Obama Admin to forgive $1 billion in Egyptian debt(mfs-theothernews.com)HT: IsraelMatzav.The United States will forgive $1 billion in Egyptian debt as part of a package that includes a $4.8 billion International Monetary Fund loan to the newly installed Islamist regime.
Nearly 16 months after first pledging to help Egypt’s failing economy, the Obama administration is nearing an agreement with the country’s new government to relieve $1 billion of its debt as part of an American and international assistance package intended to bolster its transition to democracy, administration officials said.
The administration’s efforts, delayed by Egypt’s political turmoil and by wariness in Washington about new leaders emerging from its first free elections, gained new urgency in recent weeks, even as the United States risks losing influence and investment opportunities to countries like China, which President Mohamed Morsi chose for his first official visit outside of the Middle East.
In addition to the debt assistance, the administration has thrown its support behind a $4.8 billion loan being negotiated between Egypt and the International Monetary Fund. Last week it dispatched the first of two official delegations to work out details of the proposed debt assistance, as well as $375 million in financing and loan guarantees for American financiers who invest in Egypt and a $60 million investment fund for Egyptian businesses.
The assistance underscores the importance of shoring up Egypt at a time of turmoil and change across the Middle East, from the relatively peaceful uprisings in Egypt and Tunisia to the still-unfinished transition in Libya, and from the showdown over Iran’s nuclear program to the war in Syria. Given Egypt’s influence in the Arab world, the officials said, its economic recovery and political stability could have a profound influence on other nations in transition and ease wariness in Israel about the tumultuous political changes under way.
There’s just one small catch…. Congress has put some restrictions in place on aid to Egypt.
The administration is negotiating whether to waive some debt payments altogether or allow “debt swaps,” in which the money that would otherwise pay down the American debt instead is spent on training and infrastructure projects in Egypt intended to attract private investment and create jobs. Congress has attached conditions to American assistance in Egypt, requiring Secretary of State Hillary Rodham Clinton to certify, among other things, that the country continues to abide by its treaty with Israel.
American and Israeli officials, including Ambassador Michael Oren, have sought to assure members of Congress that assistance should proceed, despite reservations about the Muslim Brotherhood’s political rise, the officials said.
They have argued that persistently high unemployment, especially among women and young people, could undermine Mr. Morsi’s government, causing further instability in Egypt and beyond. “Things are going to head in the wrong direction if you don’t find a way to create jobs,” another administration official said, speaking on the condition of anonymity to discuss the administration’s internal strategy.
I wonder whether Egypt’s liberal democracy advocates agree with that assessment. Hmmm……Obama: “But I’m also mindful of the proverb, “A man is judged by his deeds, not his words.” So if you want to know where my heart lies, look no further than what I have done — to stand up for Israel.”Read the full story
As the chart shows, America’s debt is currently $15.1 trillion, while the Eurozone (which includes France, Germany, Greece, Italy, Spain, the U.K., and others) has a combined debt of $12.7 trillion. (All dollar amounts are in U.S. dollars, and the data refers to closing 2011 numbers.)
What policies are responsible… because obviously nationality has little to do with the issue. The debt has risen starting with Clinton, W Bush and Obama, though Obama’s debt is about double of Bush’s and Clinton’s.
The community activism worked out great… didn’t it? It’s kind of like Woodstock… er Woodstock 99. Thanks hippies. Thanks for taking the advice of Yoko Ono. Peace!
.…yeah… thanks hippies. thanks for all the “Activism”. Thanks for keeping your youth occupied… might be nice to pay us or we will kill you. You want to know what youth do who have nothing but community activism? well… um… Hie Dee Ho! They start raping your daughters! oh… won’t the feminists on the left be pleased… and that will of course will lead to a Leftist Police state full of feminine hysteria. Oh,,, but the ladies are the one segment of the population who have jobs because of the service sector. The vaginas will be doing just fine… if they can make it to work without getting raped. Oh, and those police officers that they hire to keep the youth from raping the laides… oh… they are corrupt and cheat on you. sigh… it will make monogamy completely unsustainable… and that will lead to more panic… and fear. And of course you will blame a blogger like me and ship me off to Washington State for pointing out the reality here…. but nothing to see here. nothing at all. move along…
Larry Tribe says raising the Debt Ceiling is unConstitutional. Says it to his own frustrated cronies.July 20, 2011
Michael McConnell, a leading First Amendment scholar (who is now at Stanford) and former Tenth Circuit judge (2002–2009), praises Larry Tribe’s stand on the constitutionality of the debt ceiling (see, for instance, this guest post). An excerpt from Prof. McConnell’s post at Advancing a Free Society:
A week ago Washington was abuzz with the seemingly nifty idea that Section Four of the Fourteenth Amendment could empower the President to borrow money above the debt ceiling, without congressional authorization. Now the idea seems to be dead. Not only has Secretary Geithner’s lawyer repudiated the suggestion, but the Secretary has denied he ever even floated the idea.
Part of the reason this idea lost favor is that it was wrong on the merits. But it helped – maybe even decisively – that Professor Laurence Tribe, professor at Harvard Law School and well-known Obama enthusiast, stood up and publicly denounced the faulty constitutional interpretation on which it rested, in an op-ed in the New York Times.
Professor Tribe deserves praise for this. It is not easy for a prominent intellectual to pull the rug out from under a political scheme of his allies, especially in a high-stakes partisan confrontation like the debt ceiling talks in Washington, where the Administration would dearly love to neutralize the leverage the debt ceiling gives Congress to force budgetary reform. This is what distinguishes a scholar from a hack: the willingness to analyze a question dispassionately and tell the truth even when it is politically inconvenient. via volokh.comif (WIDGETBOX) WIDGETBOX.renderWidget(‘d9f1befa-40d5-4a45-9fbc-88cc0c436176’);
US Debt Jumped $54.1 Billion in 8 Days Preceding Obama-Boehner Deal to Cut $38.5 Billion for the Rest of the YearApril 9, 2011
The federal debt increased $54.1 billion in the eight days preceding the deal made by President Barack Obama, Senate Majority Leader Harry Reid (D.-Nev.) and House Speaker John Boehner (R.-Ohio) to cut $38.5 billion in federal spending for the remainder of fiscal year 2011, which runs through September. The debt was $14.2101 trillion on March 30, according to the Bureau of the Public Debt, and $14.2642 on April 7. Since the beginning of the fiscal year on Oct. 1, 2010, the national debt has increase by $653.4 billion. via CNSNews.com and eye-on-the-world.blogspot.com