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    Egyptian Opposition to US Aid Hits 82%; So Why Did Obama Restore Aid, and Why Did Hillary Insist Upon It?

    Thu, 03/29/2012 - 11:26 EDT - Mish's Global Economic Trend Analysis
    • RDF10

    A Gallup Poll in Egypt shows 82% of Egyptians Do Not Want US Aid.
    Egyptians' opposition to U.S. economic aid continued to climb in early 2012. More than eight in 10 Egyptians in February said they opposed U.S. economic aid, up 11 percentage points since December and up 30 points since April 2011 when Gallup first posed the question.Poll Question

    So Why Did Obama Restore Aid?

    The New York Times reports Once Imperiled, U.S. Aid to Egypt Is Restored.
    An intense debate within the Obama administration over resuming military assistance to Egypt, which in the end was approved Friday by Secretary of State Hillary Rodham Clinton, turned in part on a question that had nothing to do with democratic progress in Egypt but rather with American jobs at home.

    A delay or a cut in $1.3 billion in military aid to Egypt risked breaking existing contracts with American arms manufacturers that could have shut down production lines in the middle of President Obama’s re-election campaign and involved significant financial penalties, according to officials involved in the debate.

    Since the Pentagon buys weapons for foreign armed forces like Egypt’s, the cost of those penalties — which one senior official said could have reached $2 billion if all sales had been halted — would have been borne by the American taxpayer, not Egypt’s ruling generals.

    The companies involved include Lockheed Martin, which is scheduled to ship the first of a batch of 20 new F-16 fighter jets next month, and General Dynamics, which last year signed a $395 million contract to deliver component parts for 125 Abrams M1A1 tanks that are being assembled at a plant in Egypt.

    Mrs. Clinton’s decision to resume military assistance, which has been a foundation of United States-Egyptian relations for over three decades, sidestepped a new Congressional requirement that for the first time directly links arms sales to Egypt’s protection of basic freedoms. No new military aid had been delivered since the fiscal year began last October, and Egypt’s military has all but exhausted funds approved in previous years.

    Mrs. Clinton’s decision provoked sharp criticism from lawmakers across the political spectrum, as well as human rights organizations. Senator Rand Paul, Republican of Kentucky, criticized it as “beyond the pale.”

    Referring to Egypt’s recent decision to prosecute four American-financed international advocacy organizations, Mr. Paul added, “It sets a precedent that America will not punish its aggressors but instead give them billions of our taxpayers’ dollars.”

    The M1A1 components are built in factories in Alabama, Florida, Michigan, Ohio and Pennsylvania, several of them battleground states in an election that has largely focused on jobs. Because the United States Army plans to stop buying new tanks by 2014, continued production relies on foreign contracts, often paid for by American taxpayers as military assistance.

    Senator Patrick J. Leahy, Democrat of Vermont, who added the certification requirements to legislation authorizing military aid to Egypt, called the decision to waive them regrettable, and the resumption of aid “business as usual.” Let's piss away billions of dollars on aid to countries that don't even want it.

    Note that Mrs. Clinton waived a requirement that she certify Egypt’s protection of human rights as a condition of aid.

    Yes indeed, this is "business as usual", so much so that even Democrat senators are complaining about it.

    Mike "Mish" Shedlock
    http://globaleconomicanalysis.blogspot.com
    Click Here To Scroll Thru My Recent Post ListMike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
    Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

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