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Subscribe to RSSSome critics say the U.S. is not changing its policy in Egypt, choosing to back Islamists instead of democracy and human rights. NBC's Ayman Mohyeldin reports.
Secretary of State John Kerry will stress the importance Egypt achieves political consensus for painful economic reforms needed to secure an IMF loan, a senior U.S. official said on Saturday.
Kerry arrived in Egypt on his first visit to the Arab world since taking office for talks with the leaders of a country mired in political and economic crisis two years after the overthrow of autocrat Hosni Mubarak.
With Egypt's pound and foreign currency reserves sliding, the official said that if Cairo could agree on a $4.8 billion loan from the IMF, this would bring in other funds from the United States, European Union and Arab countries.
However, the official said the United States believed Egypt needed to increase tax revenues and reduce energy subsidies - measures likely to prove highly unpopular.
"His basic message is it's very important to the new Egypt for there to be a firm economic foundation," the official told reporters as Kerry flew to Cairo.
"In order for there to be agreement on doing the kinds of economic reforms that would be required under an IMF deal there has to be a basic political ... agreement among all of the various players in Egypt," the official said on condition of anonymity.
Jacquelyn Martin / AP
U.S. Secretary of State John Kerry, left, meets with Arab League Secretary General Nabil Elaraby, at far right, in Cairo, Egypt on Saturday, March 2, 2013.
Egypt said on Thursday it would invite a team from the International Monetary Fund to reopen talks on the loan and the investment minister expressed hope that a deal could be done by the end of April.
The loan was agreed in principle last November but put on hold at Cairo's request during street violence the following month that flared in protest at a planned rise in taxes.
While the tax rise was withdrawn, Islamist President Mohamed Mursi is likely to face violent protests as any cuts in subsidies demanded by the IMF will push up living costs in a country where poverty is rife.
Energy subsidies soak up about 20 percent of the government budget, bloating a deficit set to soar to 12.3 percent of annual economic output this financial year.
Clashes in Mansoura, Port Said
Early on Saturday, young protesters fought interior ministry police in the Nile Delta city of Mansoura, where one protester was killed and dozens injured. In the Suez Canal city of Port Said, protesters torched a police station, security sources said.
While the protests were unrelated to Kerry's visit, they were examples of the frequent outbreaks of unrest faced by Egypt's government.
Clashes are commonplace, with young people and Egyptians demanding Mursi reform the interior ministry's police force. The president is accused of not taking police reform, a key demand of the uprising that toppled Mubarak, seriously.
Kerry will stress the need for agreement across the political spectrum on reforms and winning approval in the Shura Council, Egypt's upper house of parliament.
"What they need to do is ... things like increasing tax revenues, reducing energy subsidies, making clear what the approval process will be to the Shura Council for an IMF agreement, that kind of thing," said the official.
Hopes for consensus between the ruling Islamists and opposition parties seem slim. Liberal and leftist opposition parties have announced a boycott of parliamentary elections, scheduled for April to June, over a new constitution produced by an Islamist-dominated assembly and other grievances.
Kerry meets opposition leaders on Saturday but many senior figures were not on the list of expected participants, including Hamdeen Sabahy, who came a close third in presidential elections last year and former U.N. nuclear agency head Mohamed ElBaradei.
Kerry does not wish to be seen as lecturing Egyptians and will not explicitly tell opposition parties to renounce their boycott of the lower house polls, the U.S. official said.
However, he will make the case for them to take part.
"If they want to ensure that their views are taken account, the only way to do that is to participate. That they can't sit aside and just assume that somehow by magic that all of this is going to happen," the official said. "They've got to participate."
Copyright 2013 Thomson Reuters. Click for restrictions.
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International loans create international financial instability. I understand that the core belief here is that peace will come through a well functioning economy and there is certainly some truth to that, but there is also the truth that Egypt is currently inherently unstable and there is no telling who or what government might be expected to pay the IMF back.
Suddenly there is a stake, a reason to make sure one outcome happens over another. In my opinion the entire model of this so-called solution is almost guaranteed to drag us further into Middle Eastern entanglements, and therefore it is completely the wrong answer.
In Dec.2010 the I M F sold off 403 metric tons of gold.
Leaving them 2814 metric tons of gold.
The senate appropriations Committee will respond to a request by the Obama administration to attach a 108 billion dollar increase to the IMF to a supplemental Wartime Spending Bill.
In order to make this politically feasible, the administration has argued that the true cost of the 108 Billion dollars is actually zero. The Non Partisan Congressional Budget Office did not buy this argument.
I'll bet Obama voters would buy that argument though.
The U.S. contributes 17.7 % of the IMF.
150 billion dollars.
"Economic Reform"......Whaaaaat ?
Wow, the new SofS really has HIS priorities mixed up.
What about FIXING Morsi's relationship with IRAN ? Wait a minute, how about BLASTING Morsi for his relationshop with IRAN ?
What about Morsi's comments against the United States ?
I will not get into the "We supported the Egyptian Rebels who turned out to be Muslim Brotherhood".
Nah, give them a FREE PASS and more American taxpayer dollars so they can SKIM money and put it into one of their bank accounts or to support the Muslim Brotherhoods caliphate.
Sheeeesh, and I though Clinton was the worst.
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Mr. Obama PROMISED TO INCREASE redistribution of Wealth (via the IMF) to poorer countries in his SOTU speech. Expect to see the Continuing Resolution stuffed with Obama agenda items requiring MORE FUNDING.
Redistribution is almost up to speed.
Why are we giving money to Muslims?
Don't the roll in oil money?
Even if someone embraces the idea of redistribution like Obama, there is one big problem.
He doesn't redistribute money from wealthy Americans to poor Americans.
He takes money from all Americans and gives it to countries that want us destroyed.
Kerry, stop with the foreign aid, our Country is Broke !!!
We're telling Egypt they needed to increase tax revenues and reduce energy subsidies ho those rich oil guys - measures likely to prove highly unpopular not in this country Obama love to money grabbing.
Are we nuts they want 4.8 billion loan from IFM bring in other funds from the United States, did not anyone tell Kerry the sequester just kicked in to SLOW GROWTH IN SPENDING. Hey we don't have anymore money stupid. This is just nuts Obama just don't get it we pay them every month $1.5 billion in aide, and now wants to give them more, it's time to impeach this guy. We are going to be working for the Chinese by 2014 we won't have to worry about Obama care we will have one hung low care. Come on people wake up are you all low information voters out their.
All that have to say about young protesters is God bless them for trying to change their government, here we can't get the young cut the grass in this country. We as a country sit by and allow Obama to fill the pockets of the Mursi government with billions of your tax money, to kill young protesters fighting to free their country from a tyrant. While we Americans sit and allow a tyrant to run this country you should all hang you heads in shame.
Kerry is as thickheaded as Obama who do you raise taxes on Unemployment Rate in Egypt increased to 13 percent in the fourth quarter of 2012 from 12.50 percent in the third quarter of 2012. Unemployment Rate in Egypt is reported by the Central Agency for Public Mobilization & Statistics. Historically, from 1993 until 2012, Egypt Unemployment Rate averaged 10.26 Percent reaching an all time high of 13 Percent in December of 2012 and a record low of 8.10 Percent in June of 1999. In Egypt, the unemployment rate measures the number of people actively looking for a job as a percentage of the labor force. HOW DO YOU RAISE TAXES KERRY WITH 13% UNEMPLOYMENT?
One way to play the game...
Lobby the gov't to work towards overthrowing or plain flattening other countries so they can sign away their autonomy for an IMF loan all so they can pay your contracting firm to get low wage peasants to do a poor job rebuilding the structures you lobbied the government to demolish in the first place.
So, Mark from Cincinnati what do the contractors care if the IMF gets stiffed?
http://www.stanford.edu/class/polisci243c/readings/v0002183.pdf
Oh, yeah, Bozobama, send Lurch over to Egypt to give them orders they'll ignore, then throw more money to them. That'll straignten it all out, won't it, demlibs? Morons; no wonder we're broke and getting even more so with the Bozobama in control.
no, mista kewwy,
we are 2 tupid in amirecaca.
u sed americacans hav the wite 2 be tupid.
u shud come bak 2 the US and quit spendin that fuul monee on ur plain twip.
arrrrrughgggh.
mmkay?
so git on ur plain and come bak 2 de stats tudey. ur makin US pooor.
we kinot aford to pay 4 or howsis.
we kinot aford to pay 4 or cahs.
we kinot aford to pay 4 or skool as us kin see.
so git on that plain and retuhn to americaca wite now!
and we wil not fite ur war in ejipt.
u go fite it.
ketchup man.
"With Egypt's pound and foreign currency reserves sliding, the official said that if Cairo could agree on a $4.8 billion loan from the IMF, this would bring in other funds from the United States, European Union and Arab countries."
Why can't the oil rich Sunni rulers give loans to Egypt and other pals in need?
Are their money reserved only for funding their hating and killer training Salaffi and Wahhabi mosques all over the world and funding their Sunni Islamic killer proxies like al Qaida, Taliban, Boko Haram, MB, Salaffi and others?
No tax monies to the ungrateful backstabbers like Morsi and his Muslim Bloodhounds.
So if we can get you to takes Billions from the International Monetary Fund you should qualify to get Billions more directly from the U.S.
In addition to the Billions we are already giving you.
Does anyone see anything wrong with this picture?
Excuse me while I step away to check on my Ramen noodles. For the 7th time this week.
This is sort of like going to a meeting of the local Pyromaniacs Anonymous and offering to give them reduced prices on kerosene if they will agree to continue seeking help with their problem.
The IMF.....in addition to G-7, G-8, and G-20....are nothing more than financial terrorist arms of the United Nations.
The American peoples patience are wearing thin with all this money going out of our Country they call foreign aid !!!
The worlds money machine $55 Billion dollars going overseas every year, this is Crazy !!!
""In order for there to be agreement on doing the kinds of economic reforms that would be required under an IMF deal there has to be a basic political ... agreement among all of the various players in Egypt," the official"
It is crazier that when big talkers like John Kerry, Hillary Clintons and co go to Muslim nations, they don't talk about "human rights", "women rights", "democracy" and so on!
How about letting the Egyptians stew in their own juices. We need money at home. The new Egypt is no friend to America. Let the rich Arab states support him or maybe they don't want another radical Islamic state either.
Yes. Kerry got a handshake for 60 million dollars and the Syrians do not want food or medicine. The Syrian Sunni rebels want to die. Kerry is the worst bleeding heart liberal ever picked for this position.
How many Americans & Christians will die from kerry giving this aid to alQaida thugs ?
Time to stop supporting Israel with Billions & Billions of American tax payers money, let the dirt bags fend for themselves, warmongers at best !!!
""If they want to ensure that their views are taken account, the only way to do that is to participate. That they can't sit aside and just assume that somehow by magic that all of this is going to happen," the official said. "They've got to participate.""
Can anyone trust a word of Sunni Islamists Morsi and his team?
But John Kerry and his team want the opponents of Islamists to trust Morsi and his Muslim Bloodhounds. Which era these Kerry and co are in?
Either these Kerry and co are stupid or on the payroll of oil rich Sunni rulers, oil companies and their lobbyists.
Kerry, you can not save Egypt from itself and throw USA IMF money at Egypt. Cultural and moral problems are solved from within. The USA can't buy its way in the world. Interfering with other nations will make things worse. Save Detroit first with our money then try to save the culture from decay. The united states of America needs your help Kerry. The secretary of the USA should focus on our country before you fly away as an international big shot giving away money we borrow from China.
Egypt has a young well educated workforce and they were mistaken about democratic reform being the magic ticket to prosperity. Uncle Deng's hunch was right that the masses are asses; people are more concerned about consumption and a higher standard of living and would prefer authoritarianism and full employment over democratic reform and unemployment. Egypt and the entire Muslim world is ripe for the Red China model: authoritarian capitalism. The U.S. and its allies are in a quandry - wanting to export liberal democracy on a budget. Impossible.
The Secretary of State has no involvement in domestic affairs. His job is strictly international in scope.
Since our economy is humming along so nicely and Americans have more disposable income than ever before, I propose we loan Egypt the entire Obama administration for the next four years so he can do to them what he's done to us.
John, maybe you can get Egypt to start up a Heinz catsup plant.....
Sure Kerry is a goof but he doesn't really have a tough act to follow. Quick: name ONE accomplishment of Hillary Clinton as Sec. of State (and frequent flyer miles and high polls don't count.)
Smiley Jackson-891287....."Quick: name ONE accomplishment of Hillary Clinton as Sec. of State (and frequent flyer miles and high polls don't count.)
Accomplishment 1: Kept her distance from the Benghazi investigations until the few days BEFORE she RESIGNED and cried during her "Congressional testimony".
Accomplishment 2: Kept her Sundays "personal" since she didn't want to go on National TV to explain to the American people why she did NOT PROTECT Americans overseas working in HER organization, admit her FAILED LEADERSHIP, and helped throw Ambassador Rice under the ObamaWagon.
Accomplishment 3: Kept the media from her Muslim Brotherhood connected Chief of Staff.
Accomplishment 4: Went to Haiti to provide Hurricane relief funds and was greeted with open arms by her husband who was there to make sure the funding went through HIS World Redistribution Group. BTW: Haitians are STILL LIVING IN TENTS.
Accomplishment 5: Made sure the press corps had their wide angle lens on their cameras when taking pictures.
Accomplishment 6: Made a carbon footprint with HER PRIVATE JET bigger than that of China.
how about some economic reform in the good old US of A, please
Yah really. People in glass houses...
Can Mr. Kerry come home and try to educate the POTUS on economic reforms?
You mean Congress.
No. He meant the ignorant lying sack of crap we have for a president.
I notice DLS avoided my first statements,1.2 and 2.
Keeping his head buried in the sand.
America needs to increase its taxes on those who don't pay their fair share, and eliminate the tax loopholes to corporations and tax breaks for the wealthy.
Annually, how many billions do you think we should contribute to the International Monetary Fund?
If we let Obama get more of our tax money WHAT is that going to solve? Unless he lowers spending it will solve NOTHING. Asking a BIG government Liberal to manage a solid fiscal policy is hopeless.
This article was not about "fair" taxes in the US. It was about the US, with huge economic problems, telling Egypt, with even more gigantic economic problems, to clean up its act -- a bit hypocritical on our part.
We should not give Egypt aid regardless of what they do or don't do. Aside from the fact that it's wrong to manipulate countries this way and often counter-productive, we don't have any money!
Our Secretary of State, Mr. Kerry, is through a democratic process, even though there are votes against his nomination, but the majority votes have won his nomination.
Teaching Egyptians a means of democracy always have disagreement, but that disagreement cannot ring up violence against anyone, but respect to the majority, and at the same time, the majority has to respect the minority, and that is what a true call of democracy really means.
Was Kerry talking about Egypt or the US? Virtually everything Egypt needs we need too.
Kerry is a traitor to America ! He gives alQaida terrorist 60 million tax dollars to behead more Christians and eventually kill more Americans like poor Ambassador Syevens ! American servicemen mean nothing to scumbags like kerry ! He should be thrown in jail for war crimes with hillary the witch !
Kerry, representing a bankrupt US is telling Egyptians to take more loans from IMF ? Insanity ! IMF is known for destruction of economies. The Egyptians should be asking the Chinese for advice, not Kerry who contributed to our financial disaster.
So we want stronger gun control in this country but we reward terrorist governments with more of our tax money....Let me extend my middle finger on this one!
They will use our money to buy guns we are not allowed to buy.
To possible be used against us sometime in the next 100 years.
Kerry pushing another country for "economic reform".... the irony. What a douchebag. How this idiot stays in office is beyond reasoning.
Remember.
Jessie Jackson Jr. won in a 40 point landslide while hiding from federal charges in REHAB.
And he had the President's endorsement.
The lunatics have taken over the asylum.
"Official said the United States believed Egypt needed to increase tax revenues." Sounds like they are trying to push Obama's policy on Egypt. We gave them 2 billion last year they know where to get their revenue from
I thought the hundreds of billions the Hillary / Obama connection dumped in their lap was all the economic reform they needed. Guess not. Hey, thats like a whole bunch of sequesters.... Did they at least tell Karry which country he was in and how to pronounce it this time? Maybe he thought he was in Italy or something.
Nice name.
Stay calm, stay calm!!!! .... all is well, all is well!!! -- big giant hand comes down the road and scoops him off and down the road. Thank you for the memory Bluto.
A PLEDGE PIN!!!!! On your uniform?!!!!!!
You're a god damned disgrace!!!
Tuck in those pajamas!
When they shuffle me off to the concentration camp I can only hope they will play animal house and blues brothers non stop as part of my brainwashing... or undoing.
Eat me!
smashing guitar, jello slurping, what was the other one.... Can we dance with your dates? Or was it We want to dance with your dates? I'm only 13. Ok, have to stop this now...
Just you an me ,,,,,,,,,,,,, an Otter and a couple of the guys.
I thought there were blanks in that gun.
Stop!! Ok.... thank you sir I'll have another.
The IMF is the FED on a global scale. Egypt, if you respect your sovereignty, please don't accept any loans. This is nothing more than another step toward globalization and blurring the lines between sovereign countries and states. Btw, who is Kerry to give financial advice to another nation? We are 16.6+ trillion dollars in debt and are not taking strides to address the issue.
Kerry needs to talk to Obama about economics. Obama proposed sequester and just signed the bill and he still doesn't know the impact of sequester. He and his court jesters in the White House have been spinning BS for weeks about the impact and yet they don't know! This was demonstrated when a Washington supervisor had to tell his people that Obama lied and their jobs were not on the line nor were there pay cuts coming. "Obama lied".
He lies all the time.
He lies about the lies that he lied about.
He even lied to his aunt when he went down south.
More binge spending--helping an Islamist government, no less. Reminds me of (link) "Jesus: On Love" in The Brick Testament.
we need to stop send aid to other country's until we have are own house in order,and stop sticking are noses in were is dose not belong
Sec Kerry is trying to persuade them to take low interest loans they won't pay back and then we will give them more money but they need to tax the wealthy. Well many of the wealthy got the heck out of Dodge as the revolution occurred and the ones who stayed were conservative Muslims who were not concerned with theMB.
Egyptologist claim Kerry can't fined his Hinze with both hands. They want Hillary back.
Best thing to do with Kerry in Egypt is to put him under the Pyramids.