THE HECATOMBE - VENEZUELA

Maduro believes that he ate it with the package of measures recently announced to the country. He gloats over the national chain as the father of a new economic theory that will change the standards of the world's economics schools. He achieved the incredible miracle of solving the serious economic crisis that the country was experiencing, applying his wise concept of "zero kill zero".
With the wisdom of an Adam Smith, our "Professor" occupant of Miraflores applied his brilliant financial poultice and holy remedy.

It all began when, in mid-February of this year, he had the most elaborate birth of his "prodigious" mind of an outstanding man dedicated to the study of economic sciences, because only in his free time does he exercise the Presidency of the Republic. When he conceived, after deep and long reflections, the brilliant idea of a cryptocurrency, which he named Petro, and set out to launch it with honors to all the financial centers of the world.

That virtual currency, among others, had the virtue of being the only one of its nature, with a back-up value represented in the reserves of oil settled in the subsoil. Its success and acceptance in the great international financial centers was guaranteed, while offering us the mechanisms to dislodge us from the pernicious rigors of the dollar and generate the foreign currency so necessary for the country. Little did the genie care about the flagrant violation of the mandates of the National Constitution implicit in its creation, since it expressly prohibits committing or alienating the nation's assets and establishes the only bolivar as legal currency.

To the disenchantment of its inventor this "wonderful" currency failed to arouse interest in any investor of the globe, not even one hundredth of such "colossal treasure" was acquired by some serious and real firm. The magnificent Petro, in a matter of very few days, went underground with all his bureaucratic promoters within the government, got stuck in the bottom of some ministerial drawer where he remained inert for several months. Now the new magician of the finances, resurrects him, assigns him a price taken from the hat equivalent to 3,600 BsS, as if the value of the coins was established by the decree that creates them, at the same time, sets a minimum salary of 1,800 BsS per month that is, half of the value assigned to the virtual currency, in order to anchor the new value of the penny bolivar to the "tough" Petro, in a move to transfer to the debased currency of the 5 zeros, the strength and consistency of his " vigorous "virtual creation.

This represents, neither more nor less, an improved version of the picture of that painter who is recommended to hold on to the brush so as not to fall off the trembling step, where the bolivar is the trembling without any stability and the Petro the brush that flutters by the airs in the hand of a fantasy painter. To complement this "astute" measure, he decides to assume for three months the salary difference generated by the increase. This in addition to generating an unpayable liabilities with the government for the businessmen and merchants, equivalent to a generalized confiscation of all the means of production, represents a gigantic and almost incalculable mass of money that the Mint must give birth, to cover such differential , both of public employees, pensioners and retirees as of the 14 million, as far as the workers and employees of the private sector are estimated, all this without generating a cent of wealth that supports them. Does this economist think, in such a ridiculous picture, that it is possible to commit such an outburst with our monetary sign, without suffering serious consequences? Without the slightest doubt the thunder of the shot of our hyperinflation will be heard rumbling even in the confines of the mountains of Tibet.

The value of a currency is not established by decree, it is determined by the acceptance it has in the markets, based on the trust it generates in the population. The Petro as anchor of the bolivar, does not offer any stability, because she in itself lacks solidity, nobody wants them, their support is an entelechy, it is not a guarantee for anyone, an oil in its natural state enchumbando the rocks down there , snooping the depths of the 600 meters and dispersed in a wide territory, it is not a guarantee for anyone. That's like someone who asks for a guarantee and gives as a guarantee of payment the fish from the sea portion in front of his house. This tejemaneje of the "new genius" of finance does not solve but only exacerbates the problems arising from the lack of national production. To complement all these measures are dressed with a chase to traders who tired of resisting, will have no choice but to download the show. Each time we produce less and now that decrease will accelerate. Do not fall into the officialist trap of attributing the price disaster to the speculation of the merchants. Always remember that the government is the one that has the monopoly of imports for the main rubles of the diet, in addition in their hands is the control of all that pile of confiscated companies.

Well the saying goes "with smoke do not roast jojotos" neither with Petros nor with Sovereigns we can buy food and other goods abroad. We will continue thirsting for dollars to be able to import, each time with greater need and urgency. The dollar-generating sources, such as oil, are languishing, the production of hydrocarbons is in free fall. the scarcity of the green coins, will increase the amount of bolivars needed to acquire it, because the dollar does not rise in price, who depreciates is our poor monetary sign call it strong or sovereign .. The crazy printing of more and more bills, will cause, whether it wants it or not, the new "financial brain", a collapse in its vertiginous value of never seen dimensions and that will be a catastrophe in our suffering economy.

Upon receiving the first salary increases, there will be a massive rash of current inventories in shelves and warehouses. Then the merchants, if they manage to harmonize with the new prices set to continue working, will require the replenishment of merchandise and the demand for dollars will increase, the dollar will shoot up, there will not be enough, the replenishment will fail and the scarcity will be further weakened. There will be a brief stage in which you can have money but very little to buy with it, while prices will inflate to find your adjustment to a bolivar on the floor. I do not take pessimism, but it is not required to be an economist to presage the hecatomb that is coming on top of us, it also begins with "H" of famine.
I have no doubt, these economic measures, will change the course of the next events.

The exit was emerging as a response to a process of gradual degradation of our living conditions, now, with the immediate consequences of this financial nonsense, will be forced to shorten the path taking the shortcut of urgent national salvation.

Evegopa 26/08/18
Evencio J. González

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