The latest news coming out of Egypt reveals that the country is experiencing nothing short of a catastrophe.
Among the original demands of the protesters in Tahrir Square were for better living standards and employment, alongside a strong desire for political freedom. But today at least 20 percent of Egyptians are still living under the poverty level, with unofficial estimates closer to 35 percent. Almost continuous protests for and against the interim government, and the violent response such demonstrations have triggered have brought the country to near paralysis.
Egypt has long depended on tourism, investments and industry to keep afloat, and the ongoing volatile security situation is damaging all of these key sectors.
The immediate euphoria which followed the ouster of President Hosni Mubarak in February has proven short-lived. Violence, which has simmered since the first round of elections in late November, has flared up again, with 13 dead over the last few days alone.
Almost inevitably Moody’s ratings agency downgraded Egypt Wednesday, with the national credit risk second only to Greece.
Background Info From Spengler
This is not going to end well.