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Egyptian economy is collapsing (Read 1402 times)
Grappler Truth Teller Feller
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Re: Egyptian economy is collapsing
Reply #15 - Oct 26th, 2016 at 11:56pm
 
Unforgiven wrote on Oct 26th, 2016 at 6:32pm:
Gordon wrote on Oct 26th, 2016 at 6:15pm:
If only Egypt's main export, jihadists, was a trade-able commodity Wink


I suspect demand has declined because Gordon and his ilk have a head full of imaginary Jihadists and would crap themselves if a real one was supplied to them.


The Anglo-orientated ruling clique in Egypt has had a permanent opposition to Islamism - which you do not understand (Islamism) - and Islamism is a drive to adhere fully to the tenets of The Koran - which made the secular government of Egypt its enemy by default - by default meaning that Islamists chose to see the secular government of Egypt as its fundamental enemy, since it did not adhere fully to The Koran.

There is a definitive lesson there for the West - for those who choose to see it......

Gordon has a very valid point in this discussion......
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“Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence.”
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Re: Egyptian economy is collapsing
Reply #16 - Oct 27th, 2016 at 4:54am
 
Quote:
Thousands of times I heard Muslims living in the west, their non-Muslim apologists, western politicians and the western mainstream media repeat the following statement : The vast majority of Muslims are moderate peace loving people and only a tiny minority are “extremists”:

article-0-0989D918000005DC-427_468x378On the terrorist attack of September 11th 2001 in Egypt (80 million people in this time). 19 Muslim hijackers killed 3000 innocent Americans by their own hands. Almost 80 million Muslim Egyptians following the attacks were celebrating the death of those American victims: All public transport was free this day and for the next three days all the restaurants offered free meals and sweets. All the cinemas and gardens offered free entry, the radio stations didn’t stop playing happy victory songs….Does this mean that only 19 hijackers were “extremists” while the 80 million Muslim Egyptians were “moderate peace loving” people? Does that mean that 80 million are “peace loving” only because they did not kill by their own hands?

You are not required to kill to be called violent or “extremist”or “radical”or “terrorist”. You can be violent, extremist, radical or terrorist even if you don’t kill with your own hands.  That’s what the West is unable to understand…In Islam, there is many forms of “Jihad” other than killing in the battlefield…The vast majority of Muslims are sympathizers with terrorists. They believe in the same ideology and share their goals even if they do not hold arms themselves. That’s why this vast majority is silent and don’t show any opposition to their fellows who kill in the name of their religion.

A Muslim generally, as his holy texts command, can never befriend a kaffir (non-Muslim). TO them, you are a “kaffir”, and the “Kaffir” in the Quran is UNCLEAN… They believe hell fire is your final destiny, the only reason why they may smile to you is to proselytize you “Dawah or Daawa دعوة” . This is a religious duty to all Muslims; to try to convert non-Muslims to Islam or at least to try to stop you from defending yourself and to let them achieve their goal quietly and to neutralize you . As it is mentioned in verse 3:28: from the Quran: “Let not the believers take for friends or helpers Unbelievers rather than believers: if any do that, in nothing will there be help from Allah: except by way of precaution, that ye may Guard yourselves from them…”.

This hypocrisy is widely used and encouraged in Islam when dealing with kaffirs. it’s called “Taqqiyah“ and it is widely used by muslims in non-Islamic countries.

Muslims are killing each other using the most barbaric ways in Islamic countries. Muslim fathers or mothers can kill their daughters for not wearing the islamic veil or for being too westernize…If they are such unmerciful between each other, how do you except them to be nice to you or befriend you, the “Kaffirs”?…Before you say not All Muslims do that, please admit that this happens, and it happens everyday and happens ONLY in Islamic societies.
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I HAVE A DREAM
A WONDERFUL, PEACEFUL, BEAUTIFUL DREAM.
A DREAM OF A WORLD THAT HAS NEVER KNOWN ISLAM
A DREAM OF A WORLD FREE FROM THE HORRORS OF ISLAM.

SUCH A WONDERFUL DREAM
O HOW I WISH IT WERE TRU
 
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Unforgiven
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Re: Egyptian economy is collapsing
Reply #17 - Oct 27th, 2016 at 12:32pm
 
Its looking even worse than before the military coup that overthrew Morsi.

The black market rates for EGP v USD is nearly double the official rate, and its worsening:

...

http://www.zerohedge.com/news/2016-10-26/hyperinflation-looms-black-market-egypt...

Quote:
With all eyes on the drop in the British Pound, it is another 'pound' that is utterly collapsing. Despite its official exchange rate is 8.88 per dollar, Egypt’s pound dropped to 16.11 per dollar in the black market, another record that extends declines over the past month to 19% and down over 40% since it devalued in March.

The Sovereign CDS market (which prices for both default and devaluation) is pricing in a further dramatic devaluation of the official rate...

Bloomberg reports that Africa’s third-biggest economy will close a $12 billion lifeline from the International Monetary Fund within two months, according to Prime Minister Sherif Ismail, as pressure grows on the country to weaken its currency to lure foreign investment and stimulate growth.

Ever since General Sisi ousted the Muslim Brotherhood, the Egyptian economy has remained in shambles. Businessmen are fed up.  They are ignoring government gag orders, and are making their voices heard. And why not?  They are losing sales, missing deadlines, and scrapping expansion plans because of limited access to U.S. dollars.

Where are the greenbacks that Egyptians demand? Well, even though General Sisi has passed the begging bowl, the cupboard is pretty bare (as the accompanying chart shows).  This, in part, is due to the Muslim Brotherhood.  The Brotherhood did one thing well: they blew through foreign exchange reserves like wildfire.   Not surprisingly, the Sisi administration is squeaky tight about holding on to its limited reserves.

As we noted in March, the only sure-fire way to save the pound and eliminate Egypt’s USD shortage is to install a currency board.  This would allow the quantity of pounds in circulation to be determined by a free-market mechanism.

So, just what is a currency board? Operating under currency board rules, a monetary authority issues notes and coins convertible on demand into a foreign anchor currency at a fixed exchange rate. As reserves, a currency board holds low-risk, interest-bearing bonds denominated in the anchor currency.  The reserve levels are set by law and are equal to 100 percent, or slightly more, of its monetary liabilities. A currency board generates profits
(seigniorage) from the difference between the interest it earns on its reserve assets and the expense of maintaining its liabilities. By design, a currency board has no discretionary monetary powers and cannot engage in the fiduciary issue of money. Its operations are passive, and automatic. The sole function of a currency board is to exchange the domestic currency it issues for an anchor currency at a fixed rate.  Consequently, the quantity of domestic currency in circulation is determined solely by market forces, namely the demand for domestic currency.

There have been many currency boards, and none have failed.  By design, they can’t be broken. Even the currency board designed by John Maynard Keynes, which was installed in North Russia, during the civil war, worked like a charm.

But, you may ask, what about Argentina’s Convertibility System (1991 2001). That system was not a currency board.  It might have had the appearance of a currency board, but appearances can be deceiving, particularly in Argentina.  Even though it linked the peso to the USD at a one-to-one rate, the Convertibility System was a system that operated with monetary discretion – unlike a currency board.  And over long periods of time,
the discretion was wild.

A currency board would give Egypt stability, and while stability might not be everything, everything is nothing without stability.
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Unforgiven
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Re: Egyptian economy is collapsing
Reply #18 - Nov 4th, 2016 at 9:16am
 
The Egyptian pound crashed by 35% overnight as the currency was allowed to float. Its still higher than the black market rate which means it has further to fall.

This will probably cause a reaction against the military junta.

http://www.xe.com/currencycharts/?from=egp&to=usd
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“I’ll let you be in my dreams if I can be in yours” Bob Dylan
 
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