Peter Schiff Shared: The Turkish Lira is crashing as a 14% interest rate and 21.3% inflation rate means real yields are -7.3%. With a 7.3% annualized CPI and 0% interest rates, U.S. real rates are also -7.3%. If one uses a more realistic 15% inflation rate, it’s -15%. The U.S. is the real Turkey!

For clarity:  There are jobs but there is no money coming from the job.  President Tayyip Erdogan stated that he had lowered Turkey’s inflation to around 4% in the past and that he will be able to achieve it again.  This he had said at a point in time when it topped 21% following a push for aggressive cuts in interest rates that he has engineered.

Community Response: You’re wrong. The real inflation in Turkey is 75%. Interest yield -63%.

What part of Turkey are you from? How has this inflation impacted you?

What does the reality end up looking like when this happens? Sorry, if it’s an off-putting question, I’m genuinely interested. Do you just switch to work online for dollars and denominate everything in crypto/stable coin assets?

Malls change prices every day. And your purchasing power is constantly decreasing. It loses value before it reaches the hands as earnings.

But why even work for this small amount locally? Why don’t people just go work remote jobs?

There are very few people who speak English. People generally work in industry and it is not considered a valid profession.  I see. That’s very sad. I hope you guys can get out of your situation ASAP. Programmers earn well online and are easily hired. Not something that everyone can do, but it could help some.

Where do I buy gold? How long will it take to get from a trusted counterparty?

Turkey’s real inflation is 60%. 14- 60= -46%. Turkey is the real turkey. You have a long way.

Bitcoin Advocates propagate that you should buy bitcoin before all your fiat is worth zero.  The problem of bitcoin is the value also depends on the people who buy bitcoin. If US raises interest rate and no one lends and buys bitcoin, the price will crash.

The difference is the US is much bigger, so it will take longer for the boat to sink.

The US boat isn’t going to sink, because if it does, your portfolio and your money are gone.

Weimar Germany. You don’t want to be the captain of this ship.

Did you read the rest of the history book or did you only read the chapter on Germany’s post war inflation? None of the factors at play, back then, are happening now. Last I checked, the US isn’t buying up everyone’s currency to pay war debts because the world sanctioned it.

No, I wasn’t comparing every single aspect of what the Germans did and what the US is doing, specifically for one reason. Rapid monetary inflation that out paces economic productivity growth results in extreme inflation, which has positive feedback loops that cause hyperinflation.

Have you lived through hyperinflation? Because I have. A few times. It is not simple inflation which goes high and results in a feedback loop. It is a general and all-encompassing loss of trust in all things government. The US is now where they are yet- not even close.

Living through something doesn’t mean you understand it at all. It has nothing to do with trust and everything to do with valuation. When price moves fast enough, you cannot run a business. When it moves up fast enough, you lose your wealth. That causes the mistrust.

And in this world of a hundred currencies when people see their money going to dust, they have outs, which is why they sell off their currency as fast as possible. When this happens today with inflation of the USD on its own, they won’t run to other currencies but right to hard assets

Gold has done absolutely nothing when historically during $ inflation people rush to gold as that safe haven store of value. But it’s stayed flat the whole time. Why?

Bitcoin is the better, smarter, faster, harder, SoV with way more accessibility than any other any other asset.