Part 10/17:
The dialogue underscores that the ultimate trigger for collapse is the loss of confidence, which manifests as currency devaluation, withdrawal of foreign investments, and systemic defaults. The case of Lebanon’s currency collapse exemplifies how trust can shatter overnight, destroying the functional utility of a currency even if it is still technically in use.
Once a sovereign or fiat currency defaults or hyperinflates, restoring confidence becomes extremely challenging. Countries like Argentina have repeatedly faced debt crises, showing the importance of belief in the monetary system itself.