OT The American Economy

[bodhitree]

Some economies outside of the United States exclusively use the dollar (Panama certainly, El Salvador is beginning to use the dollar for everything), will they want to change?

Reply]
Interesting. I thought they used the Balboa?

The Balboa is equated with the dollar, and they don't use paper balboas at all. Interestingly enough balboa coins do work in our laundry machines, parking meters and such. Everything in Panama is done in dollars, I was just there in December, I've never seen a paper Balboa, yet, and my wife is Panamanian, and I don't know if she's ever seen one! That was one of Panama's selling points to tourists, investors, and retirees, they don't need to worry about currency, because everything is done in dollars.

[bodhitree]

The US dollar has been Panama’s currency since 1904, although it is called the Balboa for nationalistic reasons. As a consequence, fiscal policy is the government principal macroeconomic policy instrument. Because Panama does not have a central bank to print its own currency, government spending and investment is strictly bound by tax and non-tax revenues and the government’s ability to borrow. Thus, creditworthiness is linked directly to public finances.

- Business Panama



Just in case you didn't believe me!

[bodhitree]

Back on topic:

Even without other countries using the dollar as their currency, it is a common tender in many industries and often the medium between two coutries with different currencies doing business. Is there any threat to this in the near future?



What does everybody think the financial institutions can do to get out of their mess?


what to do? Does the fed make things worse (not in printing more money, but in cutting interest rates)?

[RD'S Alias - 1A]

That was one of Panama's selling points to tourists, investors, and retirees, they don't need to worry about currency, because everything is done in dollars.

Reply]
That is *Very* interesting. Panama has some of the strictest secrecy laws on the planet. You can literally own a company out of Panama and PANAMA ITSELF will not know who owns the company....and by extension the companies assets.

I think the country exists strictly to launder money internationally and evade taxes for those living in tax oppressive countries. Considering the US dollar is thier primary currency, can you guess the nationality of it's primary tax evading, money laundering clients?

[bodhitree]

That was one of Panama's selling points to tourists, investors, and retirees, they don't need to worry about currency, because everything is done in dollars.

Reply]
That is *Very* interesting. Panama has some of the strictest secrecy laws on the planet. You can literally own a company out of Panama and PANAMA ITSELF will not know who owns the company....and by extension the companies assets.

I think the country exists strictly to launder money internationally and evade taxes for those living in tax oppressive countries. Considering the US dollar is thier primary currency, can you guess the nationality of it's primary tax evading, money laundering clients?

Yeah, investor secrecy is a big draw, but certainly not the only one. Panama city is growing fast, there is construction everywhere! Tourism is becoming a big industry, and people are immigrating to Panama from all over (Colombia, Venezuela, Other Central American countris, US, Canada...). I can't wait to go back! The dollar goes a bit further down there also, you can eat gormet for cheap! Hopefully the growth of the city doesn't ruin the rest of the country, which is quite beautiful!

[RD'S Alias - 1A]

Lots of people are moving to Costa Rica for the same reasons. Land prices are all over the charts there. I have found 3 acres for as little as $7500.00, with several small Tica homes on it already (No road access though, you have to own a boat). Other areas are priced similar to the US.

[bodhitree]

Lots of people are moving to Costa Rica for the same reasons. Land prices are all over the charts there. I have found 3 acres for as little as $7500.00, with several small Tica homes on it already (No road access though, you have to own a boat). Other areas are priced similar to the US.

Costa Rica and Panama are neighbors that have a lot in common.

[RD'S Alias - 1A]

Correct. Actually the area I want to go to is near the Costa Rica/Panama border on the Caribbean side.

My thought would be to eventually set up a Martial arts/ Eco retreat with the main focus on getting in touch with primal skills and living.

[bodhitree]

Correct. Actually the area I want to go to is near the Costa Rica/Panama border on the Caribbean side.

My thought would be to eventually set up a Martial arts/ Eco retreat with the main focus on getting in touch with primal skills and living.

My wife has some family that lives near the costa rica border, next time we go down there we're going to try and go there.

My wife's parents are both economists and both deal with agriculture. They couldn't believe that in the US we need to label foods "organic" or "free range", because as it is right now, everything in Panama is. As the population expands though, factory farms are going to start sprouting up. I am all for development in Panama city and a better quality of life for everyone, but I hope development doesn't destroy everything good there (and everywhere else!).

Costa Rica's government is pretty good about protecting the environment.

[Lucas]

Correct. Actually the area I want to go to is near the Costa Rica/Panama border on the Caribbean side.

My thought would be to eventually set up a Martial arts/ Eco retreat with the main focus on getting in touch with primal skills and living.

Hurry up and do that. Then, let me know when you have that set up. I need to get the hell out of this country.

[Shaolin Wookie]

The economy should actually be improving shortly. One of my jobs is in the shipping industry. We generally see a major drop off in freight numbers preceding any severe recession. We've had that for quite a while now--the dip, that is--but business is booming right now. Going by the trends I've seen these past 4 years, it should presage a rise in the economy. It shows increased consumer confidence (corporate consumer confidence). Of course, it'll be awhile before that trend hits the market in general.

Keep you fingers crossed, and hope we can get the **** out of Iraq before gas hits 4 dollars (which it'll do either way, I suppose).

[Eddie]

Hurry up and do that. Then, let me know when you have that set up. I need to get the hell out of this country.

I’ll swap lives with you. You come live down in SA and I move up to live in where ever it is you live

[RD'S Alias - 1A]

The economy is tied to Oil prices right now, if the stop rising we will be fine, if they don't stop rising a severe recession or even depression is on the way.

[BoulderDawg]

Europeans have seen little fluctuation in gas prices

God I hope not. Two years ago when I was in UK I was paying 97 pence a litre. You don't even want to do the conversion on that.

Who knows what they are paying now.

[Liokault]

God I hope not. Two years ago when I was in UK I was paying 97 pence a litre. You don't even want to do the conversion on that.

Who knows what they are paying now.

107p Unleaded, 110p DERV