I do not mean this link to be insensitive to the issues faced by the citizens of Lebanon or otherwise diminish or demean them. That said smart preppers try and learn from other's experiences ... This is the intent of this thread.
The port blast in Beruit was over a year ago but it triggered a massive turmoil within the country and exacerbated already existing problems with in the country. They inflation rate soared, the banks/.gov imposed restrictions and absurd currency conversion rules for anyone with FOREX accounts in Lebanese banks. The ability to even with draw local funds was greatly restricted. This made the local currency basically worthless.
This in turn led to other follow on problems. This video is a a bit long but it goes in to detail about the shortages of everything from medicine to food to energy.
https://www.youtube.com/watch?v=IMkx4MEEnB0
Inflation -
QuoteThe consumer price index rose 137.8% from a year earlier in August, compared with 123.4% in July, according to the Lebanon Central Administration of Statistics. Consumer prices rose 10.25% from a month earlier while food prices rose 20.82%.
https://www.aljazeera.com/economy/2021/9/21/lebanons-inflation-rate-is-worse-than-zimbabwes-and-venezuelas
Severe fuel shortages due to the currency conversion restrictions are making life miserable.
https://www.youtube.com/watch?v=7xLQi0qU8pE
Electrical power is available maybe 2 to 4 hours a day since two power plants that supply 40% of that country's electricity shut down due to the inability to buy fuel oil to operate them.
https://www.bbc.com/news/world-middle-east-58856914
Quote... the country's two largest power stations, Deir Ammar and Zahrani, had shut down because of a fuel shortage...
(snip)
...In a statement, Lebanon's state electricity company also confirmed the shutdown of the two power plants, which together provide some 40% of the country's electricity.
Their closure led to the "complete outage" of the power network, the statement reportedly said, "with no possibility of resuming operations in the meantime".
Lebanon has some lessons for anyone who want to get up to speed on what inflation can do to a country.
It is not pretty and the basic plan for most of Lebanon's citizens is that they want to leave. Honestly, given the situation that is likely the best short term advice I would provide to these folks. The vast majority cannot leave though. This is IMO similar to what I believe would be the case if this happened in the US.
NOTE and warning some the articles do reference Lebanese politics. We do not allow discussion of politics foreign or domestic. This post is being offered to simply discuss the and illustrate what can happen in a hyperinflation currency collapse situation.
NOTE 2: I was reviewing this situation to see if crypto currency was a possible alternative currency for this situation. I have not found any data on this matter yet but will update this if I find any.
I am not recommending or condemning cryptocurrency. I am looking for real examples of crypto use in a hyperinflation grid down SHTF situation. Cryptos are extremely volatile and do pose unique risks that go beyond the scope of these articles. Caveat emptor. (see this link for a more detailed but very high level discussion of crypto for preppers ....https://ufozs.com/smf/index.php?topic=36.0)
Discussions of cryptocurrency in Lebanon:
Note some of these articles are biased in favor of crypto. None of these links are IMO neutral so caveat emptor.
https://www.middleeasteye.net/news/lebanon-economic-crisis-bitcoin-currency
This article makes an interesting point if the local currency you have is being devalued at a rate of 130% then a 30% to 50% swing crypto is more stable than the local currecy.
https://www.cointribune.com/en/analysis/global/lebanon-bitcoin-btc-more-reliable-than-national-currency/
QuoteCryptocurrencies are used by the Lebanese to protect against inflation
It's worth noting is that most Lebanese crypto investors are not afraid of the extreme volatility of digital assets. They believe that even if Bitcoin suddenly drops by as much as a third, it'll still be much more reliable than the Lebanese pound because the national currency has long since depreciated almost entirely.
This article notes that small business are starting to use cryptos. In view of the power outages I am curious about how merchants can process crypto payments so I am a bit wary of that claim. You can of course process crypto via cell phones which use batteries BUT you need internet connectivity to do this. So the either cell towers or wifi ISPs and merchant need power to be functional.
https://www.arabianbusiness.com/money/money-wealth/alternative-assets/463079-cryptocurrencies-offer-lebanese-place-to-put-their-cash-amid-hyperinflation
QuoteLebanese are increasingly turning towards cryptocurrency as a means to gain financial freedom during an ever-worsening economic and financial crisis and hyperinflation.
Not only are Lebanese using cryptocurrencies as an investment form, but a growing number of local small businesses, ranging from grocery stories to fashion boutiques, are accepting payment in bitcoins.
Over the last year, signs in storefronts began popping up indicating that certain shops would accept bitcoin payments.
Over the past almost two years, the Lebanese Lira has lost 80 percent of its value as local banks have imposed "unofficial" capital controls, putting limits on cash withdrawals, transfers and international spending.
I'm fairly sure most (all?) cell towers in the US are not completely dependent on the grid. I imagine the same goes for Lebanese cell towers, which would allow processing 9f crypto even during grid down. Even if cell was down when the grid was down, buisnesses may simply confine purchases to hours when the grid is up.