How One Scam Destroyed the Whole Country?

*The Lebanon Financial Crisis: A Tale of Corruption and Betrayal*

Lebanon, once dubbed the "Switzerland of the Middle East," has been ravaged by a catastrophic financial crisis, leaving 80% of its population below the poverty line and eight in ten citizens unemployed. The country's inflation rate has skyrocketed to 171%, with its currency devaluing drastically from 1,500 Lebanese pounds per dollar to 15,000.

*A History of Turmoil*

Lebanon's woes began with the 1975 civil war, which lasted 15 years and claimed 500,000 lives. The Taif Agreement in 1989 brought temporary peace, but the country's infrastructure and economy were left shattered. To rebuild, Lebanon's leaders sought foreign loans, orchestrated by Riyad Salame, a former Merrill Lynch vice president who became governor of the Central Bank of Lebanon.

*A Web of Deceit*

Salame's strategy involved artificially stabilizing the currency and offering unusually high interest rates to attract foreign investors. This scheme, which promised returns of 8% and later 15%, drew in millions of dollars. However, the money was largely funnelled into the pockets of Salame and other government officials.

*The Bubble Bursts*

In 2019, concerns about the legitimacy of the banking system grew, and people began withdrawing their money. Banks imposed strict withdrawal limits, sparking widespread panic. The Lebanese pound plummeted, and foreign investors fled. The government was left unable to pay salaries or provide basic services.

*Consequences of Corruption*

Today, Lebanon faces unprecedented poverty, unemployment, and crime. The once-thriving tourism and banking sectors lie in ruins. Riyad Salame, the mastermind behind the scam, remains at large, with an estimated $300 million stashed in offshore accounts.

*A Lesson in Accountability*

The Lebanon crisis serves as a stark reminder of the devastating consequences of corruption. To prevent similar tragedies, it is crucial to educate future generations about the dangers of corruption and promote accountability.

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