How To Destroy An Economy

How To Destroy An Economy

By: Abhijay Bhosale

In the world, there are different economic systems, but all of them have one thing in common; they are fragile yet resilient. Be it a war or a hundred-million case virus, economies have stayed relatively okay. But what if we took all that stability... and threw it away? Here's 3 different ways to destroy an economy.

STRATEGY 1: GET CONTROL OF THE MEDIA

The media is a simple way to get any information to the widespread public. The way about this strategy is how easy it is to do. You don't need any prior influence. You just need to know how to make a social media account and post regularly. If you become vocal enough and find the right people, you may get on the news. It's a cycle that keeps on growing, and though most people wont follow you, the second you're able to take it in real life and start doing mass gatherings and "protests." Even getting just 1000 people can influence a whole country. Remember. Your online footprint in precious, and once something's on there it's always faintly there. You have no idea how people will react and what the reaction will be, so think before you post. It can make or break your scheme. It seems very broad but media presence and control is something that is extremely important in this situation.

STRATEGY 2: MESS WITH STOCKS

More specifically, short squeeze a stock. One example is the Gamestop shorting. Just like the last strategy, this can be done online too. On reddit, there's the r/wallstreetbets where the Gamestop short squeeze was born, there are various groups on twitter, and any other media platform is just as good. To short a stock, there are 2 things you need know. What short sellers are and what short squeezing is. Short sellers are people who bet against certain stocks, and short squeezing is forcing short sellers to buy the stock when the stock skyrockets in value. They do it so they cushion their losses. Since these people are already monitoring this stock, they know when they need to buy it. Because demand increases, so does the stock's value. It keeps on going until trading slows down and the stock returns back to normal. At the end of it, short-selling investment funds had lost a collective 8 billion, so much so that the US government had to get involved and Gamestop had to close their stock trading. One investment fund lost 30% of its value after the squeeze and by the end of the year had lost 53%. Even if it won't fully destroy the economy, it'll take away a lot of money and if you're on the right side, you'll get some money too.

STRATEGY 3: SELL... MONEY

Yes, that's right. You can sell money. Like with stocks, you can short currencies. A man named George Soros once did this and drove the Bank of England to lose 3.3 billion euros while making 1 billion for himself. Not many people outside of the Europe know about Black Wednesday. That was the day when the British Pound went below 2 USD for the first time in International 1976 during their recession. What George Soros did was simply take the pound and then sell it in exchange for a different type of currency. He managed to predict when Black Wednesday would occur, so when Soros sold the money (exchanged it), the Bank of England had to buy more money. Black Wednesday was the day where the British were basically buying their own money to bring back its value, so while they were at it, Soros took the opportunity to sell. The deal Soros made was that he would sell the pound and then buy it back at a later time. So let's say he sold it to a German. He would sell it for a certain amount of Deutschmarks, and then after he forced the Bank of England to buy an unreasonable amount of Pounds (which ultimately lowers the value of the currency), he would buy the pound back for a lower amount of Deutschmarks. He ultimately makes a profit. A lot of these money making schemes are also a huge risk to the government, so these earning methods lead to a caput economy.

CONCULSION

In total, this is how you wreck an economy. But the real reason to write something like this isn't what to do, but what to not do. It's better to know what you shouldn't rather than what you do to keep things in line.