Egypt in the Cross Hairs

2011 November 23
by drdog09

Egypt’s stock market is in free-fall, down 50% since the overthrow of Hosni Mubarak. What’s interesting is that Turkey’s stock market isn’t far behind.

The economic crisis overwhelming the Middle East stretches from Libya all the way through to Turkey. The problems are of a different order, to be sure. As I reported earlier, Egypt’s spendable foreign exchange reserves are down to just $13 billion and falling daily as the central bank buys its own unwanted currency from the market in order to postpone the inevitable collapse in the change rate. Why not just devalue? The probable answer is that the generals and their civilian front men are moving as much money as they can out of the country before Egypt goes bankrupt. Last month the generals fired all the private-sector board members of the central bank, as I reported at Asia Times Online. Everything that can be sold abroad for cash is being sold. Al-Ahram reported Nov. 19 that there is no enforcement of the ban on rice exports, because controls have simply broken down. Egypt subsidizes rice at a fraction of the world market price, so traders have an incentive to sell it overseas. Not only the country’s capacity to buy food in the future, but its existing stocks of food are disappearing. And Egypt imports half its caloric consumption.

No wonder the country is blowing up. An out-of-control kleptocracy is frantically trying to close on townhouses in Chelsea and apartments in the 16th arrondissement before the central bank’s foreign exchange reserves run out. What will ensue, will be horrifying.

Source

Egypt is now down to $13Bn in cash reserves. Food brokers are trading subsidized rice at market rates overseas. Stock market in collapse. I would say that is not an acceptable position. But then the US is not far behind as to cash on hand….

Read the whole thing. Spengler also covers Turkey in the same breath. Israel has in interesting opportunity if it were to play its cards right. I am surprised that Mubarak `Miss Me Yet?` posters have not appeared.

                      

                  University of Cairo 1959                                                                           University of Cairo 2004

11 Responses leave one →
  1. 2011 November 23 7:10 pm
    [1]
    mulletover permalink

    Some thought we might have to bomb them back to the stone age, but they seem quite capable of getting there by themselves.

  2. 2011 November 23 7:17 pm
    [2]
    retlaw permalink

    Very troubling events overseas and here at home. Sad and depressing.

    In spite of that, I want to wish everyone here a blessed and joyous Thanksgiving.
    In the midst of national and worldwide turmoil, we all still need to pause and give thanks for all the endless blessings we have–for loved ones and friends, for food to eat and a roof over our head, for sight and hearing, for freedoms and opportunities we still have and for health and life itself.

    Whatever our indiviual circumstance, there are millions who would switch places with each of us in a heartbeat.

    Give thanks.

  3. 2011 November 23 7:24 pm
    [3]
    drdog09 permalink

    Amen!

  4. 2011 November 23 7:26 pm
    [4]
    bc3b permalink

    drdog09 –

    I hope you don’t mind, but I added photos of the class of 1959 and the class of 2004 from the University of Cairo to illustrate how Egypt has regressed 1,300 years since 1959.

  5. 2011 November 23 7:28 pm
    [5]
    drdog09 permalink

    Hey BC,

    Figured you added the pics. I know that have been around a couple of times, but I just noticed something. The number of students is significantly less. Don’t know if its relevant but it is interesting.

  6. 2011 November 23 7:40 pm
    [6]
    bc3b permalink

    That 1959 photo could just as well be the graduation photo from University of Iowa, Cambridge or McGill in Canada. If you look at many Islamic countries: Iraq, Iran, etc., I bet you would notice the same thing.

  7. 2011 November 23 8:33 pm
    [7]
    brucefdb permalink

    Gee, why would their stock market collapse?

    Anyone carrying a miss me yet pic of Mubarak would quickly be missing their head. Of course that is probably better than starving to death.

    What is the futures market saying about the future of Christianity in Egypt? Probably best to let the market find a bottom first, eh?

  8. 2011 November 23 8:34 pm
    [8]
    brucefdb permalink

    Ahhhh, the Arab spring, funny, it just doesn’t have that smell of roses, more like the stench of death…..kind of like the culture of death in this country that is currently ruling here.

  9. 2011 November 23 8:49 pm
    [9]
    justrand permalink

    mullet: Some thought we might have to bomb them back to the stone age,

    geez mullet…the Stone Age would represent an ADVANCE in their societal position.

  10. 2011 November 23 11:16 pm
    [10]
    judyt2012 permalink

    AAAAAAAAHHHHH

    Dear Moderates (“light/reasonable/soft Conservatives” their description not mine)

    NO. We do not need to nominate the candidate most acceptable to you and those on the left. You might think you are a centrist but you are just sitting on the left side DUDE to the right of the idiots occupying those areas soon to exceed Love Canal in toxicity.

    If you haven’t noticed the country is in a horrible mess. We have gotten into this horrible mess by appeasing the lefties and you so called “moderates” for several decades.

    So sit down and STFU.

    We need the MOST conservative government possible so we can clean up this mess. We need the most conservative persons at every level of government … every elected position and every judicial appointment.

    You have lost the right to any input.
    So again.. SIT DOWN & STFU

    Signed.

    Very Pissed off conservative.

  11. 2011 November 24 3:17 am
    [11]

    Now Yemen

    Yemeni leader agrees to stand down

    SAN’A, Yemen—President Ali Abdullah Saleh of Yemen agreed to step down on Wednesday after 33 years in power, becoming the fourth Arab leader swept away by protests this year and launching his violence-wracked country into a new era of uncertainty.

    President Ali Abdullah Saleh of Yemen agreed to step down on Wednesday after 33 years in power, becoming the fourth Arab leader swept away by protests this year. Jeffrey Grocott has details on The News Hub.

    The president, who had steadfastly refused to sign a deal that would pave the way for his exit, made a surprise trip to Saudi Arabia, where he signed off on a deal to transfer power to Vice President Abed Rabbo Mansour Hadi within 30 days. The agreement calls for a new president to be elected within three months and would hand significant power to opposition parties, Yemen state television and opposition officials said.

    http://online.wsj.com/article/SB10001424052970204630904577055520418084162.html

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