Sunday, October 5, 2014

Egypt, an economic Giant in the making

It takes a prince of darkness like Daniel Pipes who set out to spread ignorance in America, to draw attention to the light of dawn that is breaking on a region of the world where other princes like him have managed to impose their brand of darkness for a while but have failed to maintain it.

And in the way that the creatures of the deep have always done things, Pipes is alleviating his pain and consoling his comrades by working to make the American people believe in the lie that the situation which he and his kind have failed to achieve, does indeed exist and has always existed. He tells the sons and daughters of America about a condition that is so exaggerated, it does not exist as he describes it. Nevertheless, he counsels his audiences to get hysterical about it because it will breed consequences that will soon hurt them.

Pipes does that in an article that is titled: “Hunger growls in Egypt” and the subtitle: “A growing population and shrinking farmland lead to food shortages.” It was published on October 3, 2014 in the Washington Times. His message as stated at the end of the article is this: “Starvation in Egypt is yet another of the Middle East's problems which outsiders cannot solve, only protect themselves from.” Are you hysterical yet?

There are two important points to consider here. First, what does he do to navigate his way to that conclusion? Second, why does he want to do that now? Well, the second question being the easiest to answer, I begin with it. As it happens to everyone when the time is ripe, Egypt has gone through a difficult period that lasted three years. The promise that was there for an economic miracle to take off before the events, vanished over the period. However, the miracle is coming back with a vengeance, now that the difficulties are over.

And so, instead of Egypt being one of the “Next Eleven” on the way to becoming an economic tiger, it now stands alone as a one of a kind economic giant in the making. This is happening because large pools of investment money from around the world are flowing into the country to participate in the massive projects that were started recently, and that will rival those undertaken in the places where explosive growth has resulted in the past. The goal of Daniel Pipes and those like him is to tell potential American investors not to participate. The fear that Pipes and the others harbor is that the more the Americans get involved in the Arab world, the more the Jewish influence on America is reduced.

Now to the first question. How does the author of the article navigate his way to that conclusion? Well, he follows the Friedman/NYT method of balancing out every grain of truth with a ton of lies, every Arab accomplishment with a ton of Jewish pretenses, and every Arab reality with a ton of Jewish fantasies. For example, when a rabbi saw he could not collect enough money to feed the Jews of Israel, he founded the kind of fellowship that only a Jew would found. It is one in which the Christian fellow gives and the Jewish fellow grabs and runs with it.

This told the world that contrary to the claims made by the Jewish propaganda machine to the effect that Israel is a technological whiz nation, it is in reality a Third World hellhole that has managed to evaporate a trillion dollars in aid donated to a population of Jews that ranged from one million to 5 million people over a period of 70 years. And while these realities were coming to the fore, a set of heretofore unknown realities about Egypt were also coming to the fore. They revealed that Egypt was one of the three best fed nations in the world; the other two being America and Germany.

So then, in the face of these realities coming to the fore, what do you think the Friedman/NYT book says must be done to balance things out in the Jewish style? Well, they spun things; that's what they did. Yeah, they look kinda skinny in Israel and kinda plump in Egypt, they said, but that's only because in Israel they follow the anorexic fashion of the high class society whereas in Egypt they eat the unhealthy starchy foods of the poor. Starchy foods? What kind of starchy foods? “Kushari,” says Daniel Pipes. What about kushari? Oh my God, he wants you to believe he knows all about it. Here is what he says: “Egypt's poor rely on the infamous all-starch kushari that causes both nutritional deficiencies and obesity.”

If only he knew. The poor man, if only he knew he was digging himself a hole to bury him several times over. Well, let me tell you, my friend, what could have happened that caused this man to blunder so badly. He must have collected pieces of information from several sources, and stitched them together not knowing that the pieces were not compatible.

To begin with, kushari is a delicious meal that is prized by all classes in Egypt. It is made with rice and lentils. Rice is starchy but lentil is not. It is a pulse that is often recommended to those who wish to lose weight. As for rice, it is the most consumed grain in the world, mostly by the Asians who are not exactly suffering from obesity. What counts is not only what you eat, but also how much of it you eat. And the Egyptians have been big eaters since ancient times. They get fat on everything because they eat too much of everything.

What is starchy in what the Egyptians eat a great deal of is wheat. And that's because it has been a part of their culture since ancient times. They have a surplus of rice which they export, and they use the money to import wheat to supplement what they produce locally. And this is what's at the core of the whole controversy regarding the food situation in Egypt. The truth is that much disinformation is tossed around by the opposition groups in that country, and this provides ammunition to the Friedmans and the Times of the world to produce all the lies, pretenses and fantasies that make their day.

The reality is that of the 93 million or so Egyptians in the world today, 85 million live in Egypt, each consuming a pound of wheat a day on average. When you do the math, the total consumption comes to 14 million tons a year. They produce locally 9 million tons, and need to buy 5 million to fill the gap. At 400 dollars a ton, it costs them 2 billion dollars a year to import wheat. This is how much they bought this year, down from the 10 million that the country used to import in previous years. Why was that? Because the program of subsidies was without controls and was rife with corruption. Gangs were buying wheat from abroad, passed it as locally produced, got subsidies for that, and then re-exported the wheat. But now that a system of controls has been introduced, the corruption has vanished, and the figures are back to where they should be.

To a country that exports 60 billion dollars worth of goods and services, 2 billion dollars to import wheat is not a figure that should alarm anyone, especially when you consider the fact that 10 percent of the 60 billion in export is in processed foods and other agricultural products. In short, the whole controversy about the wheat situation in Egypt is but a tempest in a tea pot. And to put that thing behind them for good, the Egyptians have started building silos that will store 50 million tons of wheat and other grains. With this, they plan to turn Egypt into a hub for the trade in commodities.

But that's not all they are doing in this vein. There is a place called the golden triangle in the Eastern Desert of the country where the production of gold is ongoing at this time, and where a great deal more in precious metals and base metals has been discovered. When developed, all that will go through the commodities exchange they are currently setting up. In addition, they are working to turn the country into a hub of energy trading that will cover the entire gamut from hydrocarbons to solar and wind renewables … and everything in-between.

Now, those who understand economics and those who trade on the stock market know something that everyone must learn about. It is that the state of transportation is a leading indicator as to the overall health of the economy. When it starts going up, you know it is time to buy the market.

And by coincidence, something that tells a nice little story was published at the same time as the Pipes article. It has the title: “Egyptian delegation eyes Chattanooga products during buying mission,” was written by Dave Flessner and published on the website Timesfreepress.com.

Read it and see for yourself whether or not Egypt is poised to become the undisputed economic giant in the near future. Maybe you will want to invest there and be on the side of where the smart money is going.