Key Takeaways:
- US politicians find ways to abuse their insider information to manipulate markets repeatedly.
- Additionally, they don’t follow the rules that are ironically self-imposed.
- Congress seems to care more about small profits rather than their government interest.
YEREVAN (CoinChapter.com) — It is no mystery by now that governments find ways to profit from human misery.
Profit-seeking by war is a classic move in the playbook of an unsavory soul. The US has an uncomfortable history of foreign intervention and involvement that generated enormous funds for the sorrow profiteers.
There is a special system that encourages foreign meddling. These leviathans of suffering are the so-called military-industrial complex and war-based insider trading.
And it seems the US Congress played their old trick again in Ukraine. But gladly, thanks to a recent report made by analysts at Unusual Whales, we can see how Congress did it. So let’s dive and see how this wicked scheme works.
The Terms That Explain The Motive
The above terms need an introduction since it’s hard to understand the motivation behind these backroom deals without them.
In foreign politics, the military-industrial complex refers to the influence and impact of the defense industry and its relationship with governments. It describes the intersection between military, economic, and political interests, particularly about the international arms trade, defense contracts, and geopolitical strategies.
Critics of MIC argue that the phenomenon of the military-industrial complex can lead to increased militarization, arms proliferation, and the perpetuation of conflicts. It can prioritize profit over peace and contribute to instability in war-torn regions.
Last year, Congress continued to trade without any fear of conflicts.
— unusual_whales (@unusual_whales) July 4, 2023
For example in 2022, there were many unusually timed trades.
When someone asks you about unusual political trading or conflicts of interests last year, show them this thread: pic.twitter.com/hN10dhRoJN
On the other hand, war-based insider trading refers to the illegal practice of individuals, including politicians or government officials, using non-public information about upcoming military actions or geopolitical events to make financial trades for personal gain.
However, it’s also important to know how people know what stocks get bought and sold by politicians. Due to the 2012 STOCK Act, Congress must disclose their financial trades to the public. They have up to 45 days to do so.
How Did They Profit from Ukraine War Exactly?
The talks that Russia may invade Ukraine have been in the air since 2021, when Russia was slowly preparing for the coming invasion. So Congress started to prepare in its fashion: by buying stocks connected to energy and war efforts. Let’s examine the technicals for a better understanding.
Analysts at Unusual Whales point out that on Feb. 22, 2022, Republican Marjorie Taylor Greene bought stocks in Lockheed Martin, Chevron, and NextEra Energy. On the next day, Greene said:
“War and rumors of war is incredibly profitable and convenient.”
For example, Democrat Debbie Wasserman Schultz purchased stocks in the energy firm Patterson-UTI Energy before and effectively made 64.14% in profits, according to calculations made by analysts at Unusual Whales. And thanks to the graphs provided, we see many similar examples.
Further Controversial Examples
Notorious Democrat Nancy Pelosi and her husband, Paul Pelosi, sold all of their Nvidia on July 27, 2022. And “purely” on accident, Nvidia was restricted in its chip sales to Russia and China by Aug 26, 2022. Nvidia dropped 20% right after that.
Quite strangely, the government “stock traders” exhibited a keen interest in semiconductors then, but their enthusiasm abruptly waned coincidentally after Pelosi sold her shares.
Breaching The Rules
Moreover, In 2022, the House Ethics Committee unanimously voted to dismiss Pat Fallon and Tom Suozzi for violating the STOCK Act.
The Committee stated there was “no clear evidence of intentional failure to disclose.” However, it was found that they had submitted disclosures worth hundreds of thousands of dollars years late.
To make matters worse, Pat Fallon and Tom Suozzi disclosed hundreds of trades late in 2022. For instance, it was discovered that Suozzi had committed approximately $6 million in STOCK Act violations, with some violations dating as far back as 2017.
Despite their actions, neither of them had paid a fine previously, and they have persisted in breaking the rules.
What Is The Lesson Of The Ukraine Tale?
Corruption permeates the US, much like any “empire” of its time, whether it is visibly evident. As a phenomenon, insider trading not only appears to be “legal” in the US but it is also encouraged and goes unpunished.
However, the most troubling aspect is that the lives of ordinary individuals, who may not even be US citizens, are manipulated by obscure politicians as mere pawns. In turn, someone’s desire for a small profit leads to the loss of lives.
Nonetheless, dear reader, it is important to remain cautious and remember that being knowledgeable prepares you better for such situations!
