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25 sats \ 3 replies \ @TheBTCManual 1 Feb 2023 \ on: Lebanon to devalue currency by 90% on Feb. 1, c.bank chief says bitcoin
Absolutely heart breaking for the people who have agreed contracts for salaries and cant get out of it and the suckers who think that the bank is offering them any kind of yield, if they're not already crushed this will surly do it
I am amazed at how much pain fiat maxis will take, in my mind Lebnanon should be bitcoin country by now, but I guess they will dollarise first and let the fed steal whats left of their country
Saifedean's latest podcast has some more information about the situation in Lebanon.
Bitcoin - Late Stage Fiat Adventures: Lebanon
#129004
The thing I didn't understand is how he thinks that a higher inflation rate lessens the cantillon effect. That is the opposite of my understanding of it.
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From my grasp of it,The cantillon effect is an absolute rule as long as the network effect is not broken, while the government/banks/well-connected are increasing their share of the pie by printing the pie itself is getting smaller
If my % of the ownership of the Lira increases but what I can buy/people are willing to sell me for Lira decreases then it lessens the effect. As more people move to USD for example, your claims on others' savings and goods and services lessons.
As printing continues to consolidate Lira purchasing power you get a few people with a lot of lira and a lot of people who won't accept it.
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Ok, that fills the gap in how I was looking at it. Thank you!
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