In Lebanon, as banks kidnap their customers’ money, Bitcoin remains inalienable – Bitcoin – Cryptocurrency 2020

Lebanon is in default of payment. Beirut experienced the first bank run of the twenty-first century. The Lebanese make the unpleasant discovery that the money that we believe we have in the bank does not really exist … They can no longer withdraw their money from the banks, or so little.

This is what inevitably happens in a system of monetary creation based on debt and usurious interests. The curtain fell on the third most indebted country in the world after Japan and Greece… More than ever, Bitcoin appears to be a savior in this world of white collar crooks.

BANK-RUN at BEIRUT

Barbed wire around the central bank of Lebanon.
Central Bank of Lebanon: Photo Pierre Jovanovic

Let’s start by remembering that two currencies in use in Lebanon : the Lebanese pound and the dollar. The pound is used for small errands and the dollar when it comes to big money.

Until recently, the exchange rate between the dollar and the Lebanese pound was fixed. Lebanon has long taken advantage of this fixed parity to present itself as the Switzerland of the East and attract capital.

But the country of the Cedar, just like Greece, shows a chronic deficit in its trade balance. That is to say, Lebanon imports more than it exports. But the country has the advantage of having a large diaspora (25% of the Lebanese population works abroad) which repatriates a lot of money to the country. In short, the surplus in the financial balance compensated for the deficit in the trade balance in order to be able to maintain the fixed exchange rate.

However, diaspora funds have dried up for a decade. So to keep the influx of dollars from abroad, Lebanese banks have set up a Ponzi scheme. They offered very high rates of return on dollar deposits. The purpose of the maneuver was to use the new deposits to pay interest on older deposits.

The Bank Run, not really a modern phenomenon ...

Realize that Lebanese banks have gone so far as to offer a 10% rate on dollar deposits. 10% while the interest rate on deposits from the US central bank – only purveyor of dollars in the world – is close to 0% since the subprime crisis…

Federal Reserve Key Rate History

The Ponzi has just exploded in the deafening silence of the media. And with a state with a debt representing 166% of GDP, we can expect a lot of social unrest.

Bitcoin, a Swiss bank in his pocket

Satoshi Nakamoto describes Bitcoin in his “White paper” as a “Peer to peer payment method that does not need financial institutions”. It feels great to know that we can do without bankers, right?

You see, digital currency exchange is problematic because anything digital can be duplicated as many times as you want. Hence the interest in having banks. They are an intermediary who ensures that digital money is debited from one account and credited to another. They are the keepers of the money and make sure that everyone can spend what they have and not a penny more. It is an essential trust third party – which betrays this trust without stopping by orchestrating price bubbles and inflation …

Satoshi solved the problem by finding out how to make it impossible to duplicate digital money (Bitcoin). This famous blockchain straight out of the thigh of an algorithm of hash

Bitcoin does not need an intermediary. Ok, many IT developers are pampering it and even more minors run the store by validating the transaction blocks. But at no time do they have access to money.

When you hold the key to a Bitcoin, only you are the holder. By the way, if your Bitcoins are on an Exchange, then you don’t own them. It’s like leaving your money in the bank instead of keeping it safe in your trunk or at the bottom of the garden …

And don’t let it be said that it’s safe to keep your money yourself. Just keep the ” Seed “(A code) from his wallet, sheltered in several places so that you don’t have to worry about losing your money.

Are the Lebanese ruined for good?

Yes… The first to have withdrawn their dollars to put them in foreign banks were massively enriched. Everyone else will lose big …

It’s very simple, the Lebanese can no longer withdraw their dollars. There are 80 billion dollars missing in the coffers … From now on, there are not 36 solutions for Lebanon:

1) Banks can raise capital by issuing shares. But who wants to buy stocks of banks that owe $ 80 billion that they don’t have …

2) They can also force the Lebanese to accept Lebanese pounds (which the Lebanese central bank can print at will, unlike dollars) instead of dollars. This will have a catastrophic effect on the exchange rate of the pound which is already in free fall on the black market: 2800 LL / USD against 1500 LL / USD for the official price imposed on the exchange offices. This will translate into high inflation since it will become much more expensive to buy imported products (end of the fixed exchange rate with the dollar). Inflation has gone from 1% to 10% since the Ponzi explosion 4 months ago. 50% for food products…

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3) But the best is still to forcibly return worthless stocks to their customers in exchange for the dollars they owe them.

Do not laugh, this is what happened to Cyprus (member of the euro zone) in 2013 when customers of the country’s largest bank, Bank of Cyprus, were forced to exchange 47.5% of all their savings above 100,000 euros for bank shares …

Theft of Cypriot savers

Again, we are talking about 80 billion dollars that Lebanese banks are unable to return to their customers … For comparison, Madoff’s Ponzi was $ 50 billion …

Inflation, this hidden tax

So the Lebanese are already being robbed by inflation. The devaluation of the Lebanese pound is the only solution to allow all Lebanese to have access to their money again.

“The first panacea for a misdirected nation is monetary inflation, the second is war. Both bring temporary prosperity and indelible destruction. Both are the refuge of economic and political opportunists. “

Ernest Hemingway

Don’t think Lebanon is the only country where bankers shamelessly loot their people. In France too we are suffering from rampant inflation.

We would like to be led to believe that inflation is low but it is a lie. Certainly, the inflation of bread or carrot prices is low, thanks to our peasants who work like oxen for in fine be racketeered by mass retailers. See this tweet from the editorial staff of BFMTV Eco:

The insidious message that Pierre Kupferman trying to get across is that the “Purchasing power” of the French has increased. Well let’s see… The editocrats of BFMTV and other major media (The World, Libé, Les Echos etc…) willingly ignore the millions of unemployed who de facto no longer have a salary. What if we calculated the average French salary taking into account the millions of unemployed workers who earn 0?

And what about the way INSEE calculates inflation. The rise in property prices is not taken into account in the INSEE inflation figures! We are hiding from us the reality of the impoverishment of the masses thanks to an incredible accounting device.

I accuse the INSEE

How is it possible that INSEE could have decided not to include property purchases in the price index? … It’s never just the biggest purchase you’ve ever made…

Only the rents of the tenants are included in the calculation, which artificially reduces the weight of the expense to find accommodation at 6% in the INSEE basket … But how can we calculate an overall inflation rate starting from the principle that a French spend on average only 6% of their salary on accommodation?

We can also talk about the famous “innovation” and “quality” effects. For example, on the pretext that the power of computers is increasing, INSEE estimates that the value of a computer has been divided by 20. Computers cost only around fifty euros in the imaginary world of INSEE… Same For alimentation. An orange juice containing more vitamins (synthetic) can also artificially reduce the increase in its price …

“I only believe in statistics when I have falsified them myself. “

Winston Churchill

All currencies backed by non-repayable debts (euro, dollar, etc.) will have the same fate as the Lebanese pound.

So protect your purchasing power right away. Not only against ambient inflation but also against the big debt ponzi that will jump sooner or later. 16 million unemployed in three weeks in the United States, ticking, ticking… happy the one who will have placed part of his Bitcoin savings …

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In Lebanon, as banks kidnap their customers’ money, Bitcoin remains inalienable – Bitcoin – Cryptocurrency 2020
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