Understanding inflation on a day-to-day basis - Part two

in hive-175254 •  last month 

Previously, in the first partof this series of publications that I brought with me to share, I spoke about the case of how this process has been taking place in Venezuela, but, in the same way, I told you that I currently live in Bogotá, the capital of Colombia, and in this country the inflationary process is constant, and this year has been worse than last year in economic terms, of course, the pandemic has affected this aspect very strongly.

I want to raise some truths (from my perspective) about what has happened in this country in terms of inflation since I arrived in July 2018.



I have almost two years in Bogota, I will use the dollar as a reference currency to be able to talk about how the Colombian peso has been devaluing (COP).

Before emigrating I sold everything I had, refrigerator, stove, washing machine, everything, which is why when I left the country I had some dollars, with 220 dollars to be exact, in Venezuela having that amount was a lot of money, to be able to gather that you would have to spend a few years gathering, without spending anything of what I earned, possibly? but when I arrived to this new country I realized something, that it was a strong blow that allowed me to finish understanding how bad my country was... the minimum wage in this country was more than what I had brought, and that it looked like a fortune in Venezuela, when I crossed the border, a small and ugly bridge that joins both countries the fortune it brought, in a matter of seconds it turned into nothing. But nevertheless, it was worth something.

As the days went by I had to change some dollars to be able to pay for some essential things, which is why I went to an exchange house and did it, I remember that the dollar when I arrived was worth 2734 COP. The minimum wage was close to $300.

Well, I hope they're taking me through the story so far. Currently it is worth 3700 COP, yes, it went up approximately 30%, that is, the national currency was devalued... In December 2019 they made a 5% salary increase which was still diluted. Today the salary is 250 dollars on average. The prices of food, services, everything has increased in cost, and in addition the salary is now less in dollars... in spite of being more in COP... finally everything is summarized in CRISIS.

The underlying reasons for these devaluations are not clear to me, because as I said, I am not an expert in this area, but as an ordinary citizen I know that this directly affects the pockets of the majority.

Let's wait and see what happens after this whole Pandemic situation. I hope that in your countries these situations do not occur, which are very difficult to overlook, even though much can be learned.

Thanks for reading me.

I would like to read your comments.

Thankful for your support.



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Buy Bitcoin :)

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I don't think there is a soul on Hive that doesn't have Bitcoin, tbh.

Actually, you always have to have some savings at BTC... it's a good way to counteract inflation.

@tipu curate

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Thank you @creativeblue for the support

I think that in almost all Latin countries the same thing is happening or they are going through a similar situation, never like Venezuela, but at the end of the day they are not at all well. The devaluation of the currency in Colombia was important, and today much more money is needed to cover the basics, because the currency is devalued but food and rents are still increasing.

Thank you for commenting.
Yes, everything follows an upward trajectory, except the salaries.

Cheers from Argentina, another hyperinflated country. Keep hanging there bro!

Hey, buddy, grateful for your comment.
Yes, I've heard about the situation in Argentina, but let's hope it doesn't get worse.

A lot of governments around the world seem to have the inability to get complex problems under control. Each day that passes I have a little less faith in democracy and more faith in blockchain as a tool to establish governance. If we don't succeed in building good blockchain-based governance systems, then totalitarianism will win the will of the masses, sadly.

Good thinking.

Totalitarianism has always been present. It still is, but the results are what we have. Chaos.
I think it's a good time for changes in the way we govern.

What a stark difference between Venezula and Combodia.

You have practical made me understand what's inflation in very easy way through real experience. Very nice.

I guess all currencies are devalued as compared to dollar - and that's ok I guess, I think it was because everyone wanted to hold dollars as it's still considered safe haven to hedge against their local currencies, but I am not sure too.

I have read a bit about combodia, mostly about whitewater rafting stuff, seemed a amazing place filled with some natural wonders to have adventures and stuff.

Thanks for your comment @mintymile
It is good to know that at least I put forward the idea of what this means. if, in fact, the differences between the two countries are great.
But, both are in crisis, yet here in Colombia there is more stability.
In reality here and in Venezuela there are many spaces to visit, the whole Caribbean region, it is a marvel in terms of nature. Really.