Not only are currency systems affected by politics, they're also heavily affected by psychology.
Mainstream economists are trying to cast Turkey's currency crisis as Erdogan's foolish idea that lowering interest rates can reduce inflation, but the actual catalyst...
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Mainstream economists are trying to cast Turkey's currency crisis as Erdogan's foolish idea that lowering interest rates can reduce inflation, but the actual catalyst...
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https://twitter.com/dhivehistan/status/1464465719651803141
...for the recent rapid devaluation is investors and speculators closing their Lira positions in response to the *perception* that lowering interest rates will cause inflation.
This is why it's very deceptive to treat economics as a "hard science" like chemistry.
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This is why it's very deceptive to treat economics as a "hard science" like chemistry.
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Much of economics is built upon the assumption that all phenomena can be understood rationally, but humans rarely behave rationally, especially when it comes to hers dynamics like panic selling a currency.
An example of this is the Asian currency crisis, in which...
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An example of this is the Asian currency crisis, in which...
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...the currencies of multiple East Asian countries collapsed after Thailand's currency failed due to a lack of foreign currency reserves.
Some of these other countries had no economic problems at all, but simply because they were in the same region as Thailand, panicked...
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Some of these other countries had no economic problems at all, but simply because they were in the same region as Thailand, panicked...
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...foreign currency traders, as well as institutional trading desks, some of which have automated orders to sell at certain prices, led to a chain reaction which destroyed the savings of millions of people.
Turkey has in common with Thailand a major lack of foreign...
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Turkey has in common with Thailand a major lack of foreign...
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...currency reserves, which illustrates how the system is rigged to force everyone into paying "tribute" to the US dollar.
Either you have to follow the monetary policy the market perceives as "correct" or "orthodox," or purchase large amounts of USD, EUR, GBP, RMB, etc...
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Either you have to follow the monetary policy the market perceives as "correct" or "orthodox," or purchase large amounts of USD, EUR, GBP, RMB, etc...
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...to shore up the value of your currency if the global forex markets don't like what you're doing.
Needless to say, holding large foreign currency reserves is essentially means you "assume the position" to be abused by major economies, since the value of your reserves...
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Needless to say, holding large foreign currency reserves is essentially means you "assume the position" to be abused by major economies, since the value of your reserves...
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...will continuously erode in the face expansionary monetary policies. It's like the carrot and stick, except that the carrot is actually a stick painted to look like a carrot.
As long as a fiat regime is imposed, you can't peacefully transition to a gold standard...
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As long as a fiat regime is imposed, you can't peacefully transition to a gold standard...
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...because people will continue to try to spend the inferior fiat money instead of the money they know will hold its value.
This monetary order was imposed through military force, and it can only be overthrown by military force.
Bitcoin's not going to do it...
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This monetary order was imposed through military force, and it can only be overthrown by military force.
Bitcoin's not going to do it...
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...for the same reason gold can't peacefully overthrow fiat - no one is going to use it as the main means of exchange as long as inferior monies are still in circulation.
The only way to stop the theft of inflation is by illegalizing interest, which would render...
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The only way to stop the theft of inflation is by illegalizing interest, which would render...
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...fractional reserve banking (the main avenue of creating fiat currency) unprofitable.
It doesn't matter if Erdogan's monetary theory is right or wrong, because it's all a game of smoke and mirrors anyway.
You don't even need to control enough capital to conduct...
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It doesn't matter if Erdogan's monetary theory is right or wrong, because it's all a game of smoke and mirrors anyway.
You don't even need to control enough capital to conduct...
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...a Soros-style speculative attack on a currency if can hold sway over the media and academia and manipulate the minds of investors.
Every country that doesn't bow to the dominant theories and globalist norms is pushed into the arms of the IMF, which is patiently...
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Every country that doesn't bow to the dominant theories and globalist norms is pushed into the arms of the IMF, which is patiently...
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...waiting with conditional loans designed to restructure national economies into compliance with the liberal world order's agenda.
Anyone too obstinate to fall into line will suffer economic privation until they are removed either by a public voting with their stomachs...
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Anyone too obstinate to fall into line will suffer economic privation until they are removed either by a public voting with their stomachs...
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...and genitals, or an ambitious faction within the military establishment looking to capitalize on the dissatisfaction of the masses to augment their personal power.
The only practical alternative right now is probably commodity barter contracts like those used by...
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The only practical alternative right now is probably commodity barter contracts like those used by...
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...some oil producing countries, Iran in particular. Transitioning to such deals means almost certain excommunication for the liberal order, which would also result in economic asphyxiation.
The only practical solution to win this war and to escape from this slavery...
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The only practical solution to win this war and to escape from this slavery...
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...is faith, asceticism, patience, and military struggle, which is actually precisely what Islam enjoins upon us.
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