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It's undeniable that countries are pressured. Look at El Salvador and the unrelenting salvo of bad press they get over starting to accept Bitcoin as legal tende
by jimmydorry 4y ago
It's undeniable that countries are pressured. Look at El Salvador and the unrelenting salvo of bad press they get over starting to accept Bitcoin as legal tender.
The IMF immediately told them that they would no longer be elligible for any IMF loans or financial transactions until they sold all Bitcoin they owned and rolled back the Bitcoin legislation. And the kicker, El Salvador bought and held XX million dollars worth of Bitcoin (last I checked), while their GDP was XX,XXX million dollars, and the loans that they roll were for X,XXX dollars.
There aren't many other players at nation state level like the IMF... so they can exert a lot of pressure on monetary policy. If you want another example, look at how the IMF dealt with Greece.
- RandomLensman 4y agoYes, organizations do (and should exert) pressure when they give something, but is it done against the will of the citizens (i.e., government agreeing to things the citizens don't want. A vocal opposition is not enough to claim that)? A country is free to isolate itself etc. if the people there are happy with it.
- forum_ghost 4y agocan you find people in Cyprus that were enthusiastic about losing money so that the government can pay bankers' gambling debts? a 2-3 verified examples will suffice, tia.
- RandomLensman 4y agoDepends what the alternative would have been... lose all deposits?
- forum_ghost 4y agoYou are not aware at all how Cyprus went down, are you? The banking holiday was declared in Cyprus, banks and ATMs shutodnw, everyone local is locked out completely, meanwhile deposits were drained by the rich international depositors thru oversease branches that remained open. Why do you love defending the indefensible so much? Take the L and move on.
- RandomLensman 4y agoHow would you know what I know about what happened in Cyprus? Was what happened the best possible result - probably not. But I would say that goes for all European responses to the financial crisis then - but that is not the same as being totally indefensible. The question has to be: what outcome could we have now that would be better and what should we have done then and could that have been done? And with Cyprus one issue is the smallness of the economy, which meant what a US might be able to do might not be possible for them on their own. EDIT: and one of the issues in Europe certainly seems to be that broad, untailored measures are not very popular even though ex-post they appear to perform better - so popular opinion does matter
- forum_ghost 4y agoDo you think Germany should use more cash or less?