<div class=”d4p-bbp-quote-title”>74 wrote:</div>
Phase III: Pervasive shortages, extreme acceleration of inflation, and an obvious foreign exchange gap lead to capital flight and demonetization of the economy. The budget deficit deteriorates violently because of a steep decline in tax collection and increasing subsidy costs. The government attempts to stabilize by cutting subsidies and by a real depreciation. Real wages fall massively, and politics become unstable. It becomes clear that the government has lost.
“the budget deficit deterioriates violently” because of a lack of trust in the government, I would think. They don’t follow standard accounting practice and make their investments on the premise what keeps me in power is good for the country. Much like Obama and his use of executive orders. Large american corporations hold mega bucks in foreign accounts because of a lack of trust in the IRS. Dodd-Frank and Congress. And of course a fear of confiscation. When the US broke the secret Swiss bank account system lol. Big Brother Is (Always) Watching and Manipulating Us.