Stanley Fischer appointed to assist Janet Yellen
Janet Yellen, a key force behind the Federal Reserve’s unprecedented and controversial efforts to boost the US economy, has been confirmed by the Senate as the first woman to lead the central bank in its 100-year old history. She will also be the third successive Jewish incumbent in the position.
In a bold move, President Obama has tapped the Southern African born and bred Stanley Fischer to be Yellen’s deputy. Fisher, who now holds joint Israeli/US citizenship, successfully guided the Israeli economy right past the world’s recent recession.
Fischer (pictured at right) is widely acclaimed and, while at MIT, taught the likes of the outgoing Fed chief’s Ben Bernanke.
Bernanke, as a student at MIT in in the 70’s, thanked Fischer in his doctoral thesis for his advice.
The Israeli central banker also taught Mark Carney, Canada’s Minister of Finance recently appointed Chancellor of the Exchequer in the UK. Carney said yesterday that Fischer whould bring “an immense source” of wisdom to the US Fed.
President of the European Central Bank, Mario Draghi, is also a past student of Fischer’s, as was former US Treasury Secretary Larry Summers.
Yellen has what it takes
When she succeeds Ben Bernanke, whose second four-year term as Fed chairman expires on 31 January, Ms Yellen will become one of a handful of women heading central banks globally. She is currently the Fed’s vice chair and is by no means in need of guidance. But having Fischer at her side must be a great comforter.
The vote to approve her was 56-26. Ms Yellen won resounding support from Democrats, but many Republicans voted against her appointment.
The Fed cut overnight interest rates to near zero in late 2008 and has quadrupled its balance sheet to more than $4 trillion through a series of massive bond purchase programmes meant to push down longer-term borrowing costs.
Ms Yellen, 67, spent years defending those efforts, arguing both as Mr Bernanke’s deputy and before that as head of the San Francisco Federal Reserve Bank that they would reduce borrowing costs and spur hiring and economic growth.
Bloomberg News reported last week that Fischer has been offered the job and has accepted even before congress had confirmed Yellen’s appointment. But the White House only made the announcement after Yellen’s confirmation.
The surprising development has led to chatter about a “dream team” – says Bloomberg’s – but this may be premature: The idea is not without risk.
“No disrespect to Yellen,” says Bloombergs, “whose credentials are outstanding, but Fischer is probably the most qualified person in the world to be Fed chairman. He’s an academic economist of the top rank and a renowned teacher of the discipline.”
“His policy experience is equally impressive: He had top jobs at the World Bank and the International Monetary Fund before heading to Wall Street for a short spell at Citigroup Inc. From there he moved to the Bank of Israel, where his record was conspicuously good. Israel weathered the global crash better than most. At the start of the financial crisis in 2008, Fischer was the first central-bank chief to cut interest rates – and the first to raise them as the recovery got going,” they say.
Who is Stanley Fischer?
WIKIPEDIA says Fischer was born into a Jewish family in Mazabuka, Northern Rhodesia (now Zambia). When he was 13, his family moved to Southern Rhodesia (now Zimbabwe), where he became active in the Habonim Zionist youth movement. In 1960, he visited Israel as part of a winter program for youth leaders, and studied Hebrew at kibbutz Ma’agan Michael.
RIGHT: Fischer with his ex-pupil & new boss’s pre-decessor Bernanke
He had originally planned to study at the Hebrew University of Jerusalem, but went to the United Kingdom to study after receiving a scholarship from the London School of Economics, and obtained his B.Sc. and M.Sc. in economics from 1962–1966. Fischer then moved to the United States to study at MIT, and earned a Ph.D. in economics in 1969. In the early 1970s, Fischer worked as an associate professor at the University of Chicago. He became an American citizen in 1976.
Fischer is married to Rhoda Fischer (née Keet), who had met during his days in Habonim. The couple have three children. When they moved to Israel, Rhoda became honorary president of Aleh Negev, a rehabilitation village for the disabled.
ACADEMIC CAREER: Fischer served as a professor at the MIT Department of Economics from 1977 to 1988, where he authored three popular economics textbooks. In 2012 Fischer served as Humanitas Visiting Professor in Economic Thought at Oxford.
BANKING CAREER: From January 1988 to August 1990 he was Vice President, Development Economics and Chief Economist at the World Bank. He then became the First Deputy Managing Director of the International Monetary Fund (IMF), from September 1994 until the end of August 2001. By the end of 2001, Fischer had joined the influential Washington-based financial advisory body, the Group of Thirty. After leaving the IMF, he served as Vice Chairman of Citigroup, President of Citigroup International, and Head of the Public Sector Client Group. Fischer worked at Citigroup from February, 2002 to April, 2005.
CENTRAL BANKS: Bank of Israel – Fischer was appointed Governor of the Bank of Israel in January 2005 by the Israeli cabinet, after being recommended by Prime Minister Ariel Sharon and Finance Minister Benjamin Netanyahu. He took the position on 1 May 2005. Fischer became an Israeli citizen but did not have to renounce his American citizenship, despite previous concerns that such a step was a prerequisite for the appointment.
He had been involved in the past with the Bank of Israel, having served as an American government adviser to Israel’s economic stabilization program in 1985. On 2 May 2010, Fischer was sworn in for a second term. Under his management, in 2010, the Bank of Israel was ranked first among central banks for its efficient functioning, according to IMD’s World Competitiveness Yearbook.
Fischer has earned plaudits across the board for his handling of the Israeli economy in the aftermath of the global financial crisis. In September 2009, the Bank of Israel was the first bank in the developed world to raise its interest rates. In 2009, 2010, 2011 and 2012 Fischer received an “A” rating on the Central Banker Report Card published by Global Finance magazine.
In June 2011, Fischer applied for the post of IMF managing director to replace Dominique Strauss-Kahn, but was barred as the IMF stipulates that a new managing director must be no older than 65, and he was 67 at the time.
“There has been some discussion that his nationality may have influenced this decision,” says Wikipedia.
Who is Janet Yellen?
WIKIPEDIA says that Janet Yellen was born to a Jewish family in Brooklyn, New York, the daughter of Anna (née Blumenthal) and Julius Yellen, a physician. She graduated summa cum laude from Pembroke College (Brown University) with a degree in economics in 1967, and received her Ph.D. in economics from Yale in 1971 for a thesis titled Employment, output and capital accumulation in an open economy: a disequilibrium approach under the supervision of James Tobin and Joseph Stiglitz.
Yellen is married to George Akerlof, a Nobel prize-winning economist and professor emeritus at the University of California, Berkeley.
Her son, Robert Akerlof, teaches Economics at the University of Warwick.
CAREER: Yellen was an assistant professor at Harvard in 1971–76 and an economist with the Federal Reserve Board of Governors in 1977–78. Beginning in 1980, Yellen has been conducting research at the Haas School and teaching macroeconomics to full-time and part-time MBA and undergraduate students.
She is now a Professor Emerita at the University of California, Berkeley’s Haas School of Business, where she was named Professor of Business and Professor of Economics. She has been awarded the Haas School’s outstanding teaching award twice.
Yellen served as chair of President Bill Clinton’s Council of Economic Advisers from February 1997[ to 1999, and was appointed as a member of the Federal Reserve System’s Board of Governors from 1994 to 1997. She has taught at Harvard University and at the London School of Economics. Yellen serves as president of the Western Economic Association International and is a former vice president of the American Economic Association. She was a fellow of the Yale Corporation.
From June 2004 to 2010, Yellen was the President and Chief Executive Officer of the Federal Reserve Bank of San Francisco. She was a voting member of the Federal Open Market Committee (FOMC) in 2009.
In a 2005 speech in San Francisco, Yellen argued against deflating the housing bubble because “arguments against trying to deflate a bubble outweigh those in favor of it” and predicted that the housing bubble “could be large enough to feel like a good-sized bump in the road, but the economy would likely be able to absorb the shock.” In 2010, Yellen told the Financial Crisis Inquiry Commission that she and other San Francisco Fed officials looked for guidance from Washington because “she had not explored the San Francisco Fed’s ability to act unilaterally,” according to the New York Times.
In July 2009, Yellen was mentioned as a potential successor to Ben Bernanke as chair of the Federal Reserve System, before he was re-nominated by Barack Obama.
On 9 October 2013, Barack Obama nominated her as the first woman chair of the Federal Reserve, saying, “She had sounded the alarm bell early about the housing market bubble and excesses in the financial markets before the recession. She calls it like she sees it.”
Mount Meron tragedy devastates South African family
Yohanatan Hevroni was so excited about going to Mount Meron for Lag B’Omer after not having been there for seven years, he arranged a bus for his community to get there. This time, he went as a beloved husband and the father of three girls. He wouldn’t return alive.
The 27-year-old tzaddik who lived in Givat Shmuel in central Israel leaves behind his children and wife, Tanya Hevroni (nee Taback), who made aliyah with her family from Johannesburg in 1997.
Hevroni was one of the 45 people who died senselessly in a stampede at the annual Mount Meron Lag B’Omer celebrations on Thursday, 29 April, the largest peacetime tragedy in Israel’s existence.
Speaking to the SA Jewish Report from the shiva house on Tuesday, 4 May, Tanya’s brother, Eitan Taback, described how events unfolded.
“A rabbi told us that on the way there, Yohanatan said how amazing it was to see the influence a tzaddik had after he had died [referring to Rabbi Shimon Bar Yochai, whose life is celebrated by thousands on Lag B’Omer at Mount Meron]. And after Yohanatan passed, we saw the amount of influence he had on everyone around him – the children he taught, people with whom he learned Torah.
“At 03:00 on Thursday night, Yohanatan’s mother got a phone call from his phone,” said Taback. “They said ‘his phone had been found in Meron, but we can’t find him’. Immediately, search parties were sent to hospitals and Meron itself. No one had any answers. After searching everywhere, they decided, with heavy hearts, to check the morgue, and that’s where they found him.”
Kalanit Taub, a volunteer emergency medical worker with United Hatzalah of Israel, described the devastation she encountered at the scene. “We saw stretcher after stretcher coming up the hill, with people performing CPR on them as they were running. I just saw bodies lying on the ground to my left and right. They all looked completely whole, completely fine, no broken bones, no blood. When we learned about [dealing with] a mass casualty incident, the first thing you’re supposed to do is treat the injured because those are the ones you’re more likely to save. But I didn’t see anyone injured. All I saw was people who weren’t breathing, who didn’t have a heartbeat. I thought, ‘Where are the injured people? Everywhere you look, everybody’s dead!’
“There was nothing we could do for any of them, we all tried our hardest, and we were completely unsuccessful,” she said. “The line of bodies kept getting longer and longer. Within seconds, they were out of body bags. We were taking thermal blankets to cover these people. And then we were out of thermal blankets. We didn’t have anything to cover the bodies with. There were just too many of them.”
Taub is also a member of the psycho-trauma unit. “I walked up the hill, and there were so many people in shock. People screaming hysterically, staring into space, and lying on the ground in foetal positions, unresponsive. I probably treated a hundred psycho-trauma patients. Meanwhile, [community emergency response team] ZAKA set up a tent that became the station where all the lost kids went. They were just naming kids one after the other separated from their parents. But not all were reunited because some of those parents died.”
By a miracle, Hevroni’s family managed to arrange his funeral for that day at 17:00. Because it was just before Shabbat, they expected few people to attend. But thousands arrived to pay their respects.
“The extent of his impact on people was so clear,” said Taback. “One rabbi bought a book of poems that Yohanatan wrote. They were about the simple things in life, and recognising the good in all other human beings. One of his students shared how he came to learn with Yohanatan and be inspired by him, but after their lesson, it was Yohanatan who told his student that he was inspiring.”
He described his brother-in-law as a “quiet guy, with a gentle soul, who always had a huge smile on his face”. He and Tanya married in Israel and went on to have three daughters, aged six, four, and two. They celebrated their eldest daughter’s sixth birthday a few days before the tragedy. “It would be the last celebration we would have together. There was so much happiness,” Taback said.
Two years ago, the family faced a major crisis when Tanya was diagnosed with cancer. “Yohanatan was there the whole time. He was a full-time father and mother. Now it’s the other way around. Tanya will have to be both the mother and the father.”
He said his parents, Ofra and David Taback, have been by his sister’s side from the moment they heard that Yohanatan was missing. “My parents are strong. They’re trying to be there for Tanya and the family. They’ve been here night and day.” Family around the world have joined in their grief.
Taback said his sister is devastated, but the support of the community had helped tremendously. “One thing we can take from this is that the Jewish nation will always unite in these situations. We must be there, one for each other, as brothers and sisters are meant to be,” said Taback. “Just be good to each other. We don’t need to wait for disasters to unite us. As the Jewish people, that’s who we are.”
Meanwhile, young South Africans on a gap year in Israel said the disaster had hit close to home. Many of their contemporaries attended the celebrations at Mount Meron. Dean Chaitowitz, who is at Yeshiva Eretz HaTzvi in Jerusalem, said he would have been there if enough boys from his yeshiva wanted to go.
“It wasn’t an official yeshiva trip, but they said that if there are enough kids, they’ll organise a bus to go. I’m trying to absorb as much of Israel as possible on my gap year, so I wanted to go. But in the end, there wasn’t enough of a demand. I was upset that I didn’t go, but when we found out what happened, I was shocked. I could easily have been there; our whole group would have gone. Hearing about yeshiva boys getting killed really hit hard, just knowing that it could literally have been any of us.”
Dani Sack who studying is at the Midreshet HaRova seminary in Jerusalem, said, “My group wasn’t going to go to Meron, but hearing about the tragedy nonetheless was a huge shock to the system, especially since some of our friends were planning to go.
“It was jarring considering we’d been so close to Meron, and also celebrated with dancing and singing that night. The fact that so many of those wounded and killed were young people put into perspective the magnitude of what a gap year entails. Being away from family is scary enough, but to think that a simple celebration on Lag B’Omer could turn deadly is terrifying.
“At Midreshet HaRova, we sang and said tehillim at the Kotel in honour of those who were killed. All the Torah we learned on Sunday was l’iluy nishmat [for the elevation of the soul] of the 45 we lost. In Israel, the mood over Shabbos and the weekend was solemn. You could feel the loss in the air. It’s really surreal being here during this moment, something that the Jewish national will remember forever.”
To support the family of the late Yohanatan Hevroni, please visit: https://givechak.co.il/yeonatan/en
Emotions run high as JSC denies discrimination
The South African Jewish Board of Deputies (SAJBD) has called for a face-to-face meeting with the Judicial Services Commission (JSC) to resolve tensions following the recent JSC interviews of Jewish judges, which the Board described as discriminatory.
The JSC this week denied that its interviews of Jewish candidates for appointment to the Bench were discriminatory and anti-constitutional. It said it was “factually incorrect” to say that Jewish applicants were targeted at interviews.
The Board told the SA Jewish Report on Wednesday, 5 May, that this week’s JSC statement was “unfortunate”.
Said National Director Wendy Kahn, “The SAJBD had already requested a meeting with the JSC prior to it issuing this statement. Notwithstanding the JSC’s denial this week that it had done anything wrong, we believe that the nature of the questions put to the candidates was irregular and discriminatory, and as such, in conflict with the fundamental constitutional right of all South Africans to equality and freedom of belief and association. It’s unfortunate to politicise such an august body.”
She said the Board continued to call for a face-to-face meeting with the JSC as it believed it was a “more constructive way” to address issues than through the media.
In recent weeks, the SAJBD accused the JSC of targeting Advocate Lawrence Lever and Judge David Unterhalter when they were asked questions about their Jewish identity and practice. It also described the JSC’s questioning of both men as “discriminatory and anti-constitutional”.
In a statement last week, Kahn said, “Advocate Lawrence Lever and Judge David Unterhalter were subjected to questions pertaining to their Jewish identity while no other candidates were subjected to offensive religious scrutiny. Advocate Lever was asked about his level of religious observance, specifically whether he observes Shabbat. It was made clear that this observance would be problematic for his appointment.
“It should also be noted that no other candidate was questioned on their religious practice except those of the Jewish faith. Christian candidates weren’t asked about working on Christmas, nor were Muslim candidates asked about working on Friday afternoons or Eid. It’s also extremely disturbing that questions posed to both Advocate Lever and Judge Unterhalter focused extensively on their possible association with the Board.
“Equally concerning were questions posed to the two Jewish candidates regarding the Israeli-Palestinian conflict,” said Kahn. “Both were questioned on their stance on the two-state solution. It’s difficult to understand how a conflict of this nature has intruded into this forum. No Muslim candidates were questioned on the issue.”
In response, the JSC said this Tuesday that the SAJBD was selectively quoting parts of the interviews.
It rejected claims that no other candidate was questioned on their religious practices except those of the Jewish faith. It also labelled the claims by the SAJBD as factually inaccurate.
“The questions relating to the association with the SAJBD dealt with concerns that the organisation supports Zionism which is viewed as a discriminatory form of nationalism and potentially in conflict with the values contained in the South African Constitution,” read the statement.
“The questions on this score were raised with the two candidates following letters of objection received by the JSC in respect of Judge Unterhalter from various organisations, including the Black Lawyers Association. This is part of JSC practice intended to afford candidates the opportunity to respond to objections lodged against their candidature.”
The statement continued, “It’s not factually correct that other candidates who aren’t of Jewish descent weren’t asked questions related to their religious affiliations.” There were other candidates who were asked questions relating to their religious or cultural beliefs, the statement said.
Said Advocate Mark Oppenheimer, “After watching Judge Unterhalter’s interview, it’s striking how many questions were about his brief stint at the SAJBD and how few questions were about his qualifications. The ratio indicates a failure on the JSC’s behalf to ask pertinent questions about his ability to hold judicial office. The volume and repetition of questions about the Board should be of concern to all South Africans who care about the important attributes of those who take up office at the highest court in the land.”
Chief Rabbi Dr Warren Goldstein expressed outrage at the “conduct of the commissioners of the [JSC] in their questioning of the two Jewish judges”, describing it as “racist and antisemitic in effect, if not in intention”.
He called on JSC commissioners to retract and apologise for their comments. He also called on President Cyril Ramaphosa to return the list to the JSC as the Constitution allows him to do on the grounds that aspects of the hearing exhibited discriminatory questions which cast a shadow on the entire process.
The JSC recommended Lever for a vacant position in the Northern Cape. The JSC also recommended lawyer Norman Manoim for a vacancy on the Gauteng High Court Bench. Both have been referred to President Cyril Ramaphosa for appointment. Unterhalter didn’t make the final list of nominees.
Meanwhile, the Council for the Advancement of the South African Constitution is reportedly considering legal options regarding the recent interviews by the JSC for appointment to the Constitutional Court.
Preventing stampedes ‘is a science’
As the dust settles after the Mount Meron disaster, questions will be asked about how it happened and why. Local expert Professor Efraim Kramer says stopping stampedes requires training, expertise, and planning, as just one “spark” in a crowd can have deadly consequences.
“It’s complex, emotional, and difficult to talk about stampedes, because people die needlessly. Whether it’s a football stadium or Mount Meron, people are going there for joy, yet it turns into tragedy. There’s no real place for blame because it needs a full investigation,” says Kramer.
He shared his perspectives with the SA Jewish Report as an expert in emergency and mass gathering (event) medicine. Kramer is the former head of the division of emergency medicine at the University of the Witwatersrand, and professor of sports medicine at Pretoria University.
He has specialised in emergency, disaster, and stampede medicine for 30 years, and was FIFA’s tournament medical officer at the FIFA World Cup Russia in 2018. Since then, he has been actively involved with FIFA Medical. He is also involved in teaching and researching mass gathering medicine, including soccer-stadium stampede prevention and the management of disaster medicine, having been actively involved in assistance missions after earthquakes, tsunamis, hurricanes, floods, and volcanoes.
“A stampede is a terrible way to die,” he says. “It’s a slow asphyxiation. You can’t breathe for two to four minutes. The weight of a crowd like that can push over a wall. It’s tons of pressure. Then, if people fall down, they have no time or room to get up, and others trample on them. People either walk [over those who have fallen] or fall over themselves. So you also see severe trauma injuries.”
Kramer says preventing stampedes requires legislation, management, planning, risk assessment, logistics, and most of all, training. “In almost every incident I’ve seen like this, there has been no training. You can have 1 000 policeman and 1 000 stewards, but if no one is trained to recognise the signs of stampedes, they can easily happen. All it takes is one ‘spark’.”
He alludes to one person falling over in a stadium passage, or one fight that broke out in a stadium, which led to many people dying in stampedes in the past.
Kramer explains that medically, responding to a stampede is often counterintuitive to what a medical professional would normally do.
“In other mass disasters, you triage people who aren’t unconscious and prioritise them over unconscious victims who you may leave. But in a stampede, you immediately do CPR [cardiopulmonary resuscitation] on the asphyxiated, non-breathing victims, because they usually have a healthy heart and you want to get oxygen back to that heart. You do CPR for half an hour to get the heart to start pumping again. You do CPR on every single non-breathing person, and then they do survive. So you don’t run it like an accident. You don’t take them to hospital – you work tirelessly on the scene.”
He says in crowded environments, it’s essential to keep the flow of people going. Even if they are walking in a narrow area, like the site where the Mount Meron tragedy occurred, as long as there is a flow of people, it’s likely to be safe. “But as soon as something goes wrong – like someone falling – it quickly perpetuates a vicious cycle.”
One way to keep the flow going is to use megaphones. “You can tell people to stop pushing, that people are getting injured, and to stay where they are. You can tell people that are being crushed to turn on their side, as then they can still breathe. You can control things verbally. Communication is crucial, and it needs to be planned beforehand.”
In his work with football stadiums, other small but significant changes have been implemented to prevent stampedes. For example, tickets are sold offsite to prevent stampedes should tickets run out. In addition, spectators are allowed only to sit in a seat, no one is allowed to stand or sit anywhere else. This controls numbers and keeps pathways open. “In 2021, crowd management is a science that needs to be learnt before disaster strikes and people die,” he says.
Kramer has seen similar numbers of deaths at other stampedes. For example, 43 people died at the Ellis Park Stadium tragedy [in South Africa] exactly 20 years ago. He says this number of fatalities is expected in the first five minutes of a stampede.
While Kramer wants to avoid laying blame, his first impression of the tragedy is that “the system went wrong … from the top, right to the bottom. Now, they’ll have to do what they should have done before – control the amount of people, manage risk, train personnel, and so on. It needs to be a well-oiled machine to stop people from dying.”
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