Kerry offers $450 million to rescue Egyptian economy
March 4, 2013
By LUIS MIRANDA | THE REAL AGENDA | MARCH 4, 2013
Shortly before ending his first visit to Cairo, the new Secretary of State of the United States, John Kerry, said that in his meeting with President Mohamed Morsi he pledged to provide 450 million dollars (350 million euros) in aid to the Arabic country. With various regions declared in default, the government and the opposition unable to resolve their differences, and an economy on the brink of bankruptcy, the troubled Egyptian transition is going through one of its most delicate phases.
In a statement, Kerry linked financial assistance to the promise of the Islamist President to accelerate negotiations to close a loan with the International Monetary Fund (IMF) worth 4,800 million dollars. “In light of the dire need and confirmation of President Morsi who aims to complete the process with the IMF, the U.S. will now provide the first $190 million of our promise of $450 million in budget support”, read the text.
As we have already informed readers, the so-called Arab Spring was simply an attempt to seize non-aligned nations to bring them under the debt-based system that governs most of the world. Egypt is the first nation to succumb under the IMF plan to further destroy economies as it did with other third wold nations. The IMF plans to destroy economies was revealed by former insider, Joseph Stiglitz and reported on by investigative journalist Greg Palast.
The funds lent by the U.S. are said to come as rain in May for the Egyptian public coffers. The most populous Arab country has a soaring budget deficit exceeding 10%, and foreign exchange reserves have reached a critical level. Kerry described the aid as “a good faith effort to encourage reforms and help the Egyptian people at this difficult time.” But in reality, the loan is a down payment to guarantee American rights to exploit Egypt for all it has gotten.
During the past two months, the Egyptian pound has depreciated by 10%. If the country does not increase its foreign reserves soon, Egyptians believe the country will face a sharp devaluation of its currency, which could cause a social explosion. Egypt is the largest importer of wheat in the world, so a slump in the Egyptian pound would lead to a price increase of basic products such as bread. The decay of the Egyptian economy, just as it has been done with many other third world and developing nations is part of the calculated, preplanned and controlled destruction orchestrated by the IMF.
Besides a battered economy, Egypt suffers a serious political and social stability, as Kerry could experience in his own flesh. His departure from Cairo had to be delayed about two hours because a group of amateur football club fans of Ahly blocked the road leading to the airport. The action was intended to pressure the court which issued a verdict on the slaughter of Port Said Stadium, which resulted in the death of 74 fans. It is important to remember that Egypt’s current situation is a result of Western interventionism, after countries such as the United States and a handful European powers fully supported the overthrow of their former puppet Hosni Mubarak. The same script was followed later in Libya and is now being used in Syria.
Protests in Port Said are not new. In fact, the city has become the epicenter of a recent wave of protests. Yesterday clashes escalated between police and protesters, leaving three civilians and two policemen dead and hundreds wounded, according to the Egyptian Ministry of Health. The port city has been experiencing a general strike for the past two weeks as a result of police brutality that claimed the lives of 40 people back in in late January.
The new head of U.S. diplomacy tiptoed by the country’s internal political conflict. “Clearly, we need to work harder and make compromises to restore unity, political stability, and good health of the Egyptian economy,” Kerry said at the end of a visit that has had a busy schedule. Besides President Morsi, the former senator met with the army chief, the Foreign Minister and representatives from the opposition and civil society.
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