because Venezuela is in crisis? Part I

in steemit •  last year 

Hello dear friends of Steemit! For many it is not surprising that I am new to this social network and therefore, today I bring you my second post
I invite you to read my first post which I will leave in the comments.
Well, in the previous article speak a little about me, but in this one, I want to speak to my country (Venezuela) of course, for this topic there is a lot of fabric to cut, but I want to go in parts.

It is no secret to anyone that Venezuela is a rich country that goes through a very critical political, economic and social process, since being a net oil site, having the largest oil reserves on the planet, almost 30% of the world's oil The whole is in Venezuela, this has made us a country 100% dependent on oil since 1914, the year in which the "black gold" fever began in my country. Well, more than100 years have passed since then, in the last few years, the United States, our largest buyer of oil (around 80% of Venezuelan crude is sold to that country), has entered into a financial crisis and therefore had two options to get out of it: 1 ° Stop spending on weapons and the 2nd was to stop buying so much oil abroad and start to explode one's own. Well, they decided on the second option and what do you think? Venezuela was the first to suffer in this, as sales went down and the price of a barrel of crude was plummeted around the world. An example of this was in 2014 when the barrel was two years ago in a little over $ 100 and that year to cost $ 24 each.


Saying that, they will ask: how does that affect Venezuela and its high hyperinflation? Well here in the country, the only authorized to sell dollars is the national government and nobody else can do it legally. There are government entities that are responsible for selling dollars to citizens and companies, which are then used to import products into the country, but where does the Venezuelan government get those dollars to sell? Well, the answer is easy, oil and almost nothing. By passing the barrel price from $ 112 to $ 24 in a matter of a few months, that made the state not have the same freedom to sell dollars as before. Now, what happened next? Well it happened that the auctions of dollars by the central bank ended and there were no dollars in the street as before, the companies did not have how to buy the inputs from abroad, whether spare parts, medicine, food, chemicals ... So they had to run to the black market to buy it at a speculative price.

The dollar on the black market is practically worth gold! Since it is very scarce, but companies have no other option but to buy them to survive in the market. A $ 1 sold by the government costs around 34,000 Bs but if you buy it in the black market or parallel (which is the same) 1 $ = 900,000 Bs. So a powder soap that costs $ 3 to make it, went from 132,000 Bs to 2,700,000 Bs. Literally you need a sack of tickets to buy 1kg of soap !! And so it is with all the products ...
The salary of the Venezuelan collapsed, today the minimum wage in the country is around $ 3.50 per month, you can not do anything with that! Imports of auto parts rose dramatically! Like food and medicine, to say the most important thing.

Meanwhile, the government blames foreign organizations or opposition political parties. They refuse to take control of the exchange and now more than ever they keep an eye on those who give them the state dollars and what they use them for. This has made the request for dollars is turned into a bureaucracy.

Another thing that fuels hyperinflation in the country are salary increases almost monthly, this only helps to grow the economic phenomenon that feeds itself or as the dog that pursues its tail, a cycle that does not stop increasing salaries or creating bills with higher denomination every time.

As I said at the beginning, there is still a lot of material to be cut on the subject of Venezuela. If you live in another country, this question is for you. What do Venezuela's news programs say? How about your point of view to my country? If you live here, what economic measures are the right ones to get out of hyperinflation? Do you have any knowledge of hyperinflation?

I hope you liked this first part of the post, I will be reading your comments and giving my vote to each of them.
Greetings from the most remote!

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  ·  last year (edited)

Hey @josesaimon66

Welcome aboard!

You're creating great content here as I can see discusses a serious problem in venezuelan economy, I've a small tip for you don't duplicate comments or invite people for your post because you will get a lot of flags or downvotes from other people and that will affect your reputation going to zero!

You can just promote your posts or create a useful comments on other people content.

Have a nice day.