Egypt’s Next Crisis: The Economy
February 17, 2011
Mubarak resigned, journalists packed their gear, and CNN went back to talking about obesity statistics – but Egypt's troubles are far from over. After weeks of protests (leading to strikes and, understandably, no tourists), the country's economy took an estimated 1.5 billion-dollar punch to the face.
This appears to be the tip of the iceberg for Egypt's economical woes, however – as you'll read in the piece below from STRATFOR, a global intelligence company I've come to know and love. Mubarak's gone... as are his son's banking reforms. Resurrected is the military's practice of borrowing money from banks with no intention of paying it back – likely leading to a debt level of bailout proportions. The nation's not about to find the extra $16 billion a year it needs in its couch cushions.
While everyone talks about democracy in Egypt, STRATFOR gives you the real scoop on what's going on behind the scenes – and what military rule means for Egypt, its economy, and the rest of the world. I highly recommend that you <<join their free email list here>> to get weekly intelligence reports.
John Mauldin, Editor
Outside the Box
subscribers@mauldineconomics.com
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Egypt's Next Crisis: The Economy
February 16, 2011
Pedro Ugarte/AFP/Getty Images
An Egyptian worker cleans the entry to the Giza pyramids outside Cairo on Feb. 14
Summary
Until just a few years ago, Egypt’s ruling military elite was able to “borrow” money from Egyptian banks with no intention of paying it back. President Hosni Mubarak’s son Gamal changed all that, reforming and privatizing the system in order to build an…