Barclays Capital came out predicting a quick end to the shallow Israeli recession, and a return to decent growth of 2.9%  by next year.  Keep in mind that the Israeli economy was late to the ‘recession game’ and looks to be an early ‘exiter’ from economic turmoil as well.

With all this great news Barclays said that they expect an Israeli Shekel/USD exchange rate of 3.65 buy the end of the year. That’s a big move from the 3.93 area that the currency is trading at now.

According to Globes: “Barclays sees a less severe recession in Israel, and relatively quick growth recovery. The investment house bases its optimism on the fact that about 75% of Israeli exports are high-tech goods, and Barclays says that a rise in the Tech-Pulse Index - showing a US high-tech recovery - points to stronger Israeli exports. The Tech-Pulse Index, measured by the San Francisco branch of the US Federal Reserve, tracks the US information technology sector.”

It looks like we have started to see this happen. As Tech has led the stock market turnaround in the US, Israeli stocks that trade in the US have been flying, up over 33% this year. Keep in mind that, like it or no, President Obama’s push for alternative energy sources will be huge for Israel, as Israel is one of the big global players in cleantech and water technology. If this trend of a ‘tech led recovery’ continues, look for the Israeli hi-tech scene, from small and mid-cap tech plays on the NASDAQ to M&A to Israeli VC, to have a very strong 2nd half of ‘09, and lights out for 2010.

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In one of the most inane/insane op-ed’s I have ever read, Ynet’s Tani Goldstein sets out to prove why expensive fuel is good. In his first killer point he says, “Making fuel more expensive will prompt some of us to use our cars a little less, and cars (including mine) are, simply put, humanity’s enemy. Cars are an enemy because they kill people: Since World War II, road accidents are the leading cause of unnatural death in the world.”

Last time I looked out at the parking lot behind my office I saw no cars attacking anyone. Alert: People who drive cars kill people! I also wonder how many people have been saved or born because of cars? Millions of pregnant women in labor were brought to hospitals in cars, and delivered babies. A lot more than were killed by unnatural deaths since WWII. I can see it now, some woman with contractions 5 minutes apart, and her husband sticks her in a wagon ties to his 10-speed and starts peddling to the hospital. Oh, I forgot, I am sure that the author only allows home-births.

In another truly compelling argument, Goldstein says, “By the way, there is no certainty that a car truly improves the quality of life of all motorists.” Uh Huh. So we need a 100% satisfaction guarantee in order to have any convenience?

After all, without vehicles, how are we to get all of Goldstein’s organic fruits and vegetables to market?

Finally for the finale, “Yet life is not a communist utopia, and the pleasures of life will never be divided fairly. Residents of peripheral towns will be inconvenienced to a greater extent.” No need to even respond to that gem.

Regarding peripheral towns, I think that without cars, they will be a thing of the past. How are these residents going to be able to get anywhere without a car? If Goldstein had his way, everyone would need to move to a big city. That does not sound so ‘environmental”, does it?

The fact is that automobiles are one of the greatest sources of freedom for individuals, and source of commerce the economy. By wanting to limit their use, he is trying to create a ‘Communist utopia”.

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After finding huge quantities of natural gas of the Haifa coast, not only will Israel be energy independent by 2012, but Israel will also be a major exporter of natural gas.

According to Ynet: “Countries that are likely to make use of Israeli gas include Georgia, that is currently dependant on a Russian gas supply despite the hostile relations between the two nations, Cyprus that has a similar problem since it is dependant on gas from Turkey, and Italy and Greece.

“The discovery of Israeli gas is a national holiday for all citizens of the State of Israel. After two of our drillings in the same area were successful and turned out to be commercial discoveries, it is probable, and we are hopeful, that the natural gas potential in areas that we have rights over, off the shores of Israel and Cyprus, seems to be monumental.”

This is huge for Israel. Add to a vibrant hi tech industry and now a vibrant energy industry should help spur domestic economic gowth for many years o come.

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Looking to save money and cut costs, the Israel Defense Forces (IDF) has announced limits on fuel consumption.

According to Ynet: “In an effort to save money, IDF soldiers have been ordered to scrimp on gas. Effective October at the latest, all military-issued cars will be ordered to use no more than predetermined amounts of fuel. Any officer with a military-issued vehicle using more gas than this amount will automatically have the difference deducted from his or her salary. In the event that the vehicles belong to the division rather than an officer, fuel use exceeding the preset limit will be docked from the division’s budget. The plan is expected to save the IDF, host to some 12,000 motor vehicles including over 8,000 cars, some NIS 20 million (about $5 million) annually. Currently, the IDF uses over 150 million liters of fuel a year.”

This seems like good policy. Even tough gas prices have dropped dramatically, this bit of forced discipline will save taxpayers money. Money, that in this current economic environment, they don’t have.

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