T. TJacob Frenkel
Speaking at the Interdisciplinary Center in Herzliya
The Center is a bastion of Israel’s Security Services*
Confessions of an Economic Hit Man
On June 24, 2013, Prime Minister Netanyahu announced that Jacob Frenkel had been appointed to be the next Governor of the Bank of Israel.
“He is the best of the bests, the most excellent among the excellent,” said Netanyahu. Carried away by the frivolity of his own poetry, Netanyahu forgot to mention Frenkel’s involvement in the collapse of USA’s insurance giant AIG.
Shocked by this, I almost forgot to mention that Frenkel’s first two terms were plagued with personal corruption.
Startled by that, I almost skipped the fact that under the current law regularizing the function of the Bank of Israel, no Governor can serve more than two terms. Frenkel was governor in two consecutive terms between 1991 and 2000. Netanyahu must change the law to allow his good friend a way back home.
Let’s be sincere, without the USA, Israel cannot even feed itself. Despite the kibbutz-propaganda, Israel depends on grains imported from the USA. The same goes for oil and several other strategic resources. Expectedly, this led to extensive and intensive economic links between these two organizations, which like to portray themselves as “democracies.”**
Even in the limited topic of today, the links are obvious. The current Governor is an American, Stanley Fischer. Before being appointed in 2005, he served between 2002 and 2005 as Vice Chairman of Citigroup, President of Citigroup International, and Head of the Public Sector Client Group. In 2001, he had joined the Washington-based financial advisory body, the Group of Thirty. From 1994 to 2001, he was the First Deputy Managing Director of the International Monetary Fund (IMF). From January 1988 to August 1990, he was Vice President, Development Economics and Chief Economist at the World Bank. I needed to check twice that he hadn’t been a member of any American Government in this period. Maybe he will run for the American presidency after he leaves the Bank of Israel. He got Israeli citizenship only after having got the exclusive position.
Frenkel and Netanyahu in 2003
The New Conspirators: Creating the Future One Mustard Seed at a Time
Compared to our Stanley, Jacob resume is not less worrying, but for different reasons. Since 2009, he was Chairman of JPMorgan Chase International and Chairman and CEO of the abovementioned Group of Thirty. Between 2004 and 2009, he had been Vice Chairman of American International Group (AIG), role that he filled during the company’s collapse. From 2000 to 2004, he was Chairman of Merrill Lynch International, and Chairman of Merrill Lynch’s Sovereign Advisory and Global Financial Institutions Groups. As mentioned, before that he had been Governor of the Bank of Israel.
It Is Circumstantial Evidence!
Our Frenkel is not a fool. Let me skip all his honorifics and just state that he was the one to stabilize Israel’s economy after years of hyper-inflation followed by a scary stagnation. Was this the reason for Netanyahu’s surprising attempt at poetry?
The collapse of AIG almost brought down the American economy. Was it engineered abroad?
This outstanding Israeli economist and patriot was Vice Chairman of AIG while it collapsed. He claims to have failed to predict the sub-prime disaster. He can say that to a senatorial committee; he would never dare to mention that to an Israeli. The State of Israel would have benefited from the fallout in a myriad of ways as it did from the collapse of its own banks.
An American would be surprised how tightly the Israeli banks are controlled by the government, especially after the 1982 collapse.+ Credit cards in Israel are different from the Americans. Banks don’t give credit but offer a sophisticated payment system based on the client’s guarantees. The AIG collapse couldn’t have happened in Israel, where citizens are practically slaves of the State in a tightly controlled system of mortgages (see Mossad, Matrix and Mortgage).
This was true also during the Frenkel period as Governor of the Bank of Israel. He knew that. Yet, once he was parachuted at the very top of AIG, he forgot all his studies and was unable to recognize a simple bubble-scheme. Frenkel, go tell the story to an American. Don’t try it with one of your former Israeli-slaves. The collapse had been engineered; maybe from outside America.
Shortly after the collapse, Frenkel left AIG. Things were left to cool down for a while, and now, Netanyahu had done everything to thank Frenkel, who got back his fiefdom as the main banker of the Zionists, even at the cost of changing the law.
“It is circumstantial evidence!” Cried our Frenkel.