Rumors of a new currency reconversion in Venezuela

Rumors of a new reconversion in Venezuela, which will supposedly take place between August and September and will remove 6 zeros from the currency, have impacted the already battered popular economy by triggering prices, increasing the price of the dollar, exacerbating speculation, destroying the pyrrhic salary and causing uncertainty among the majority.

Small and medium-sized traders are trying to find ways to save themselves from possible bankruptcy, a fact that already occurred in the two previous ones when they were the ones who suffered the most severely from the changes that came as a result of the reconversions, which had no planning whatsoever to stop hyperinflation.

Official economists believe that make-up solves the problem of deterioration and, like an old vehicle, try to cover up its corrosion to give the impression that it is in perfect condition.

The last two reconversions failed, especially the last one, and only served to further impoverish the country's inhabitants and to leverage the deviations that had already been occurring, such as corruption, the fraudulent handling of public and private funds, the creation of different types of mafias, associated and sponsored by politicians of both sides, and the aberrations that have even made banknotes disappear and imposed an informal dollarization.

Informality seems to be the shortest way to save the ship from sinking and its crew members fight fiercely to get a raft to prevent them from drowning.

The worst of all is that there is no official pronouncement to deny or confirm these rumors, which have come from the very spheres of those who are close to the government, and this will have a double impact, since if nothing is confirmed nothing will change, everything that has gone up will stay up, and if the rumors are true, then a new sea of price speculation will be triggered.

Undoubtedly, measures must be taken so that the inhabitants of the country can live and the introduction of higher denomination banknotes, as predicted, did not work, because they did not adjust to the true inflation rate and did not even cover a public transportation fare, but anything done without a backing support will be like plowing in the sea.

Those who bet on oilization were left as a village bridegroom waiting for the bride that did not appear, as were those who suggested dollarization and even the members of the official cabinet, including the president, who bet on the electronic economy, all with a common factor for failure, the lack of planning and action to strengthen the domestic economy.

Nothing that does not have this as a spearhead will work, because logic indicates that if you spend more than you earn then you fail and bureaucracy is the first predator of public funds.