Sheep applauding today price controls are the ones who will shout tomorrow for not finding anything on supermarket shelves. I assume they know nothing about economics, so I will explain it in an easy way, then in the actual way.
[sorry for the tone]
Supermarket X has 5 Coffee Mates on the shelve. Wannabe superhero Y forces X to lower the price of Coffee Mate. X sells the 5 at lower price, and to replace them, X can only buy 3. In 2 weeks, X sells the 3 and to replace them, X can only buy 1. X sells the 1 then closes forever.
Apr 23, 2020 • 23 tweets • 6 min read
Instead of opting for full Dollarization of economy, the government of #Lebanon is choosing full Lirafication. Lirafication is how Sulta will control us through hunger. I'll explain it in the following thread.
#كلن_يعني_كلن
Full Dollarization: wipe out LBP entirely from the economy and replace it with USD, or real money that cannot be printed. Ecuador in 2000.
Full Lirafication: wipe out USD from the economy and replace with it LBP, or monopoly money that can be infinitely printed. Venezuela.
Apr 20, 2020 • 11 tweets • 3 min read
Why are supermarket prices in #Lebanon so high? I'll explain with the following model.
Any big supermarket needs a loan to bring products to shelves. Loans are in USD.
Jan 22, 2020 • 12 tweets • 4 min read
Two functional "official" exchange rates in #Lebanon. The ~1500 LBP/USD of banks and the ~2000 LBP/USD of exchange houses. Venezuela 2014. Let me elaborate 👇
@GinoRaidy@LeNajib@Beirutspring@dan_azzi@LebaneseLira
In 2014, Venezuela had 3 official exchange rates, plus the black market rate, called CADIVI (6.4 BsF/USD), SICAD 2 (13.5/$), SIMADI (200/$) and "DolarToday" black market (250+ /$). SICAD2 was already dysfunctional, let's discard it.
