Syrian leader Bashar al-Assad has a way to pay his government workers and keep his country running, he’s simply printing more money. While that extra capital may help the country over a very short period of time anyone with a 9th grade economics education knows that printing vast amounts of money can lead to hyper-inflation and given the countries civil war that appears to be the next step in the downfall of its economy.
Government revenues have rapidly declined as UN sanctions have crippled the country as it continues to struggle with uprisings, the killings of innocent civilians and a loss of most public sectors.
In the midst of its civil war Syria has watched its budget sore to $27 billion in 2012, the largest in the Syrian governments history. That budget has increased as Bashar al-Assad hired more government workers and offers subsidizes to business in order to keep the countries economic machine churning out products, services and jobs.
According to one banker in an interview with Reuters:
“People are getting their wages and there are no complaints. But if we reach a stage where they are not paid, there will be a crisis.”
Inflation in Syria is already at an incredibly high 30% which has led some analysts to call the rapid printing of coming “economic suicide.”
In the meantime the reign of al-Assad has become so bad that even some impartial journalists including our own Melissa Stusinski have called for his assassination in the name of human rights.
Do you think Syria’s economy is doomed to fail through the massive printing of new money?