🏦⚖️While it seems many are sufficiently ignorant of financial laws that govern us, it seems even more people are ignorant to the fact that these financial laws get broken by the people we trust in positions of power. As ignorant as #communists are about their understanding of #finance and economics, one thing they’re totally right about is the potential for corruption in ANY economic system. There have been several historical examples of governments bypassing or disregarding their own financial laws. Here are a few notable instances:
🛢️#Enron Scandal (United States, 2001): Although not a government per se, Enron was a major energy company that manipulated its financial statements to hide debt and inflate profits. The U.S. government’s regulatory bodies, such as the Securities and Exchange Commission (SEC), were criticized for failing to detect the fraudulent activities and enforce existing financial laws.
🏛️Greek Debt Crisis (Greece, 2009-2018): The Greek government faced a severe debt crisis during this period, which revealed significant misreporting of financial data to meet the criteria for European Union membership. The government was accused of using complex financial instruments to hide the true extent of its debt, thereby circumventing the rules established by the European Union.
🌍Zimbabwe Hyperinflation (Zimbabwe, 2000s): In the early 2000s, Zimbabwe experienced hyperinflation due to various factors, including excessive government spending and economic mismanagement. The government resorted to #moneyprinting in large quantities to cover its expenses, resulting in skyrocketing inflation rates and the devaluation of the national currency.
📉Argentina Default (Argentina, 2001): Argentina defaulted on its external debt in 2001, the largest sovereign default in history at the time. The government had accumulated unsustainable levels of #debt, but instead of adhering to fiscal responsibility, it resorted to ignoring financial laws and engaging in unsustainable borrowing practices.
🪆#Soviet Union Planned Economy (1920s-1980s): The Soviet Union operated under a centralized planned economy, where the government had control over all economic activities. This allowed the #government to manipulate economic data and circumvent market forces, leading to inefficiencies, corruption, and misallocation of resources.
🧠It’s important to note that these examples differ in nature and severity. While some involve deliberate deception or manipulation by governments, others stem from #economic mismanagement or systemic issues. Nonetheless, these cases highlight instances where governments have acted above their own #financial laws or disregarded them to achieve their goals.