February 14, 2013
WALTER RUSSELL MEAD: Egypt Death Spiral Watch Continues.
An economic death spiral is like a straitjacket: the more fitfully you try to get out, the tighter it gets. That seems to be precisely what civil unrest, spurred in large part by Egypt’s economic woes, is doing to the country’s economic prospects: popular riots on the ground are driving away tourism and foreign investment, which eventually harms the country’s credit rating, which worsens the economic woes, which drives more people into the streets…
Uncertainty about the IMF’s loan and parliamentary elections makes the situation even worse. It’s unclear whether the government has the financial or political resources left to keep buying more time. Via Meadia is hoping for the best, but this is not looking good.
Life is tough. It’s tougher when you’re stupid.