Evolution in Venezuelan Currency Part III: The Bolivar Sovereign

In the blink of an eye. just a blink and we were already in a state of crisis. Millions of people had to abandon everything and leave the country shrouded in despair looking for improvement regardless of being mistreated, sleeping in the street and even do the lowest jobs for little money even many have lost their lives by the discrimination of which have been victims in brother countries, the trade of food and medicine began to take place through social networks at super high prices being impossible to buy in stores as it happens anywhere else in the world, visiting a clinic became a luxury due to high prices and hospitals were filled with pollution due to lack of maintenance and supplies, education was also affected, millions of professionals left the country also creating human resource shortages and uniforms for school, In the midst of total chaos, the third monetary cone is introduced, in which it has only been in effect for one month, and in the midst of the total chaos, the third monetary cone is introduced, which has only been in effect for one month.

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The Bolivar Sovereign Bs.S

The government moved some pieces to try to make amends by doing what many considered a "reset" of the economy, in the first place an unprecedented wage increase was decreed. The minimum wage of a worker was half a kilo of meat equivalent to 5,000,000 Bs.F if you remember the first post of this series with the first Bolivar 1Kg of meat could be bought with 1Bs. If we remember that 1Bs.F=1000Bs. then the kg of meat was at 10,000,000Bs.F=10,000,000,000Bs. For an inflation of 10,000,000,000%. The solution proposed by the government consisted of two stages, increasing the minimum wage from 5,000,000Bs.F to 180,000,000Bs.F an increase of 3600% equivalent for the moment to 30USD, at the time the amount was announced gave to alleviate a little food purchases. The second measure was to remove zeros from the currency again, but instead of removing three zeros it was decided that 5 zeros would be removed, thus 1Bs.S=100,000Bs.F=100,000,000Bs. This new monetary cone had as its function to put an end to the scarcity and trade of cash. This is how the government's plan came into effect a month ago.

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Everything seemed to take a good course but where there is no law the people are out of control, one month after the new monetary cone comes into circulation we are worse than ever, the cash crisis is still going on and the products increased in proportion to how the minimum wage did and the shortage of products also worsened, so a kilogram of beef has gone from costing 1Bs. in my first memoirs to 500Bs.S=50,000,000Bs.F=50,000,000,000,000Bs. A 10-Digit increase in inflation in 18 years of revolutionary rule! and what seems worse, prices continue to rise. Before the new monetary cone some people could subsist with the money sent to them by their relatives abroad, when they sent them doares they changed them and it was enough for something, the same in my case, the income that I receive by steemit was enough for a lot, now it's not like that anymore. Now it is easier to be able to explain to the world our economic situation since the prices of products are internationalized. Imagine that you live in the U.S. or any other dollarized country with a monthly salary of only 18USD, surely you can not do much with that but you must add that due to the shortage of products is difficult to buy the little that gives to buy and all sum that the insecurity is too high to the point of not being able to leave with something of value, that the level of education you can give your children is on the floor, there are no medicines if not even to address a simple flu and if you find them you must spend the 18USD on a single medicine. If you can imagine all that then we're a little worse off around here.

Failed Strategy

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Due to the constant shortage of products, the common citizen became a "lawless trader", that is, a person who sells food without having any registered business and therefore is not subject to price control or fixed establishments in which he can be sanctioned. This factor together with the destruction of the productive enterprises of the country were the ones that led us to this situation, when the food was scarce it began to practice that a person could put a product on the market at a price of up to 3000% of its value, as there were no options the needy people acquired the product at that price, since then it became a business for all those who had access to basic products, starting with the authorities that have made a lot of money from this, the same lack of government gave free rein to this phenomenon and currently they are the ones who set the prices of the articles obtaining profits much greater than those obtained by the producers and as long as this factor is not controlled the crisis will increase because they already have the habit of doubling the prices of the articles every week. In short, one month after its circulation and the sovereign Bolivar along with the new salary have done nothing, the crisis has worsened and now if I'm considering leaving the country, it is already unsustainable!

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