PRINCIPLE OF LEVERAGE

   Living and Working Through Hyperinflation: A Tale from Lebanon Despite the harsh realities of hyperinflation, Beirut's pulsating nightlife and constant influx of international visitors keep the city's urban landscape alive. An unparalleled economic crisis is intertwined with a spirit of resilience, adaptation, and survival in this city and throughout Lebanon. Picture an average Beiruti worker in the year 2023. They are paid partially in US dollars and partially in Lebanese pounds. The USD component maintains its value despite rising inflation, providing a lifeline amid an otherwise turbulent sea of economic instability. The LBP part, however, presents a different picture. With each passing day, they have less purchasing power thanks to their LBP. Food, shelter, and transportation are all experiencing price increases. The difficulty of making ends meet increases, despite the fact that some of the wages are paid in US dollars. But in the city of Beirut, a very different situa...

  Rising Wages: A Mirage  During Economic  Challenges Author:  YOUSSEF.E.CHAMOUN Created:  7/12/2023 Tags:  #wage increase #rat race #financial freedom #inflation #interest rates According to recent studies, the average worker's pay has increased by 5% in the last year. At first glance, this would seem like a good thing, but upon closer inspection, it becomes clear that increasing salaries do not always equate to better financial well-being. The idea of a rising income might just be a false mirage in the face of rising interest rates and inflation. This article emphasizes the importance of people taking charge of their financial destiny while illuminating the complexity around wage increases. The False Promise of Wage Growth While a 5% pay raise could appear alluring, it is important to consider the larger economic environment. The purchasing power of these higher wages may be reduced by rising interest rates and inflation. Particu...

The weakening of the U.S. dollar and its effect on the Lebanese economy. By Youssef E. Chamoun If you're interested in delving further into the topics of micro and global economics, I invite you to explore my blog at https://youssefchamoun.blogspot.com/. There, you'll find insightful articles and analyses on a wide range of economic issues, from the latest global market trends to the intricacies of microeconomic theory. Whether you're a seasoned economist or simply interested in learning more about how the world economy operates, my blog provides a wealth of information and perspectives to broaden your understanding. I hope you'll find it to be a valuable resource in your pursuit of economic knowledge. The Lebanese currency has lost 90% of its value due to devaluation. What would happen if the US dollar became even weaker? The Lebanese economy is heavily dollarized, meaning that the US dollar is widely used in transactions and many assets and liabilities are denominated...

THE 2023 ECONOMIC DISASTER  "What are the first things people should be aware of in 2023? First, we need to be ready for any potential economic downturn. History shows that the last major market crash was in 1929, and it took 25 years to recover from it. If another market crash occurs, a bailout may be necessary. A bailout involves rescuing a struggling entity, such as a firm, from financial issues. However, if we look at past market crashes, such as the ones in Mexico in 1994, Russia/LTCM in 1998, the dotcom crash in 2000, the Lehman Brothers collapse in 2008, and the pandemic in 2020, we can see that each economic bailout has been more significant than the previous one. While economic bailouts are common, there is a limit to how much they can be used. When money is pumped into the system, it often results in more debt. If the cost of the last bailout was one trillion dollars, the next one could cost up to twenty trillion dollars. Therefore, governments must be cautious about the...

where are we right now? what's going on? What is the purpose of Executive Order 14067? This order accelerates the transition of the United States to a central bank digital currency (CBDC). This refers to the adoption of digital currencies, or central bank digital currencies (CBDCs), around the world. China has already launched its own digital currency, the digital yuan, which is being tested in several cities including Beijing. The Bahamas also became one of the first countries to roll out a digital currency, the sand dollar, in 2020. The European Central Bank (ECB) is also exploring the possibility of a digital euro and has launched a public consultation on the matter. The U.S.A. has appeared to hurry on this. What are Central Bank Digital Currencies, exactly? Although it is a digital dollar, it is not a new form of money, but a new payment channel. What negative outcomes are likely if we use digital currency? Running out of money is the reason they created the CDBC. THE QUESTION?...