Thread by @SAH16928046

Three High-Risk Currencies
1. Srilanka Rupee
2. Lebanese Pound-£
3. Turkish Lira
All three countries facing more or less the same kind of macroeconomic structural problems, asset-liability foreign currency book mismatches, market-clearing bad rut, and wage and price rigidities

The surprising thing about Turkey, Lebanon and Srilanka is that all three nations have a high rate of literacy compared to other nations in their regions.
Hence, an intellectual deficit cannot be blamed for either bad or lack of economic policies
Srilanka 90% above literacy rate

The Lebanese Pound, which was at one time around 1500 to an American Dollar, is now trading somewhere around approx 30,000.
The salaries in #Lebanon are still priced using the pre-crisis LBP-$ parity.
People are selling cars to pay utility bills, and cutting cedar trees for wood

So states such as Cuba or North Korea have a closed economy with controlled capital mobility, are cut off from the global financial and trade ecosystem,& are safeguarding their economic sovereignty much better?
Foreign Debts lead to Distress
That is why I oppose Chinese BRI(OBOR)

#Minsky and #Marx were right when they both tried to prove that complacency and stability within capitalism are not possible.
Stability will breed instability
Markets will remain in a volatile state of disequilibrium
What other proofs of concepts do we need after seeing events?