Spengler has a new post up at Asia Times on the new government in Egypt. The policy of the new government is starvation.

Egypt spends roughly US$25 billion a year on fuel, and the present subsidy of 95.5 Egyptian pounds is a life-and-death matter for the Egyptian poor. According to the Wall Street Journal on March 22, “Subsidies already absorb at least 28% of Egypt’s budget outlay of 476 billion Egyptian pounds ($79 billion). [6] About two-thirds of that goes toward fuel and energy, with the rest aimed at reducing food prices, particularly for wheat.”

A massive reduction in subsidies combined with rationing will put the existence of half of Egypt’s people under the immediate control of the state. Morsi’s apparent disregard of Egypt’s economic crisis conceals a deeper agenda, namely the entrenchment of the Muslim Brotherhood in the kind of power arrangement that characterizes modern totalitarian states. That is the source of his contempt for American diplomacy.

China is in the mix but with their economy collapsing it will be interesting to see what they decide to do about their Middle East involvement.