By Pasqualina Curcio
Just a year ago, in this same column, we proposed to anchor the bolivar to gold with the aim of stopping the attack on our currency and therefore the induced hyperinflation. The proposal is part of the new international monetary system that is returning to the gold standard. In March 2018, China announced that it will only buy oil in yuan, also said that the yuan is backed by gold. The dispute between the petro-dollar-paper and the petro-yuan-gold has already begun.
In 2015 we showed econometrically that inflation in Venezuela is being induced through the political manipulation of the exchange rate. To date and since 2013, this manipulation amounts to criminal dimensions of 5,983,889,428% (varied from 8,69 BsF / US $ to 520,000,000.00 BsF / US $).
The history and its facts have been demonstrated that neither the increase of wages, nor the amount of money are the causes of the hyperinflation. Neither was exchange rate control. The best sample is the last 3 months in which a 100% bank legal reserve was applied, the amount of money was reduced with respect to the size of the economy, there has been no salary adjustment, it is no longer illegal to exchange currencies and, however, the exchange rate in web portals has increased 566% (in recent days). Prices go hand in hand.
We will not stop hyperinflation until we defeat the most powerful of the imperial weapons: the attack on the currency. The proposal is based on three variables that are difficult to manipulate:
- bolivars that circulate in the economy (4,497,879,924,893 BsS),
- gold in the BCV (162TN, 5,214,931 ounces),
- gold price (1,099.66 US $ / ounce).
Each ounce of gold equals 862,500 sovereign bolivars (4,497,879,924,893 BsS / 5,214,931 ounces). In monetary terms, the bolívar is equivalent to 784 Bss / US $ (862,500 BsS / ounce between 1,099.66 US $ / ounce). As we have manipulated the exchange rate to levels of 5,200 BsS / US $, with 15% of the gold found in the vaults, we support all the bolivars that circulate.
The proposal includes the recovery of international reserves in gold: every 5 monthly TN that enters the BCV is equivalent to US $ 2,125 million annually. Forge a golden shield to the bolivar (we have the second largest reserve of gold in the world). We have to do it.
Translated by JRE\EF