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For your own information, to help you whenever you talk to anyon…

Posted on October 9, 2016 by Shahid Bolsen

For your own information, to help you whenever you talk to anyone about the IMF loan, or send messages to multinationals, let me simplify why the loan conditions (the ones we know about) are bad:

Devaluation of the currency: Your money will be worth less, which will increase the cost of living on all fronts. This is a tricky way of lowering wages across the entire country in every sector. It is not only a devaluation of the Egyptian Pound, it is a devaluation of Egyptian labor

Floating currency valuation: The value of your national currency will no longer be determined by your national government or Central Bank; it will be determined by “the Market”. What is “the Market”? Replace this term with the more accurate term “global corporate monopolies”. In other words, the value of your money will be determined by the companies that sell to you, lend to you, import your goods, and pay your wages.

Value Added Tax: This will increase the cost of consumer goods, which will already become more expensive because of currency devaluation. Not only will you have to pay more because your money is worth less, but you will have to pay more because VAT adds extra cost to each item you purchase.

Subsidy reform: At the same time that your wages are going down, and your costs are going up, government subsidies on food and fuel will be ended; thus requiring you to pay more for basic necessities with the worthless money you have less of.

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