The government has announced its internal and external debts. The internal debt in Egypt currently is half trillion Egyptian pounds , yes half trillion Egyptian pounds !! I think this is the highest internal debit Egypt has ever had since I do not know when !!
The external debt has reached to $31 billion that is LE 170.5 billion !! Well it is much better than half trillion.
May I ask where does this money go !!?? I have to ask because the internal debt is really our money , the government borrows money from us in treasury bills !! I do not get how boldly the NDP cabinet goes and says we did this and that in economy and we survived an economic crisis where as we have this internal debit !!??
Where does this money go when there are still many villages and many citizens with no access to water or electricity !!??
Hi,
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Governments are immense entities with similarly immense expenses. They have to pay their many workers, their military, the equipment of their military, police, schools, water, currency printing, and so on.
ReplyDeleteIf you think the Egyptian public debt is huge, the US government currently owes $11 trillion USD. And it's growing.
Thanks for writing this blog, it's really interesting.
The engineer makes some good points but he is running behind on the U.S.debt. Officially it is now more than 12 trillion USD and that is a gross underestimate as we have huge unfunded liabilities for Medicare and Social Security.Some economists estimate the true debt at 34trillionUSD which works out to approximately $430,000 per person. I benefit very much from both of these programs but in the long run they are not affordable. Despite the fact that so many idealists believe that government can and should provide all these wonderful services the hard fact is that they are affodable only if we the people can produce enough goods and services to finance them. It is my opinion that Egypt has a very difficult time because of its enormous population growth and a lack of sufficient natural resources. I fervently wish it were easy to fix but it is not easy.
ReplyDeleteSalaam alayakum
The Youth revolt has had one major positive impact on Maghreb country debt: the attempt of big nuclear power supplier countries to saddle them with huge new debts, for unneeded and massive nuclear power programs is now rather surely on hold, or abandoned.
ReplyDeletehttp://www.marketoracle.co.uk/Article26563.html
Well, three things that government does are forms of theft: 1- Taxation is theft, 2- Inflation is theft, 3- National debt is theft.
ReplyDeleteThere is lots of literature about those things, and I can point you in the right direction if you want, but let me explain briefly a few things.
The first one -taxation is theft- is debatable depending on your political views, so let's forget about how taxation is theft and focus on how inflation and national debt are theft, because these are almost undebatable forms of theft.
When you hear about debt you'd expect that someone is a lender and another is borrowing. News flash, almost all countries in the world are in debt!! Which on the very mention of it seems extremely weird. If USA has debt, Egypt has debt, and every other country has debt, the natural question to ask is: Who the hell is lending all that money?!
There are many complications that arise when trying to answer this question, and it is indeed a very complicated and twisted issue. However, assuming no fraud is being committed, the debts are being "borrowed" from future generations. In other words, promises of investment of future generations. That's exactly why it is theft. The previous government borrowed money on the promise that some future government is going to pay the debt! But that "future" government never agreed to lend that debt, so the previous government has in effect robbed the future governments. So, now you got Egypt stuck with a debt that its people never wanted in the first place.
But the second part is fraud. National debt is not just robbing future generations of money and calling it "borrowing", it also involves fraud. The fraud part is what explains how all countries are in debt.
Because, the government that is doing the "lending" is printing money out of thin air. So, one country is printing money out of thin air, and lending that printed money to another government that promises to pay back that money (plus interest) sometime in the future. And of course, we know that printing money out of thin air causes inflation.
Politicians also print money for other reasons. In the US for example, politicians print money in order to keep taxes low. So, let's say one politician promises to lower taxes. But he wants to increase spending. What do they do?! They print the money, again out of thin air. In reality, this is just a trick, instead of taking money *directly* from people through taxation, they take the money *indirectly* by causing inflation [ie. decreasing the purchasing power of the currency]. So, if a person makes 10000$, the government can either directly take their money through taxation, or indirectly by making the money they earned worth less.
Now, add to all that, that the government steals all this money with the promise of putting it to actual use, but in reality puts in in their pockets as you have mentioned is just the frosting on the pie.