Libyan businessman Hosni Bey told our source that the failure of states and their economies generally stems from distortions caused by public spending policies. He continued, saying the primary drivers of failure and distortions are:
- Public spending that exceeds government revenues.
- Central banks financing the general budget by creating money from nothing—whether through printing or virtual entries—known as Helicopter Money.
According to Hosni Bey, the Central Bank of Libya possesses all the necessary tools to achieve its core objectives. The key condition for the success of monetary policies is the first commitment: no monetary financing of public budgets and no lending to governments—neither in Libyan dinars nor in any other currency—so that governments are forced to implement austerity measures.
He added: The Central Bank should follow the Libyan proverb: “Bring in revenue before spending and then talk.”
He also stated that the Central Bank holds reserves estimated at $90 billion and is capable of buying back 100% of the dinars in circulation by selling only $30 billion, leaving reserves exceeding $60 billion.
