Egypt Gets Economic Reprieve as Protests Gather Force
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  • wigwag

    “Like other loans and aid to Egypt over the past few years, the $12 billion from the Gulf will dry up fast.” (Walter Russell Mead)

    No it won’t.

    As long as the Egyptian military agrees to keep its foot on the neck of the Muslim Brotherhood aid from the Gulf will keep flowing. The Saudis have close to a trillion dollars in foreign reserves and the Gulf Arabs aren’t exactly hurting either. They have the ability to subsidize Egypt at the level of $10-15 billion per year for decades if they are so inclined.

    For the Saudi Royal family this is about survival. They will decide that $12 billion is a small price to pay.

    • Pete

      Thoughtful post.

      And it is good to see Arabs ‘helping’ Arabs for a change. Who knows, if the trend continues, it might give the US taxpayer some relief.

      As for the idea that the concerns of the IMF will become less consequential now that Egypt has found a new sugar daddy, I have a question. What happens to the previous western loans to Egypt? Are they to be forgotten, written off …. or to be re-paid?

  • Anthony

    The deep state institutionally has extractive political and economic patterns WRM. Short-term very little changes and WigWag alludes to some of the underlying factors (on plus side $12 billion normalizes currency and stabilizes prices) consequently institutional drift continues. IMF future conditions and loan superfluous without long-term political and economic transformation – and that’s revoluntionary to say the least.

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