The legacy of the six-day war: Why Israel needs a Palestinian state

The legacy of the six-day war
Why Israel needs a Palestinian state
from The Economist

1967: Six-Day War (第三次中東戦争)
Israel (Jews) beaten Arab armies.中東戦争第三次中東戦争

Israel occupied Jerusalem where Palestinians lived.
Israel planted Jewish settlements and denied Palestinians to have their own state.
Israel’s “temporary” occupation has endured for half a century.

Donald Trump visited Jerusalem on May 22nd, during his first foreign trip to secure “the ultimate deal”.

Israeli prime minister: Binyamin Netanyahu
President of Palestinian (National) Authority (PA): Mahmoud Abbas

Mr Trump has urged Israel to curb settlement-building.
Israel wants him to keep his promise to move the American embassy to Jerusalem.
Mr Trump should hold off until he is ready to recognise Palestine and open a second embassy in Jerusalem to talk to it.

The outlines of peace
– Palestinians would accept the Jewish state born from the war of 1947-48
(made up of about three-quarters of the British mandate of Palestine)
– Israel would allow the creation of a Palestinian state in the remaining lands it occupied in 1967
(about one-quarter)
– Palestinian refugees would return to their new state, not Israel.

Since the Six-Day War, Israel has been willing to swap land for peace.
(Israel returned Sinai to Egypt in 1982.)
But the conquests of East Jerusalem, the West Bank and the Gaza Strip were different.
(Early Zionist leaders accepted partition grudgingly)
Zionist: Jewish people who supports the re-establishment of a Jewish homeland in the territory defined as the historic Land of Israel (Canaan, Palestine).

In 1988 the Palestine Liberation Organisation (パレスチナ解放機構) accepted a state on part of the land, but Israeli leaders resisted the idea until 2000.
(Palestine Liberation Organisation => Palestinian National Authority)
Mr Netanyahu himself spoke of a (limited) Palestinian state only in 2009.
Extremists on both sides set out to destroy the Oslo accords of 1993, the first step to a deal.

– security has improved
– the economy is booming
– Arab states are courting Israel for intelligence on terrorists and an alliance against Iran.

– weak and divided
– might not be able to make a deal.

Mr Abbas
– moderate
– unpopular
– lost Gaza to his Islamist rivals, Hamas. What if Hamas also takes over the West Bank?
Hamas: a Palestinian Sunni-Islamic fundamentalist organization.

– cannot hold on to all of the “Land of Israel”, keep its predominantly Jewish identity and remain a proper democracy.
– should give up the occupied lands to save democracy

Israel and Mr Abbas’s Palestinian Authority (PA) should co-operate to maintain security.

Israel should
– let Palestinians move more freely and remove all barriers to their goods
=> a freer market would make Israel richer, too.
– let the PA expand.
– voluntarily halt all settlements, at least beyond its security barrier.

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by Benjamin Graham


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from the “Preface to the Fourth Edition” by Warren E. Buffett

One of Graham’s principles:
‘The market is a pendulum that forever swings between unsustainable optimism (which makes stocks too expensive) and unjustified pessimism (which makes them too cheap). The intelligent investor is a realist who sells to optimists and buys from pessimists.’

from “A Note About Benjamin Graham” by Jason Zweig

The Buffetts of China Warren: Buffett has many fans in China but few true followers

The Buffetts of China
Warren Buffett has many fans in China but few true followers
from The Economist

Chinese Buffetts (Buffett-like investors) are now in trouble and face a stiff test because of its hard-driving, debt-laden, risky approaches & unstable cashflow.‬

‪The government appears at last to be serious about cleaning up financial markets.‬
Xi Jinping has declared that the focus of financial policy should be on limiting risks. ‬
The banking regulators are now choking off cashflows to shadow banks.‬

The risk to Chinese investors:‬

1) political risk‬
– The state is closing in on those it suspects of illegality. ‬
– 2 Chinese Buffetts are now in detention: jailed for manipulating the stockmarket & investigated for corruption.‬

‪2) financial risk‬
– In clamping down on debt, regulators’ targets are the debt-laden investments favoured by China’s insurance upstarts. ‬
– Both Fosun and Anbang have had to call off foreign deals in the past year. ‬

More Buffett-like companies are big, boring, and humble mainly state-owned insurers. ‬
‪Hewing to official rules, they have been more cautious about using debt. ‬
‪Benefiting from China’s growth, their performance has topped Berkshire Hathaway’s over the past decade.‬

North Korea: How to deal with the world’s most dangerous regime

North Korea
How to deal with the world’s most dangerous regime
from The Economist

Kim Jong Un celebrated grandpa’s birthday on 4/15. The regime threatens enemies by nuclear destruction & is building a missile reaching US

Dealing with bellicose Kim Jong Un will be one of Mr Trump’s trickiest tasks & the first big test of how he handles relations with China

Wanting to do something quickly is emotionally appealing. Yet a pre-emptive strike would be reckless & could turn nuclear & kill millions

Creating the impression Trump might strike first is dangerous. If Kim were to believe, he might attack first. Trump should cool his rhetoric

Mr Kim sees his nuclear arsenal as a guarantee of his survival. Economic sanctions & cyber-attacks are ineffective. US needs China’s help

North Korea is China’s ally. China does not wish North Korea reunite with the South & does not want American troops on its border

To contain North Korea Mr Trump has to learn how to talk to China. His transactional approach is ineffective for diplomacy

America should strengthen the rules-based order and invite China to join it instead of letting China break the rules in exchange for help

He should talk about North Korea itself, not the yuan or US steel jobs, to persuade China that it is in its own interest to curb North Korea

Mr Trump should reassure JP & the South they remain under US’s protection & China his goal is not invasion but detering nuclear threat

If the North were to use its nukes, the regime would be obliterated. In the long run, reunification is inevitable and desirable

Japanese education: Why bullying in Japanese schools is especially traumatic

Japanese education
Why bullying in Japanese schools is especially traumatic
from The Economist

A boy from Fukushima was called “germ boy”, stolen his things, punched & kicked & thrown down the stairs by his new classmates in Yokohama

The boy was told to hand over any compensation his family may have received & gave them ¥1.5m which his family borrowed from their relatives

Bullying is intense in Japan. In 1986 a boy killed himself after months of mock funeral. Suicide is the biggest cause of death for teenagers

In Japan bullying is a group phenomenon & involves a big portion of a class inflicting psychological & physical torment on a single victim

Some say: “A characteristic of Japan is that you should not stand out”; “Pupils have to lead a collective life when they are at school”

School activities are organised in groups. Pupils must adhere to rules about uniforms or hairstyles & should “read the vibes,” kuuki wo yomu

OECD’s PISA test suggests that JP students are smart & diligent but don’t enjoy school much. JP schools are like “dysfunctional communities”

Teachers are not trained to spot bullying. There are few incentives to notice or deal with it. 12% of them have taken part in bullying

Local school boards have neglected the problem & even blamed the boy from Fukushima for handing over his family’s savings voluntarily

An anti-bullying law requires schools to report cases of bullying. (224,450 in 2015.) But they might underestimates the scale of the abuse

The law urges teachers to report bullying. But bullies are rarely punished: in 2014 there were 188,057 reported cases & just 2 suspensions

44% of gay teens were bullied last year. Teachers said the sexuality broke the harmony. 1/3 teachers think homosexuality is a mental illness

JP government said it would review its anti-bullying policies. Policymakers & teachers should recognise too much conformity plays a part