The Egyptian deficit and the self-fulfilling prophecy phenomenon

As anticipated, the egyptian government deficit is soaring. Figures from the government point at 12 billion gap in expenditures in 2011, most of which is subsidies paid to basic food and gasoline. Unfortunately for Egyptians, this is accompanied by a general increase of food prices worldwide due to reduction in food supplies -blame it on the weather-. Also unfortunately for Egyptians, the country financial ranking has been downgraded, pushing up the cost of borrowing.

This is all taking place in a country known for an epidemic lack of efficiency, excellence in low levels of productivity, world class bureaucracy, and lack of democracy. Oh no, egypt is on the route to a democratically elected government, evident in employees everywhere asking for pay check raise. Oh no, pay raise!! this is a recipe for uncontrollable inflation. Yes, yes, and yes.

The prophecy that the Egyptian economy is on a blink of a total melt down is not uncommon, outside of Egypt. In Egypt however, people are unjustifiably optimistic. Maybe it is the weather, maybe it is the illusion that things cannot get any worse, maybe both.

Which prophecy will be in the driver seat? History tells us that Egypt has always been driven by external forces -even Egyptians believe in foreign professionals and products-. But this is just another prophecy itself.