Nearly two years into #Lebanon ‘s financial crisis, one is yet to observe clear understanding or consensus on what happened

Even prospective PM @saadhariri today tried to confuse listeners either willingly or out of ignorance ==>

2-That #Lebanon ‘s Govt was spending beyond its means or that various ministries were riddled with corruption is beyond doubt

And that successive politicians did nothing but feed the beast is also not open to discussion

BUT this is NOT the reason Why Lebanon is here ==>
3-Yes, many Governments spend beyond their means and accumulate debt

But their currencies don’t lose 90% of their values

And their banking system doesn’t go insolvent

And their depositors don’t lose all their life savings

Something else has happened here =>
4-When Governments over-spend and over-borrow, their currencies lose value. The interest rates they pay on their debt rises and the combination forces lenders to build higher risk premium

This simple built-in economic stabilizer was not allowed to do its work by @BDL_Lebanon
5-When LBP should have weakened as result of Govt largess & mismanagement of its spending, @BDL_Lebanon prevented it from doing so by pegging a currency that wants desperately to weaken based on the fundamentals

But at what cost? And how did @BDL_Lebanon defy laws of Economics
6-Readers should know the script by now

Take the $ from investors via the irresponsible banks who played along out of greed

The $$$ that @BDL_Lebanon took was sold to importers & vacationers at the artificial price of 1507.5 for 23 years, year in and year out
7-When you hear anyone discuss #Lebanon ‘s finances always stay focused on whether the discussion involves $ or LBP

Depositors lost $$$

@BDL_Lebanon financed the Govt with LBP NOT $$$

Govt never took $ other than to buy fuel to power electricity. This was not $120 billion
8-@BDL_Lebanon and Riad Salameh have tried their best to muddy the waters and confuse people

@saadhariri went along and played from the same notes today

Time to tell the truth

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More from @EHSANI221

21 May
Thread

On Syrian Refugees, voting & recent street violence

1-Remember there are nearly 1.2 m refugees. Those involved in recent events are tiny %

2-Though often repeated, one is yet to produce any credible evidence of them being forced to vote

So who is voting for Assad? =>
Those making the trip were on busses likely arranged in various regions through support of Embassy / Hizbollah

There appears to be no intimidation behind making the trip. Most of those seem to be dual citizens and / or connected to the Hizb ==>
Average Syrians who registered to vote may have done so for different reasons

-Get a favorable security review when needed
-May have $100 charge at border waived on return
-Talk of free sandwich / drink (no joke)
Read 4 tweets
29 Mar
When one participates in any Eco / Political discussions in multi-Religious / Sectarian regions like the Levant #Lebanon #Syria , one question always emerges:

Can the people of this region Co-exist?

Can they accept / embrace the other side?

By all accounts, answer seems No
2-War in #Syria has rendered the days of heavy top-down Centralized State obsolete. Efforts must now be exclusively directed at formulating a new post war system that takes away power from the center & hands it to the periphery as this is the de facto state of affairs anyway
3-While #Lebanon already had its own civil war, it is not difficult to notice the return of the old sectarian cleavages that never went away. As the pie gets smaller with the current crisis, divisions have intensified & spirit of co-existence is tested in daily commentary
Read 7 tweets
20 Mar
You’ve been bombarded by experts on what #Lebanon ‘s financial crisis is all about

Here is a simple explanation:

Consumers between 1997-2018 outsmarted / screwed current and future Lebanese consumers by using an overvalued currency to fund their purchases

End of story
2-This is not to say this was a deliberate or conscious decision by 1997-2018 to screw or outsmart the future generation of consumers

As one of my friends used to tell me

Living in #Lebanon during that period was too good to be true. He may not have known why but he felt it
3-This friend was huge spender. He lived at one of the city’s 5 star hotels for almost 18 years. He earned enough interest income to fund his lavish life style. He bought real estate. He had a driver. When I met him in late 2019, he said:

This had to come to and end. I knew it
Read 5 tweets
27 Feb
Thread on US intervention in ME

1-Israel
2-Oil
3-Counter-Terrorism / War on Terror

Are the broad categories that define U.S strategic interests in the region

Many have attempted to include the Responsibility to Protect (R2P) in above list. Syria has been a case in point ==> ImageImage
2-Israel & Oil are already secured enough

This has left counter terrorism or war on terror (WOT) as main rationale behind recent U.S interventions

Responsibility to Protect has been getting traction of late but as Syria’s case has shown it’s still work in progress in DC
3-Sep 11 of course capitulated War on Terror to the top of list behind recent U.S interventions in the region. While many may argue this was politically unavoidable in the case of Afghanistan, what about the more recent interventions to help defeat ISIS?
Read 10 tweets
22 Feb
#Russia ‘s military intervention in #Syria was arguably the decisive turning point that decided the war

Yet,

When did Damascus decide to reach out to Moscow?

Did Washington know?

More importantly, could the U.S have done anything to prevent the intervention

==>
2-As early as 2012, Damascus had become aware that the war posed an existential risk to the system. Messages were sent to key opposition leaders that unless the situation was soon brought under control, leadership will have no option but to reach to our "big allies"
3-When Damascus became convinced that opposition had no intention of rolling back the unfolding crisis, decision was made to reach out to the big allies. Initial communication with Moscow took place in 2012 via respective heads of security
Read 16 tweets
18 Feb
Thread:

#Syria ‘s Old-style Baathists versus Bashar Assad’s liberalization policies

One thing that old-style Baathists understood was that being in the Arab nationalist anti-Western resistance camp had to go hand in hand with economic self-sufficiency

Boy, were they right
2-Since late 1960’a & early 1970’s Eco Self-Sufficiency became the hallmark of of #Syria ‘s political & social economy

Promote local industry to conserve on foreign currency and imports

Promote local agriculture to provide food security & heavily subsidized basic food staples
3-While self-sufficiency may made sense politically, it was an inefficient system that misallocated resources and allowed heavy handed Govt meddling in nearly every facet of Economic life. Many times, #Syria ‘s Govt found itself in the business of running businesses
Read 13 tweets

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