THE US IS NOW EVEN MORE IRRELEVANT
DEBKAfile Exclusive Report July 10, 2013, 9:11 AM (IDT)
In a dazzling display of monetary muscle, Saudi Arabia and the United Arab Emirates poured $8 billion in a single day into the coffers of Egypt’s army rulers in cash, grants, loans without interest and gifts of gas, a dizzying life-saving infusion into its tottering economy. Forking out sums on this scale in a single day – or even month – is beyond the capacity of almost every world power – even the US and Russia – in this age of economic distress. The Arab oil colossuses managed to dwarf Iran’s pretensions to the standing of regional power.
Tuesday, July 9, just six days after the Egyptian army overthrew the Muslim Brotherhood president Mohamed Morsi, a UAR delegation of foreign and energy ministers and national security adviser landed in Cairo. They came carrying the gifts of $1 billion as a grant and $2 billion in long-term credit.
In well-orchestrated moves, Saudi Arabia then stepped forward with a $5 billion package, of which a lump sum of $2 billion was drafted to Egypt’s state bank that day, followed by another $2 billion as a gift of Saudi gas, and a further $1 billion for propping up the sagging Egyptian currency.
The delivery by two Arab governments to a third of financial assistance on this scale and on a single day is unheard of in the Middle East, or, indeed, anwhere else.
As they celebrate Ramadan, 84 million Egyptians can start looking forward to a square meal at the end of their month of fasting.
This river of largesse was the outcome of a development first revealed by DEBKAfile last week: The Egyptian military high command was not working alone when its operations headquarters put together the July 3 takeover of power from the Muslim Brotherhood; it was coordinated closely down to the last detail with the palaces of the Saudi and UAE rulers and the operations rooms of their intelligence services.
The last DEBKA Weekly issue 594 (July 5) carried details of the military-intelligence mechanism at work between the three governments.
The coming issue, out next Friday, July 12, offers further revelations of how this mechanism is designed to shore up Egypt’s post-coup regime and restore the strife-torn country, the most populous in the Arab world, to its traditional eminence. Cairo is assigned a lead role in a Sunni Muslim bloc stretching from the Gulf to Cairo (with room for quiet collaboration with Israel) to withstand the challenges posed by the alliance of Russia, Iran, Syria and the Lebanese Hizballah.
The petrodollar shower for Egypt did not end with the $8 billion from Saudi Arabia and the UAE: Kuwait has pledged another $5 billion in a secret communication to Riyadh. It will be released after the sheikhdom’s parliamentary elections on July 27, and so raise total Gulf Arab bounty to Egypt to the staggering total of $13 billion.
Friendly assistance on this scale tends to diminish the relevance of Washington’s dilemmas over the continuation of its $1.3 billion aid package to Egypt after a military coup, of which $700 is due this year.
The suggestion that US aid may be used to hasten Egypt’s “swift return to a democratically elected civilian government” loses its force when Saudi Arabia and the UAE have both guaranteed to make up any shortfalls in US aid to Egypt.
On June 26, Syrian Deputy Prime Minister Kadri Jamil boasted that Moscow, Beijing and Tehran were contributing half a billion dollars per month to Syria’s war chest. “It’s not so bad to have Russia, China and Iran on your side,” he gloated.
Egypt can now boast to have far outstripped Syria in foreign support – $13 billion in a single month, compared with a mere $6 billion in a year.
yamit82 Said:
The Saudis are a status quo theocracy. They’re interested in staying in power and not in rocking the boat. Revolutionary Islamists such as the MB are a threat to them. They opened their checkbook to the new Egyptian regime to make it clear the price is keeping the MB out of power. In Cairo, the size of the Saudi checkbook is very persuasive.
yamit82 Said:
also all those starving potential jihadis will flock anywhere they’re told for the few bucks. they can be used against the shia on the arabian peninsula, or in africa.
@ Laura:
Don’t worry Egypt is such a basket case economically that they will need billions injected every month just to keep the masses from starvation and revolt.. I don’t think the Gulf States and the Saudis are prepared for that kind of expenditure for a long period of time.. This was strategic first aid aimed more at the Iranians and the USA– than any real concern for Egypt who can’t help them much against their primary fears “A nuclear Iran” and American disengagement from the region.
Note: Egypt aligned with the Saudis is important for the Saudis. The Saudis are Egypt’s reserve for war equipment and Arms. All the weaponry the Suadis have purchased from the Americans and Europeans cannot be used by ignorant uneducated Bedouin tribesman but they are for the most part equal to the Armament the Saudis have purchased and taken delivery of. They are replacement material for any future losses the Egyptians may incur in a war with Israel. They have a vested interest in seeing a non MB regime arise in Egypt tied to and dependent on the Saudis.
Laura Said:
Agreed, no “winner” is good for Israel. It’s a pleasure to watch those who see jews as apes and pigs kill each other.
@ Laura:
Laura, you are definitely a lady after my own heart!
🙂
Eric R. Said:
Personally, I think it is an illusion. from the standpoint of Obama and the GCC(inc qatar and saudi) it does not matter whether the MB, the salafis or the army control egypt. what Obama is “not doing” is just a front. the army is the closest ally of the US and probably also the GCC, they went first to the GCC for money and got it immediately. Obama does not need to arm syrian rebels overtly because he has already been supplying them covertly a long time through the GCC. He must, for legal and political reasons, show caution re the coup. However, it does not matter because his partners will take care of the funding. In the same way that Israel was kept out of iraq war coalition so the street demos against the US are convenient to give credibility to the army. Dont be fooled by this BS that saudi(salafis) and qatar(MB) are on opposing sides. If Morsi had been successful at maintaining control, and had got the public to rally behind the IMF austerity regime, he would still be in power. Now the army can move because a significant amount of the original anti mubarak forces have split from the MB. basically the same guys all said “you dont like mubarak, we give you morsi, you dont like morsi we give you the army(who will give you the next set of stooges)”. Each time you get pissed with your last choice you get another(which will probably be even more austere). Kinda like the US be given Carter and after being sick of him they begged for reagan. When everyone is sick of obama they will be more receptive to the next stooge.
bernard ross Said:
when I was young I read a short futuristic novel by Ira Levin called “This Perfect Day”. This is where I first came across the concept of govt providing, and controlling, opposition places, or entities, so that rebels would be under their control without even knowing it. In the novel there were places where, incurables(rebels) could “escape” to. We know that such scenarios exist, and why wouldn’t they, but we do not take them into account when we evaluate propaganda.
Too bad. I was hoping they would starve.
Again, too bad. I was hoping for civil war and egypt’s demise. The demise of the most populous arab nation would be a great blessing. By its support for the muslim brotherhood, perhaps Obama unintentionally was doing something positive. The muslim brotherhood may have destroyed islam from within. If islamic countries are impoverished they cannot be a threat. The last thing we should want is stability in the muslim world. Let them have at each other for years to come.
HMMM? what makes them say that(words in bold)? Kind of what I have been saying for a while. I do not accept the notion regarding the GCC and MB and qatar being on the outs. Saudi and Qatar are “good cop, bad cop” for the GCC whichever cop you choose you still get GCC. also, do not believe the hype about obama and the US as the GCC does what the US cannot but their goals are cooperative. The street dramas are just street dramas for those on the street who must have drama. Like wise the GCC, Egyptian military and the US are all on the same page, Qatar and saudi on the same page they cooperated in Libya and syria. they cooperated to wean hamas off Iran. Anti US demos which support the Army and accuse morsi of a plot with Israel and obama is just the way that the ME elites control their “useful idiots” on the street. They are not going to lose support on the street by saying they are pro US and pro israel, after all it is a red herring whic continues to work. Watch the puppeteers and not the puppets. The MB will continue to be funded by qatar, who will have greater influence over their actions and hierarchy,and they will be used to attract dissidents that can be controlled and observed and used in future dramas. The GCC puppeteers will still be pulling all strings. Note that qatar was able to arrange the gaza cease-fire, leash hamas, wean them off Iran all with the help of Morsi’s MB and the egyptian Army, get tunnels blocked, request Israel to make massive gaza investment, be the first to visit the faux pal state of abbas. The old adage “Money talks and BS walks.”
The Saudis wanted the Muslim Brotherhood out of power. President Hussein wanted them to remain in power. Think about that for a moment – the Saudis, land of the Wahabbists – are following a less radical, more rational policy on Egypt than our own sorry-ass Marxist/Neo-Islamist excuse for a President.
The main Arab oil countries want a quiet and stable Egypt and they were scared to death of the Muslim Brotherhood and its revolutionary Islamist pretensions. Their aid should buy the new Egyptian regime time and get hungry Egyptians off the streets. The MB could not secure aid on this scale and the army’s success in rescuing Egypt from the verge of oblivion is a message not lost on most Egyptians.