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 Replies: 110 / Views: 18,205 |
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Pillar of the Community
United States
992 Posts |
Panama does indeed use the US dollar as the national currency.
Didn't know about El Salvador. The BVI does make sense. Even the British Caribbean dollars are pegged to the US dollar at 2:1, so is Belizean dollar.
I think the Cayman Islands currency is similarly pegged, but I do believe it's in circulation just to sell to the Yankees and act as a talisman for the banking laws there. Collectors love it, I'm one of them.
So much for O/T chatter....
We'll see how much longer the Maduro government can allow it's citizens to starve before a US-led coalition force puts an end to it.
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Valued Member
Belgium
186 Posts |
Quote:
Panama does indeed use the US dollar as the national currency. Panama uses the balboa, which is pegged to the US dollar at par. Their own coins circulate along with US ones (they only use US banknotes, though). In everyday trade, Panamanians nearly always quote prices in balboas, not dollars. While Ecuador also issues its own coins denominated in centavos, the difference is that Ecuadorian law stipulates that the US dollar is the national currency, while Panamanian law states the national currency is the balboa (equal to the dollar). Edited by TheCoinDom
02/22/2018 5:00 pm
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Pillar of the Community
United States
2618 Posts |
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Panama uses the balboa, which is pegged to the US dollar at par. Their own coins circulate along with US ones (they only use US banknotes, though). That is an interesting concept. In practice it makes sense, but conceptually what would give the average citizen confidence that Panamanian (or Ecuadorian) coins are equivalent in value to US coins when the paper currency is not?  |
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Valued Member
Belgium
186 Posts |
Quote:That is an interesting concept. In practice it makes sense, but conceptually what would give the average citizen confidence that Panamanian (or Ecuadorian) coins are equivalent in value to US coins when the paper currency is not? There is no Panamanian/Ecuadorian paper currency currently in circulation. The citizens will remain confident the local coins are worth as much as US coins as long as banks keep exchanging those local coins for US paper money at par. |
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Pillar of the Community
 United States
4883 Posts |
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Valued Member
Canada
206 Posts |
SAN CRISTOBAL, Venezuela (Reuters) - A western Venezuelan city began to issue its own currency this week to alleviate the hyper-inflationary country's cash crisis. The "Elorza" currency, with bills featuring the face of local independence leader Jose Andres Elorza, will be valid in the city of Elorza, near Venezuela's border with Colombia. The bills are being sold in the municipality's offices to ensure that thousands of tourists and residents can trade, said mayor Solfreddy Solorzano, a member of the ruling Socialist Party. Venezuela's national currency, the bolivar, has plummeted in recent years amid a crippling economic crisis. Prices are doubling nearly every month and basics such as food and medicine are nearly unavailable. ######## Another article on the same subject; http://www.dw.com/en/venezuelans-la...s/a-43055975 |
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Bedrock of the Community
Australia
21786 Posts |
One way of stopping inflation in it's tracks is to issue security instruments based on the area value of land.
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Pillar of the Community
United States
992 Posts |
A fine idea until China or a corporation buys up all of the federal land and the citizens realize their birthright has been sold down the river because the government won't address the spending problem they created.
Unless an instrument is tied to an actual area of land, it's worthless, just a futures contract on a non-existent 'value'. If the government does not intend on selling the land, then it has no value other than an entirely artificial one. If they do intend on selling it, then they have no right to do so. Just change the government.
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Pillar of the Community
United States
4883 Posts |
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A western Venezuelan city began to issue its own currency this week to alleviate the hyper-inflationary country's cash crisis. Shades of German localities issuing "notgeld" in 1922 and '23. Quote:
One way of stopping inflation in it's tracks is to issue security instruments based on the area value of land. Which was precisely the scheme behind the Rentenmark which effectively ended the runaway German hyperinflation at the end of 1923, accomplishing this virtually overnight. Colligo ergo sum
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Pillar of the Community
Canada
5239 Posts |
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One way of stopping inflation in it's tracks is to issue security instruments based on the area value of land. The French tried this with the assignats after the revolution, but they still had inflation because too many were issued. You also need confidence that the supply of security instruments is stable relative to their backing asset. |
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Bedrock of the Community
Australia
21786 Posts |
You don't actually have to buy or sell land; the currency is just valued against it.
Such measures can only be used for a short time, until the currency is stabilized.
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Pillar of the Community
United States
4883 Posts |
Here's the latest scheme whereby the Venezuelan government is hoping to squirm out of the hyperinflation trap its policies have created, or at the very least cast the increasingly dire situation in the best possible light. This apparently is going to result in the issuance later this year of yet another series of banknotes denominated in a revalued bolivar. See: https://finance.townhall.com/column...ion-n2464758And also: https://www.washingtonpost.com/news...df626582b722In the latter article, Nicolás Maduro's (foredoomed) opponent in the upcoming presidential elections, Henri Falcon, is reported to be running on a platform that advocates the adoption of the U.S. dollar as the national currency. Colligo ergo sum
Edited by Lucky Cuss
03/27/2018 1:42 pm
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Pillar of the Community
United States
4883 Posts |
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Pillar of the Community
United States
4883 Posts |
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Pillar of the Community
United States
4883 Posts |
An article from just a few days ago: https://www.usnews.com/news/busines...nomic-crisisThe real takeaways from this for me are twofold. First, Venezuela's inflation rate is predicted to hit the million percent level by the end of the year. Second, the photograph of Venezuelan currency being used like police line or construction zone barrier tape has an obvious historic parallel to the German situation in 1923 when government issued notes were shown being put up as wall paper or bundles of them given to children to be played with as building blocks.   There's even one that depicts a kite being made of currency.  These all date to the last stages of the mark's utter collapse. You have to wonder if, even though it's been staved off to this point, if Venezuela is finally getting to an analogous place. As Mark Twain once remarked, "History doesn't repeat itself, but it often rhymes." The Weimar episode of hyperinflation ended peacefully via an ingenious solution to backing a new, substitute currency. Venezuela has tried that with the Petro to no avail. I now fear the current situation might resolve itself in a violent convulsion instead. Colligo ergo sum
Edited by Lucky Cuss
08/09/2018 6:42 pm
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Replies: 110 / Views: 18,205 |
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Posted 02/22/2018 4:57 pm
