Replying to Avatar jimmysong

It's counterintuitive, but the countries undergoing hyperinflation, are often more sound than other countries undergoing normal inflation.

Government, of course, is as fiat as they can be, printing money so they can squeeze out Cantillon benefits, but everyone else adjusts.

Individuals and businesses move to a dollar standard, which in those countries is much harder than their own currency and those on that standard have to create value. They can't just get dollar loans as the risk is too high. Hence, they have to operate from savings and the businesses are a lot more sound and focused on adding value.

For me, this is why Argentina and Lebanon were so pleasant to visit. They avoid as much as possible their governments' debasement and have to operate in a manner that's more legitimate.
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Will Cole 2y ago

I get that part, but what about the part where hyper inflation also means few residences with power. It’s hell.

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jimmysong 2y ago

They all adjust. Lebanon buildings all have their own generators. It just takes time.

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Merrcurr⚡️ 2y ago

Not all buildings unfortunately, just the fancy ones. Most will have to live without electricity most of day or get portable generators on the black market

[780859]

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Sats paa BTC 2y ago

Please don't glorify Lebanon.

There is lack of power everywhere which especially is hard on the poor. Food spoils very quickly, when it is not refrigerated, you can't get medicine anywhere, the costs for medical treatment, let alone hospitalization are exploding, and within two years the number of people living under the line of poverty went from 20% to ober 80%.

Yes, the Lebanese are survivors, but I wouldn't wish this for anyone.

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BoomTown 2y ago

This means their power cost is much higher than it should be. Or the government subsidizes diesel and generator imports (like they do in Nigeria) which is also inefficient.

Bitcoin is supposed to make markets efficient … while some of what you’re experiencing and sharing probably is true, I wonder what a truly sound money separated from the state ultimately yields in terms of major infrastructure build outs and critical utility infrastructure. 🧐