Argentina Conditions

billy post on March 6th, 2013
Posted in News Tags: , , , ,

The main reason for the structural weakness of our economy, whose obvious symptom is inflation, is the rude expansion of public expenditure that we have seen in recent years and on which there is no evidence, the Government, have intentions to reduce or even regularized. The indiscriminate use of resources for its channelling towards all kinds of programs, commitments and projects, both nationally and internationally including purchases, payments, scholarships, grants, donations, gifts etc. and also indiscriminate use of the typewriter to print banknotes have resulted in an exaggerated public spending that keeps national accounts in a constant deficit and a huge excess of Monetary liquidity that has unbalanced radically our economy and that if they are not corrected, or rather, whose correction could mean another terrifying devaluation of the kind of which we have been before for exactly the same reasons and in these conditions there is no strong Bolivar who endure, and we expose ourselves to repeat the dramatic experiences of Brazil with their conversion to the Crusader or from Argentina with the Austral, two very close of hyperinflation and maxidevaluacion few months cases after attempted conversion in addition, before the evidence of the chronic shortages we are experiencing, other structural damage to our economy which is already felt, but whose effect could be enhanced in the short and medium term, affecting the stability of the projected strong Bolivar: is the disintegration of the productive apparatus of the countrythe closure of industries of all kinds and shops, the forced development of this economy of ports that puts Venezuela in a delicate situation, since in these conditions there is no way to react sufficiently quickly to any crisis affecting our currency and therefore compromise the relationships and commitments expressed and maintained in foreign currencieswhich would mean the dulling of the movement of goods and merchandise that we see today in the obligation and need to import for our consumption which eventually reflected in higher prices generalized inflation another point linked to the Bolivar Fuerte, I don’t want to mention is the issue of rounding; once carried out the conversion and deleted the three zeros, some, if not many, prices of goods and services will end being expressed in a figure whole cents that, it is hoped, they will be rounded up by which is charging us that price. Is assumed that this forecast has already been made and that is the reason for the appearance, for his use of fractional coins of 1, 5, 10, 12.5, 25 and 50 cents that could be used by the users and consumers to pay prices accurately, avoiding this possibility of rounding; a number of formal conditions are also advertised to carry out this rounding where it is inevitable to anyone living in Venezuela is aware that since a few years ago, returned to be legal tender coins replaced notes of low denomination, the scarcity of them It has been chronic, which has already the order of the day the practice of rounding at every level, and in no way is possible or logical thinking that this shortage of loose currency will not just by the simple desire to BCV directory and with the minting of new coins, in particular in the case of the lowest denomination are without a doubt which will have greater mobility.

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