Pablo Rafael Gonzalez: new currency

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sábado, 20 de julio de 2019

Will Venezuela commit suicide?

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Imagine a sick person in a terminal state, with permanent and acute pains that can not be calmed by traditional remedies and, consequently, is very close to the final outcome: death. The doctors who supposedly treat the sick person do not prescribe anything and the others only prescribe placebos. But a doctor emerges who presents the patient and his family with a new medicine successfully tested in other similar cases but neither the patient nor his family, some due to ignorance, others due to laziness and others expressly refuse to listen to the doctor and give him the new medicine that could soothe his intense pains and cure him. Well, as is obvious, if the patient and his family do nothing, the patient will soon die, or rather, commit suicide.

Well a similar story happens in Venezuela that is the patient with intense and serious pain on the verge of death and the new medicine is my proposal to create the Bolivar Gold equivalent 1 to 1 to the dollar, medicine successfully tested in other countries: in Argentina in times of convertibility, and in Brazil, with the creation of the new currency, the Real, which at the time allowed to reduce hyperinflation, recover wages and exit from the crisis in those countries.

The end of the history of Venezuela has yet to be seen. If things continue as they go everything indicates that the situation will worsen much more in the coming months. In fact, the vast majority of the population can no longer buy even the most essential food, the salaries of the government and private companies are useless and consequently it is the same to work as not to work. The only hope of the people is to flee towards the neighboring countries with the illusion, at least, of eating. For now only those who receive remittances from dollars abroad or wealthy classes who have always owned dollars survive. The rest of the population is condemned to misery and hunger. The big question is, will Venezuela commit suicide despite having a concrete solution of economic policy at hand, that is my proposal to create the Bolívar Oro equivalent 1 to 1 to the dollar?

Step by step what must be done to stabilize prices, give a decent and appropriate wage to citizens and recover production in Venezuela

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http://pablorafaelgonzalez.blogspot.com/2019/07/step-by-step-what-must-be-done-to.html

Sources:

Amazon

https://www.amazon.com/Pablo-Rafael-Gonz%C3%A1lez/e/B001JOAE2U

Blogspot

http://pablorafaelgonzalez.blogspot.com/

Espaciobit

https://espaciobit.com.ve/main/author/pablo-rafael-gonzalez/

Youtube

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https://www.youtube.com/channel/UCtpEeioaxBC253NXEIOySjg

jueves, 18 de julio de 2019

Step by step what must be done to stabilize prices, give a decent and appropriate wage to citizens and recover production in Venezuela

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Most citizens in Venezuela cannot live with a salary of 65,000 bolivars per month equivalent approximately to $ 6.56 per month by the time I write this document July 18, 2019 when the rate reached 9,900 bolivars per dollar and with prices growing of everything sold in the country.

To stop inflation and recover wages I propose:

a) Create a new currency, the Bolívar Oro, equivalent 1 to 1 to the dollar which would begin to circulate in 60 days from the moment of publication of the decree of its creation and in that period of transition to the new currency revalue to 3000 bolivars per dollar. This revaluation should have an impact on prices going down during the 60-day transition period to the new currency because the speculative exchange rate in the market reached 9,900 bolivars for the moment in which I write this document.

b) After 60 days and when the new currency comes into circulation, the old Sovereign Bolivar currency will be completely taken out of circulation and all prices and salaries will be quoted in the new currency Bolívar Oro, that is, in its equivalent 1 a 1 to the dollar.

c) To convert the current monetary mass from approximately 8 billion bolivars to dollars at an exchange rate of 3000 bolivars per dollar, 2666 million dollars (Bs. 8 billion / Bs. 3,000 = 2666 million dollars) would be required. This amount should exist in the International Reserves, according to the figures of Reserves that the Central Bank of Venezuela claims to have.

d) Those 2666 million dollars must be liquid and available in the banks in the 60-day transition period to create the new currency, so that those who want to exchange their bolivars for dollars will be exchanged immediately until the bolivars are exhausted.

e) The exchange rate of 3000 bolivars per dollar that I propose for the transition stage to the new currency is because I believe that Venezuela should be equated with Colombia to avoid the smuggling of money and goods and consequently apply the Parity of the Purchasing Power of the Currency. In Colombia, 1 dollar is worth more or less 3000 pesos, consequently, that should be the parity of the bolivar against the dollar during the 60 days of the transition period to the new currency.

f) The application of the Principle of Parity of the Purchasing Power of the Currency so that the prices and salaries of Venezuela are equal to those of Colombia in the period of transition to the new currency is the only way to equilibrate the balance of payments between the 2 countries and, consequently, avoid the flight of money and goods in both directions, a process that has traditionally harmed Venezuela.

g) The creation of the Bolívar Oro on par with the dollar is the backbone of the new economic policy that I propose and the solution to inflation, the destruction of wages and the way to prevent millions of citizens from desperately fleeing from Venezuela.

h) The currency of legal tender will be the Bolívar Oro equivalent 1 to 1 to the dollar but there will be no restriction for the use of the dollar as an alternative currency so that it can be paid indistinctly in any of the two currencies as it happens in other countries.

The reader interested in broadening the base of support for this proposal can consult the following sources:

https://www.amazon.com/Pablo-Rafael-Gonz%C3%A1lez/e/B001JOAE2U

http://pablorafaelgonzalez.blogspot.com/

https://espaciobit.com.ve/main/author/pablo-rafael-gonzalez/

https://www.youtube.com/channel/UCtpEeioaxBC253NXEIOySjg

domingo, 22 de junio de 2014

16 essays on the crisis of the Venezuelan economy and its solution

For those interested in the situation of the Venezuelan economy and its solution, I have gathered in this work, chronologically, the links to the various articles and essays I have written on the subject from 2011 to now, June 2014. I have also included some reflections of universal content that provide the basis for the explanation of the Venezuelan phenomenon. I think the important thing is not only do diagnostics as is the custom, but to present alternatives to solve problems. Here are the various links:

Money is only metal and paper without intrinsic value

http://pablorafaelgonzalez.blogspot.com/2011/06/money-is-only-metal-and-paper-without.html

Fiscal deficit and size of the economy

http://pablorafaelgonzalez.blogspot.com/2011/09/fiscal-deficit-and-size-of-economy_18.html

Banco de Inglaterra reconoce que emitir más dinero es la solución

http://pablorafaelgonzalez.blogspot.com/2011/10/banco-de-inglaterra-reconoce-que-emitir.html

Dimensión ética del crecimiento económico

http://pablorafaelgonzalez.blogspot.com/2011/11/dimension-etica-del-crecimiento.html

Es la economía una disciplina racionalista o una disciplina empírica

http://pablorafaelgonzalez.blogspot.com/2012/03/es-la-economia-una-disciplina.html

Por qué es necesario construir un nuevo modelo económico equilibrado, sin prejuicios ideológicos

http://pablorafaelgonzalez.blogspot.com/2012/08/por-que-es-necesario-construir-un-nuevo.html