Sunday, July 17, 2011

"Caution: Storm Approaching" Caroline Glick

Economic turmoil in the Middle East as Egypt is going broke and capital is fleeing:

"...Most of the news coming out about Egypt today emanates from Cairo's Tahrir Square. There the protesters continue to demand ousted president Hosni Mubarak's head on a platter alongside the skulls of his sons, business associates, advisors and everyone else who prospered under his rule....

But while easily accessible, the action at Tahrir Square is not Egypt's most important story. The most important, strategically consequential story is that Egypt is rapidly going broke. By the end of the year, the military dictatorship will likely not only default on Egypt's loans (but) will almost certainly be unable to feed the Egyptian people....

Egypt's foreign currency reserves are being washed away... the problem is capital flight... Egypt's wealthy and foreign investors are taking their money out of the country....

What this means is that in a few short months, Egypt will be unable to pay for its imports. And consequently, it will be unable to feed its people.

EGYPT IS far from alone. Take Syria. There too, capital is fleeing the country as the government rushes to quell the mass anti-regime protests...."

  • What leadership do we have to respond to this approaching storm?  
  • Should we start apologizing and claim it is our fault?  
  • Will we push another "reset" button?  
  • Send more billions of dollars?  
  • How about offer our health care system to care for their poor? 

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Full story:  http://www.realclearpolitics.com/articles/2011/07/16/caution_storm_approaching_110607.html

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