I’m reading about Lebanon and what it has been through, especially in the last several years. Inflation is out of control, where salaries are meaningless and grocers don’t even bother pricing their items because they can’t keep up with the changing rate. Basic human services like trash collection and electricity are not available. Citizens resort to holding banks up at gunpoint to get their own money out.
What happens when a country collapses? What does that really mean? What happens to all its people?
Edit to add another question: Is it actually possible for a country to be so mismanaged that its people literally all die out or leave?
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Wall Street assigns tiers to countries according to the risk of deflauting. The highter the risk, the higther intrest rate for loans from international bank
Inflation is state where there is too much cash in the system compared to GDP, so naturally prices increase for each product/service to bring new balance to cash/gdp ratio
Labanon citizens doing classical bank rush to find out that their money have been turned into securities or lent out with ratio 1:6 ( where every deposited dollar is creating new 6 dollars or more, depending on intrest rates) is classical failure of fractional reserve banking. Their money is gone, because all worth of lebanon curency is based on stability of goverment and (again) it’s ability to collect taxes
I hope you do not belive we still have gold standard system like they teach preschoolers
This is why UE rushed to help Greece in 2008 crysis, deflauting Greece would mean destroying Eurozone
TLDR **Yes, any country can collapse when they cannot guarantee future income from taxes anymore and debt crushes them. When too much people have cash on their hands and not enought things to spend it on , it creates inflation**
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