Egypt On the Verge of Bankruptcy

December 31, 2012
Goldman Graph 3
By David P. Goldman, JINSA
“The country is on the verge of bankruptcy,” Egyptian opposition leader and Nobel Laureate Mohamed ElBaradei told the newspaper al-ArabiyaDec. 23. Unable to reduce subsidies that account for most of a budget deficit that now exceeds 14 percent of GDP, and unwilling to raises taxes, it seems most likely that the Muslim Brotherhood government of Mohamed Morsi will instead take the path of least resistance and allow a steady devaluation of the Egyptian pound. During the past two weeks, central bank intervention to support the pound’s value on the foreign exchange market has stopped and the currency has fallen sharply.

Central bank intervention in support of the pound is shown clearly on the chart of daily values for the Egyptian pound’s exchange rate against the U.S. dollar during the year to date. The spikes in the exchange rate reflect central bank activity. The sharp drop in the pound’s exchange rate during the past two weeks reflects an absence of central bank intervention.
In the advent of last week’s referendum on a proposed new Islamist constitution, the Morsi government postponed negotiations for a $4.8 billion loan from the International Monetary Fund, out of fear that the austerity measures required by the IMF would elicit a wave of political opposition. As Andrew Bowman wrote in the Financial Times:
The loan is conditional on some very unpopular tax increases and fuel subsidy cuts to reduce the deficit to 8.5 per cent during the financial year starting July 2013. The government is loathe to take these on at this moment in time with its authority fragile and new elections looming in 2013. Indeed, when it tried to introduce new taxes on consumer goods a few days before the constitutional referendum, it removed them within a few hours following public outcry. Its loan request has been postponed until January and the delay may entail renegotiation.
The Morsi government’s failure to secure the IMF loan also jeopardizes other expected loans, including a $500 million credit from the African Development Bank. This is a crisis of governance, of the sort I analyzed on this site in September. Morsi cannot get a popular mandate without reneging on essential economic reform measures, but he cannot obtain the financing that Egypt requires to avoid bankruptcy if he reneges on reform.
That leaves Egypt’s central bank with cash reserves of just $7.1 billion (out of total reserves including gold of $15 billion), enough to cover just over two months’ worth of the country’s $36 billion annual trade deficit, equivalent to about 16 percent of Egypt’s GDP. Against this enormous trade deficit, Egypt has
1) Tourism revenues that peaked at $12.5 billion in 2010 before falling to only $9 billion in 2011, and now may be running as low as $6 billion a year, according to one estimate in the Egyptian press;
2) Suez Canal revenues of somewhat less than $5 billion a year; and
3) An indeterminate volume of workers’ remittances, estimated at anywhere between $7.7 billion and $18 billion;
4) Whatever Egypt can borrow, which at the moment is essentially nothing.
Remittances almost certainly have risen since 2009, when the central bank estimated the flow at $9.5 billion, although a major source of those remittances-the 2 million Egyptians working in Libya-dropped sharply after the Libyan civil war. 1.7 million Egyptians work in Saudi Arabia, 500,000 in Kuwait, and 500,000 in Jordan. Their repatriated earnings are in many cases the main support of their families at home.
Egypt’s dependence on remittances, though, makes a devaluation of the Egyptian pound an especially dangerous exercise. As long as Egyptians overseas expect the national currency to keep falling, they are likely to delay sending money home as long as possible. That in turn will worsen the central bank’s foreign exchange position and make devaluation more likely, in a vicious circle. It seems clear from the earlier intervention pattern that the Egyptian central bank hoped to prevent devaluation. Since the collapse of the IMF loan negotiations, though, it may have concluded that it has no other alternative.
The position of Egypt’s foreign workers, moreover, is fragile. King Abdullah of Jordan warned at a private meeting (cited by the news siteAI-Monitor) that Jordan might use the 500,000 Egyptians now working in in his country as “bargaining chips” against the Muslim Brotherhood, which he denounced as part of a “new extremist alliance” in the Arab world. Jordan’s monarchy has been under pressure from the Muslim Brotherhood during the past year, and it seems clear that the Hashemites will not sit on their hands. A major Jordanian complaint is the interruption of piped Egyptian natural gas, at an estimate cost to the Jordanian government of 5 billion Jordanian dinars. The same pipeline through which Egypt supplied Israel also met four-fifths of Jordan’s gas requirements.
According to a Dec. 17 report in Egypt’s Official Gazette, cited by theEgypt Independent, Egypt will import gas from international companies in Qatar at a cost of U.S. $14 per million BTUs. Qatar’s government sells gas at $9 per million BTUs, and Egypt is contractually obligated to sell gas to Jordan at $5.50 per million BTUs. The unfavorable terms suggest that something else is at work: Egypt may be overpaying for Qatari gas to amortize Qatar’s $2 billion emergency loan to the country’s central bank last fall. Qatar has given the Morsi government indispensable support. Announcement of this loan Aug. 12 coincided with President Morsi’s dismissal of the old-line Egyptian military leadership, and the funds have allowed Egypt to maintain wheat stockpiles at adequate levels during the past several months. It appears, though, that Qatar’s aid comes with a price tag, and that Egypt’s import costs will rise as a result.
The country’s foreign exchange reserves, meanwhile, are so squeezed that banks are refusing to provide financing for food imports (other than wheat bought directly by the government) because importers have not had access to hard currency to pay their arrears, the Food Industries Association warned Nov. 27. The importers’ association warns that food imports may drop by 40 percent during coming months as a result.
Morsi’s hold on political power is fragile after the mass protests that preceded this month’s constitutional referendum and the opposition’s unwillingness to concede legitimacy to the government’s narrow victory. Prior to the referendum, Morsi showed himself unable to reduce subsidies or raise taxes in order to control a domestic budget deficit and a trade deficit that are both running at close to a sixth of GDP. If he takes the path of least resistance and allows the Egyptian pound to depreciate severely, as the local market evidently expects, it may be difficult for the hard-pressed Egyptian pound to find a stable bottom, for reasons noted earlier: fears of devaluation will delay remittances and provoke capital flight, worsening the central bank’s already dire cash position.
The danger is that Egypt will descend into banana republic-like inflation, but without the bananas. We have witnessed many cycles of devaluation and inflation in Latin American countries, but all of those cases involved food exporters. Egypt by contrast imports half its food.
The government’s likely response will be to employ state controls in a heavy-handed but haphazard fashion: imposing foreign exchange controls, rationing essential items, raiding alleged speculators, and stirring up have-nots against supposed haves. If the opposition is unable to unseat Morsi, he is likely to lead Egypt to an extreme degree of statism-a sort of North Korea on the Nile.
It is not clear where he can turn. President Morsi is at a stalemate in discussions with the international financial organizations. The Gulf States are even more hostile to the Muslim Brotherhood than before Egypt’s political crisis, and less inclined to help. Even Qatar, it appears, is extracting payment for its previous help on a cash-and-carry basis through the energy market. The most likely outcome will be austerity through devaluation rather than tax increases or subsidy cuts, with deleterious consequences for the already-failing Egyptian economy. On the strength of the available evidence, we would have to answer our question of September-”is Egypt governable?”-in the negative.
David P. Goldman, JINSA Fellow, writes the “Spengler” column for Asia Times Online and the “Spengler” blog at PJ Media. He is also a columnist at Tablet, and contributes frequently to numerous other publications. For more information on the JINSA Fellowship program, click here.


Universal Muslim Economic Failure

July 31, 2012

(SultanKnish) If Romney accomplished nothing else during his Israeli visit, he did manage to offend every single Palestinian Arab terrorist group, all of whom, the Palestinian Authority, Hamas, Islamic Jihad, the PFLP and the DFLP, issued press releases denouncing him. Their American media outlets, on a desperate gaffe hunt, seized on his statement that the GDP Per Capita differences between Israel and the territory under the control of the Palestinian Authority are the result of different values.

The official media narrative is that these differences are the results of eons of oppression, checkpoints and blockades. Fair enough. But then why does the IMF put Israel’s GDP Per Capita well ahead of the oil rich kingdom of Saudi Arabia?
Saudi Arabia has no Israeli checkpoints, no Israeli soldiers or planes flying overhead. It has wealth literally pouring out of the ground with a fifth of the world’s petroleum reserves. And yet the IMF puts it 13 places behind Israel and the World Bank puts it 8 places behind Israel. The only Muslim countries with a better GDP Per Capita rating than Israel are small monarchies drowning in oil.
The non-oil Muslim countries who are closest to Israel are Malaysia and Lebanon, 32 and 33 places behind Israel. Both countries also have sizable non-Muslim populations. Muslims make up only 50 percent of Lebanon and only 60 percent of Malaysia.
38 places below Israel is Turkey, which until recently was a secular country and actually has a statistically significant atheist population. And that’s it. Below that we fall off a cliff into places like Belarus, South Africa and Grenada; all of whom still have better GDP Per Capita rates. No Muslim country without oil has a better GDP Per Capita than a Muslim country that has sizable Christian or Buddhist minorities.
What Romney didn’t mention, but should have, is that the Palestinian Authority dealt yet another blow to its economy when it drove out the Christian population. Christians in the territories have traditionally made the best businessmen and the capital of the Palestinian Authority was actually started by Jordanian Christian refugees escaping Muslim persecution. And their decline follows a pattern of Christian communities across the Middle East declining and disappearing under Muslim rule.
Meanwhile Israel is burdened with 1.2 Muslims inside the Green Line, many of whom work in an unreported black economy, and account for 52 percent of national social benefits. Israel’s national  unemployment rate is 5.6 percent. The Arab unemployment rate is 27 percent. Only 59 percent of Muslim men and only 19 percent of Muslim women are officially part of the workforce.  That’s compared to 56 percent of Jewish women and 52 percent of Christian women.
The average Israeli family has double the monthly income of the average Arab family. Half the Arab sector officially lives in poverty. According to many NGO’s this is due to racism. According to many economic statistics this is due to working for a living and then reporting your income.
The Israeli Jewish GDP is nearly three times higher than the Arab-Israeli GDP. This could be blamed on the usual scapegoat of racism, but the Israeli Arab GDP of $6,750 is actually better than the $5,900 GDP in neighboring Jordan, the $6,540 GDP in Egypt and the $5,041 GDP in Syria. This is the same range in which most non-oil Arab Muslim states are grouped and it is clear that there is no escaping it without a big petroleum reserve. Or like Lebanon with its $15,523 GDP, a whole lot of Christians to actually work for a living.
Again culture is still the determinant. Israel within the Green Line only has about 150,000 Christians and about as many Druze, and both groups perform better economically. Christian Arabs have a higher employment rate and a better rate of higher education than Muslims. 
Apart from that official 1.2 million, Israel is also responsible for the 4 million in the Palestinian Authority (some of whom overlap with that 1.2 million and some of whom are imaginary and exist only to collect benefits from international agencies) who are still Israel’s responsibility, according to them and to the world, even though they also continue insisting that they want their own state.

The reason why the GDP in Palestinian areas is so terrible is because its inhabitants live in a giant welfare state. Their income comes entirely from foreign aid. They don’t need an economy because the United States and the European Union are their economy. They don’t need a state because the UNRWA is their state. Palestinian Arabs were already receiving 725 dollars in per capita assistance. Despite their absolutely terrible GDP, only 16 percent of their population in the West Bank lives below the poverty line. That’s a better rate than that of Israeli Arabs, who don’t have an entire UN agency dedicated to taking care of them, and do actually have to work for a living.
It’s easy to admire Israel for what it has accomplished, but it stands out so much because of the region it’s in. Singapore and Hong Kong are less remarkable because they are in a region where countries don’t just give up and wait around for foreigners to come and find oil on their land or for the Mahdi to arrive. In Asia, countries make things happen for themselves. In the Middle East, if you’re not Jewish or Christian, and you don’t have oil, then you have economic problems.
But let’s leave the Middle East and head over to Asia. India and Pakistan are divided by a GDP Per Capita difference of almost a thousand dollars. India is naturally in the lead. Within India, Muslims are at the bottom of the economic ladder. Their per capita GDP is lower, their literacy rate is lower and they perform worse than Hindus. And yet the average Indian Muslim annual income at 513 dollars is still higher than the average annual income in Pakistan at 420 dollars. This remains consistent with the higher Arab-Israeli income and lower Jordanian Arab income model meaning that Muslims in non-Muslim countries will earn less than the majority, but more than they would in a majority Muslim country.
In Africa, Muslim Somalia sits next door to Ethiopia and Kenya and its GDP is so small it can’t even be registered compared to $1,093 and $1,746 for them. You might try to blame Somalia’s civil war, but Rwanda, which experienced a genocide, has a $1,341 GDP. Niger with an 80 percent Muslim population and a $771 GDP sits next door to Chad with only a 53 percent Muslim population and a $1,865 GDP. Next door Cameroon has a 70 percent Christian majority and a $2,257 GDP.
Now let’s head over to Europe. In Britain the myth of the hardworking Bangladeshi or Pakistani storekeeper is practically sacred. In reality 70 percent of Bangladeshis and Pakistanis live in low income households, compared to 50 percent of Africans, 30 percent of Indians and 20 percent of the natives. Bangladeshis and Pakistanis not only have dramatically higher unemployment rates than natives, but they have higher unemployment rates than Africans.
If the issue were racism, then their unemployment rates would be in line with far lower Indian unemployment rates. Instead Muslims have the worst economic record in the UK. Pakistani Muslims in the UK are three times more likely to be unemployed than Hindus. Indian Muslims are twice as likely to be unemployed as Indian Hindus.
Again this fits the same model of Muslims from non-Muslim countries being less economically inept than Muslims from majority Muslim countries. The crucial difference between minority Muslims and majority Muslims is culture. Minority Muslims do have their own culture, but no minority group can entirely escape the values of the majority culture. Arab Israelis and Indian Muslims absorb enough of the values of the majority culture to perform better than their neighbors in Jordan or Pakistan. And they even carry on these absorbed values when they move to another country.
We can see the direct consequences of those values in action. In the UK, Muslims have the highest dropout rate and lack of qualifications of any religion. They have the highest male and female unemployment rates. This isn’t racism, this is Islamism.
Muslims have the highest unemployment rate in Ireland. In Belgium, Moroccans and Turks have a five times higher unemployment rate of the native population. In Australia, Muslims have twice the unemployment rate of non-Muslims and forty percent of their children live below the poverty line. Muslims also have the highest unemployment rate in Canada, 14.4 percent to a national rate of 7.2 percent.
The response to all these numbers is the usual cry of racism, but racism fails to explain why Muslims fail more comprehensively at home than they do abroad. If Muslims fail in the West Bank, then Israeli checkpoints are to blame. If they fail in Canada, Australia and Europe, then racism is to blame. But if they fail in Pakistan, Somalia and Saudi Arabia– who is to blame?

It can’t be Mitt Romney or Benjamin Netanyahu, because neither of those men run Pakistan or Saudi Arabia. The answer can’t be racism, because Saudi Arabia gets everything it wants and it still fails. It can’t be colonialism, because these days the Muslim world is doing the colonizing. So what’s left?
Responsibility is the missing element. It’s the character value without which there can be no economic success. The temptation by leftists and Muslims to respond to Romney’s comments and these statistics by finding someone else to blame is revealing and damning. These statistics are only the tip of the iceberg of larger statistics about illiteracy, violence and corruption that account for Muslim economic malaise.  
The same lack of responsibility that manifests itself after a Muslim terrorist attack, when Muslims rush to position themselves as the victims, rather than dealing with the violence in their midst, also manifests itself in the economic arena and in every aspect of life. This lack of responsibility is a failure of values that cannot be escaped or ascribed to racism, checkpoints or the boogeyman.
Muslims have failed to deal with their problems and so we are left dealing with them instead. But just because the Muslim world insists on pretending that the problems aren’t there or blames them on third parties does not make the problems go away.


Abbas: Hamas agreed to renounce terror – Norway and much of Europe just collectively ejaculated.

December 18, 2011
Palestinian agreement? Abbas and Mashaal (Photo: AFP)
(ynetnews.com h/t Bat-Zion Susskind-Sacks )
(Palestinian agreement? Abbas and Mashaal
Photo: AFP)

will Mashaal get a a Nobel Peace Prize now?

Fatah and Hamas agreed that future Palestinian resistance to Israel will utilize popular and peaceful means, rather than military moves, Palestinian President Mahmoud Abbas declared Saturday.


In an interview with the Euronews channel in Brussels, Abbas recounted his meeting with Hamas Politburo Chief Khaled Mashaal about a month ago.

“We set the agreement’s pillars, and Hamas agreed with us that resistance will be popular and adopt peaceful ways, rather than military resistance,” the Palestinian president said. “The solution is the establishment of a state in the 1967 borders, and Hamas agreed to that, as well as to holding the elections on May 5, 2012.”

The surprising statements were made a day before another meeting is slated to be held in Cairo where the two Palestinian movements will be discussing the implementation of their reconciliation agreement.

‘Palestinians ready for state’

Notably, Abbas’ declaration contradicts various statements issued by Hamas this week on the occasion of its 24th anniversary. In one case, the group said that “resistance will continue in all its forms, as the movement’s favored way until victory, the liberation of Palestine and the return of refugees.”

In his remarks Saturday, Abbas also emphasized the Palestinian readiness for a state and the change underwent by the Palestinians in the past decade.

“We are a people under occupation, we demand independence and believe in peace and in international law, and we’re also implementing the culture of peace in our country,” he said. “Our institutions are ready and we received confirmation from the World Bank, from the International Monetary Fund and from donor countries.”

Abbas also characterized Israel as a peace refusenik and charged that to some extent the United States supports the Jewish state’s approach. He added that the Palestinians are trying to make clear that peace is not only a Palestinian interest, but also an Israeli, regional and international interest.


Israel Halts Payments to Palestinians, Adding to Fiscal Woes

November 24, 2011

All the countries that encouraged Palestine to break their promises can pay the Palestine Authorities bill now if they really care, but I doubt they do. Lip service doesn’t pay the bills. If the world cares so much for the Palestinians then put up or shut up. oh… but they don’t love the Arabs, they merely hate Jews.

(NYTIMES) RAMALLAH, West Bank — The Palestinian Authority, in over its head financially as foreign donors renege on pledges and local banks have reached their limits, has an even more serious money problem: Israel is refusing to transfer tax and customs payments that account for two-thirds of its revenue. For three weeks, the Israeli government has pointedly withheld the transfer of these payments, amounting to more than $100 million, to express opposition to the Palestinian Authority’s recent policy of pursuing United Nations membership and renewing power-sharing talks with Hamas.
The impact of Israel’s decision not to make its deposit could be devastating, according to Palestinian and international officials.
“With each passing day, the Palestinian Authority becomes weaker, and is fast approaching the day when it becomes completely incapacitated,” Prime Minister Salam Fayyad said in an interview this week.
Oussama Kanaan, the International Monetary Fund’s mission chief for the West Bank and Gaza, said that unless Israel changed its approach, salaries due on Dec. 1 that support one million Palestinians would go unpaid.
“Part of the reason why people have not revolted is that there has been some progress and security, and the living standard has been going up,” he said. “But if they cannot get their wages paid and they have high expectations about independence, they will see this as a sign of weakness and incompetence by the Palestinian Authority.”
Secretary General Ban Ki-moon of the United Nations and senior American officials have contacted Prime Minister Benjamin Netanyahu of Israel in recent days, urging him to release the money. Tony Blair, the representative of the so-called quartet — the Middle East peacemaking group composed of the United States, Russia, the European Union and the United Nations — added his voice to the criticism on Wednesday, saying, “Only those who oppose peace and Israeli-Palestinian cooperation benefit from the withholding of P.A. funds.”
An aide to Mr. Netanyahu said the point was to “incentivize bad things not happening.” By that, he meant the Palestinian Authority’s pursuit of full membership in the United Nations and its planned talks with Hamas, expected to start on Thursday in Cairo.
But the aide said that if the Palestinians did not move to join other United Nations agencies — he said they had indicated a willingness to back off for now — and the Cairo meeting produced nothing more than promises of more meetings, the likelihood was that the money would be released by next week.
“We are trying to send a clear message,” he said.
Another Israeli official said that when the decision was made to withhold payment around Nov. 1, there had been several troubling developments from Israel’s point of view. First, he said, President Mahmoud Abbas of the Palestinian Authority said nothing after a rocket from Gaza killed someone in southern Israel. Then Mr. Abbas seemed to praise the abduction of an Israeli soldier five years ago and said he would never recognize a Jewish state. Finally, the Palestinians joined Unesco — the United Nations Educational, Scientific and Cultural Organization — a move that Israel rejected as another unilateral step toward statehood.
“We wanted to make clear this could not be business as usual,” the official said. “The idea is to influence Palestinian decision-making.”
The transfer of the more than $100 million a month is not, in theory, optional. It is mandated by the 1994 portion of the Oslo agreement. The money is made up of customs duties that Israel collects for Palestinian orders arriving here through Israeli ports, value-added taxes on major Palestinian purchases of Israeli goods and excise taxes on Israeli fuel bought by the Palestinians.
But the Israelis argue that by approaching the United Nations and engaging with Hamas, the Palestinian Authority is breaking its end of the Oslo accords, freeing Israel to do the same.
The United States has suspended tens of millions of dollars it has pledged to the Palestinian Authority because of Congressional objections that mirror those of Israel.
Israel has withheld payments before, notably during the 2001-2 uprising and again in 2006, when the Fatah-dominated Palestinian Authority and Hamas briefly formed a unity government. Foreign donors, mostly from the Arab world and the European Union, made up the difference.
That pattern has eased concerns here.
“The Authority has never collapsed, and it will not do so now,” , the chief executive of the Palestinian Stock Exchange, said in an interview. “The Arab Spring obliges the Arab countries to act in ways they are not used to. And the Israelis can rant and rave all they want. In the end, it is in their interest to help us.”
Indeed, it is widely agreed in the Israeli military establishment that a functioning Palestinian Authority is in Israel’s interest because, without it, Israel would have to police and provide civilian services to millions of Palestinians. But as the aide to Mr. Netanyahu said when asked about that, “True, but that is not our only interest.”
Relations between the two sides have deteriorated, and senior Israeli leaders, including Foreign Minister Avigdor Lieberman and Finance Minister Yuval Steinitz, have publicly argued for withholding the Palestinian transfers. Mr. Netanyahu has not gone that far.
At the same time, the Israeli and Palestinian Finance Ministry panels working on the tax and customs transfers have recently made important strides together, reducing leakage and increasing revenues, both sides said.

…NO MORE MONEY FOR OUR MURDER…

Mr. Fayyad noted that since the Europeans were facing their own fiscal crises and the Arabs had not come forward with pledged donations, it made little sense to assume either would come to the rescue now. In the past two years, the authority has set up institutions as part of its ambition to be ready for statehood, and that has made fiscal reliability all the more important.
“If we can’t meet our contractual obligations, that has a chilling effect on the private sector,” Mr. Fayyad said. “This undermines confidence in the Palestinian Authority’s capacity to function, which has a debilitating effect on investor confidence. Like a family, a government can make do with less — but not a drop of two-thirds.”

Actually it is more simple then this. when Palestine unilaterally went to the U.N. to ask for statehood it broke the Oslo agreement. It isn’t the Israeli opinion. It is a legal fact. The NYTimes is lying. They have no right to ask for funding if they broke their promises.


Turkey Seeks Simultaneous Drilling Halt

October 1, 2011
(Hudson-NY.ORG) Washington is closely monitoring the recent developments on the issue…

Redrawing the Sea: Erdogan says Israel will not be able to move in the eastern Mediterranean as it wishes.
…oh and don’t forget about those
Turkish warships that are being built domestically. oh joy! (Hurriyet)…in the mean time Turkey acts like it is being diplomatic with it’s other neighbors:

(AA.com) Turkish Cypriot President Derviş Eroğlu on Saturday submitted a four-item proposal to United Nations Secretary General Ban Ki-moon to resolve the spat with Greek Cyprus over drilling in the eastern Mediterranean.
The proposal starts with a bid for both sides to simultaneously suspend oil and gas exploration, a move that seemed to show Turkey’s reluctance to start drilling work in the Mediterranean.
In the first item of the new proposal submitted to Ban, Eroğlu made an offer to the Greek side to “suspend the oil and natural gas exploration simultaneously until a comprehensive solution is found to the Cyprus problem.”
If this is not going to happen, Eroğlu offered to “set up an ad-hoc committee shaped by representatives of both peoples” on the divided island.

Disgusting denial of the correlative. Turkey is on the gas pipeline and has no gas shortages like Europe does. It is not generous at all to meet this demand. Hindering exploration would raise the price of the resource… this would make Turkey profit. It sounds like as if they are making nice, but they are not. Erdogan’s ploy at diplomacy is hostile and manipulative.

“We shall give some authority to the committee, such as [authority over] explorations, agreements and licenses dependent on written approval of both sides, and we will negotiate the ratio of sharing the riches that will be found,” Eroğlu said.
Thirdly, the Turkish Cypriot leader proposed, “We shall use the income to finance the comprehensive talks,” adding that “the adoption of the plan shall not harm the positions of either side.”

He is playing as if he is generous and ready to negotiate terms… typical Islamic move of demanding conditions for negotiations.

Eroğlu said Ban was pleased with the proposal, in which he repeated Turkish Prime Minister Recep Tayyip Erdoğan’s earlier call for the two sides to simultaneously renounce the energy explorations. Turkish Foreign Minister Ahmet Davutoğlu said Turkey supported the new proposal that was presented to the UN chief.

We all know Ban’s bias already

“If the two parties renounce natural gas exploration, we will accept it,” Erdoğan told Ban late Thursday on the sidelines of the annual UN General Assembly in New York, asking the UN chief to intervene with the Greek Cypriot government in Nicosia and urge them to stop their offshore explorations.
Turkish Cypriot Foreign Minister Hüseyin Özgürgün said Sunday that required coordinates had been set and drilling for oil would soon begin in northern Cyprus. If the Greek Cypriot administration sees Turkish Cypriots as a minority on the island and carries out exploration work unilaterally, Turkish Cypriots can begin exploration in the north of the island, Özgürgün said.
Richard Stone, a leader of Jewish communities in the United States, meanwhile told the daily newspaper Kathimerini on Sunday that Turkey’s actions to prevent the gas and oil drilling efforts of Greek Cyprus and Israel in the East Mediterranean is “a reason for war.” He said.

Meanwhile Ankara Prepares to Penalize Syria to look good for the international community and sadly the United States. Keep in mind that Assad isn’t even a Muslim

(Hurriyet)”If you’re going to act against fundamental rights and liberties, and the law, you will lose your position in my heart as my brother and my friend,” Erdoğan said, referring to al-Assad. “I was very patient. Patience, patience, patience. And then I cracked.”

It is amusing to think anyone would cooperate with Erdogan based on such dishonest intentions.

(Zaman) Opposition Nationalist Movement Party, or MHP, leader Devlet Bahçeli has accused Turkish Prime Minister Recep Tayyip Erdoğan of working for the security of other countries while his country has been suffering from terrorist attacks.

Yikes, U.S., Turkey Agree on Delivery Schedule of Predators

(Zaman) “These [Predators] are UAVs with better qualities and features than the Herons,” Yılmaz said, adding that the Turkish-made Anka would also be ready for the TSK around the same time as an alternative to Israeli-made Herons.Turkey was disappointed by Israel’s failure to return six Herons it had sent to the country for maintenance, as it relies heavily on spy aircraft for surveillance missions that gather data on the activities of the Kurdistan Workers’ Party, or PKK, across the country’s borders in the Southeast…. Meanwhile, the domestically made Anka, named after the legendary flying creature of Persian mythology, was brought out of the hangar for the first time in July 2010 and is expected to provide Turkey with a crucial advantage in its fight against the PKK. The Anka is capable of disrupting the electronic ware of enemy aircraft and has made Turkey the third country in the world, after the U.S. and Israel, to engineer UAVs.

This one is hysterically funny! Turkey’s economic lie …Erdogan Says Turkey is a Role Model in Region?

Turkey’s economic lie

Turkey no economic powerhouse, Erdogan’s credit bubble will soon explode

(AA.com) Turkish Prime Minister Recep Tayyip Erdoğan said Turkey is a role model in its region and has become a country whose friendship and cooperation is asked for in the whole world. Attending a brunch meeting of the Investment Support and Promotion Agency in New York on Saturday, Erdoğan said that a country needed some qualities to draw investment and make commercial relations with another country, listing the qualities as a democratic milieu, stable economy, strong political state, dynamic real sector, big domestic market and export potential. Stressing the importance of stability and confidence, Erdoğan said that Turkey had these qualities. Turkey gives confidence to investors in the world with its economy, public financing and banking sector, Erdoğan said, adding that Turkish economy grew nine percent in 2010, 11.6 percent in the first quarter of 2011, and 8.8 percent in the second quarter of 2011. He said that Turkey became one of the fastest growing two economies together with China in the first half of the year. Noting that Turkey became an attraction center for investors, Erdoğan said that private sector investments, which were only 43 billion Turkish Lira, or TL, in 2002, rose to 164 billion TL in 2010. Erdogan noted that Turkey created 1.5 million new employment opportunities in June 2011 when compared to June 2010. He added that Turkey’s success was not related with conjuncture, noting that it was related with economy management, real sector and the potential of the country. He said that Turkey’s export increased from $36 billion in 2002 to $130 billion in 2010, adding that Turkey had free trade agreements with 20 countries, and opened to Middle East, Africa and South Africa countries to make export. Erdogan said that trade volume between Turkey and the United States was $16 billion in 2010.

Turkey’s economic lieTurkish Deputy Prime Minister Says Turkey Appreciated in IMF Meetings?

(Anadoluajansi) “This is the first time in nine years that I have seen such a high-level political will in the United States, aiming to make business with Turkey,” Babacan said.

Turkish Opposition Says No to ‘Israel Shield’ aka that NATO thing Obama wanted so bad …doesn’t sound like the West likes them or vise versa as much as Erdogan’s propaganda claims.

(Hurriyet) The Turkish government is doing nothing but ensuring Israel’s safety by allowing the establishment of a NATO radar base in Turkey, Republican and People’s Party, or CHP, leader Kemal Kılıçdaroğlu said.

Stanley Fischer disqualified to IMF candidacy due to age… sounds like the disqualified AntiSemitism program at Yale

June 14, 2011

former IMF head

…Dominique Strauss-Kahn:

…if I may add… the IMF’s last head is in worse shape then Weiner. Old man is going down for RAPE??? Strangely bizarre the way it appears that Jews that are under the control of Arabs because of whatever reason go down as sex perverts once in power. I know this post is about IMF finance, but it appears to be an eco-system of corruption of Jews in power that they don’t speak out in the right places and turn out to be perverts. 
Fayyad got outsiders to float the Philistine state because Fayyad got a doctorate in economics and had a career at the World Bank and IMF who are ready to approve the state. Best way to control the system… is to be the system.

The World Bank which for years praised the fictitious Palestinian economy finally admitted in the report that it is entirely based on donor money which trickle down through oligarchs to Palestinian entrepreneurs.



Leave a Comment » | Agustin Carstens, Christine Lagarde, Fayyad, IMF, Palestinian Authority, Stanley Fischer, Strauss-Kahn | Permalink
Posted by Noah Simon


Palestinian PM suffers heart attack while attending son’s graduation at Great Satan University in Austin, TX

May 24, 2011

Washington (CNN) — Palestinian Prime Minister Salam Fayyad suffered a heart attack while visiting the United States and was hospitalized for treatment, according to a spokesman from the Palestinian Authority on the West Bank.

Fayyad felt chest pains Sunday while visiting Austin, Texas, for his son’s graduation from the University of Texas, Dr. Ghassan Khatib said from Ramallah early Tuesday. The prime minister was hospitalized and doctors found a blocked artery that they corrected, Khatib said. More… via eye-on-the-world.blogspot.com

I hope he doesn’t need any Israeli technology to save him. Would be a shame to have a martyr for the cause because of his BDS campaign.

 Prime Minister Benjamin Netanyahu conveyed his wishes for a speedy recovery to Palestinian PM Salam Fayyad, who suffered a heart attack Sunday. via ynetnews.com

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Posted by Noah Simon