Monday, March 1, 2010

Belize needs to try being a US dollar country, in a parallel system?


The bureaucrats of Belize seem to have been leading the government of Belize astray?
There are two countries in Central America known as dollar countries. Panama is one and Salvador is the other. These are countries that freely use US currency in stores and on the streets alongside their official local currencies.
It would seem with the war of the OECD on Belize and threats of SANCTIONS, that the Government of Belize should probably remove their FOREIGN RESERVES from USA banks and split them between banks in Panama and Salvador for safety?
Many local businesses that routinely bank in the USA, apparently should do the same, to prevent seizure, in this continuing economic war of WORLD DOMINATION by the G-20, OECD countries against the other 185 countries of the world.
What the practicalities of safety in foreign exchange would be, for deposits by Belizean firms and our government in Panama and Salvador I do not know? I do have experience a long time ago ( about 45 years ago ) with a dollar account in Honduras, so that when it came time to close the account they could not give me the dollars and I had to buy a load of pine housing lumber to ship to Belize to get my money saved in Honduras out of that country. I'm suspecting something like that in Guatemala our immediate neighbor to the West also, though I don't really know? I intend to explore the idea of having a dollar account in Guatemala? Most Central American countries are in debt to foreign bankers and have currency control restrictions in an attempt to make available foreign exchange for the government itself, to make interest payments on government foreign loans, or buy equipments.
Belize is no different in this regard. None of our political two parties have shown any ability to control spending. Perhaps Said Musa the last Prime Minister did, in his second 5 year term, when he took the country on a strict austerity program and succeeded in reducing the Debt to GDP ratio of the government about 40 points in those 5 years. This current UDP government have made the Debt to GDP ratio bigger again, during their first two years in office and have not shown the management skills, to put the country of Belize on a self sufficient basis either.
It may be, we need to revisit the foreign currency exchange controls put in place by our Central Bank at the behest of the politicians and bureaucrats? The system is not working and we might be better letting loose foreign currency controls and going to a parallel USA dollar spending system, like Panama and Salvador? That way, much of the savings of our businesses and corporations might be parked inside Belize, instead of in countries abroad. Mainly the USA. Thus in the end making more foreign exchange in the form of USA dollars available more freely for everybody.

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