Comments on: Costa Rica Central Bank chief says Bank should have more control over dollarized banking

By: Ben

Ben — Wed, 11 Nov 2015 17:37:00 +0000

Over the years Costa Rica has become a puppet of US intrests and US Corporations and US citizens. The US system is broke and corupt and things are going to get very bad in the US very soon. Costa Rica’s need to get the the dam US dollar out of there system of goverment 100%

By: gc

gc — Wed, 11 Nov 2015 11:35:00 +0000

unfortunately the “great cleansing” will be more like a “slow whimper”

By: gc

gc — Wed, 11 Nov 2015 11:34:00 +0000

a correct sustainable economy is one in which trillions of voluntary un-incentive driven transactions take place. i do not know what would work for you, i lost business before i succeeded in business. both were necessary.

By: richard schlinder

richard schlinder — Wed, 11 Nov 2015 01:22:00 +0000

It is a strange paradox that even though the dollar has decreased in value since my dad bought their house in the suburbs and he got his Chevrolet and mom got her first washer and dryer,the standard of living increased through the decades in the U.S.
Currency debasement is the currency wars that I have referred to and this has happened many times in history.No matter how much money the FED prints,this scenario has to play itself out at some point.
You have mentioned armageddon and yes I am a believer in an economic collapse worldwide.It is just one of a thousand reasons why I left the States.When it comes to the economy,history has shown that the countries that live close to the earth fare better through hard times than the imperialists.

By: richard schlinder

richard schlinder — Wed, 11 Nov 2015 00:55:00 +0000

Okay.So I can start growing pot on my farm for distribution or open a pawnshop or a laundromat. Good thinkin’. Thanks.

By: Ken Morris

Ken Morris — Tue, 10 Nov 2015 23:43:00 +0000

My understanding is that dollarization requires countries to forgo some macroeconomic arrows in their quivvers, and therefore might not be smart, especially for a small country like Costa Rica. One-size-fits-all macroeconomic policies don’t always work well for small states in the US either, but at least those states have a couple senators in DC who can (and often do) get special policies crafted to their special circumstances. Costa Rica doesn’t have those senators.

Add that, were Costa Rica to dollarize, the Central Bank would just be granted the same control over the dollarized economy that it seeks now.

The devil is of course always in the details, and as a rule I’m hesitant to grant the Central Bank here power, but it almost sounds to me that its requests in this case are reasonable. Costa Rica is a dual-currency economy, and it may make sense to empower the Bank to manage the dollar portion as much as it is empowered to manage the colon portion. Plus, I suspect Costa Rica might be better off remaining a dual-currency economy.

By: gc

gc — Tue, 10 Nov 2015 22:45:00 +0000

while there is never not change, not all change is Armageddon. just this week MCW energy announced it’s plant was producing oil from tar sand at $30 a bbl using no water and leaving the sand 99.99% clean. un-subsidized tech is changing so fast that the future is the exact opposite of central planners dreams. there will be no grand public private partnership economy wide success. labor law and unions will never function efficiently. however if you are smart, learn a field and fail enough times you can succeed in self employment which is not out-sourcable. exactly the type of “informal work” government opposes is the only route for a family to be secure and independent. of course, we cannot allow that.

By: gc

gc — Tue, 10 Nov 2015 22:30:00 +0000

actually the dollar is and has been falling in VALUE since 1913. it is more accurate to say, the dollar has relative strength as other currency is debased faster. certainly you are not receiving more for you dollar except in specific collapsed markets. the temptation is great. the swiss finally gave in this year. costa rica has been valiant in support of it’s currency. it is popular now in left wing econ circles to see currency debasement as positive. you export your economic lack of productivity to support your inefficient home market with otherwise not employable labor and production. really though, even if debasement increases employment and export it leaves everyone who is working and paid in colones paying higher prices for everything. it is the biggest and most painful of all social democrat taxes.

By: richard schlinder

richard schlinder — Tue, 10 Nov 2015 21:13:00 +0000

Thank you for the reply.At this time ,you are correct but I forsee that to change in the future. People of the world will only have money for food and medicines.

By: Roberto

Roberto — Tue, 10 Nov 2015 20:24:00 +0000

Exporters in CR currently suffer because of the artificially low exchange rate.