TURKEY’S INFLATION IS AN EXAMPLE OF WHY WE NEED BITCOIN, WHY THIS SYSTEM WORKS, AND WHY IT IS SMART ENOUGH TO SEND PERFECT BITCOIN.

TURKEY’S INFLATION IS AN EXAMPLE OF WHY WE NEED BITCOIN, WHY THIS SYSTEM WORKS, AND WHY IT IS SMART ENOUGH TO SEND PERFECT BITCOIN.

TURKEY’S INFLATION IS AN EXAMPLE OF WHY WE NEED BITCOIN, WHY THIS SYSTEM WORKS, AND WHY IT IS SMART ENOUGH TO SEND PERFECT BITCOIN.

 

TURKEY’S INFLATION IS AN EXAMPLE OF WHY WE NEED BITCOIN, WHY THIS SYSTEM WORKS, AND WHY IT IS SMART ENOUGH TO SEND PERFECT BITCOIN.

 

Well, when Turkey elected an Erdogan, who as everyone knows, decided to confiscate the private banks, and basically take over the economy, the country entered into a currency crisis, which has now lasted for over a year. Turkey is facing hyperinflation, and the inflation is now approaching 1,000,000 percent.

 

So what do they do?

 

Well, Erdogan authorized the “QE for Dummies” program. This means that the government simply bought all of the treasury bills that were on the market, and the Turkish government has been stuffing the markets with new cash with a Keynesian strategy of printing money.

 

This is what they have been doing, and it hasn’t worked so well.

 

But this is exactly the kind of thinking that is driving so many economic bubbles around the globe right now.

 

TURKEY’S INFLATION IS AN EXAMPLE OF WHY WE NEED BITCOIN, WHY THIS SYSTEM WORKS, AND WHY IT IS SMART ENOUGH TO SEND PERFECT BITCOIN.

 

Throughout history, governments have found a way to manipulate currencies by inflating them, or debasing them. And most people don’t realize that the U.S. dollar is no exception to this…

 

The U.S. dollar is the world’s most widely used reserve currency and the basis for all major international payments. After losing about 40 percent of its value in the wake of the 2008 financial crisis, it has rebounded somewhat. But it remains near a three-year low against the euro.

 

And this is not a temporary setback. The rest of the world has finally figured out that the U.S. dollar is a giant paper tiger. In fact, as a recent CNBC article details, we may soon see the end of the U.S. dollar as the world reserve currency.

 

But if that happens, it won’t be all bad news.

 

Instead of printing new dollars, it will be more economical to “rent” those new dollars from other people.

 

So, instead of using the new money to buy goods and services, the money will be kept and spent as an investment. And just like in the EIA example, it will be far more efficient to rent the money than to pay it out in real value.

 

In fact, if we are going to be facing hyperinflationary crises in every major country around the globe, then it may be best to just stop printing so many new dollars. That way you don’t have to worry about inflation getting out of hand.

 

Just like in the EIA example, it may be better to keep a low-interest, long-term, lease of all those new dollars, rather than paying for them in goods and services.

 

Unfortunately, the rest of the world does not think like that. They are looking for the easy way out, and they do not want to accept the hard truth that inflation is a very real possibility, and that hyperinflation is also an extremely real possibility.

 

So, they have instead been fueling the financial fire by “renewing” their borrowed money to keep their assets “alive”.

 

But they do not realize that inflation can sneak up on you. They want to make a quick buck, but they do not want to make sure that their return on that money is worth what they are getting paid.

 

And when their assets start falling, they are in a panic to keep their assets “alive”.

 

They want to protect their money, but they are not willing to do what it takes to actually protect it. They don’t even realize that it can literally be a catastrophe to have your money “reset” back to the same value that it had before you borrowed the money in the first place.

 

And of course the central bankers are all too happy to help them do that. They like to take “credit” for it, and they want to convince you that they are the ones that made you rich, but the truth is that they were just as much to blame as you were.

 

Perhaps now would be a good time to stop trusting the government and start trusting the rest of the world.

 

And if you would like to read more on this topic, please go to The Common Sense Show.

 

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