The Cash Shortage in Venezuela: A Prelude to the Economic Coup?

Cash Shortage in Venezuela: 

A Prelude to the Economic Coup?

By: Juan Martorano @juanmartorano

| Tuesday, March 13th, 2018 08:37 AM | 

As a simple citizen, I take the chance offered by some generous spaces for publishing my modest opinions. They try to reflect and express the feelings of many people. I've been portraying with my notes the concerns of the common Venezuelan men and women. These people are the ones  those high officers from the Venezuelan National Executive and the state maybe don't have the time to listen nor read; specially, to attend to their needs.

I walk on the streets of the capital of the Republic: Caracas, the queen of the Waraira Repano mountain. There's above all an issue I take as a grave signal. It's necessary to warn the authorities before regrettable situations might eventually arise.

I've been watching in the last weeks accross parrishes such as La Candelaria, on the Urdaneta Avenuew and close to the presidential Palace of Miraflores, the increase of lines on the public and some private ATMS. I assume this increase has something to do with the lack of cash in our country. 

This might activate several spots of protests close to the surroundings of public institutions such as the Ministries of Interior, Justice and Peace, Productive Agriculture and Lands, Economy and Finances, the Executive VicePresidency of the Republic and the Presidential Palace of Miraflores itself. A valid and legitimate demonstration, product from this unpleasant situation might be taken by the oppositionist sectors, framed within the conflict agenda aimed at overthrowing the current Bolivarian Government.

 I undoubtedly support the appointmets by the social economist Reinaldo Taimaris. He says 

that the lack of cash is generating serious difficulties to the population. In consequence, this sharpens the economic problem. It's no secret that both public and private banks keep a very orthodox embezzlement. They created a mechanism of control the cash flow. This situation obbeys to a currency policy seeking to alleviate the departure of the Venezuelan cash to other destinations: specifically, the case of Colombia.

As a dear comrade and expert in the productive issue in Venezuela, the economic problems in Venezuela are not an exclussive consequence of the sanctions. From the design of the economic model, the policies programs and projects of the latest years, we've been stumbling. When the oil prices were high, we didn't do the job. Since year 2003, the continuity of social programs began to drop: the State purchase to boost the small and middle public, communal and even private  businesses. The imports weakened the productive machinery and strengthened the corruption. The preferential dollars were given to "Suitcase companies" (under penal investigation) and incompetent people to run productive businesses instead of supporting and includying the workers in organized manner for the management of the latter,and hence creating new social production relations and developing productive forces. 

I also agree with Yajaira having seen that it has been really hard having designed an economic team in the last years to speak up front. A team, where President Maduro can rely on, in spite of having counted with excellent professionals. It's worth to wonder whether our current situation is made to foster chaos and to ease a new State. Only time will tell.

 Regarding the lack of cash, the Venezuelan Bolivar (VEF) became a virtual currency, as the good friend and comrade Carlos Colina Yánez, ex Parliamentary of our National Assembly, says. The same happens with the salaries and wages. The National Executive's financial aids, such as salary increases and bonuses, if the monetary voracity is not controlled by the very same State: Concrete and specific actions must be set.  Part of the solution might be determining the responsibles within the Venezuelan Government itself of the traffic and illicit enrichment at  at the expense of the misery of the Venezuelans, and sanctioning them with the full weight of our laws.

As Tamaris recalls, the cash traffic is totally speculative. A few profit by selling it with commissions: Usually very high. This business is both made for the sale and the purchase. If someone needs cash, he/she must pay up to 100% above the requested amount (for sale). On the other hand, those who buy cash in exchange of a commision make a banking transfer and set a meeting spot for the cash delivery. This is the most used strategy for the cash traffic off the Venezuelan borders. 

Tamaris reminds us the economic circuit used for the cash flow. The TV Host Mario Silva explained it once on his program "La Hojilla". I'll allow myself to quote him as follows: 

 "The issue above very simply described, is the product of a breackdown in the financial economic circuit. Three economic agents relate for these financial transactions. Through this model, the money follows a cycle when passing in hands of the three economic agents: The Government, the Businesses and families. Then, it returns to its original spot: The bank. The banks recycle or reuse the money in cash. In order to comply with this function, the cash must return to the bank through banking deposits. 

When the families receive their incomes, either on the sale of their working force or the social investment of the State, they perceive them through public or private banking transactions to their private accounts. Once the money is deposited, they go to the banks for requesting cash, and, hence, being able to pay for goods and/or services. Here is when the problem starts. Businesses, streetvendors, transport services and others who receive this cash don't meet this circuit. They don't deposit this cash. Yet, they keep it, and contribute with the illegal cash traffic. 

It would be derogatory to say these people are aware of this issue. All this might obbey to the economic and psywar agains the people. All this has generated  irrational responses, aimed at surviving from this bad situation. The need motivates the people to search for a solution to their problems. Then, individualism grows, and the consequences of their acts are not measured". 

I follow Tamaris' proposal. The Bolivarian Government must determine, through its correspondent institutions (SUDEBAN dixit), the drop percentage in  deposits of cash. Control mechanisms for natural and legal persons must be enforced too. This way, cash received for the payment of goods and services might rightfully return to the financial system. It's necessary to inform the people on these evil practices that benefit a few and harm the majority. 

Bolívar y Chávez live on! Their fights and the Motherland they left us go on!

Independence and Socialist Motherland!

We Will live on and Vanquish!

Always to the Victory!

  Read the full Article in Spanish, here: https://www.aporrea.org/actualidad/a260541.html

English Version: María Eugenia Acero Colomine

Email: acerocolomine@gmail.com

Twitter: @Andesenfrungen

Blog: http://fantasiasneurastenicas.blogspot.com