Morsi’s newly-found power comes as he rationalized it will weed out the “weevils eating away at the nation of Egypt.” The Muslim Brotherhood, alleges liberal democrats and secularists alike, have monopolized power, wrote the constitution without the input of other parties, and has not cured the economic and security woes facing Egypt after Mubarak’s ouster.And now, violent clashes have broken out once more in Cairo between dissenters who may or may not be in favor of democracy and the forces loyal to the Muslim Brotherhood. Sooner or later, a full scale war is bound to erupt not unlike what's going on in Syria.
Morsi has ultimate power in Egypt after his latest edict, which hamstrings the independent judiciary. The judiciary had dissolved the parliament, and with this new edict, he is in virtual control of the country. The laws that he has declared can be immune from court appeals and cannot be stopped or overturned by the judiciary. In addition, the judiciary cannot dissolve the upper house of parliament that is writing the constitution. That is because his party, the Muslim Brotherhood, is in control of that legislative body.
Update: here's more on the subject from Power Line.