Dollarization means no central bank means no lender of last resort means the financial system needs to be bank-run proof making Limited Purpose Banking the key
Domingo is always discussing corruption. He's being as real as it gets. What would you do if you were in charge in Argentina? I ask this not with any sarcasm. I believe and get what you wrote. I'm just trying to understand how the corruption problem can be handled. best, Larry
Hi William, I agree with your assessment, which is why I wrote that the first step is adopting LPB. The second step is making the dollar legal tender. Step three is to buy up pesos, but do so over years, not overnight. Trying to do it overnight will cause a depression if successful. But it can't be attempted unless they convert at a crazy rate. best and thanks for writing, Larry
Shifting to the dollar, means leaving behind the peso. And will result in an immediate depression, as Argentina will need to acquire dollars through exports and borrowing from the IMF, which will then control the government by placing conditions, like stopping all government social spending as they did in Greece.
That set aside. In 1919 Congress passed the Edge Act which authorized banks to set up foreign branches. City Bank did that, and it is known as the Bank of Panama. I left in 1978, and at that time, the US Dollars was the paper currency, and coinage was minted in the Philadelphia Mint, using the exact same stock, in weight and size as U.S. coins, only a different obverse and reverse.
As an offshore subsidary of Citibank, the Bank of Panama is restricted by Fed policies, and in 1978 I didn't know one Panamanian who had a credit card. But Citicorp launched a propaganda campaign, and now all Panamanians who have sufficient income have credit cards, and as a result the prices have reason, to the point that my ex wife, a Panamanian American, can no longer return to Panama and live.
Argentina, if it uses the Dollar,will have to have the Bank of Argentina become an offshore branch of some American Bank like BOA or Citicorps.,and will fall into an immediate depression because of a shortage of dollars, while it borrows more from the IMF, and becomes addicted to credit cards, probably issued by Citicorps or which ever bank takes over the Bank of Argentina.
I lived in Panama from 75 to 78, and my Masters major was finance and accounting.
Get lost! Why would any country give up its sovereignty when it comes to our national monetary unit (it's our mess to fix/destroy and we will NOT privatize our pesos as we have done with much of our national treasures). Your ignorance precluded you from predicting the bursting of the housing bubble (caused by speculative lending) which was SOOOOOOO obvious to many (yes, little nobody here.... saw it and profited from it).
I lived in Argentina 1995-2000 and consulted banks. Their plan back then included large privatizations, taxation, private pensions, and dollar reserves. The locals repeatedly told me they didn’t pay taxes. The taxes that were being paid are social taxes that are taken out before salaries are paid. The government had to get their money up front. In addition, there were huge scandals and corruption on the privatizations. I personally was robbed at my office. Police told me to buy a gun. A gun was held to my clients head at the jockey club ‘you will return my money’ which happened during the ‘tequila crisis’ where a third of the banks went under overnight(private money banks, money in black). Have a real conversation with Cavallo! Real on the streets ....what to do. 22,000 Argentines took up residence in Montevideo Uruguay the last couple years. Why does the world keep financing this charade? Why do the average income earning Argentines put up with this theft. Ask Cavallo to get real!
Domingo is always discussing corruption. He's being as real as it gets. What would you do if you were in charge in Argentina? I ask this not with any sarcasm. I believe and get what you wrote. I'm just trying to understand how the corruption problem can be handled. best, Larry
Hi William, I agree with your assessment, which is why I wrote that the first step is adopting LPB. The second step is making the dollar legal tender. Step three is to buy up pesos, but do so over years, not overnight. Trying to do it overnight will cause a depression if successful. But it can't be attempted unless they convert at a crazy rate. best and thanks for writing, Larry
Shifting to the dollar, means leaving behind the peso. And will result in an immediate depression, as Argentina will need to acquire dollars through exports and borrowing from the IMF, which will then control the government by placing conditions, like stopping all government social spending as they did in Greece.
That set aside. In 1919 Congress passed the Edge Act which authorized banks to set up foreign branches. City Bank did that, and it is known as the Bank of Panama. I left in 1978, and at that time, the US Dollars was the paper currency, and coinage was minted in the Philadelphia Mint, using the exact same stock, in weight and size as U.S. coins, only a different obverse and reverse.
As an offshore subsidary of Citibank, the Bank of Panama is restricted by Fed policies, and in 1978 I didn't know one Panamanian who had a credit card. But Citicorp launched a propaganda campaign, and now all Panamanians who have sufficient income have credit cards, and as a result the prices have reason, to the point that my ex wife, a Panamanian American, can no longer return to Panama and live.
Argentina, if it uses the Dollar,will have to have the Bank of Argentina become an offshore branch of some American Bank like BOA or Citicorps.,and will fall into an immediate depression because of a shortage of dollars, while it borrows more from the IMF, and becomes addicted to credit cards, probably issued by Citicorps or which ever bank takes over the Bank of Argentina.
I lived in Panama from 75 to 78, and my Masters major was finance and accounting.
Get lost! Why would any country give up its sovereignty when it comes to our national monetary unit (it's our mess to fix/destroy and we will NOT privatize our pesos as we have done with much of our national treasures). Your ignorance precluded you from predicting the bursting of the housing bubble (caused by speculative lending) which was SOOOOOOO obvious to many (yes, little nobody here.... saw it and profited from it).
I lived in Argentina 1995-2000 and consulted banks. Their plan back then included large privatizations, taxation, private pensions, and dollar reserves. The locals repeatedly told me they didn’t pay taxes. The taxes that were being paid are social taxes that are taken out before salaries are paid. The government had to get their money up front. In addition, there were huge scandals and corruption on the privatizations. I personally was robbed at my office. Police told me to buy a gun. A gun was held to my clients head at the jockey club ‘you will return my money’ which happened during the ‘tequila crisis’ where a third of the banks went under overnight(private money banks, money in black). Have a real conversation with Cavallo! Real on the streets ....what to do. 22,000 Argentines took up residence in Montevideo Uruguay the last couple years. Why does the world keep financing this charade? Why do the average income earning Argentines put up with this theft. Ask Cavallo to get real!