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Finance7 min read

Why currencies mysteriously collapse

The psychological tipping point where money stops working.

Hook

A currency doesn't collapse because the numbers say so. It collapses the morning enough people decide it will.

Context

Money is a shared belief with a central bank standing behind it. Rates and reserves hold that belief steady — until a government spends past what anyone will lend it.

Deep dive

Weimar, Zimbabwe, Venezuela: the same curve every time. The tipping point is never an inflation figure. It's the day the shops stop quoting prices in the currency at all.

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