ECONOMIC ADVERTISEMENTS

Hello steemians friends, the economic announcements of Friday night (8/17/2018) left me indignant and worried. I will explain why in the most summarized way possible:

• The official devaluation of the bolivar to 6 million Bs. Strong per dollar: Almost exactly the quote of the day of Today. I am outraged to invent a kind of infant gymkhana (1 barrel = 60 US $ = 1 Petro = 3600 BsS) not to mention once that 60 BsS = 6,000,000 BsF = Today Dollar. It took five years of destruction of the economy and the national currency, of denial that, in the absence of an official offer of dollars in market conditions, it was inevitable that the illegal market became the benchmark for price marking, for to reach the Economic Revolution based on the Dollar Today. But yes, without admitting it.

On the Petro as a unit of account, the Petro becomes the unit of account to express the price of a barrel of oil (today more or less 60 dollars), it is like saying that a dozen eggs is the unit of account to describe 12 eggs Only a dozen has the merit of being much clearer than 1 Petro.
Any sensible person would add: what if a Petro expresses the price of a barrel of oil, why do not we just say ... a barrel? It happens that the arrogance of the creators of the Petro (the cryptoactive, not to confuse -even though it is difficult, and that seems to be precisely the intention- with the unit of account) and its determination to decree that a Petro is valid - that is to say it has by itself same a market value - the same as a barrel of oil, can more than the wisdom ...

• No more inorganic money: I am also outraged that admits as one who admits a peccadillo, that the massive (maddeningly massive) creation of inorganic money, by conscious and express decision of the same executive who made the announcements on Friday, was the fuel that allowed both the meteoric devaluation of the Bolívar Fuerte and hyperinflation. The entire economic recovery program is based on the premise that hyperinflation originates from monetary creation!

And the president, for the first time, admitted categorically that the fiscal deficit had been financed with monetary creation, while until the previous day, ALL economic commentators close to the government's policy (from Merentes to Curcio, going through Boza, Salas and Serrano, with the honorable exception of Jesús Farías) professed that monetary creation was not inflationary. And the question that remains unanswered is: with what objective and why did that irrational policy that destroyed the national economy continue?

• Minimum wage at $ 30: I am outraged, simply, that the government has received from Chávez the minimum wage above $ 200 in 2013, and argue in 2018 that it is recovering it by fixing it at 30. Without saying of course that they are 30 dollars, but ½ Petro.

They will answer me that the recovery refers to the 2 dollars that ended up equaling the minimum wage due to hyperinflation, to which I will argue that the only reason why it nominally reached $ 2 was the aforementioned financing of the fiscal deficit with creation uncontrolled of inorganic money.
Honoring the minimum wage at $ 30 and presenting it as an achievement, gives an account of the magnitude of the economic destruction that occurred during the last 5 years.

Assuming that the destruction of the Venezuelan economy has been such that we have a GDP of only 90 billion dollars a year (the level of 1999), our average annual per capita income would be about $ 3,000, almost 10 times the new salary annualized minimum In addition, in an economy where goods and services are paid at international prices and where the State maintains a strict fiscal discipline so as not to accelerate inflation (this means, in case President Maduro has not realized, that the State will not have how to pay subsidies unless you drastically increase the collection of taxes), 30 dollars a month are enough to eat ... a cable.

To get an idea, the legal minimum wage in Haiti is $ 115.

I suppose that some of the geniuses who designed the "economic recovery" plan will have said: between nothing and 30 dollars, people will take the 30 dollars as good news.