Spengler: Corruption and Islamism in Egypt

Egypt under Mubarak was a tightly-controlled kleptocracy, and Egypt since Mubarak has been an uncontrolled kleptocracy, in which public officials steal whatever isn’t tied down. Shiploads of rice, diesel fuel, and other tradables are leaving Egyptian ports for hard-currency markets, while the country–which imports half its caloric consumption–runs out of money. Mubarak’s elite has helicopters revving on their roofs. It’s no surprise Islamists swept this week’s parliamentary elections. Whom do we expect Egyptians to vote for?

A new book by an economics reporter at Egypt’s al-Wafd party’s newspaper alleges massive corruption at the country’s central bank. Reviewed in al-Wafd newspaper today, the book by Mohamed Adel Ajmi claims that central bank chief Farouk Abd El Baky El Okdah exercises one man rule over the country’s banking system through cronies in all the central bank’s major departments. The central bank’s reserves, Ajmi claims, are unaudited and subject to the personal control of the central bank governor, who abused his position to enrich political allies of deposed Egyptian president Hosni Mubarak.

Theft on the grand scale from central banks is nothing new in the Muslim world. Last September, “Mahmoud Bahmani, the head of Iran’s Central Bank, denied rumours that $2-billion has already been transferred out of the country as part of a $3-billion embezzlement,” for example. The al-Wafd report has some credibility, considering that the Egyptian military dismissed all the central bank’s outside directors in October, leaving no-one but political appointees.


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  • abacist

    I’ve only been onto him for about six months and in the last month found out his real name as you point out.

    David Horowitz is another one to heed as he was interviewed by Michael Coren with info this a.m. re UCLA literally indoctrinating students in anti-capitalist MARXISTS courses re how to organize an anti-capitalist revolution. Against all university prescribed mandates to independently present the various economic models without endorsing one over the other.

  • abacist

    Jack, Spengler is the current best source for analyzing the failing ME govts. Along with Michael Totten at Pajamas media. We’re getting the particulars outside of regular media reports. The Arab Spring protesters overwhelmingly aimed at setting up ‘secular gov’ts’, but these Islamic banksters have their own agendas, obviously. The population there will not survive until stability of some form ensures the return of the tourist industry on which at least 40 percent of the Egyptian economy depends.

    • Jack

      I think Fox News needs to get David Goldman (Spengler) on in the near future. As you say, the man has a great deal of credibility. I’ve been following him for several years now and have never known him to make a bad call.