Thursday, July 01, 2004

Reagan, Thatcher and Bibi??

After the last election in Israel Ariel Sharon appointed Benjamin Netanyahu Finance Minister, as opposed to the Foreign Minister, as was expected by many. One possibility for that move was Sharon's recognition of Bibi as a political threat. Israel's economy was doing terribly because of the Palestinian Oslo War, as well as the structural problems that inevitably accompany a socialist economy. The thinking was that Bibi would have to make many unpopular economic changes, and thus be hurt in his expected run for Prime Minister. However, it did not turn out that way. Bibi did have to make may structural changes in the economy, and many were indeed unpopular. Yet because of those changes (and because of the IDF's success in the war), Bibi is now being hailed as the savior of the economy, and being compared by Citibank to Reagan and Thatcher.

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