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Sunday, February 18, 2007

RH: How to force Israel to its knees

From: Robert Ho (ho3@pacific.net.sg)
Subject: RH: How to force Israel to its knees
This is the only article in this thread
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Newsgroups: soc.culture.singapore
Date: 2004-07-10 14:44:13 PST


1. Israel is a very small country that is highly militarised, with
atomic bombs to threaten its Muslim neighbours, but highly dependent
on FDI to maintain a hugely export oriented economy.

2. Since Israel cannot be defeated militarily, its Muslim neighbours
must defeat it by economic warfare.

3. This is easy. There are ways.

4. For example, by finding out all of Israel's exports to its buyers, then deliberately selling the exact same equivalent exports to those very same buyers, but at substantially cheaper prices, thus pricing out of the market the Israeli exports, and continuing this until Israel cannot sell its products worldwide and thus collapses
financially due to lack of earnings in foreign exchange.

5. For this strategy to work, the first step is to gather the
commercial intelligence, that is, to compile a complete list of all
DELIVERY DATES AND MEANS, AT WHAT PRICES, etc. This is not difficult
because much of this information is readily available and none are
guarded secrets that can withstand a little ferreting.

6. An example: suppose Israel has a big industry manufacturing and
exporting widgets. My strategy would then be to find out the complete
list of all the buyers of such widgets worldwide, the prices they are
bought at by the buyers, the quantities buyers buy and delivery
deadlines and means, etc. Then, my strategy will be to offer those
buyers the same quality and quantity widgets at say, 10% less to
persuade them to cancel their purchases from Israel to buy ours. This
should work if only for purely commercial reasons. No buyer will turn
down a chance to buy the exact same widgets at 10% less. And lo and
behold, after some time, Israel's export industry of widgets is
destroyed. Without a shot needing to be fired. All perfectly legal and above board. Strictly business, as usual, if I may add.

7. At this point, some may ask the obvious question, "How to find the exact same widgets?"

8. Again, there are many ways. One way is to attract another widget
manufacturer to open factories in your country. This takes some time.
But time is unimportant in this kind of economic warfare. So,
competitor widget manufacturers can be attracted to start factories,
attracted with a string of incentives. The aim is to make the costs of production so cheap that the widgets can be sold at the say, 10% less prices. In order to control the selling of the widgets [we need to sell them mainly to Israeli buyers, remember?], we would need to joint venture these widget manufacturers so we can direct our widgets to Israeli buyers.

9. Another way is to simply buy the exact same quality and quantity
widgets from anywhere in the world [except Israel, of course] and then using these to compete with the Israeli exports. At the say, 10% less.

We would incur a loss, of course, but only slightly more than the 10%
discount we give to Israeli buyers for them to switch to our widgets.
This method is quick and simple. In fact, this is really warfare on
the cheap. The total costs of destroying Israel would be less,
probably, than a few squadrons of warplanes or a couple of submarines.

And not a single life is lost. Again, all perfectly legit.

10. What if Israel tries to lock buyers in with longterm contracts?
This will not work commercially. If any buyers do sign up, it will be
at terms very disadvantageous to Israel's widget makers. Besides, no
buyer will ever contract to buy without an opt-out option or
break-contract clause. It may not even be legally enforceable for such a bindingly tight contract.

11. What if Israel tries to sell elsewhere? Simply repeat the
procedure. After some time, all of Israel's exports will dwindle to
almost zero or a string of zeroes. And since Israel is so dependent on export earnings, this is the kiss of death.

12. What if Israel and some buyers collude to pretend to fake a buy
contract to make us lose some money? Well, not much is lost. Even if
this succeeds, the amounts lost are still far less than a military
war. We could also play the game by deliberately letting Israel supply the widgets to see if the buyer is genuine. Only when the buyer proves genuine would we then step in to offer our widgets.

13. This strategy will work because, thanks to the capitalistic
nature of the modern world, widget makers are almost all private
companies whose sole raison d'etre is to produce for profit and not
patriotic reasons and so will be motivated solely by the bottomline.
In time, all such private investors will relocate out of Israel. And
Israel's exports will dwindle to zeroes.

14. With Israel forced to its knees, it will sue for peace and peace
will settle like a gentle cloud over the wartorn countries of the
Middle East.

Robert Ho
11 Jul 04
Singapore 0539