Netanyahu and his partners celebrate the passing of the reform.
It is not clear how Netanyahu came up with the claim that the reform helps the economy (Photo: Flash 90, Yonatan Zindel)
The cool reception prepared by the investors following the approval of the legal revolution in the Knesset proves the strong connection between the world of economics and the reform.
It is not clear how Netanyahu came up with the claim that the reform helps the economy.
In the upcoming football world, it is customary to say that the table does not lie.
Other days over time only the data and facts speak and not practical stories and excuses.
And the story of the reform and the economic system is exactly on one foot.
The entire enlightened economic world and the international institutions have claimed until today that the reform could harm the economy and the economy, lower the credit rating and impair the performance of the economy.
But today there are also those who thought otherwise.
In fact, we are talking about only one person: Binyamin Netanyahu, to whom we can add the scales of his penchant.
Only he made the puzzling argument that damaging the system would strengthen the economy.
It didn't happen in Hungary, Poland or Turkey, but Netanyahu thought for some reason that it would happen in Israel.
It's something like claiming that Netanyahu connected to the credit card and from now on will pull it out for shopping purposes.
When Israeli citizens buy "green", it means they see blackness.
We are only at the beginning of the decline (Photo: ShutterStock)
The dollar will quickly fly to the level of 4 shekels
Yesterday, a decisive answer was finally given to a question that should have been obvious in advance.
Could the legal reform harm the economy?
The dollar strengthened against the shekel by more than 1% and crossed the 3.6 shekel mark for the first time since the corona epidemic.
Investors are starting to see green in their eyes, which in practice is a black economic color.
Until the sixth Netanyahu government, the shekel was considered one of the strongest currencies in the world thanks to the world of high-tech, dealing with the corona crisis and prudent budget management (thanks to Netanyahu, among other things!).
All of this is starting to go down the drain and the weakening exchange rate and the falling stock market is one of the signs of this.
One of the important reasons for the weakening of the shekel is spending money abroad and stopping investments in Israel. And let's not get confused.
A strong dollar corresponds directly to the cost of living and increases it. Not only does it make travel abroad more expensive, but it also makes imported products more expensive, will accelerate inflation and later also will result in a further increase in interest.
I am focusing on the dollar and not on the other negative sides of the reform such as damage to investments in Israel or to individual rights.
But a dollar at 3.6 and above is just the beginning.
If the reform continues in full force as it is, the dollar will quickly fly to 4 shekels and we will still miss its current levels.
The next shockwaves will come later and it will be similar to the earthquake damage in Turkey only in financial terms.
Israel's credit rating may drop.
Raising funds abroad will become more expensive and this is another factor that will negatively affect the cost of living.
Israel will become a leper country in terms of regulation. But unlike countries like Poland and Hungary, we do not have the European Union behind us, and we also bear the burden of the conflict with the Palestinians and the daily challenge of terrorist threats. Call me "America." Even in front of her, it's not what it used to be.
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dollar
Benjamin Netanyahu
reform
Education reform