but with the central bank only supplying about 30% of companies needs, the black market is in resurgence. in a tacit admission that the currency s failing yet again, government workers are being paid their year end bonuses in us dollars. this published author with two degrees and a 17 year career earns $29,000 local a month. about three months ago, i think the money was worth about a bit more than $200, so it s being whittled down, by effect of about $20 30 every month. so, every monday, i ve got to cover that gap. i ve got to think of a method of getting that money. with most franchises and shops charging either in us dollars or the local currency at the black market rate and in open defiance of the law, the fear is that zimbabweans could one day reject their currency, just
Is auction rate the real one?
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come down. you re right, it has to be below the black market rate if the experiment will work. otherwise you re still leaving the money and the industry in the hands of criminals and cartel. and i think it will because the tax will only come in 15% to 25% and the cost of smug sligling i high, it will make sense for it to move you through the regulated over item as long as we don t go overboard. it is a pain modifying system, but the federal government has not supported that. so there are a lot of unknowns and we have the states and federal at loggerheads. what kind of unthoeps might he be talking about? you ll hear some good and
living and the entire economy suffers. rule number three, induce a currency crisis. what does inflation do? it devalues your currency. the official exchange rate is 6.3 for every greenback. in reality, the black market rate is seven to ten times that amount. for a country that imports 70% of its basic goods, this is a huge problem. you may remember recently that venezuela ran out of toilet paper. why? it s now running out of a different kind of paper. the money to pay for it. which brings me to rule number four. subsidize, subsidize, subsidize, if they are running out of money, they don t care. there have been two recent elections and at each one came a fresh set of promises. and remember, gas is free. venezuela not only subsidizes gas for its own people, it also gives heavily discounted oil to