Thursday, February 10, 2011

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Joaquino Mining: Bolivia destroys its production and is now in a bubble ABC


Paraguay, February 10, 2011

In the year 1545 began the exploitation of the Cerro Rico. In colonial times, the city of Potosi was a major metropolis.

height and the severe weather were not enough to stop the greed of the English conquistadors, and behind them, Catholic priests with the cross in his hand.

Potosi reached to hold the title of Imperial City. In 1625 its population was 160,000 inhabitants, over London and even Paris or Seville in Spain.

Potosí, along with Mexico, reached the privilege of printing silver coins to the rule. The Mint, now converted into a museum, is one of the great attractions of the city.

Potosí became 32-seat religious orders. The prosperity and misfortune of the city took place under the shadow of Cerro Rico, the largest silver deposit world.

Decade in crisis

The 1990's were extremely hard to Potosi, the low price of minerals, tin was trading at 0.5 cents, while silver was at a cost of 0.94 cents ounce.

tin currently sells for $ 13 a pound, while silver traded for $ 30 an ounce.

To these are added other minerals like copper and lithium, also good price in the international market. René

Joaquino, acting mayor suspended for charging the public prosecutor, recalls that one struggled Potosí in the long decade of crisis.

"We have rows of three or four thousand people a day asking for something to do in the town hall, anything to eat in the day," he said. Potosi

not exist in the Bolivian economic scenario. "We had to make do with what we had at hand, because our production was priced so low that even managed to recover costs," he added.

Living in a bubble

This situation changed dramatically with the good price of tin and silver, and copper and lithium.

private and state companies compete to obtain bids. With respect to the Cerro Rico, was banned holdings at levels above 4,500 meters high, but it is difficult to restrain the miners.

"Bolivia is experiencing a bubble boom, the government of Evo Morales boasts of revenues generated by the minerals, but this is simply a situation. Anytime you can change, "explained René Joaquino.

Joaquino, accused by the prosecution for having saved money from the mayor in the purchase of road machinery, said that the country's economy can not be dependent on the price of minerals.

regard said: "For ideological reasons, the Evo Morales seeks to departments of eastern Bolivia and seeks to disrupt production units considered oligarchs. "

"to destroy the oligarchs ended up hurting the country. The consequences can be seen on the street, with the lack of basic foods like sugar, rice and flour. " Long lines



rice, flour and sugar had a significant increase in the last 15 days. In seeking to demonstrate social awareness, the Government purchased large batches of these products began to sell at a lower price than retail.

the end, the government imposed a monopoly: focused in their hands the trade of production available, selling at lower prices.

The result is long lines in an attempt to save some money, but soon people questioned the sacrifice of form rows and claim the ability to purchase at any merchant.

not forget to stand in line in freezing temperatures mean supporting Bolivia and people sleeping on the job, in an attempt to not lose your turn.

Food production declined in Bolivia because Evo Morales government itself was responsible for harassing the farmers, destroying the country's ability to manufacture its own food. René

Joaquino highlighted the stupidity that reigns in the government of Evo Morales: "They talk of statism as a suitable model, forgetting that throughout our history has demonstrated the failure of the system."

added that "refound Bolivia myth arose from the strong influence of the European left intellectuals, particularly French."

He concluded that "the result is before us: Evo Morales is so popular that even the dead vote, as demonstrated by the last voter."

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