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[quote=”waggoner41″][quote=”Imxploring”]Les…. I think you’re mistaken if you don’t believe that prices in CR (priced in local currency) will not be adjusted upwards (inflated) to make up for the rise in the dollar (exchange rate).[/quote]
While the exchange rate dropped from 596 to 493 we experienced inflation of 5% to 7%. Tico workers income rose at about 1% to 2% at the same time yet they experienced the same rate of inflation as expats did.
Why do you assume that prices rise simply to gouge expats when the Ticos get hit just as hard or harder. The Tico family that lives with us pays the same prices that I do.
Inflation is worldwide and has been a fact of life for generations. When you can tell me that Costa Rica is the only country that is experiencing inflation we can argue the point.[/quote]
Hey Les… I don’t recall saying that increasing prices as a result of the exchange rate fluctuation were directed solely at expats as part of some dastardly plot. That concept is the basis of “gringo pricing” an unofficial individual program many expats are subjected to on a local basis! LOL
Of course inflation and product price fluctuations impact our Tico neighbors as well! And for those (you know who you are) that don’t believe that the current exchange rate (dollar rise) will result in a rise in prices because of some theoretical economic principal or injection of logic…. consider this. The BCCR is taking steps to stabilize the rate through the purchase and sale of currency on the markets and released the following statement…
“Violent variations in the exchange rate leads to sharp movements in prices, costs, and income, increasing the degree of uncertainty about these and other variables, which is detrimental to the wellbeing of Costa Rican society.”
Seems they believe a rising dollar will have an impact on prices (inflation). In many cases prices are “sticky”… that being when they rise because of some short term localized event they tend to be quite slow to retreat… if they do so at all!
What makes CR unique and perhaps more vulnerable to this problem is the parallel use in daily (right down to that local mom and pop soda) commerce of their own currency as well as the dollar.
[quote=”sweikert925″][quote=”waggoner41″]While the exchange rate dropped from 596 to 493 we experienced inflation of 5% to 7%. Tico workers income rose at about 1% to 2% at the same time yet they experienced the same rate of inflation as expats did.[/quote]
Excellent point which should be obvious. But since it apparently isn’t to some, it should also be pointed out that you live in CR full time and no one who doesn’t should dare argue with someone who does.[/quote]Argue…. that’s funny… how about debate? Or perhaps if we are going to attempt to discredit those that don’t live in CR fulltime we should completely IGNORE the imput of those that have only vacationed in CR… have no investment in CR, have never purchased real estate there, have never paid taxes there, have never opened or maintained a bank account there, have never had or paid a utility bill there, have never had to deal with any government entity there, have never had to hire a worker there, have only seen the country in the seat of a bus operated by someone else, and have never had to negotiate the price on the purchase of any product beyond lunch and a cup of coffee?
Sounds fair doesn’t it? We can create a whole system of assigning credibility and importance to each posting… and as you might guess… that leaves your imput pretty far down on the scale of value and importance! LOL
Good morning Sunshine! Have a great day at work! 🙂
[quote=”Imxploring”]“Violent variations in the exchange rate leads to sharp movements in prices, costs, and income, increasing the degree of uncertainty about these and other variables, which is detrimental to the wellbeing of Costa Rican society.”
Seems they believe a rising dollar will have an impact on prices (inflation). In many cases prices are “sticky”… that being when they rise because of some short term localized event they tend to be quite slow to retreat… if they do so at all!
What makes CR unique and perhaps more vulnerable to this problem is the parallel use in daily (right down to that local mom and pop soda) commerce of their own currency as well as the dollar.[/quote]
Referring to the link I provided earlier
[url=http://insidecostarica.com/2013/10/08/central-bank-raises-exchange-rate-ceiling-dollars-%C2%A2800/]Central bank raises exchange rate ceiling for dollars to ¢800[/url]
“Those holding or earning dollars, however, shouldn’t get excited. Experts said the move is simply to reassure certain sectors in the economy, such as exporters, and wouldn’t affect the actual exchange rate.
The dollar has remained near the bottom band of ¢500 all year.
Experts said that the consensus is that the colon should always gradually weaken against stronger currencies such as the dollar. As a result, experts said, there shouldn’t be the need for an upper band at all.
Exporters and other sectors become more profitable – and their goods more attractive on world markets – when the dollar’s purchasing power relative to the colon increases, effectively making their products cheaper in export markets.
Experts said that the Central Bank’s movement of the upper band is simply to reassure such sectors that there is plenty of room for long-term – and gradual – devaluation of the colon.”[quote=”Imxploring”]“Violent variations in the exchange rate leads to sharp movements in prices, costs, and income, increasing the degree of uncertainty about these and other variables, which is detrimental to the wellbeing of Costa Rican society.”
Seems they believe a rising dollar will have an impact on prices (inflation). In many cases prices are “sticky”… that being when they rise because of some short term localized event they tend to be quite slow to retreat… if they do so at all!
What makes CR unique and perhaps more vulnerable to this problem is the parallel use in daily (right down to that local mom and pop soda) commerce of their own currency as well as the dollar.[/quote]
Referring to the link I provided earlier
[url=http://insidecostarica.com/2013/10/08/central-bank-raises-exchange-rate-ceiling-dollars-%C2%A2800/]Central bank raises exchange rate ceiling for dollars to ¢800[/url]
“Those holding or earning dollars, however, shouldn’t get excited. Experts said the move is simply to reassure certain sectors in the economy, such as exporters, and wouldn’t affect the actual exchange rate.
The dollar has remained near the bottom band of ¢500 all year.
Experts said that the consensus is that the colon should always gradually weaken against stronger currencies such as the dollar. As a result, experts said, there shouldn’t be the need for an upper band at all.
Exporters and other sectors become more profitable – and their goods more attractive on world markets – when the dollar’s purchasing power relative to the colon increases, effectively making their products cheaper in export markets.
Experts said that the Central Bank’s movement of the upper band is simply to reassure such sectors that there is plenty of room for long-term – and gradual – devaluation of the colon.”I see uit as making my purchasing power greater.
[quote=”waggoner41″][quote=”Imxploring”]“Violent variations in the exchange rate leads to sharp movements in prices, costs, and income, increasing the degcylindrical uncertainty about these and other variables, which is detrimental to the wellbeing of Costa Rican societ”
Se believe a rising dollar will have an impact oncoloni(inflation). In many cases prices are “sticky”… that being when they rise because of some short term localized event they tend to be quite slow to retreat… if they do so at all!
What makes CR unique and perhaps more vulnerable to this problem is the parallel use in daily (right down to that local mom and pop soda) commerce of their own currency as well as the dollar.[/quote]
Referring to the link I provided earlier
[url=http://insidecostarica.com/2013/10/08/central-bank-raises-exchange-rate-ceiling-dollars-%C2%A2800/]Central bank raises exchange rate ceiling for dollars to ¢800[/url]
“Those holding or earning dollars, however, shouldn’t get excited. Experts said the move is simply to reassure certain sectors in the economy, such as exporters, and wouldn’t affect the actual exchange rate.
The dollar has remained near the bottom band of ¢500 all year.
Experts said that the consensus is that the colon should always gradually weaken against stronger currencies such as the dollar. As a result, experts said, there shouldn’t be the need for an upper band at all.
Exporters and other sectors become more profitable – and their goods more attractive on world markets – when the dollar’s purchasing power relative to the colon increases, effectively making their products cheaper in export markets.
Experts said that the Central Bank’s movement of the upper band is simply to reassure such sectors that there is plenty of room for long-term – and gradual – devaluation of the colon.”I see uit as making my purchasing power greater.[/quote]
A weaker local currency will make exports more attractive. And while the recent increase in the dollar will result in a better exchange rate when shifting to colones from dollars we’ll have to see how it impacts local prices. My feeling is we’ll see more locals (as was David’s experience) wanting dollars as payment instead of colones. As is often the case… the actual cost using dollars is higher thereby nullifying the gain you might think the shift provides you.
[quote=”Imxploring”] My feeling is we’ll see more locals (as was David’s experience) wanting dollars as payment instead of colones. As is often the case… the actual cost using dollars is higher thereby nullifying the gain you might think the shift provides you.[/quote]
Since we have paid everything in colones since we arrived in Costa Rica I don’t have a problem.
I have never had any local or business ask for payment in dollars even when the exchange rate was 596.I generally don’t pay much attention to it(it’s been level for years) but I was paying bills yesterday and running numbers in my head as I went.
Capris–114200–$228, ICE 96000-$190 etc.
Once I got all done things didn’t add up.
I open the Capris screenshot and WALLA(not to be confused with Allah). $206 ! Que descuenta !:roll:Just being curious: Are U.S. coins used in Costa Rica for change? Taking it further, are silver pre 1964 U.S. coins accepted by some for transactions? How about gold Eagles?
[quote=”johnnyh”]Just being curious: Are U.S. coins used in Costa Rica for change? Taking it further, are silver pre 1964 U.S. coins accepted by some for transactions? How about gold Eagles?[/quote]
They really don’t use US coinage in CR although I have come across some tourist gift shops that did give change including US coins. Most will give you the small change in colonies. Junk silver (Pre 1965 90% silver) and silver/gold eagles don’t make their way into normal daily commerce in CR but aren’t a bad way to hold some of your assets in CR should we experience a change in economic realities in the world monetary system. No doubt you could find folks willing to do business in bullion but it would take time and effort and might involve a deep discount on your metals. That would change dramatically should the monetary system fall into question and would result in a handsome appreciation of your metal holdings.
I hold a portion of my assets in metals and feel it’s only prudent based on the current state of the world economy…. face it… if things go bad that share of Google stock is not going to be much use trying to trade for the things you need to survive. Metals have had value for thousands of years. Fiat currency comes and goes.
[quote=”Imxploring”][quote=”johnnyh”]Just being curious: Are U.S. coins used in Costa Rica for change? Taking it further, are silver pre 1964 U.S. coins accepted by some for transactions? How about gold Eagles?[/quote]
They really don’t use US coinage in CR although I have come across some tourist gift shops that did give change including US coins. Most will give you the small change in colonies. Junk silver (Pre 1965 90% silver) and silver/gold eagles don’t make their way into normal daily commerce in CR but aren’t a bad way to hold some of your assets in CR should we experience a change in economic realities in the world monetary system. No doubt you could find folks willing to do business in bullion but it would take time and effort and might involve a deep discount on your metals. That would change dramatically should the monetary system fall into question and would result in a handsome appreciation of your metal holdings.
I hold a portion of my assets in metals and feel it’s only prudent based on the current state of the world economy…. face it… if things go bad that share of Google stock is not going to be much use trying to trade for the things you need to survive. Metals have had value for thousands of years. Fiat currency comes and goes.[/quote]
Thanks for your reply. Yes I’m very aware and concerned about things to come. Even those in power are thinking of devaluing our current fiat tokens from the “expensive” metals to maybe aluminum coins as the metal content is more expensive than the coin values.
Have you moved real money from the States to Costa Rica? If I may ask.8)[quote=”johnnyh”][quote=”Imxploring”][quote=”johnnyh”]Just being curious: Are U.S. coins used in Costa Rica for change? Taking it further, are silver pre 1964 U.S. coins accepted by some for transactions? How about gold Eagles?[/quote]
They really don’t use US coinage in CR although I have come across some tourist gift shops that did give change including US coins. Most will give you the small change in colonies. Junk silver (Pre 1965 90% silver) and silver/gold eagles don’t make their way into normal daily commerce in CR but aren’t a bad way to hold some of your assets in CR should we experience a change in economic realities in the world monetary system. No doubt you could find folks willing to do business in bullion but it would take time and effort and might involve a deep discount on your metals. That would change dramatically should the monetary system fall into question and would result in a handsome appreciation of your metal holdings.
I hold a portion of my assets in metals and feel it’s only prudent based on the current state of the world economy…. face it… if things go bad that share of Google stock is not going to be much use trying to trade for the things you need to survive. Metals have had value for thousands of years. Fiat currency comes and goes.[/quote]
Thanks for your reply. Yes I’m very aware and concerned about things to come. Even those in power are thinking of devaluing our current fiat tokens from the “expensive” metals to maybe aluminum coins as the metal content is more expensive than the coin values.
Have you moved real money from the States to Costa Rica? If I may ask.8)[/quote]Yes I have. Both in bullion (generic issues), government issues (US Eagles), and junk silver. I was in CR during the big 2008 meltdown in the US markets and don’t ever plan on being in that financial situation again.
Should you plan on bringing down metals keep in mind a few things. There will be questions at the airport… I got stopped in NY boarding the plane on my last trip. There are different rules, forms, and a lower reporting threshold when transporting precious metals and commodities. Unlike the $10k regulations on negotiable instruments and cash anything over $2,500 in commodities requires a census form dealing with the transportation of such materials. My general rule is to stay under the reporting levels. But at the same time make it very clear when questioned that I’m familiar with the laws, forms, and reporting requirements. When I politely made that clear during my last encounter with the folks at TSA it went rather smoothly. Knowing your rights and the rules…. or at least having an answer seems to keep them at bay.
Good luck stacking… NOW is time to accumulate!
[quote=”Imxploring”][quote=”johnnyh”][quote=”Imxploring”][quote=”johnnyh”]Just being curious: Are U.S. coins used in Costa Rica for change? Taking it further, are silver pre 1964 U.S. coins accepted by some for transactions? How about gold Eagles?[/quote]
They really don’t use US coinage in CR although I have come across some tourist gift shops that did give change including US coins. Most will give you the small change in colonies. Junk silver (Pre 1965 90% silver) and silver/gold eagles don’t make their way into normal daily commerce in CR but aren’t a bad way to hold some of your assets in CR should we experience a change in economic realities in the world monetary system. No doubt you could find folks willing to do business in bullion but it would take time and effort and might involve a deep discount on your metals. That would change dramatically should the monetary system fall into question and would result in a handsome appreciation of your metal holdings.
I hold a portion of my assets in metals and feel it’s only prudent based on the current state of the world economy…. face it… if things go bad that share of Google stock is not going to be much use trying to trade for the things you need to survive. Metals have had value for thousands of years. Fiat currency comes and goes.[/quote]
Thanks for your reply. Yes I’m very aware and concerned about things to come. Even those in power are thinking of devaluing our current fiat tokens from the “expensive” metals to maybe aluminum coins as the metal content is more expensive than the coin values.
Have you moved real money from the States to Costa Rica? If I may ask.8)[/quote]Yes I have. Both in bullion (generic issues), government issues (US Eagles), and junk silver. I was in CR during the big 2008 meltdown in the US markets and don’t ever plan on being in that financial situation again.
Should you plan on bringing down metals keep in mind a few things. There will be questions at the airport… I got stopped in NY boarding the plane on my last trip. There are different rules, forms, and a lower reporting threshold when transporting precious metals and commodities. Unlike the $10k regulations on negotiable instruments and cash anything over $2,500 in commodities requires a census form dealing with the transportation of such materials. My general rule is to stay under the reporting levels. But at the same time make it very clear when questioned that I’m familiar with the laws, forms, and reporting requirements. When I politely made that clear during my last encounter with the folks at TSA it went rather smoothly. Knowing your rights and the rules…. or at least having an answer seems to keep them at bay.
Good luck stacking… NOW is time to accumulate![/quote]
Roger!
[quote=”sweikert925″][quote=”Imxploring”][quote”davidd”]imxploring
MATE !!!! PLEASE dont mention anything about CHILE.. for the love of god man.
This may be my next move.. and we dont want to give sweikert any ideas..
let him believe what he wants to believe..
living here will cure him of that soon enough
[quote=”sweikert925″][quote=”Imxploring”]CR is really not for you.[/quote]
So because you are an expert – not only on everything having to do with Costa Rica but also what is in my best interests – I apparently have to reconsider my decision to relocate to CR.Sorry. Isn’t gonna happen.
However if you prefer I no longer respond to any of your posts I can easily do that and maybe you should do the same for mine.[/quote][/quote]
Sorry…. Perhaps Argentina…. they need a man of common sense and logic! I was going to recommend Venezuela but the utopian socialist plan down there isn’t working out as our friend might think it would… might be too big a shock to his system![/quote]
“[i]Great minds discuss ideas; average minds discuss events; small minds discuss people.[/i]”
Eleanor Roosevelt
[/quote]What kind on mind enters an existing conversation under the premise of learning and then goes on to try to re-educate those already within that conversation about a subject they have much more experience and knowledge about?
[quote=”sweikert925″]This thread has something in common with many I participate in – eventually you and others change the subject from whatever it started out as to discussing me. Lately, every discussion has tended to go that way. Hence the Eleanor Roosevelt quote. (Since you didn’t challenge that observation I’m assuming you agree with it.)
It’s easy to tell when someone knows he’s losing an argument – he changes the subject, and if he is really desperate he changes it by getting personal.
I have never – not even once – said or even suggested that I know better than any of you about some aspect of living in Costa Rica. But several have now said [b]exactly that [/b]to me – especially you, who doesn’t even live there himself (!).
In the comments above you even go so far as to speculate about why Costa Rica isn’t the place for me and maybe some other country is. If you think you are more qualified to say what country is most suitable for me to reside in then you should be prepared to explain why.
I happen to think [b]*I*[/b] am the expert in that particular area. Why do you disagree with that?[/quote]
The funny FACT is that this very thread had run it’s course (last posting was a month ago) yet it was YOU that made the choice to resurrect it? That makes one wonder just what goes on in that mind of yours? You seem to thrive on conflict as it seems NOT ONE person seems to side with you on just about every topic discussed here …. including the owner of this forum! Is there a message there perhaps? And a NUMBER of long-term members have completely written you off.
I’m guessing if we took a poll here that most folks would be of the same opinion that your views, style, and persona will not provide a happy or long-term stay in Costa Rica…. no matter what kind of expertise you may think you have in self analysis. Our lives and wellbeing are defined on our interactions with others…. and I don’t see that as a strong point in your situation.
I know guys…. wasting quarters…. but since I’m a better saver and investor and don’t gamble….I had to waste my pocket change somewhere! LOL
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