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[quote=”guru”]An historical chart starting in 2000 shows the Colon steadily gaining against the dollar starting at 232 per dollar and now at about 511. A few years ago it was an even 500 per dollar which made it easy to calculate in one’s head.
While the dollar IS dropping globally there are reasons each currency is exchanged at different rates. The Costa Rican economy relies heavily on the U.S. for commerce including, tourism, realestate and agriculture (you find Costa Rican Pineapples and Bananas in almost EVERY grocery store in the U.S.). If the Costa Rican economy is stronger today than decades ago it is based largely on the flow of U.S. dollars.
As far as investments go there are many places to put your money that is better than cash in the bank or money market funds. Realestate, antiques. . . I have tools and machinery that have gained steadily in value against the dollar. With manufacturing down it HAD been a buyers market but the selloffs are slowing. The problem with all investments of this type is liquidity. Just how fast do you need to be able to convert to cash? Days, weeks, months. You might take a year or more to convert realestate to cash at the highest value.
I have a friend that published a special interest book that is now in its 5th printing of 1000. Its a big book and a printing is over $40,000. He says it earns him just a little more than bank interest so he keeps printing and selling them. Very meager gains and slow to cash out but also low risk.
The problem with “market” investments, including holding any currency or investing in stocks is that it is a power players’ market. Small investors can easily get run over in a big fish’s profit taking. For many it would be better to play the lottery.[/quote]
If it takes more colones to buy a dollar, the colon is NOT gaining against the dollar, it is losing.
The dollar’s value is steadily decreased in value the more the FED prints them and the colon follows suit. Since the FED began in 1913, the dollar has lost 95% of its value. This was supposed to be planned and so is what is happening right now. I don’t know for sure but from what I am reading, it doesn’t matter which fiat currency you are holding, over the long run, you lose value. It is better to own concrete things which will always be useful for survival, like land, food, etc. Some so-called financial experts see such a bleak future that they are advising buying farm land, seed and guns. I can’t think of a better place to be for armageddon than Costa Rica.
Here’s the response from our Costa Rica tax expert Randall Zamora …
“I totally disagree with the article and the idea of dollarize Costa Rica, the reason is simple: The country just does not have enough reserves for doing that and that means that the Banco Central should borrow money from guess who?
The World Bank or International Monetary Fund and that will kill us, just look what happened in Argentina.”
[quote=”Scott”]Here’s the response from our Costa Rica tax expert Randall Zamora …
“I totally disagree with the article and the idea of dollarize Costa Rica, the reason is simple: The country just does not have enough reserves for doing that and that means that the Banco Central should borrow money from guess who?
The World Bank or International Monetary Fund and that will kill us, just look what happened in Argentina.”[/quote]
Mr. Zamora has figured it out. Although I wonder why the IMF would want to force the issue with Costa Rica right now. The Costa Rican economy is hardly a threat to their plans for a one world monetary system at this time but they apparently do not like any small nations to set examples of resistance.
Cuba was a former member of the IMF. Fidel Castro made a comment ten years ago about the IMF.“HAVANA, Jan 29 (Reuters) – Socialist Cuba has survived U.S. pressure and recession because it stands apart from “chaotic” global capitalism and thus escaped the International Monetary Fund (IMF) “executioner,” President Fidel Castro said.
Castro said that Cuba’s freedom from the IMF meant that it could endure 40 years of hostility from the United States, including a trade embargo and a severe economic crisis triggered by the collapse of the Soviet bloc after 1990.”
It is now ten years after that remark and this latest and greatest of recessions has taken its toll even on the fiercely independent Cuban state. No nation economy seems to be able to withstand the forces that the IMF has turned against all of the world. It will be interesting to see if the gentle Ticos have the stones the of the Cubans in standing up to the IMF.
The US is history.
If CR goes to another currency it’ll probably be the Yuan.
The Chinese will own this place, soon enough.COSTA RICA WILL CHANGE CURRENCIES
IT WILL BE CALLED THE AMERO–OR MAYBE THE BANCOR
Already Costa Rica is adopting changes through Cafta
Every new business has to be wheelchair accessible—including old 2 story+ buildings—NO ELEVATOR= BIG PROBLEMS
and people who have farms here (for decades) are now being asked for enviromental impact studies for their cattle farms
There are thorough airport checks–because terrorism is such a major threat in Costa Rica
And because CR was labeled a ^potential money laundering destination^, every deposit now has to be tracked, explained, accounted for etc.[quote=”kordan”]COSTA RICA WILL CHANGE CURRENCIES
IT WILL BE CALLED THE AMERO–OR MAYBE THE BANCOR
Already Costa Rica is adopting changes through Cafta
Every new business has to be wheelchair accessible—including old 2 story+ buildings—NO ELEVATOR= BIG PROBLEMS
and people who have farms here (for decades) are now being asked for enviromental impact studies for their cattle farms
There are thorough airport checks–because terrorism is such a major threat in Costa Rica
And because CR was labeled a ^potential money laundering destination^, every deposit now has to be tracked, explained, accounted for etc.[/quote]
FreeDumb, merican style. Yep. No “A”, in anything.[quote=”kordan”]COSTA RICA WILL CHANGE CURRENCIES
IT WILL BE CALLED THE AMERO–OR MAYBE THE BANCOR
Already Costa Rica is adopting changes through Cafta
Every new business has to be wheelchair accessible—including old 2 story+ buildings—NO ELEVATOR= BIG PROBLEMS
and people who have farms here (for decades) are now being asked for enviromental impact studies for their cattle farms
There are thorough airport checks–because terrorism is such a major threat in Costa Rica
And because CR was labeled a ^potential money laundering destination^, every deposit now has to be tracked, explained, accounted for etc.[/quote]How is it people don’t see the encircling arms of world population control? I have read one theory as to why people are so easily trapped and enslaved. We are compared to a frog placed in a pot of tepid water with the heat under the pot being gradually increased. The frog acclimates to the changing water temperature, never noticing any discomfort until it is too late and he is boiled alive.
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