In Venezuela: Maduro removes 5 zeros from the National currency. Disadvantages (confused citizens).
The president of the Bolivarian Republic of Venezuela, Nicolás Maduro announced Wednesday in a meeting with the economic team, which will launch and definitively the monetary reconversion that he had proposed on June 4. "I will start definitively and by August 20 with the new Sovereign Bolivar," explained Maduro.
He also stressed that motivated to the economic war that is gestating against the nation will be a reduction of five zeros to the current currency and according to the anchor with international oil prices.
The president, stressed that all these changes are conducive to changing the monetary life of the country and make Petro a hope and that it is a fundamental pillar of the development of the nation.
"The mechanisms of economic warfare that have been implemented from 2016 to the current year, is the second element that must be taken into account in the economic recovery and growth program and in the great effort of economic revolution that we are going to activate ", He said.
In this line, he pointed out that the actions of destabilization against the country are framed within a political strategy, which seeks to make the country surrender to the oligarchy and the American empire,
"For the seriousness of the economic issue we are not only living the end of a hundred-year era, but a model of economic warfare based on savage, predatory, speculative, thief capitalism was installed in Venezuela"
He indicated that from today "meetings will begin with the national bank to discuss the technical aspects of the new monetary policy", especially the necessary mechanisms to make the anchoring to the petro of the national currency a reality.
This mechanism used by President Maduro, only what is going to trigger is a total confusion in the population, in addition to further alter the country's economic system, this was lived once with the late Hugo Chavez when he eliminated 3 zeros to the Bolivar in the year 2008 that at the end what happened was the increase in inflation.
Henkel Garcia, analyst and finance instructor and director of Econometrica, said the announcement, in his opinion, will aggravate the cash crisis, because there are no low denomination bills and will bring much confusion among citizens.
Luis Oliveros, an economist, questioned the measure due to the costs of several services in Venezuela, which he explained will make it difficult to pay for them.
"Questions that are appearing: How much is the price of gas? Today the liter costs six bolivars, with 5 less zeros, there will be no coins to pay it from August 20, "said Luis Oliveros on Twitter.
Orlando Ochoa, an economist and professor at the Andrés Bello Catholic University in Caracas, said that, in his opinion, the new monetary cone "does not work" in advance.
"The calculation in dollars of the monetary cone that Maduro showed in his hands - from 2 to 200 Bs Sovereigns (minus 5 zeros) - is measured between 0.05 and 5.50 dollars. And this monetary cone does not work, with hyperinflation of + 100% per month, by the end of the year each new bill will be worth a fraction of $ 1, "said Andrés Bello Catholic University professor.
The anchoring of the sovereign Bolivar to the petro was considered by Asdrubal Oliveros, economist and director of Ecoanalítica, as a fantasy because he assured that the support of a currency is trust.
"The sovereign Bolivar is anchored to the petro. An entelechy. The backing of a currency is trust. Just because nobody trusts the Bolivar is that hyperinflation was triggered".
Your article lead me to write this:
https://busy.org/@bifilarcoil/why-i-m-starting-to-appriciate-maduro-a-little-bit
probably a bit controversial, but according to some journalists controversial is good as it makes people think. I'm curious how people will react to this.
Bolivar seems a good choice to me, Petro, not so much. People should make their own choices anyway.
I read your article, different points of view, possibly it is true in what you say, maybe foreign countries play to jake the government of mature. Everything is possible .. Thank you for being aware of my articles. Greetings.
hello .. with respect to the video the comments coming from Rafael Correa egarded harvard being someone so prepared in my opinion someone very credulous and his politics seems very good. Let's not forget that he was one of the Latin American leaders that best benefited Hugo Chavez Ecuador is so nice and strong economically thanks to his policy that is a mixture between socialism-capitalism intertwined for me the best formula if you want a productive country . Socialism alone has no progress
Chavez was less political correct, right? I mean he was very upfront. He just called G.W. Bush a donkey.
In case of Ecuador we can see how they played the chess pieces a bit different. They played Lenin Moreno as a soft Coup pawn. Always on the side of Rafael Correa, and when Moreno came to power he turned 180 degrees at the whim of his masters.
Unfortunately socialism-capitalism works just like democratic-capitalism and communism-capitalism. Capitalism works. But we are now dealing with corrupt-capitalism, an inevitable end result of the unfair balance of the game
the distrubution of wealth is just extreme out of balance
These players are not actual countries, these billionaires have more power then a country. And even more if they join forces with other billionaires, these people have so much money that they are practically above the law. They 'corrupt' a few people in key positions in the industry, they play safe and use legal ways to persway. (is that the correct word? Persway, my spellchecker is messing up..)
As they play with big money they have many options to channel money to the people who open doors for them. This is how politicians take position in big companies after their political career. Open a door for a rich man, and get a nice CEO chair in return.
And as CEO they rake in the big money. Completely legal. Yet completely unfair, as the man on the street is the one who has to pay all these dancing chairs.
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