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THREAD: Because the government has to pay its bills just as we do, it has budget constraints. There are 3 sources to finance the gov's expenditures: taxing, borrowing or printing money
During the past 10 years, the gov spent $30,019,627,860 MORE than they earned (fiscal deficit)
During the past 10 years, the gov spent $30,019,627,860 MORE than they earned (fiscal deficit)
Basically we can’t easily borrow anymore. The other “open and honest way” for any government to pay for its services & expenses would be to explicitly tax the citizens.
People simply hate taxes so they won't accept it without a really decent purpose.
People simply hate taxes so they won't accept it without a really decent purpose.
The authorities can’t tax anymore without a revolt (Whatsapp tax).
Yet the Lebanese authorities did increase their taxes, just not explicitly or openly. But how? Simply through lira printing.
During the last 12 months, the Lira in circulation increased by 13,327 billion LBP.
Yet the Lebanese authorities did increase their taxes, just not explicitly or openly. But how? Simply through lira printing.
During the last 12 months, the Lira in circulation increased by 13,327 billion LBP.
The Lira in circulation isn’t increasing just to cover government expenses (salaries, etc), the Central Bank is also printing money to deplete the available “local dollars” deposits.
Every time you withdraw your lollars at 3900 or 1500, BDL is printing money to cover it.
Every time you withdraw your lollars at 3900 or 1500, BDL is printing money to cover it.
