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If you’re a dictator looking to hold on to power, and you have no ability to borrow money (can’t pay in bolivar because it quickly becomes worthless, can’t pay
by ZoomerCretin 6y ago
If you’re a dictator looking to hold on to power, and you have no ability to borrow money (can’t pay in bolivar because it quickly becomes worthless, can’t pay in foreign currency because your inflation rate effectively makes the loan’s interest rate high), why not print? It may not help your citizens, but you can keep your army fed enough to stay on your side.
- opnitro 6y agoAdditionally in the Venezuelan case, their ability to borrow money is also hampered by sanctions.
- dmingod666 6y agoOfcourse, the countries placing sanctions are never to blame.. Take North Korea for example.. I like to imagine this is how it plays out in the people heads: "like, it's so sad that the people there suffer.. our hearts go out to them.. should we lift sanctions..? Hell no, let them burn to the ground, let them realize who they're messing with.."
- croes 6y agoHas nothing to do with being dictator. If you can't borrow money you have to print it.
- maneesh 6y agoNot many classes of people other than a dictator are able to print fiat currency unilaterally though
- croes 6y agoEvery nation with it's own currency and a central bank can print money. Other banks can even create money from thin air through lending. How much depends on the equity quote.