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37 sats \ 0 replies \ @satcat 31 Jan 2023
Banks get the $3B from IMF, citizens lose 90% of everything: fiat business as usual.
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35 sats \ 3 replies \ @jimmysong 31 Jan 2023
This is not exactly what it seems. The official rate of 1500 LBP to 1 USD never changed while the black market rate has gone to 57000 LBP to 1 USD in that time. Making it 15000 LBP to 1 USD is still really a government fantasy. A lot of people in Lebanon were expecting 50000 LBP to 1 USD so it'd be more realistic.
This is a meaningless central bank move for internal accounting purposes. The real rate has been the black market rate the whole time.
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25 sats \ 0 replies \ @2minutebitcoin 1 Feb 2023
Bitcoin challenges the State’s most treasured privilege: the ability to finance itself through inflation and seignorage, as well as other repressive tools a significant fraction of the world lives under - capital controls and local exchange rate manipulation.
As an example, Bitcoin is 8.5M argentine peso. Using the official exchange rate, that's 45,300 USD per BTC. The proper market rate for the peso is therefore
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25 sats \ 1 reply \ @2minutebitcoin 1 Feb 2023
Does anyone even sell Bitcoin in LBP? That would have shown the real exchange rate
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0 sats \ 0 replies \ @ExponentialBTC OP 1 Feb 2023
There are hundreds of foreign currency conversion traders, Bureaus de Change (BDCs), pop-up shops, and more where bitcoin is bought and sold.
There are established operators: CoinsFera, Sirius Coin, Cointral, AltcoinTurk Trader Base, NakitCoins, etc. and many that have offers on P2P trading platforms (e.g., LocalCoinSwap, Bisq, Paxful, LocalBitcoins, etc.)
There is no question as to the street price of LBP. Today it is in the 62,000 to 64,000 range (versus the fake official rate, of 15,000).
https://www.bloomberg.com/news/articles/2023-02-01/lebanon-devalues-still-leaves-pound-far-away-from-black-market
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25 sats \ 0 replies \ @patrick 1 Feb 2023
inb4 USDT over tron is the primary thing to benefit from this :(
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25 sats \ 3 replies \ @TheBTCManual 1 Feb 2023
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
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50 sats \ 2 replies \ @ExponentialBTC OP 1 Feb 2023
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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25 sats \ 1 reply \ @TheBTCManual 1 Feb 2023
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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0 sats \ 0 replies \ @ExponentialBTC OP 1 Feb 2023
Ok, that fills the gap in how I was looking at it. Thank you!
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25 sats \ 0 replies \ @guyfawkes 31 Jan 2023
coming to a Central Bank near you 👍
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25 sats \ 0 replies \ @Jonathan_Adly 31 Jan 2023
For those not in the know - The Central Bank of Lebanon, led by a Merrill Lynch banker have been running a literal ponzi. Offering up to 15% interest on their citizen dollars. (Lebanon has a large diaspora earning in dollars) - and paying old money with the new money.
The world bank put out a 134 pages report, detailing the ponzi in details. None went to jail - a few connected elite got to be millionaires.
https://openknowledge.worldbank.org/bitstream/handle/10986/37824/P1733451f74154311fb4a149871a9041d2b545b62921.pdf?sequence=11&isAllowed=y
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25 sats \ 0 replies \ @pi 31 Jan 2023
Holy fcking sht!
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25 sats \ 0 replies \ @031ddc83d3 31 Jan 2023 freebie
not good but good. I am sure people already realized the need for an alternative and hopefully will be able to act upon it before its too late. usually they tend to go for gold first because its just a cultural comfort zone for middle eastern cultures. hope the trend shifts toward bitcoin with the new generations. we need more orange pills
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