Monday, May 23, 2011

The US is Backing Egyptian Debt?

Egyptian Finance Minister, Samir Radwan, announced today that Egypt is planning a $1 billion debt issue, with a "sovereign guarantee" from the US.  Should we really be funding the revolutionary government of Egypt before we really know what they stand for or before we know what the government is going to look like come September?  Considering one of the first things the new junta did was force Israel to renegotiate its gas deal and help Hamas enter back into the Palestinian Authority, I am not very confident for the future direction of Egypt.  On another, somewhat more nitpicky note, isn't giving someone our sovereign guarantee for debt in violation of our debt ceiling?  After all, by definition, aren't treasuries just debt with the US sovereign guarantee?

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