I love Stratfor, it's a great site and luckily we have a member who sends me updates from the site. Hosni Mubarak's worst fears may be unravelling. The wild card in the Egyptian crisis has been the military which is widely revered by the public as you may have seen in my last post and a previous one in which protestors have greeted police with barrages of rocks, but the military with cheers and handshakes. Mubarak dispatched the military apparently to enforce the curfew that has been ineffective. Stratfor reports unconfirmed reports that the military is clashing with the police.
If this is true and if it escalates, Mubarak may face a military coupe just like Ben Ali did in Tunisia, the apparent catalyst for active reform and this in Egypt, a country who's civil protests over the last 30 years were lucky to number in the single digit thousands (1-3 thousand). All modern leaders in Egypt have come from fairly high ranking positions in the military including Mubarak who I believe was an air-force general. Right now his party's head quarters are ablaze and there has, as of yet, not been the promised address to the nation he was supposed to make.
I don't want to stray too far from the situation into hypothetical land, but one of the main shortcomings of US foreign policy, much like economic policy, is a lack of imagination when it comes to consequences. Look at IRAQ years after mission accomplished or the defeated Taliban. The very fact that one OBL still fills his lungs with free air. The US has been widely been criticized for its quantitative easing programs which essentially export inflation throughout much of the rest of the world and this is amplified in the developing or emerging markets-even China. If the Muslim world fractures nation by nation, this is exactly what, as Bruno called him, "Your King Osama, a dirty Santa Claus" wants. Militant extremist Muslim organizations seek to reshape the middle east into a more radicalized faction. They've been fighting in Yemen, Iraq, Afghanistan, Pakistan, etc. and have succeeded in fracturing solid support for the governments, but in all they've done over the years, it's not nearly as big as what has transpired in the last week or so in Tunisia and Egypt. While this may fall out of the scope of technical analysis, it may very well play an important part of economic decisions the Fed makes in the near future, especially with the new Congressional oversight they are about to fall under. Someone with a brain in Washington must be putting the dots together and formulating the questions like, "What consequence does American economic policy have on American foreign policy?" Just food for thought. Now back to what you actually pay me for.
Is interest rates about to start going up?
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Yes, I know - it does not make any sense - FED is about to cut
rates...but....real world interest rates are not always what FED wants it
to be.
5 years ago
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