Lyn Alden's avatar
Lyn Alden lyn@primal.net 2 years ago
Flying to Cairo tomorrow to visit friends and family, where I will be until shortly before Pacific Bitcoin. I have a small wad of cash from last time which I will be bringing with me, that is now worth a lot less than last time I was there. At the start of 2022, the exchange rate to the US dollar was 15 to 1. When I was there, the exchange rate was in the 20s, since the Egyptian central bank was in the process of devaluing it (at the behest of the IMF). Now it’s over 30 to 1, so these are all seven dollar bills basically. My friends and family, whose wages are denominated in pounds, all got wage increases since the start of 2022, but they certainly didn’t get 100% wage increases, and so all of them earn fewer dollar-equivalents per hour thanks to this devaluation (which among other reasons is why the IMF wanted Egypt to do it). image

Replies (31)

DrLuke's avatar
DrLuke drluke@bitcoin.rocks 2 years ago
Hi @Lyn Alden If you ever decide to fly all the way south to the tip of the African continent, we will gladly host you or take you up to Table Mountain for some spectacular #CapeTown views. The #Bitcoin Table is set image
aerique's avatar
aerique _@aerique.net 2 years ago
> and so all of them earn fewer dollar-equivalents per hour thanks to this devaluation (which among other reasons is why the IMF wanted Egypt to do it) But why?
1 replies ↓
Brandon Gentile's avatar
Brandon Gentile brandon_gentile@primal.net 2 years ago
Absolutely insane. So sad and you feel for everyone in countries with massive devaluations like Egypt and turkey Lebanon….and eventually America 🤣 Have a great trip and see you in LA at PB 💪🏻💯
prepare to jibe's avatar
prepare to jibe 2 years ago
When I visited Egypt as a kid (7yo) you could climb on the pyramids. My brother and I have a cool picture :-)
Lyn Alden's avatar
Lyn Alden lyn@primal.net 2 years ago
Egypt needed dollar loans from the IMF to keep their part of the global dollar debt ponzi going. Everything gets restructured, refinanced, and larger, constantly. Before giving the loan, the IMF makes the country devalue the currency to make labor cheaper and try to improve the export/import balance. And the IMF makes them do other top-down economic reforms that comply with their vision of how economics works, which generally caters to the US and Europe. @gladstein has a big article and book that covers this process in detail:
Bitcoin Magazine
Structural Adjustment: How The IMF And World Bank Repress Poor Countries And Funnel Their Resources To Rich Ones
The IMF and World Bank do not seek to fix poverty, but only to enrich creditor nations. Could Bitcoin create a better global economic system for th...
1 replies ↓
Lyn Alden's avatar
Lyn Alden lyn@primal.net 2 years ago
The IMF did it to try to improve the country’s export/import trade balance, and it was a condition for them to give Egypt a dollar loan to refinance their dollar debt. And at the end of the day, it’s the saver and wage earner that gets stuck with the cost.
stackatoshi's avatar
stackatoshi stackatoshi@primal.net 2 years ago
I see. So they keep Egypt enslaved with dollar-denominated debt that is ever-harder to pay back. Egypt basically can’t import anything and has to restructure its economy to provide consumable goods for Europe/US to pay down the debt. Prevents them from developing a local capital base. Clever.
1 replies ↓
Love's avatar
Love 2 years ago
God help us all in whatever is to come of this
Zach's avatar
Zach 2 years ago
Awful having to depend on that currency. I know a graphic designer in Cairo who finds clients in the US, and gets paid in USD. And I think he pays his staff in USD. If anyone has a skill that can be used online, I think that’s the way to go.
1 replies ↓
Faroaldo's avatar
Faroaldo 2 years ago
I have been in Egypt for the first time earlier this year (Marsa Alam and Luxor). I had a small chance to grasp something about real Egypt during the trip from the Red Sea resort to Luxor. Great poverty, subsistence economy, it was like going back in time to maybe 100-150 yrs, with a touch a 21st century. Lots of children everywhere. Other than that, I see plenty of Egyptian immigrants in Italy (both Muslims and Copts) and they’re quiet hard working people. They’re proud of their great history but imho also prisoners of religious and social rules. Traditions and values are important but can become also obstacles in modern world. I want to come back to Egypt though… hopefully early next year.
Capt Stab's avatar
Capt Stab 2 years ago
Linking labour to something tangible is key to anyone understanding the inflation problem. An effective analogy I use is qualified trades and linking their apprentice wage say $10 p/hr to the price of a beer at that time, $2.50 a beer. Now fast forward 10 years, was the sweat and effort back then any less difficult than today? Answer is No. Wages are now $40p/hr and beers $10. So you got paid 4 x beers per hour as an apprentice, but now that “work/sweat” only buys one beer….. what happened? Where did the the other three beers go? 🍺🍺🍺 💰 #bitcoin
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