Tuesday, May 24, 2011

Egypt's ruined economy

Egypt's ruined economy

and how many people believe Egypt is ruined,

first they cut off gas supplies from Egypt, that's called cutting ones nose to spite the face,

they put out false info on the tourists in 2010 . 18 million visited Egypt, they say 11million ,, that's 7 million uncounted income from tourists. and yes Egypt needed a revolution, but they need to get rid of all the old regime, all they have done up to date is move these people about, ie one of the corrupt police generals in luxor "Ebd Mosin", because all the people here in the west bank know he was corrupt, he has been moved to Hurgada, I wrote about this nice general in my attempted murder statement 12 months ago, but all they have done is give him a better job, they sentence one cop for killing 20 in tarhir square. they never took any statements nothing just pointed the finger and sentenced him in his absence, makes the people happy "I DO NOT THINK So,, this new media story also mentions the cruise boats and how lack of tourism is ruining their business, well how about all the crops and farmland their pollution has ruined, no talk about that, no rice in Ismaleia , no food is growing in the el fayoum, because of the cruisers, http://nilelife5.blogspot.com/2010/12/egypts-farmers-desperate-for-clean.html ,

so Egypt does not need any outside help in ruining its ecconomy, can manage very well on its own,

AFTER ALL ITS GOT PEOPLE LIKE Judge Shaddy and Hassan Gamal" SHEIHK MOHAMED TAYEB", MOHAMED AWAD AND LAWYERS LIKE MUSTAFA ATEA,swindlers liars and forgers. http://www.itsjustegypt.blogspot.com/ .

Everyone will agree history was made in Tahrir Square and Egypt's politics took a great step forward with the ouster of President Hosni Mubarak. But have Egypt's economics taken a big step backwards?

One of the generals running the country presented a picture of his country's economy that made me think, "What in the World?"

He says foreign direct investment is now down to zero. Egypt's foreign reserves are fast getting depleted. Then there's the tourism industry, which employs 2 million people but is sitting idle with the world continuing to shun the Pyramids of Giza and cruises down the Nile.

That's $1 billion of lost revenue every month. Growth has crawled to a standstill.

Meanwhile, tens of thousands of workers, emboldened with a new sense of freedom, are staging strikes to demand better pay. Confronting them would mean work stoppages. Appeasing them will cost money, and the state's coffers aren't exactly overflowing.

Then there's oil. The revolutions of the Middle East has sparked a cycle of pain in the crude markets. Look at three countries that have been hit hardest by people power movements - Egypt, Tunisia, Syria. They are all oil importers. Egypt then will go from growth in 2010 to shrinking GDPs this year.

Now, look at their neighbors who managed to stave off the wave of protests through a mix of bribery and appeasement - Qatar, Saudi Arabia and Kuwait. They're all net oil exporters with vast cash reserves.

That's why the dichotomy is actually getting worse, because oil importers need to spend more to buy the same amount of gas. Also, to keep political support at home, they need to increase subsidies on things like food - potatoes, carrots - because everything costs more, thanks to oil-driven inflation here.

And then there's this. Unlike previous years, the gulf countries, the oil-rich countries, actually want oil prices to be priced higher because they need the cash. They need to support their own spending plans for new cities and to more payouts to suppress dissent. For the first time in history, oil is averaging nearly $100 a barrel for more than a year. Even the Saudis need that cash.

If Egypt's economy doesn't stabilize soon, the IMF will soon come knocking on its door. And what will it demand? Economic reform to promote growth, of course, which means what? A devaluation of Egypt's currency, possibly? The reduction of subsidies? The privatization of industries? Anything to get the fiscal house in order and generate new economic growth.

just had another story from luxor. on how hassle is ruining one man's life,

this hassle is another reason tourists do not come here to Egypt.

"G" you can put your story on the comments, then I will give it a page,

No comments:

Post a Comment