Tuesday, November 22, 2011

Jihad & Hunger

Did a little light reading tonite and came across a few things that are quite unsettling. First on the list is a report from a top Kuwaiti newspaper that some Arab states, along with Turkey, are preparing to impose a no fly zone over Syria. If this turns out to be true-- a big if-- this has the chance to light up the Middle East quite quickly. Syria will activate it's Hizb'Allah ally in Lebanon to begin launching missiles into Israel in the hopes of drawing Israel into this mess and kicking off another round of Israeli-Arab war, though this time with much more devastating consequences.  Likewise, Iran has a mutual defense pace with Syria and will not stand idly by. In addition, it appears that Russia has sent a fleet to sit off the coast of Syria to help the Syrian regime. 

The other, more insidious thing is that in Egypt, the people are again in rebellion against the Egyptian Army government, demanding their ouster immediately. In response, the Egyptian Army has announced elections will be moved up to June, but this does not appear to be appeasing the protesters. The protests are growing very serious, with dozens killed and hundreds injured. As it turns out, Egypt actually has a more serious problem than their own Army-- their economy. And they're not alone. 

It appears that Egypt's military government has been defending the worth of their currency instead of letting it float and possibly devalue. Why ? Probably because many of Egypt's military officers have enormous holdings in the local currency. Their government is trying to hold the value of the currency so that many of these officers can have time to move the money outside the country. Their Army appears to be looting the nation six ways from sunday. Egypt is running out of cash reserves in the attempt. When it does, their currency's value will collapse-- and the price of rice, which the government heavily subsidizes, will skyrocket. All of this is happening alongside the aforementioned riots against the Army. Hunger and instability go hand in hand, feeding off each other-- Satan's Handmaidens. Take a look at my last post in regards to capital flight. 

It's not only Egypt. Turkey's economy is also overheating and due for an ugly correction. I'm in a hurry and cant post as much as I'd like, but I will post a link to a must read article on Middle East economies. This will, likely very soon, again be the driving force behind the ongoing upheavels: http://pjmedia.com/spengler/2011/11/22/egypt-and-turkey-middle-east-basket-cases/