Dear Daily Prophecy Reader,
I made it to Tel Aviv for a 10 day Holy Land Tour with
Discovery Institute and Michael Medved, the polymathic
talk show host. With us are our wives and 150 followers.
Every day I will be posting my observations from Israel, while every evening
Michael will conduct his three-hour talk radio show in time to appear live in
the afternoon back in the U.S.
Michael says that I can barge into his program if I want, so you might hear
me on the radio during the week.
I spent the flight reading my book, The Israel Test, published in 2012 by
Encounter, which I will be discussing in a speech tonight. I had not read it
since it came out, so I read it almost as if for the first time.
Although there are stretches where I felt I expatiated too long on the
futilities of “Land for Peace,” in general, I found myself enjoying the read.
Anyone intrigued by the “Israel Test” theme can listen to my five-minute
summary for Prager University on YouTube, which has had 1.4 million
downloads so far. You can click here to see the video: https://www.youtube.com/watch?v=yfN2IvnIA4M
Israel’s Climb to the Top
In general, it shows that the establishment of Israel was almost a disaster for
the Jews until they gave up socialism in 1985, as 1,000% inflation impended
and Israel was on a path resembling Venezuela today.
With a unity government, they turned the country around. Since then, as I
wrote in The Israel Test, with Benjamin Netanyahu as the central figure:
“In fewer than 25 years… Israel had accomplished the most
overwhelming transformation in the history of economics, from a
nondescript laggard in the industrial world to a luminous first.
Today, on a per capita basis, Israel far leads the world in research
and technological creativity. Between 1991 and 2000… Israel’s
annual venture capital outlays, nearly all private, rose some 60
fold, from $58 million to $3.3 billion; companies launched by
Israeli venture funds rose from 100 to 800, and Israel’s
information-technology revenues rose from $1.6B to $12.5B. By
1999, Israel led the world in the share of its growth attributable to
high-tech ventures: an astonishing 70%…”
By 2008 a survey of the world’s venture capitalists by Deloitte Touche
showed that Israel had eclipsed all the countries of Europe and ranked
second only to the US.
Michael Medved’s brother Jonathan was a leader of the venture capital
surge in Israel and aided me in finding companies here. I will be meeting
with him later this week.
Venture capital is the most catalytic force in the world economy. In the US,
venture-backed companies contribute some 20% of all GDP and by my time-
price measures perhaps substantially more. Israel’s venture led economy
steamed through the financial crisis of 2008 and beyond without a single
down quarter, while its shekel steadily appreciated.