This proposal was drafted by Hussein Askary, an
Iraqi who is now head of the LaRouche movement in Sweden. It is crucially
important not only for Egypt at a moment of life or death for that nation, but
for all nations being subjected to destabilization and destruction by the
British financial Empire. This article appears in the July 26, 2013 issue of
Executive Intelligence Review. Mike
Billington
Proposal for an
Egyptian Declaration
Egypt has been borrowing in the international financial markets to finance its budget deficit, and has been receiving preferential loans and aid from Qatar, the main supporter of the Muslim Brotherhood in Egypt and the region. Qatar has extended US$8 billion so far to the MB government. Following the overthrow of Morsi, Saudi Arabia, the United Arab Emirates, and Kuwait pledged US$8 billion in loans and grants to the new government. But everything has a price, and these generous offers will tie Egypt to the process of forever chasing handouts to fill the deficit.
More than a dozen domestic and international investment banks are active in Egypt, draining a significant amount of Egypt's private capital into the global financial bubble.
Proposal for an
Egyptian Declaration
of Economic Independence
by Hussein
Askary
Summary: The
interim Presidency of Egypt should make a public "Declaration of Economic
Independence," in which it should be announced:
-
That Egypt is in a state of economic emergency.
-
That the government will launch a national economic reconstruction program tantamount to a postwar reconstruction plan, a program which will be binding on every future government according to the new constitution.
- The government outlines specific medium- and long-term national infrastructure, energy, water, agriculture, and industrial plans.
-
The government declares all previous agreements with the International Monetary Fund (IMF) to be null and void, and freezes all free-trade agreements with the EU, and replaces them with bilateral economic cooperation and trade agreements with European nations individually.
-
A sovereign credit system to be established domestically to support a "National Reconstruction and Development Bank," to finance the necessary development projects. Foreign nations are invited to subscribe to the new national credit mechanism, either by direct deposits or by extending guarantees, including export guarantees to corporations that will provide technologies and know-how to the Egyptian reconstruction program.
These points
have to be announced by the President, in a televised address to the nation, for
a "Declaration of Economic Independence," to seek the approval of the people of
Egypt. Following such approval, a national convention is to be held in which
these matters will be discussed in more detail by Egyptian scientists,
engineers, industrialists, and economists, in addition to public figures. The
convention will be held under the auspices of the different ministries of the
interim government.
Egypt's Dilemma, and Its Future
Egypt has
been, since 1882, one of the main targets of the British Empire, first for
looting, and later, for control and destruction, when the Egyptian people's
character and patriotic nature rejected British imperialism. Since that time,
and throughout World War I, World War II, and the Cold War era, Egypt has been
the backbone of the Arab nations. If it goes, everyone else goes. If it
survives, a better future for the Arab nations and those in Southwest Asia and
North Africa is possible.
While
observers are puzzled by the recent events in Egypt, and whether there was a
military coup or not, or why Britain's ally, the Saudi Royal Family, suddenly
shifted their position to help overthrow the Muslim Brotherhood government of
Mohammed Morsi, the only significant issue to keep in mind is that the British
Empire's intention to destroy Egypt is still on the agenda. The British do not
care who is in power.
What is
important for the Empire is the policy of looting and destroying Egypt, which in
the past 40 years, has been characterized by economic destruction through the
IMF policies, which are backed by the recent U.S. administrations, and by
Europe. That Qatar and Saudi Arabia are suddenly on opposite front lines in
Egypt (while still united in the destruction of Syria through their support for
the British-deployed al-Qaeda jihadists) means nothing in the eyes of history,
since both the Saudis and Qataris are puppets of the same British
Empire.
Anti-Islamist
liberals of Egypt, who were mostly educated in British economic schools, are
equally as dangerous to Egypt as a nation, as are the jihadists and Salafists.
For the empire, it does not matter if the cat is black or white. What matters is
that it adds dead mice to its account.
That is why
the January 2011 "revolution" in Egypt never managed to bring about the changes
in the tragic social-economic conditions of the nation, which were wrought upon
the Egyptian people by the combination of the IMF, the European Union, and U.S.
policies imposed through the Hosni Mubarak regime.[1]
Then,
following the organization of new Presidential elections in June 2012, and when
then-President-elect Mohammed Morsi issued his Presidential declaration and his
"First 100-day program," it became clear that Egypt would not be relieved from
these terrible conditions, and would enter into a new maelstrom of economic,
social, and political crises leading to new upheavals and eventually to military
intervention! This was made as a forecast by this author in July 2012.[2]
To make the
point clear, here is the last paragraph of that article, which was published
exactly one year before Morsi's removal:"Morsi's First 100 Days program, which he announced after the elections, is nothing but a low-calorie diet for the Egyptian people. He effectively proposes to maintain the status quo of poverty, by focusing on keeping the bakeries open with subsidies (a policy which adds nothing new, as it was even followed by former President Mubarak) as the first point in the program, and keeping the streets clean and traffic rolling as second, and making sure the old subway system is running (and so forth). Such a program shows that this President is not serious about alleviating the poverty and social injustice in the country. If Morsi does not break with the IMF and World Bank policies, and immediately call for an emergency mobilization to issue national credit to launch such crucial projects as Africa Pass, this President will only prove the points raised by this author about the origin and purpose of the Muslim Brotherhood."
While
providing bread to the people is necessary, this is not the only purpose of
government. Instead of launching a massive reconstruction program, and breaking
all ties with the IMF and its policies, Morsi's government emphatically spent
the next six months begging ("negotiating with") the IMF to return to Egypt, and
to extend a humiliating $4 billion loan. Adding insult to injury, the IMF
refused. Not only did Mr. Morsi completely misread the internal situation in his
country, and in the U.S. Administration he was hoping would support him, but he
also failed to realize how bankrupt the IMF, and behind it the EU and the USA,
are, economically and financially.
The misguided
Morsi government and the economists who supported it tried to explain that the
sum of the IMF loan was not the issue, but that the IMF loan would have become a
"certificate" of good behavior for Egypt, allowing it to indulge in borrowing
money from international financial institutions. This would have further
enslaved Egypt with more debt.
The problem
of the Morsi government, in addition to its hunger for power, and as a political
pawn for Anglo-American geopolitics—in its role as part of the international
Muslim Brotherhood organization—was not lack of money but its lack of vision and
knowledge of true economics, physical economy.
Mistakes Could Be Repeated
Now, what is
to be feared, is that the new interim government of Egypt, appointed by the
Supreme Council of the Armed Forces on July 4, will resort to the same temporary
measures and solutions to keep the status quo, leaving even greater burdens to
the coming government, which is supposed to be elected three to four months from
now, if political stability is preserved in the country!
The new
interim President, Adli Mansour, issued a new constitutional declaration on July
8, which said almost nothing about the state of the economy. He left it to
interim Prime Minister Hazem El-Beblawi to tackle this issue. Article 26 of the
constitutional declaration states that the prime minister "issues the necessary
regulation for the construction of public utilities and interests after the
approval of the ministerial cabinet, but if these imply adding more burden to
the government's general budget, they have to acquire the approval of the
President."
Now, for any
government, whether in Africa or even Europe, to stay within the limits of its
budget, leaves no space for any investments in public utilities, or any
meaningful large-scale projects to put the masses of unemployed people to
productive work and increase the productivity of the economy as a whole. This
becomes even impossible in light of the fact that the Egyptian government
deficit has been increasing at a rapid rate, especially since April 2011. The
Egyptian Finance Ministry announced in March this year that the total budget
deficit reached 10.6% of the country's gross domestic product (GDP) in the first
ten months of the 2012-13 fiscal year. The deficit reached US$26.5 billion,
compared with $16.8 billion in the period from July to April of the 2011-12
fiscal year. This deficit was expected to reach 11.5% of GDP by June. In 2012,
budget revenues were at US$50 billion, and expenditures were $77
billion.Egypt has been borrowing in the international financial markets to finance its budget deficit, and has been receiving preferential loans and aid from Qatar, the main supporter of the Muslim Brotherhood in Egypt and the region. Qatar has extended US$8 billion so far to the MB government. Following the overthrow of Morsi, Saudi Arabia, the United Arab Emirates, and Kuwait pledged US$8 billion in loans and grants to the new government. But everything has a price, and these generous offers will tie Egypt to the process of forever chasing handouts to fill the deficit.
Qatar, on the
other hand, was looking for booty in Egypt to loot in return for its loans, as
was the case with its attempt to lease the Suez Canal Corporation, an operation
which was stopped after massive popular protests. Another attempt by Qatar's
"sovereign wealth fund" QInvest was to take over a 60% stake (worth US$250
million) in the largest Egyptian investment bank, EFG Hermes. The deal, which
was rejected by Egyptian financial regulators in May 2013, was brokered by none
other than JPMorgan Chase, which advised EFG Hermes and Goldman Sachs, which
were advising Qinvest.
EFG Hermes is
typical of the corrupt financial institutions that are completely integrated
with the Anglo-American speculative financial empire, and which were
participating in the IMF-directed privatization of Egypt's state-owned
enterprises and assets in the era of President Mubarak. The deal was deemed by
Egyptians to be politically infected, as two of EFG's chief executives, Hassan
Heikal and Yasser El Mallawany, are on trial, along with the two sons of the
ousted Mubarak, upon charges of illegal share dealings in 2007
transactions.More than a dozen domestic and international investment banks are active in Egypt, draining a significant amount of Egypt's private capital into the global financial bubble.