Europe face the same risk as does Israel.

Unlike the EU, Israel is energy independent. It could supply natural gas to Europe. It supplies Gaza and the West Bank even while dealing with their terrorists who daily try to murder Israeli men, women and children and launch rockets against its cities.

Water is critical to the Middle East.  With its own energy sources, Israel will have among the world's largest desalination plants.  It has already made the deserts bloom, and Israeli agricultural products are the best in the world.

Israel is one of the most important economic capitals in the industrial world. Every major technology and research company locate substantial research facilities in Israel to take advantage its incredible depth of highly educated and motivated people. Their creativity and entrepreneurial abilities are second to none.

It is likely that if there is a remarkable advance or discovery or Nobel Prize, it is by the Israelis.
Israel is where the successful combination of personal liberty and free-market struts its stuff.

Smart investors will go long on Israel. 

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Contrary to the prevailing wisdom of Wall Street and Washington, D.C., investors should sell the EU short and buy Israel long.
israel, europe, investors, money
Sunday, 15 November 2015 05:07 PM
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