There is a major story that all Mainstream Media seems to have missed. While the MSM report on the riots in Egypt and the overthrow of the Morsi regime, they miss the real cause. Here is Michael Amerhom Youssef:
More than 40 percent of Egyptian citizens currently must survive on about $2 per day. Lines to purchase gasoline stretch on for hours. The lines for a tank of propane—needed for cooking and other necessities of life—extend for up to nine hours. Electricity is cut off from 2-3 hours per night.
And here is Dan Gainor:
Fuel shortages are common and half the population is living on less than $2 a day.
Here is CNN (as usual, not knowing what they are talking about):
A diesel and gasoline shortage has caused the price of fuel to rise dramatically. Then-President Mohamed Morsy blamed the fuel shortage on a black market, but some critics alleged that the fuel crisis was a political tactic of the Morsy administration.
Back in May I wrote:
In a hilarious article, it is being reported that Venezuela is going to import 50M rolls of toilet paper. When one sees headlines like this, the first thought that should run through their head is “price controls”. 10 out of 10 times they will be correct. The sure fire signs of price controls are lines and shortages.
When you see lines, you can bet on price controls (or other government meddling). So when seeing that Morsi had been disposed due to the economic hardships of gas shortages, I instantly knew he brought it upon himself due to economic ignorance. He instituted price controls. Sure enough:
Today there are long gas lines all over Egypt. That is one of the reasons why millions of Egyptians went into the streets to protest against the Morsi government. And it is not just diesel fuel to power cars, truck, buses, and cruise boats that is in short supply, but also LNG cylinders used in many households, along with natural gas delivered on the state grid, for home heating and cooking. These other fuels are also subject to strict price controls…
In touring the Valley of Kings, Abu Simbel, and other ancient wonders in Upper Egypt in February of 2012 — a year after the revolution that toppled the government of Hosni Mubarak — I saw lines of idled cars and trucks around gas stations stretching for three or four miles. I was not surprised.
So the biggest story of the year is that a socialist tried to control prices and an entire government was disposed! This is major news that we do not even hear about.
For laughs, here is an Egyptian economist in 2010 calling for price controls:
“The government already has a set pricing policy for pharmaceutical and petroleum products,” he said. “This should be extended to cover other products as well in order to protect consumers.”
The Spectator article says it best when it quotes Milton Friedman:
Economists may not know much. But we know one thing very well: How to produce surpluses or shortages. Do you want a surplus? Have the government legislate a minimum price that is above the price that would otherwise prevail. Do you want a shortage? Have the government legislate a maximum price that is below the price that would otherwise prevail.