Anthology of economic proposals (V). Bolivar-gold | Pasqualina Curcio

Defending our currency from imperial attacks involves increasing foreign exchange earnings and making good use of them, especially if revenues, as a consequence of the economic blockade, have been reduced. It also goes through shielding it, making a good shield inlaid with gold and diamonds.

Here we add other proposals to the collection:

  1. Audit external debt: reviewing what we really owe and how much we have to pay for foreign debt commitments is to guarantee the proper use of foreign exchange, and it is also a matter of independence and sovereignty.

According to BCV data, for the first quarter of 2019, the external debt totaled US $ 110 billion, of which US $ 91 billion is public and the difference is private. At the beginning of 2013 it was US $ 130 billion. At first glance we could think that we have decreased it during these 6 years, but it has not been like that. Since 2013 we have paid about US $ 97 billion: US $ 57 billion in principal and US $ 40 billion in interest. According to the same data from the BCV, we have acquired new debt for US $ 31 billion.

Given the drop in foreign exchange earnings due to the decrease in oil exports, in turn a consequence, among other reasons, of the low production of hydrocarbons due to the economic blockade, it will most likely be necessary to refinance the foreign debt, which, for Certainly, it is the competence of the legislature, unless within the framework of the Anti-Blockade Law, the Executive takes care of this matter because it is a “source of additional foreign exchange income”.

We remember that whoever lends money will always set their conditions. A clear example was the Dawes Plan negotiated between the Weimar Republic and the United States in 1924 after World War I. Germany was experiencing a process of hyperinflation induced by the manipulation of the framework by the US (any resemblance to our reality is not by chance), additionally it had the obligation to compensate all the damages of the war to the allied powers as imposed in the Treaty of Versailles. To top it off, its industry was completely destroyed by war.

The gringos arrived and "very kindly" offered to lend the money to the Germans, and also "interceded" so that the French and English made the debt payments more flexible. Obviously it was not for free, in exchange, the Germans had to commit to allocate the loan resources, that is, the income of these new currencies, to import all US goods and to guarantee extraordinary conditions for US investment in Germanic territory. Not satisfied with this, they had to give in to the request that their monetary policy be directed by the allied powers, that is, indirectly, by the gringos, the main financiers of the French and English.

After these negotiations and as if by magic, overnight, the induced depreciation of the German mark and, therefore, the hyperinflation, disappeared. The cost of stopping the rise in prices was very high for the Germans: surrendering sovereignty.

A great responsibility to guarantee our sovereignty and economic independence in the framework of the refinancing of the foreign debt falls on the deputies of the new National Assembly and also on the executors of the Anti-Blockade Law.

  • Bolivar-gold. In 1971, unilaterally, US imperialism imposed a world monetary order. It disengaged from the gold standard and announced that the price of currencies would depend on trust / distrust. From that moment on, it has become easier for the empire to attack the currencies of countries that are not aligned with its interests. Nothing more manipulable than "trust / mistrust".

It seems that the world is moving towards a new monetary order in which the dollar is not the only reference currency, that oil can be bought with other currencies other than the dollar and that these are backed by tangible and measurable assets, but above all , not manipulable.

In this context the proposal of the bolívar-oro is framed. The main objective is that the price of the national currency, which is used to pay for all the goods and services of the economy, we repeat, all, including the salary, is set with respect to a tangible, quantifiable and verifiable asset, that he does not continue to depend on something as vulnerable and manipulable as "trust / mistrust".

Bolivar-Gold Price: According to the World Gold Council, in the BCV vaults we have 163,2 tons of gold, which is equivalent to 5.182.700 troy ounces. On the other hand, according to the BCV, there are 277.629.536 million bolivars circulating in the economy. If we divide the number of bolivars by the ounces of gold, we find that there are 53.568.504 bolivars for each ounce of gold. As each ounce has a price of $ 1.890, we can say that 1 dollar is equivalent to 28.343 bolivars (we apply a simple rule of three: if 1 ounce is equal to $ 1.890 and in turn 1 ounce is equal to 53.568.504 bolivars, then $ 1.890 is equivalent to 53.568.504 bolivars, therefore, 1 dollar is equivalent to 28.343 bolivars, which resulted from dividing 53.568.504 BsS by 1,890 US $).

Thus calculated, the price of the bolivar-gold depends on: 1) the amount of gold that is in the vaults of the BCV, perfectly quantifiable and verifiable, 2) the amount of bolivars that circulate in the economy, also verifiable, and 3) the price international gold that is expressed in any currency (dollars, yuan, yen, pounds, euros, etc.).

It is the case that, currently, the prices of our economy (except wages) are being set at a (criminal) exchange rate equal to 690.000 BsS / US $. If the price of the bolivar-gold were based on this exchange rate, it would be that all the bolivars that circulate are backed by just 4% of the 162 tons of gold stored in the vaults. In other words, there is a sufficient margin of gold (96% of the reserves) to support the current price of the bolivar, which also shows the level of criminality of imperialism in attacking our currency daily.

This proposal, in addition to getting rid of the dollar as a reference currency, would allow us to correct the paradox and the error made when in August 2018, within the framework of the Recovery and Economic Prosperity Plan, the bolivar was related to the petro based on the exchange rate criminal. With the proposal that we present here, the bolivar would set its price based on gold and the petro based on oil. The relationship between the two would be determined by the price of each one and not by the criminal exchange rate as it is currently happening and since 2018.

Suggestions to resolve the current bolívar-petro paradox are also part of our collection of economic proposals, we alerted you and presented it for the first time in November 2018. We have included it in this Anthology and we will present it in the next installment that we will dedicate to Petro .

All the proposals compiled in this Anthology are just that, proposals that we offer to the candidates for deputies of the new patriot National Assembly to be debated. This collection is characterized by the fact that they were all filtered by two rigorous conditions demanded by Chávez: that they allow us to advance towards socialism and that they guarantee our sovereignty. So far they have all passed the test.

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