Friday 6 September 2013

The Wrap: US indebted to Egypt, Libya Lawless and In Economic Ruin | @REBELECONOMY

The Wrap: US indebted to Egypt, Libya Lawless and In Economic Ruin | REBEL ECONOMY:

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  • EGYPT 

US faces substantial losses if Egypt aid halted - Reuters

Finally a story that reflects pragmatic ties between the US and Egypt that go far beyond the politics. Washington has been considering whether to continue its US $1.23 billion in military assistance, but while the aid institutionalises the political links between the two countries, the money at stake is arguably much more costly if this bond was broken.

A particularly talkative senior Pentagon official told Reuters:
“There’s a whole bunch of contracts out there. The bills keep coming in and we’ve got to be able to pay them somehow otherwise we go in default.”
Apparently last year, when the Obama administration decided to continue military aid to Egypt despite its failure to meet pro-democracy goals, US officials cited as one of their reasons the fact that the termination costs could have exceeded $2 billion."

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