Egypt heading for collapse

Failed treasury auction portends Egyptian disaster
Meat imports have already fallen by 60% over the past year, the Egypt News website reported on January 22, [1] reflecting the collapse of purchasing power. More alarming is that bread has become scarce in some provincial cities. In Ismailia on the Suez Canal, the Youm7 website reported on January 22, a bread protest burned cars and blocked a main highway. Similar protests took place in other towns close to Cairo, including Zagazig and Ibousoar.
Anything that can be sold for hard currency - wheat, rice, butane, diesel fuel and sugar - has disappeared from government warehouses during the past year, according to a multitude of reports in local Arab-language media summarized in my 2011 essays. (See When will Egypt go broke? Asia Times Online, July 12, 2011.)
It is not clear whether the localized shortages of food and the nationwide shortage of gasoline reflect a buyers' panic, or large-scale theft, or an effort by the central bank to conserve foreign exchange by slowing essential purchases - or all of the above.
Nearly half of Egyptians are functionally illiterate. Nine-tenths of adult women have suffered genital mutilation. Almost a third of Egyptians marry first or second cousins, the fail-safe indicator of a clan-based society. Half of Egyptians live on less than $2 a day, and must spend half of that on food.
Under duress, and after the collapse of the secular military dictatorship that ruled Egypt since the Free Officers coup six decades ago, Egyptians naturally revert to traditional institutions: mosque, tribe and clan.
Market Vectors Egypt (EGPT):

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