Why It Matters:
This is a radical “what if” plan that outlines a “shock therapy” for Israel to end its 40-year strategic dependency on the United States—a relationship that began in the 1980s—and, just as importantly, to cure its internal socialist addiction by abolishing the Israel Land Authority and turning a “nation of tenants” into a “nation of owners.
The Big Picture
- The plan’s core goal is to cure Israel’s addictions to foreign aid, foreign capital, and domestic state land control.
- It begins by abolishing the Israel Land Authority (ILA) and giving citizens freehold title deeds (“Tabu“) to their homes.
- It proposes a staged, 18-month phase-out of state health/education, tying cuts to verified milestones of the new private market.
- It funds its new military with a diversified “Export-to-Fund” model, capping any single foreign client at 15% of the budget.
- It builds a “Second Economic Engine” funded by auctions of ILA land to create a stable, non-defense economy.
What We Found
This blueprint describes a “Controlled Demolition” of Israel’s socialist-era relics. The program’s first move is a “Great Land Transfer,” abolishing the Israel Land Authority and turning residential “tenants” into “owners” overnight. This act is designed to create millions of new stakeholders, providing the political capital to execute the plan’s other, more painful cuts.
This is immediately paired with a staged 18-month privatization of health and education. Cuts are tied to verified milestones, ensuring a private school or clinic is online before the state service is phased out. The plan converts displaced public workers into entrepreneurs with micro-loans and training.
At the same time, the plan purges other dependencies. It forces the sale of Chinese state-run port terminals and uses tax credits to create a competitive national food reserve. To achieve air superiority, the new “Lavi II” fighter is funded by defense exports, but this funding is forced to be diversified, with no single foreign country allowed to fund more than 15%. A new “Sovereign Investment Act” is added to build a “second engine” for the economy, which will be built on the vast tracts of undeveloped state land sold at public auction.
The Bottom Line
This is a detailed, top-to-bottom blueprint for total national independence, both internal and external. It argues that to become truly sovereign, Israel must trade its decades-old social safety net and its status as a “nation of state tenants” for a pure, market-driven commonwealth of freehold owners, built on a resilient, diversified economy.
A Blueprint for Israel Without US Aid:
For decades, the strategic relationship with the United States has been a bedrock of Israeli policy. But what began as an arms-length, post-’67 military alignment transformed into something else entirely.
By the mid-1980s, after the Osirak raid and under pressure to abandon the IAI Lavi fighter jet—a potential competitor to U.S. industry—Washington’s policy shifted. It began to “buy out” Israel’s military-industrial independence with billions in annual aid.
Many now see this 40-year-old bond not as a strength, but as a crippling addiction.
This diagnosis argues that the $3.8 billion in annual military financing—and the deeper dependencies that came with it—is a “Trojan Horse.” It argues the aid has created a “welfare” mentality, hollowed out true self-sufficiency, and forced Israel to trade its sovereign, strategic independence for a steady flow of “free” money and political cover.
This is not a mere political proposal. It is a foundational examination of what a cure for this addiction would entail. This is a radical, top-to-bottom “shock therapy” program, conceived from the perspective of a single leader—a “king” for a time—who has the temporary dictatorial power to implement it.
What follows is the plan. It is a blueprint for a new Israel—one that is leaner, more dangerous, fully self-reliant, and prepared, if necessary, to survive finding itself completely, terrifyingly alone.
Part 1: The ‘Controlled Demolition’: Purging the Three Addictions
The plan is built on a ruthlessly managed “18-month Controlled Demolition.” The goal is not just liquidation, but active market formation—ensuring a new, private system is “online” before the old one is fully dismantled, preventing societal collapse. This demolition purges three core addictions at once.
The First Target: The Spiritual Addiction to State Land
The program’s first and most powerful act is the “Land Sovereignty (Yovel) Act.” This act is the ideological and spiritual core of the entire plan, designed to execute a “spiritual and psychological transformation” by turning a “nation of tenants” into a “nation of owners.” The act’s first clause is simple: “The Israel Land Authority (ILA) is abolished.”
This decree triggers a “Great Land Transfer.” First, every residential and agricultural leasehold in the country is automatically and immediately converted into a full, freehold “Tabu” (title deed). This act gives a massive, tangible asset to millions of citizens overnight, making them true owners of their piece of the homeland. This is the “ultimate political shield,” creating millions of new stakeholders who will fiercely protect a program that made them sovereign.
Second, all remaining undeveloped, non-residential state land is transferred to a new “Sovereign Land Auction” fund. This vast new inventory of land will be sold at public auction, providing the physical space for the plan’s “Second Engine” (see Part 3) and generating a massive new, non-tax revenue stream to fund the “Sovereign Future R&D Fund.”
The Second Target: The Welfare Addiction to the U.S.
With the political capital secured from the Great Land Transfer, the leader executes the most painful cut. The $3.8 billion hole (approx. 14 billion NIS) from ending U.S. aid is not filled with new taxes. Instead, the budgets for the two largest “socializing” state institutions—the Ministry of Education and the national Health “basket”—are put on a mandatory 18-month phase-out.
This is a staged, milestone-based approach. The plan begins on Day 1 by awarding the first “anchor” contracts for the new “National Education Voucher” system to pre-vetted private consortia. Only after this “visible continuity” is established does the subsidy phase-out begin. The cuts are tied to verified milestones; for example, a 50% cut in state funding is enacted only when the private voucher-based schools and clinics demonstrate 50% operational capacity.
This is paired with a “Political Decompression Strategy” to convert the inevitable human and political fallout into an asset. The 90-day liquidation fund is not a handout; it is repurposed as “pivot capital.” High-priority, immediate micro-loans are made available to former public sector doctors, nurses, and teachers who submit viable business plans for new, private voucher-based schools and clinics. Furthermore, the wage supplement is made contingent on attending mandatory transition entrepreneurship training. This combination is designed to turn the displaced workforce from potential victims of the new system into its primary stakeholders. This is paired with a necessary, 90-day moratorium on organized strikes in critical civil services to give the new market the breathing room it needs to form.
The Third Target: The Capital Addiction to China
On the same day, the leader enacts the “Sovereign Infrastructure Act.” This is a clean, non-discriminatory national security test: any foreign state-owned enterprise is barred from owning or operating “Critical Sovereign Assets,” defined as ports, power, and water. This act immediately triggers a default on the Chinese state-run contracts for the new terminals at Haifa and Ashdod ports. To ensure trade—the nation’s lifeblood—does not stop for even one hour, a “Sovereign Port Security Transition Force” takes immediate physical control of the assets, guaranteeing logistical continuity.
Only then is the “Sovereign Auction” announced. The port operating rights are sold to the highest bidder, with the auction open only to pre-vetted private Israeli consortia and “clean capital” from new strategic partners, like India. The “capital addiction” is cured, the Chinese state is bought out, and the Israeli economy is, for the first time, standing on its own.
Part 2: Fortress Israel — The Sovereign Pantry and Sword
With the budget balanced, the new regime turns to its deepest physical vulnerability: addiction to foreign food and hardware.
The first problem is that Israel does not feed itself. It imports nearly 100% of its grain for bread and animal feed. To remain ideologically consistent, the solution is market-based. The plan therefore enacts two purely market-based incentives. First, to solve the 12-month grain reserve problem, the state offers a “Strategic Security Tax Credit.” This powerful, permanent incentive is available to any private company—food producers, logistics firms, even investment funds—that verifiably maintains an audited, rotating 12-month reserve of essential grains. This creates a competitive market for national security, spreading the risk. The state is not a customer, but an incentivizer of sovereign resilience.
Second, a “Sovereign Feed Production Tax Holiday.” This offers a 10-year, full corporate tax exemption to the first three private companies that verifiably produce and sell one million tons of domestic animal feed (via algae, insect farming, or synthetic biology) at a price competitive with global imports. This incentivizes the goal and keeps competition alive by rewarding multiple successful companies.
From the Pantry to the Sword
The second, and final, vulnerability is the military itself. The IDF is addicted to U.S. F-35s and their components. This is where the plan makes its most symbolic move: it resurrects the IAI Lavi, the world-class fighter jet Israel was pressured by the U.S. to cancel in 1987.
The “Lavi Doctrine” is designed to be ideologically consistent and strategically resilient. It avoids the inefficient model of a single, state-backed monopoly. Instead, the “Sovereign Sky” contract is broken down into modular, competing sub-contracts. The state does not award the entire “Project Lavi II” to one consortium. Instead, it offers parallel development contracts for the critical components—one for the 5th-generation engine, one for the avionics suite, one for the airframe—and forces IAI, Rafael, Elbit, and even pre-vetted international partners to compete for each module.
This colossal expense is funded by the “Export-to-Fund” Model, but this model is designed to be diversified to prevent new choke points. A new rule is mandated: no single foreign client-state (like India) may contribute more than 15% of the total R&D budget for Lavi II. This forces funding diversification from Day 1 and prevents a new “choke point” dependency.
Part 3: The Sovereign Client & The Second Engine
In the first 48 hours of the plan, the U.S. “diplomatic iron dome”—the UN veto—vanishes. The new leader’s response is the “Sovereign Client” Doctrine, a ruthless diplomatic pivot that trades its one patron for a portfolio of clients. But this pivot is now governed by a strict “Liquidity-First Pacing” mandate to prevent the Lavi II R&D budget from being “starved” of cash. For the first 18 “shock” months, a minimum of 80% of all defense exports must be cash-for-sale transactions.
The first phone call is to New Delhi. The new alliance will be anchored in two pillars: not just India becoming a customer for Israel’s best defense and water tech (cash sales first, capped at 15% of the Lavi budget), but also a core partner in a joint R&D venture, funded by the new “Sovereign Feed Production” tax holiday.
The second phone call is to Abu Dhabi and Riyadh. The Abraham Accords as a U.S-led Trojan Horse for political integration is dead. In its place, a simple, sovereign-to-sovereign transaction is offered. The “Strategic Resource Barter”—trading finished hardware for long-term access to rare earth metals—is a critical long-term goal, but it is structured to phase in heavily only after Year 2.
But this plan actively cures this new resource dependency through a “Domestic Materials Sprint.” A massive, immediate cash bonus is built into the Lavi II modular contracts for any consortium that proves it can achieve 50% reliance on domestically-sourced or synthetic substitute materials within the first 24 months. This makes solving the dependency problem itself incredibly profitable, ensuring it is a top-priority sprint, not a low-priority marathon.
The Second Engine: The Sovereign Investment Act
Finally, the plan addresses the long-term economic flaw: an economy cannot survive on defense exports alone. To build a stable, non-military “second engine” of prosperity, the leader enacts the “Sovereign Investment Act.”
This act creates a new, 15-year tax holiday and a super-fast regulatory track for massive foreign private investment in specific, non-defense sectors—namely, “Green Energy for Export” and “Advanced Logistics Hubs.” These new corporations will build their new ventures on the vast tracts of non-residential land being sold at public auction following the abolition of the Israel Land Authority.
These new foreign corporations are mandated to pay a 5% “Sovereign Royalty” on their revenue, which flows directly into a new “Sovereign Future R&D Fund.” This new, non-defense capital stream will fund the next Lavi-style projects, creating a balanced, resilient economy that is truly independent.
The “unchaining” is complete. The state is lean, the market is competitive, and the nation is funded not by one foreign patron, but by two diversified economic engines. The nation is, for the first time, a commonwealth of owners, not tenants. The cure, as designed, is a terrible and magnificent thing.
Nice piece, Mordechai!
Ever hear of the Jerusalem Institute for Market Studies? Well, about a decade or 15 years ago, they did a study which showed that every cent that Israel took in ‘aid’ from America actually cost Israel anywhere from $1.06-1.25. Why? A number of factors. First, three quarters of the aid had to be spent in the american defense industry, so it was basically a subsidy of this industry by the US government. This means that our prices were high. Second, Israel would upgrade all of the things it received, and yet these upgrades would belong to america. As such, we couldn’t sell weapons with our tech and make billions of dollars. Third, of course, we give up our sovereignty by accepting this aid. Even if we don’t actually give it up, this is the excuse used by all Israeli pms to go along with capitulation after capitulation – “If we don’t do this, the americans will cut off the aid or make us do something worse.”. Further, it costs Israel 50,000-100,000 manufacturing jobs. I ran all of this by Ron Dermer at an aipac conference. He agreed completely with my assessment but said that the decision to continue taking the aid is above his pay grade.
Bs”d. Dear Mordechai, a very courageous and daring plan. I do agree. But i am wondering what the response will be from the people directly involved? Officials, employees, unions, etc. It could erupt in a massive strike or something else. Most politicians don’t have the courage to implement such a daring plan (with the exception, i think, of Moshe Feiglin) My very best regards, Meir.