>>8174One of the most amazing things I have seen is that people are in total denial, and they refuse to accept that the money is not worth even the paper it is printed on.
They won’t innovate changing to cryptos easily, nor will they accept silver coins, much less other precious metals. They won’t barter, they won’t trade their labor time (I mean major cities, in my small town things are a little different). We had a good supply of silver coins in the 60s, but that changed.
They talk and talk, complaining about the government, but they just don’t do anything. I have seen some small plots in our subdivision with tomatoes plants and other vegetables, but that is just a salad for one lunch. And the people passing by will take whatever is within their hand’s reach.The electronic money has been devaluated much more than cash.
Something with a price in cash, if you try to pay with debit card or money transfer via internet the price will be 2 or 3 times the cash price. Illegal? Yes, it is. But there is no way to control it.
The main problem arises because it is the military taking over the supply chain. They have an agreement with the gangs, and they deviate the production of the plants that are under military control, to the street sales. The gangs are armed, and they protect the retail sellers from thieves and turmoil. This is in the most populated cities, where the money is, and therefore the products don’t make it so often up to the smaller towns.
The black market offers of tires, food, car spares, engine oil, and all kind of medicines and goods are rampant, and the social networks are full of resellers. You may expect a morality crisis, in parallel with this economical crisis. I asked a granny how much was charging for some hand towels she had for sale, and I did not have enough money in my pocket to buy even one towel…I apologized but saw she was upset. It was a sad, awkward moment indeed.Senior citizens are taking a beating. Their pension is not enough for one week worth of food.
Jeez, maybe once this is published it will be not enough even for a couple of days…the clowns that tried to sell the “petro” just realized that this snake oil did not work. The calculated inflation is 13.000%. Without money from the IMF, having paid the debt, and kicked them out of the country…the disaster arrived anyway. The government just does not want to do what they have to do. There are too many military personnel involved in the black market and an uprising is more than possible that will launch the gangs in power off to the ground if some of them are disturbed.
To find a medium of exchange, and at the same time capable of holding its value until you actually need to exchange it is not easy. Cigarettes, chocolates, all kind of commodities have been used, and there is a small but growing trade with this stuff. Not at the dimensions one would imagine, but generally speaking, the financial culture in our society is almost unknown. There is no such thing as a stock exchange (but there was one, in the past), and whatever other things that smell like the free market, the gov carefully removed. People clamor for “price control” without even realizing that it is not the price but the lack of production what is starving them.
As I have mentioned, the country is already collapsed. Those self-employed that could adjust their fees for their service from one day to another, and that could receive, say, a bag of sugar for their valuable services are those who are not overly stressed to leave the country. This is one of the most important lessons, I think. Someone with manual, valuable skills, that could provide basic goods or services, will be able to survive. They will just adjust their prices…and if the customer can´t pay, then most likely they will trade in their service for something to barter.