On the Devaluation of Egypt's Currency (2001)

Reni Sentana-Ries By Reni Sentana-Ries, 3rd Mar 2013 | Follow this author | RSS Feed | Short URL http://nut.bz/wd73nud0/
Posted in Wikinut>Money>Debt

Money is generally not understood by people. They don't know where it comes from and where it goes when it disappears and leaves them unemployed and destitute.

In this article I try to explain what effect a voluntary (or even forced) devaluation of a national currency has on the people who have become the slaves of a brutal system which is perpetually threatening their very survival as human beings.

Disecting Egypt's Money Devaluation Reveals Stress-Cracks in People's Lives

EDMONTON, August 10, 2001, Reni Sentana-Ries

To the delight of the money changers and banks, the Egyptian Central Bank recently devalued the Egyptian pound against the U.S. Dollar, and has done so allegedly with the intent of stopping the black market of currency trading, as well as "stimulating the export of Egyptian products".

IMF chief Horst Koehler was delighted, and when mankind's worst enemies jubilate, then it behooves us to pause and see for ourselves what we are doing wrong. And there are many things wrong with Egypt's financial system.

Firstly, why is an issue as important as regulating the national currency being left to Egypt's central bank and not made a function of Egypt's government? Issuing funds and controlling the value of one currency to that of another nation is a governmental function and does not belong to a civil servant like the governor of the central bank!

When a government needs funds for large projects, it should not go to private individuals or institutions, but rather take the initiative itself and decree the funding into existence, for that is how the (......) banker has always done it, who then is permitted to charge governments exorbitant usury in return for a mere ink-on-paper function, which the government has a right and duty to do for itself. The method whereby Egypt's economy is being funded today is the method whereby Egypt sells herself out to financial slave masters and their institutions: the World Bank, IMF, U.S. Dollar, Euro, WTO, "international finance", and so on.

Secondly, when there is locally a run on a foreign currency, much needed cash is being withdrawn from circulation which invariably has a stagnating effect on the economy, and that is always the first cause for the ills of unemployment. (Loss of people's livelihood and cause for much crime).

In Egypt's case it is hoped that the damage done by money changers and banks buying dollars is being offset by increased export of goods out of Egypt. When that happens, Egypt's wealth flows into the coffers of foreigners for a few overvalued dollars, which still leaves the wealth-producing Egyptian population with barely enough to get by.

Should the expectation of increased exports however prove wrong, then Egypt, by devaluing its currency, has just bitten off the hand that feeds her, for the reduction of Egyptian pounds in circulation stagnates the national economy.

Egypt should return to full financial autonomy, where important decisions are not being made by Egypt's cow-towing bankers, but rather by nationalists and patriots in positions of power, who have nothing but the best interests for the people and the nation in mind, and are informed and endowed with understanding of what must be done to repair the broken nation!

And here the first step ought to invariably be the stopping of all national debt payments to international lenders, who have by no other means than by their self-assumed power of credit creation made the nations believe that the Governments owe them money!

When people begin to understand that bankers have given the governments mere numbers (called "pounds" or "dollars") and the governments in return for those "numbers" are giving back to banks the life blood of their nations by permitting the trick of financial indebtedness to stand, then we hope the days of international banking to be nearly over. Yet it still appears that no nation seems to understand that all debts are phony and are no more than cooked-up book entries wherewith the nations are being held hostage and plundered of all of their resources!!

Egypt seems to be no exception. But there is hope of a brighter future for the Egyptian people: Islamic banking among many Arab nations under a single currency not controlled by the misuse of credit creation!

Tags

Currency Devaluation, Currency Exchange, Inflation, Money System, Sentana-Ries

Meet the author

author avatar Reni Sentana-Ries
My ideal is to awaken all national leaders and all people under their care equally to the fact that we as a human family have arrived at the crossroad to a New Era.

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Comments

author avatar Sivaramakrishnan A
8th Feb 2014 (#)

Interesting read, Reni. Most of China's $3 trillion reserves are held in USD. Obviously, America can print notes and settle their debt! Other countries do not have this easy option. Many South East Asian countries were forced to devalue their currency by IMF during 1998 crisis - the rich did not have an issue as they had assets in USD - only the poor became poorer - siva

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author avatar cnwriter..carolina
8th Feb 2014 (#)

again mana's inhumanity to man...

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author avatar Reni Sentana-Ries
20th May 2014 (#)

Howbeit late, thank you, Siva and Carolina, for your welcomed comments.

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