Israel’s News Blog Magazine: Daily Stories Video and Photos

There’s an old saying that says “whatever goes up must come down”. And in reference to world stock bourses, including the Tel Aviv Stock Exchange, “coming down” is looking like nothing less than a catastrophic free fall. After dropping an average of nearly 3 percent yesterday, today’s opening looks like it could end even worse as stock markets all over the worlds are falling between 7 and 10 % per day over the dismal news concerning the problems of the American economy, still considered as the largest economy in the world.

There are a number of reasons why all this is happening, including the energy crises, global warming and climate change, the continuing aftermath of Al Qaeda sponsored terrorism, and perhaps (for the outgoing Bush Administration anyway) the nearly 5 year disaster known as the U.S. led invasion of Iraq. As for Israel, the economy here is heavily tied to the fortunes of the American Economy as Israel’s biggest economic pluses in recent years have been connected to technologically based industries, especially information technology and bio-technology. Due to Israel’s mounting political problems in the aftermath of the 2006 Lebanese war and the conflict with the Palestinians in which most European countries consider Israel as an occupying aggressive oppressor of “Palestinian rights”, Israeli companies have had to rely more and more on the USA to market both products and services.

With crude oil prices hovering at close to the $100 per barrel mark, and after the U.S. Treasury has wound up spending over $200 billion in it’s continuing war against insurgents in Iraq, these and other problems, including the mortgage loan crises, have brought the American economy to the brink of what is being talked about as a major economic recession; one even greater than the one of 1991-94 that resulted in the U.S. President George Herbert Bush (G.W.’s dad) losing his re-election bid to Bill Clinton, and at least half of the workers in high paying aerospace industries in California and other states looking for $1,000 per month sales jobs in cities like Atlanta.

The “R” word, meaning recession, is definitely being talked about these days, and is bound to arrive at Israel’s doorstep sooner or later. After all, the Tel Aviv stock indexes have been rising too high for too long, and as other bourses start “heading south” stocks in Israel are bound to go that way too. Many Israeli companies, especially the high tech ones are posted on the NASDAQ, the American “over the counter” stock exchange that for years has become one of the most popular indexes for technological based companies to be listed on. These stocks are often very fickle and any reverberation in economic fortunes can cause them to fall quite rapidly. Many NASDAQ listed stocks are selling for as much as 30 times the actual earnings of the companies they represent, which mean that a lot of speculation is involved in pushing up their trading value.

As a result, they are now leading the markets in a very troubling direction. Everyone will be watching which direction Wall Street will head today, following the breaking news announcement that the US Federal is lowering its prime lending rate by 0.75%. The Dow dropped by 500 points on Monday and even the Fed’s attempt to bring stability into the financial markets may not be enough to stop the fall, as the problems of the mortgage crises and other financial concerns remain. Most home mortgages are fixed rate ones that keep the same interest rate during the life of the loan.

What the intermediate to long term outlook for Israel’s economy will be as a result of these market flip flops remains to be seen. But for sure, if the “R” word becomes reality in America, it’s bound to reach Israel sooner or later.

With oil prices hovering at near the $100 per barrel mark, more and more Israelis are becoming interested in energy saving products, as well as those more friendly towards to environment. Whether it be dual power system “hybrid” cars or those powered by liquefied natural gas (LNG), consumer concerns regarding energy shortage and global warming is causing many people to change their “energy consumption lifestyles” in favor of more environmentally friendly alternatives.

From a consumer marketing standpoint, what are known as “hybrid cars” seem to be getting more than their share of attention these days.

For those who are not aware, a hybrid car is equipped with both a conventional gasoline powered engine as well as an electric motor. When the car is in traveling at a regular road rate of speed, a generator is recharging the batteries that power the electric. The electric motor’s batteries are also being recharged by the braking action of the car when it stops at a traffic light. When the car is either standing still at an intersection, or moving at a very low rate of speed, like during the “stop and go” movement in a traffic jam, the electric motor takes over and not only saves fuel, but helps polluting exhaust emissions. In fact, Avi Moshel, who is involved in dealing with automobile exhaust emissions for the Transport Ministry, says that hybrid cars are 30 to 50% less polluting than those with only a gasoline powered engine.

Presently, the two most popular selling “hybrids” in Israel are the Toyota Prius and the Honda Civic Hybrid. Both are between 15 and 20% more expensive than ordinary modes, but dealers who sell them claim that a driver will gain back the extra cost through reduced fuel consumption .

Last summer, I asked a salesman at the Honda agency and service garage in Netanya why he thinks many people still haven’t considered purchasing a hybrid car: “It’s very simple” he replied, people in this country usually wait until some of their neighbors do the same thing. So unless Shlomo buys one (a hybrid), Itzick won’t buy one either.”

That was several months ago. When I checked back with the same salesman recently, he said that their agency is promoting their hybrids more than the ordinary gasoline powered models, especially due to the purchase tax incentives now being given by the Transport Ministry in conjunction with the Ministry for Environmental Protection.

The other alternative, i.e. cars that have been converted to run on liquefied natural gas have also gained interest, as LNG as it’s called cost about half the price of gasoline, and is much cleaning burning. The main drawback to this fuel first it’s availability (only a handful of filling stations offer this kind of fuel) and its potential hazards from explosions. The cost of converting an ordinary petrol burning car to one using LNG costs between NS 8,000 and 10,000, which is also a factor.

Still, in a country like Israel which has one of the highest vehicle traffic congestion rates in world, the use of Hybrid and LNG powered vehicles will be a definite advantage to reducing the country’s air pollution problems, as well as overall energy costs.

Billionaire Arkadi Gaydamak is definitely on the move these days. And this move appears to be heading towards a bid to become an important element in Israel’s political scene, with possibilities of even one day becoming the country’s prime minister. After purchasing several Israeli corporations and also the Jerusalem based Beitar Football Club, Arkadi Gaydamak has now heading in some new directions and is increasing his support to a number of philanthropic projects.

Gaydamak has recently been making appearances in a number of Israeli communities, including Netanya and Or Akiva. In Netanya, he strolled through the ’shuk ‘ or open air public market, where he was enthusiastically greeted by both vendors and shoppers alike. In fact, the loud acclaims of “Gaydamak!, Gaydamak!” were so loud that he couldn’t get a word in edgewise in either Russian, English, or Hebrew – the few Hebrew words he knows that is. At Or Akiva, his next stop on this particular tour, his big black “van-limo” stopped at a religious school and yeshiva where he was also greeted with much enthusiasm. According to sources, he promised the Yeshiva a generous donation of around one million ILS, close to $260,000 at today’s currency rates.

When asked by an accompanying Channel 2 News reporter if his philanthropy appears to be a tactic to gain popularity, he replied: “I’m not buying anything – nothing!” Since the outbreak of the 2006 war in Lebanon and Gaza, Gaydamak has been involved in several projects in which he furnished assistance to those in need, including a tent city for residents of northern Israel who fled the onslaught of missiles fired at them from Hezbollah forces, as well as offering the beleaguered residents of the southern town of Sderot a holiday in Eilat following a siege of Palestinian launched Kassam missiles from near-by Gaza.

Gaydamak has made generous contributions to a number of organizations including the nationwide ambulance and emergency medical service Magen David Adom. He founded his own political party, the Party for Social Justice in February, 2007, with which he plans to enter the next parliamentary election on a right winged platform similar to that of Binyamin Netanyahu’s Likud party. While not presently expressing a desire to be either a member of the Knesset or the prime minister, Gaydamak does appear very interested in becoming the next mayor of Jerusalem; a position in which his ownership of the Beitar Football Club would be a definite asset.

Although the next elections are at least a year away, Gaydamak appears to be conducting an impressive enough PR campaign that may bear him significant political fruit. When asked if he thought his lack of Hebrew might be a problem, he replied: “I don’t need to speak! My actions are louder than words! Besides, I will have a proper “team” to conduct the affairs of government.”

Team or not, it appears that Arkadi Gaydamak is moving in the direction he wants to head in. And that “direction” might lead him all to way the top.

The announcement by Billionaire Lev Leviev, one of Israel’s wealthiest citizens, that he and his family are planning to leave Israel is causing reverberations all over Israel, and the Jewish world. Reported destination for Mr. Leviev is London, England, where the businessman and entrepreneur already has varied business interests. He is Chairman of African Israel Development Company, is also head of L.L.D. Diamonds, the largest diamond manufacturing company in Israel and one of the largest in the world. Leviev, age 51, came to Israel originally from Tashkent, Uzbekistan in 1971, and has been one of the leaders of the Bukharian Jewish community in Israel for many years. The billionaire’s personal fortune has been estimated at “between 4 and 7 billion dollars”, and he is rated number 278 by Forbes rating of the wealthiest people in the world.

A deeply religious man, Leviev made the news several years ago when he purchased the controlling interest in the exclusive Ramat Aviv Shopping Mall, and almost immediately prevented the multi-screen cinema there from being open on Shabbat and Jewish religious holidays. Although the cinema later opened its doors during Jewish holy days, Leviev retaliated by announcing that he would remove the cinema entirely from the mall. Leviev is deeply involved in the Chabad religious movement, and has made large donations to the Chabad Movement in both Israel and abroad. He was a personal friend of the late Lubavitcher Rebbe Menachem Schneerson, who has been refereed by many as the Jewish “Meshiach” or Messiah.

Leviev’s diamond empire, which includes mines in both Russia and southern Africa, has given him so much clout that he has even challenged the DeBeers international diamond syndicate by saying that due to the size and scale of his operations, he doesn’t need to be a Debeers diamond “sight-holder” since he has enough access to raw, uncut diamonds from his own sources. His real estate empire has also reached a state where he is purchasing exclusive property in cities such as London and New York City, some of which cost more than half a billion dollars. Besides purchasing various luxurious properties in the U.S., his Africa Israel company also owns controlling interest in the 1,700 “Fina” gas stations which are spread all over the continental U.S.

Leviev is a strong family man and the father of nine children. Recently, he appointed his eldest daughter to be the CEO of Africa-Israel, which may have been an advanced notification of his intention to relocate. He has also been recently quoted that he is very dissatisfied with the present political situation in Israel and also in the manner in which many non-religious Israelis are living, including their desecration of the Sabbath and religious holidays. Israel’s dealing with the Palestinians has also been disappointing to Leviev, especially in regards to the Olmert government’s willingness to return most of the West Bank in return for a peace agreement.

Whether Leviev and his family will like living in an increasingly Muslim influenced city like London is too early to tell. London’s Jewish population has recently taken on a religious revival which many younger families choosing to become deeply religious. London’s business proximity is probably attractive to Mr. Leviev as the city of nearly 20 million has one of the largest diamond bourses in the world. And regarding his many business interests in Israel, London is only a 4 hour plane flight away. While this move may not be permanent one, Mr. Leviev appears to be sending the State of Israel a distinct message that it should consider putting its political and religious house in order before it’s too late to do so.

The Palestinian city of Bethlehem, located a few kilometers south of Jerusalem, may be celebrating its best holiday season in years. Reports from merchants and hotel reservation desks say that the number of pilgrims and tourists visiting the city of Jesus’ birthplace are at least 50% more than in 2006. Times haven’t been good for this biblical city made so popular by the event that supposedly took place about 2010 years ago, and tourism has been a far cry from what it was in prior years; especially in the “heady” years following the signing of the Oslo Accords in 1994. The city that used to see many thousands of foreign visitors converge on it during Christmas time became as still as the above words in the immortal poem by Father Philip Brooks in 1865.

Following the beginning of the Second Intifada Palestinian uprising in September 2000, foreign visits took a nose dive; and tourism was further complicated when a number of hard-line Palestinian militants held up in the Church of the Nativity for days before finally surrendering to Israeli army troops who were surrounding Manger Square. Once boasting a large Christian population, Bethlehem is now predominately Muslim. With the main source of income for the city being tourism, the city had fallen on hard times, and has only begun to show signs of recovery in the last couple of years. During the first few years following the historical handshake between Palestinian Liberation Organization leader Yasser Arafat and Israeli Prime Minister Yitzhak Rabin on the U.S. White House Lawn, Arafat himself and his wife, Sulha (a Christian) attended Christmas Eve midnight masses held in the Church of the Nativity. That all changed following the start of the Second Intifada when Arafat became a virtual prisoner in his West Bank Ramallah. headquarters.

To make matters worse, the Palestinian Authority has now been split into two parts, one in Gaza and under the control of Hamas leader Ismail Haniyeh, and the other in the West Bank under the control of P.A. President Mahmoud Abbas. Following some improvement in relations between Israel and Abbas’ Palestinian segment, tourism to Bethlehem has begun to improve, much to the relief of Bethlehem’s merchants, many of whom have shops in the center of town not far from Manger Square. Many of the items they sell are exclusively tailored for foreign Christian pilgrims including religious motifs carved from olive wood, jewelry and amulets, carpets and clothing with religious and other logos and slogans connected with the historical legend of the town. As Christmas is the most important time of the year for them, Bethlehem merchants have to bank heavily on a large influx of visitors to tide them through the lean months until summer when tourism again picks up for a while.

For those who want to purchase them, Palestinian flags, pictures of P.A. Authority and Charismatic Arab World leaders, and other nationalistic mementoes are also available.

One of the better hotels in Bethlehem, the Jacir Palace Intercontinental, reported that they are nearly full for the first time in years. “Yes, thank God, we have something to smile about this year”, said Farid, one of the hotel’s reception employees. Concerning what will be happening in the future, “it’s anybody’s guess” said Samir, another hotel employee. And rightly so, as current fighting between Israeli and Palestinian forces in Gaza could well spill over into the West Bank, including Bethlehem. Although the city of Christ’s birth has had fewer problems than other West Bank cities, including Ramallah, Nablus, and Jenin, the situation there during the period immediately after the uprising in September, 2000 was very unpleasant, and the Church of the Nativity suffered considerable damage in the wake of its takeover by Palestinian militants.

Israeli border checkpoints have tried to make it easier for pilgrims to come and go this year as a good will gesture to President Abbas. Still, it isn’t like walking into the Old City in Jerusalem, which for many pilgrims has been an alternative Christmas season destination following the 2000 Palestinian uprising.

In any event, Christmas 2007 does seem to be much better for the citizens of Bethlehem, and is much improved over previous years. And for those who so much depend on this annual inflow of visitors, and foreign currency, they can only hope for the best.

Have you ever been outdoors on a humid day and thought that the humidity was so thick you could almost drink it? Well, a Houston Texas based company decided to put this thought into action by designing and manufacturing a device that literally converts the very air we breathe into safe, clean drinking water. Called the Aquamaker, the device which looks a lot like the water dispensers found in many offices and homes is able to convert water vapor in the atmosphere into water.

Though this really isn’t a new idea (air conditioning systems have actually been doing this for years) this is first time that a practical device has been manufactured that can create around 36 liters of clean water in only 48 hours. The Aquamaker was originated by the parent company in Houston, and can convert air into water in practically every country the world where there is sufficient humidity to do so. This idea has such far reaching potential, that an Israeli company, headed by Eita Markovits, is now marketing the device in Israel for customers ranging from private homes to the Israel Defense Ministry. The Defense Ministry has become so interested in it that a number of Aquamaker machines are now being used on a test bases in locations all over Israel, especially in the Tel Aviv area.

Markovits, who formerly was involved in marketing vitamin products under the Solgar name, is now devoting a great deal of his time and energy to promoting the device which costs around NS 5,000 to purchase, but can also be leased on a monthly bases. To make a sufficient quantity of potable drinking water, an air humidity level of at least 60% is preferred, although water can be produced in even dry desert air. To assure that no pollutants are created, the air is filtered during the conversion process, making the water even cleaner than most bottled mineral water with virtually no minerals. From a scientific perspective its pure H2O at it’s best.

The present models can be made larger to convert larger quantities of water, and have great potential for areas where there is a lack of clean drinking water. Combined with using solar panels to create electricity, the Aquamaker can be a truly environmental friendly device. On current models such as the AM10, it can make 36 liters of water on about 8 cents worth of electricity. That’s about 30 Agorot in Israeli currency.

Though the entire marketing and production of the Aquamaker is still in what entrepreneurs would call the “seed capital” stages, the long term outlook for this concept is excellent, and could very well be a solution to much of the world’s water problems. This is especially so for countries in tropical regions and for many others located near bodies of water like large lakes, rivers and oceans or seas. These areas usually have high humidity levels which can be converted into plenty of clean drinking water by these devices. The Aquamaker has passed standards tests in the USA, Europe, and Israel, and now being sold in a number of countries, including the U.S., Australia, Greece, Italy, and Spain.

With the earth being a water planet, and nearly 70% of its surface being water, there isn’t much of a problem finding sufficient humidity to convert into water. This means that the future is certainly bright for the Aquamaker.

I hear quite a bit about the Cyber Monday craze lately. Cyber Monday is that first Monday after the retail industry’s Black Friday, so named because of the chaos and high levels of traffic. Black Friday has been the top sales day in the retail industry in 2003 and 2005 and second in other years.
Wikipedia’s says

The term Cyber Monday refers to the Monday immediately following Black Friday, the ceremonial kick-off of the holiday online shopping season in the United States between Thanksgiving Day and Christmas. Whereas Black Friday is associated with traditional brick-and-mortar stores, “Cyber Monday” symbolizes a busy day for online retailers.

In any case its supposed to be the busiest day for the online retail business and we would like to take part in the mayhem.

Right now you can get 20% OFF at AmuletGifts.com on any purchase over $40. When checking out use the code “cyber20″.

Tell them we sent you

Israel is a little country of seven million inhabitants, and with a land area the size of the American state of New Jersey. Yet, despite its diminutive size, it has some of the richest people in the world as its citizens. And now, these super rich billionaires are trying to purchase many of the most well known landmarks in New York City.

Formerly the private turf of such well-known people as the Rockefeller family, banker J.P. Morgan, and Real Estate mogul Donald Trump, the 22.7 sq. mile Manhattan Island, on which all of New York City’s well known skyscrapers stand, is now being sought after by such Israeli families as the Ofers, the Levievs, and the Tshuvas. Yitzhak Tshuva, an Israeli businessman who came from very humble origins to now being the head of a billion dollar energy and importing concern that not only controls much of the new car and gasoline sales in Israel, but in America as well (his company owns literally hundreds of gas stations and convenience stores scattered all over the continental U.S.A.). Tshuva, recently purchased the historic and well known Plaza Hotel, once the most luxurious hotel in The City. The price of this purchase of in excess of $ 600 million, and Mr. Tshuva must have admired the building and what it represents long ago when he walked the streets of Manhattan as a young man following his army service. Now, he not only owns the building of his dreams but plans to purchase others on the island as well.

Another Israeli tycoon, Eyal Ofer, of the Zim Shipping Company empire, took possession of the Philip Morris Building for a price of $525 million. The Ofer family controls one of the largest merchant marine fleets in the world, and has also amassed a respectable real estate portfolio of which the building which housed one of the largest tobacco companies in the world is only a part of. Ofer’s possessions. It occupies one of the most coveted property locations, i.e. right across from Central Park. Eyal also purchased the prestigious Mayflower Plaza Hotel for $400 million, and has turned this former luxury hotel into super luxury apartments. Ofer, together with a group of investors also purchased the Central Tower building for a ‘paltry’ $300 million.

Not to be outdone, another super wealthy Israeli, Lev Leviev, purchased two well known New York City landmarks: the New York Times Building, for $ 525 million, and the Clock Building, for $211 million. Leviev, who is Chairman of the African Israel Real Estate Company, is also head of LLD Diamonds Ltd, now considered as the largest private company in the world dealing in rough and polished diamonds. Leviev is said to have spent another $100 million to purchase the Wall Street building once belonging to J.P. Morgan, and is turning it into luxury apartments as Ofer has done with the Mayflower Plaza.

What prestigious landmark is next in line for these guys and other Israeli billionaires is anybody’s guess; but one thing is for certain, and that is the sky’s the limit for their desire to control what is going on in America’s largest city. Who knows, maybe the Chrysler Building, Radio City Music Hall, or even the Empire State Building itself may fall under their ownership. The moral of all of this: you don’t have to come from a big country to be big.

Wall Street in turmoil, American real estate loans going into foreclosure, oil nearly reaching $100 per barrel, and the Dollar dropping like a penny thrown into a bottomless pit. All of this news is bewildering for many Israelis, and even good news for others – especially who plan trips to the U.S. or plan on purchasing American good such as computers, cars, cosmetics, and other consumer items. With the New Shekel now pegged at a rate of around 3.92 to the Dollar, those who switched from Dollar based to Shekel based investments have profited. This includes many have purchased properties where purchase prices were linked to the Dollar; and for those in the middle of long term Dollar linked rental contracts the Greenback’s softening has been especially helpful.

In the long run, however, what is going on in America will have a big effect on the economic situation in Israel. And that effect will not be one to many peoples’ liking.

For years, the Israeli economy has had a close relationship with the American economy. Ever since Israelis were finally allowed to invest in stock exchanges abroad (under strict restrictions, of course); and with the success of many Israeli companies on stock exchanges such as the NASDAQ whatever happens in the U.S. economy is eventually felt over here. If the Dow Jones or NASDAQ on Wall Street takes a tumble, as it has recently, Israeli securities that are listed on these exchanges also head “south” instead of “north”. From a consumer standpoint, Israelis still purchase a considerable amount of goods from European countries, and thousands of Israelis travel frequently to Europe on either business or pleasure. With the European Union’s adoption of a standard currency, the Euro, not matter where one travels to on “the Continent”, and not matter what the economic situation may be in the country of destination, with very few exceptions the currency in use there will be the Euro, now trading at an all time high of 1.47 US Dollars. Some Scandinavian countries still retain their old currencies, but even so, the Euro is still the unofficial currency of choice in counties like Denmark, Norway, and Sweden. Other countries like Switzerland and the U.K. have strong local currencies, making goods and services more expensive in US Dollars are converted into Pounds Sterling or Swiss Francs

The Dollar’s weakness is pushing up the price of Oil, which is affecting everyone. Airline tickets have become more expensive and fuel surcharges more dear; due to the high price of oil. Fuel prices in Israel have risen significantly due to rising oil prices and this has resulted in an interest in purchasing the new ‘hybrid’ cars which have both an electric and gasoline engine. Many Israelis are also purchasing smaller, more fuel efficient cars, and this also applies to companies that provide a lease car to their employees as part of an overall salary package. The cost of using one of these vehicles has also gone up sharply with the government levying increased taxes for this privilege.

Where all of this is going to end is still not entirely clear. But one thing is for certain; and that in regard to those who live in Israel on fixed, Dollar based pensions, or are here in relocation or diplomatic assignments and receive sums in U.S. Dollars, the money they receive will go less further than before. Many people also wonder if rents and other prices presently linked to the Dollar will now be linked to the Euro instead.

There is a bright side, especially for people coming here from Europe or the U.K. and are purchasing flats and other real estate. They are getting the deal of their life. All I can say to them is “enjoy it while you can”!

World crude oil prices are now on the verge of reaching and even surpassing the $100 per barrel mark. Supply chain problems, a weak U.S. Dollar, and high demand has resulted in an international energy crises that threatens to plunge the world economy into a virtual tailspin. Countries which consume a high amount of petroleum, including the U.S.A. and China are trying to secure enough supplies to satisfy an almost unquenchable energy thirst. Many commodity traders and market strategists are predicting that the price of crude oil will go even higher, especially when the state of U.S. energy supplies are expected to be announced soon.

What is currently happening was actually predicted by fiction writers such as Ray Bradbury nearly 40 years ago. In fact, Bradbury, a renown science fiction writer during the 1950’s and 60’s wrote a surreal account of what might be the result of a world energy crises around the year 2000 with oil reaching the above price per barrel and remaining reserves so low that what is available is only for the military, and for operating farming equipment used to produce to food to feed a world population topping 8 billion. Bradbury wrote that the result would be Americans having to revert to lifestyle, transportation wise, that their great-grandparents had; i.e. back to the days of the horse and buggy.

Though this hasn’t exactly happened as Bradbury hypothesized, petroleum supplies are not meeting world demand, and the result is the current price situation. A truly frightening scenario of what might be coming down in only two years time was noted on a popular television news channel when a group of people which included former US Army commander in Iraq John Abuzaid, and a top former member of the Treasury Department were involved in a ‘what if’ dramatization occurring in the year 2009 – only two years from now. In this scenario, crude oil is now priced at $145 per barrel and gasoline is selling in America at more than $5.00 per gallon, with long lines at gas stations reminiscent to the oil crises of the mid 1970’s. The American economy has been plunged into a deep recession and unemployment is hovering at the 12 percent mark. To make matters worse, Iran, estimated with possessing close to 15% of total world oil reserves, has just announced that it now possesses nuclear weapons and is cutting off its oil exports to most countries, especially ones like the U.S. which have been “unfriendly” to the Islamic Republic. As a desperate measure, gas rationing has been introduced on a scale not seen since World War II.

And Israel, which itself has to import more than 98% of it’s petroleum supplies, has just announced that unless other nations become involved, it would have no option other than stage a “first strike” attack against Iran “with all necessary military options on the table” (meaning the possible use of it’s nuclear arsenal against the Iranians).

While this scenario hasn’t yet become reality, what is frightening is that is could occur as early as two years from now. A new president will be occupying the White House and most likely a foreign policy agenda that could be quite different that what has emanated from Washington since the invasion of Iraq in March, 2003. The new Administration, especially one controlled by the Democratic Party, might be more willing to compromise with countries like Iran and Saudi Arabia for the sake of obtaining more petroleum supplies. And that compromise might be one that would force Israel to pursue a military strike option against Iran.

Alternative energy measures, including using more hybrid automobiles, solar energy, hydrogen and fuel cells will eventually reduce world dependence on “black gold”. But these measures may take several more years to become viable enough to push petroleum into the background as a major energy source, and relegate it to being more important for use in the petrochemical and related industries. After all, fuel cells have been talked about for over 40 years. This is also true of developing cars and other vehicles that would run solely on electricity – possibly even powered by solar panels. The technology is currently available, but the major oil countries have shelved many of these innovations in order to continue making high profits.

The rising price of oil is also pushing up the price of gold, now above $800 per ounce. And while gold has much less ‘practical use’ than oil, it is a yardstick measure of inflation and financial crises.

The profits of the oil companies may be coming to an end, however. To reinforce this stark reality, an appropriate quote was once made by the famous American comedian and actor of the 1930’s, Will Rogers, when he said in respect to petroleum: “they ain’t making it anymore”. And sure enough, this is so true.