Pedro Castilo Intersting post on Facebook...sad but true...If Castillo wins, we don't even have to wait for the government to take top economic indicators to go to the ground. Here's how that would happen: Minute zero, after receiving the first results of the second round: The billions of dollars in Peruvian sovereign bonds that exist abroad in the hands of highly prestigious investment funds or large investors, immediately start a decline in value a pique, where every possessor will seek to get rid of them as quickly as possible, causing in the instant a loss of value of our currency globally that will be reflected in a narrow dollar rise against our Sun (for more than two decades the most stable currency in the region).
Our productive device, at that very moment (without having expropriated anything yet) begins to go down, as the vast majority of inputs for any manufacturing come from outside and bought in dollars, so a brutal inflation of EVERYTHING begins. Chicken eats foreign corn, our gasoline and kerosene in more than 40 % are made of foreign oil. The bread flour we eat everyday is made with foreign wheat. Gamarra's clothing is made with foreign fabric.
A giant capital flight will be started on the side of the financial sector. No one will leave their savings here, let alone the boxes of any of the companies will risk their liquidity being frozen or expropriated. Everyone will move their bank accounts in Peru to foreign accounts, causing the bank lace to go to the floor and therefore there will be no capital to give credit, any kind of credit. If there is no credit there is no growth. The few remaining credits will have annual interest with 2 or up to 3 percentage figures (not even galloping inflation yet).
All natural people and companies that have any kind of credit, from buying a TV to buying working capital for a large project, will be affected by variation clauses against domestic economic contingencies (yes, those letters girls you never read in credit agreements, that your lawyer tells you, calm down, that will never happen, sign just), what will make your rate move at the new rate of 2 or 3 figures that this new situation has generated, now paying overflated and unpaid monthly payments.
On the side of entrepreneurship, thousands of companies will start lifting anchors (why wait for them to estatic me, now I rescue all I can and take my capital, nor crazy I stay to wait to see what happens), immediate consequence, hundreds of thousands of job losses. And all this I'm talking to you FB friend, will happen only between June 6th and July 28th, that is, BEFORE the takeover...
Well, then we know what's going to happen, don't we? At least the people who have a pinch of judgment, we know...
It begins with the mining sector: to try to stay with it, as the first natural resource they plan to state (nationalize not, because according to the current constitution it belongs long ago to the Nation, what is provided is a grant of exploitation) 10 % of our GDP about to disappear, as well as 60 % of exports, only with this sector, the mining sector.
Add what they're going to do with oil, gas and electric generators.
FB friend, we don't have the tremendous amounts of money Chavez had when he took the Venezuelan government in 1999, so they could do several years of populism.
We in a very short time, we will be without supply in Nothing, without importation, without freedom to protest, without internet access, without freedom of press or freedom to information, without companies to work, and the few left mostly in the state and where if you get a job you'll be earning 20 soles per month that won't reach you even to live for two days, no medicines, no hospitals, looking for food from trash cans.
FB friend, this is NOT a fantasy, it's what's coming, and people have to understand it, especially Peruvian, who believes: ′′ No, that's not going to happen, something's going to happen that will prevent it "...... NO, nothing will happen if we don't stop this now!!!
FB friend, we need people like you, with your intelligence, insight and eloquence to help us make people come to their senses and make them understand that we are really ALL in danger of losing our country, and it is up to us all to fight for it .