Egypt’s economy appears to be running on fumes. Public health clinics are out of vaccine for infants, importers are running out of stockpiles of basic food items, and the government is $3 billion in the hole to oil suppliers in the midst of a paralyzing fuel shortage. And it doesn’t look like anyone is riding to the rescue of Muslim Brotherhood president Mohamed Morsi. The latest news is that negotiations over an IMF loan have been “delayed,” yet again. That’s good news, because the US would be on the hook for a big part of that loan. The Republicans in the House of Representatives have shown some spine in refusing White House requests for emergency cash for Egypt, and should be encouraged. With cash on hand down to about $6 billion, or less than two months’ imports, Egypt’s central bank won’t give scarce dollars to food importers.

(Dr. Benny Peiser)