Re: Strong currency good for Gy

Topics

Former Member

Regardless of who wins the next general elections in Guyana, they should work towards strengthening the Guyana dollar. One way to do this is to unofficially back the currency with 20% gold reserves.

Two things will make a strong currency; a powerful military or a gold backed currency and since the former is out of the question for Guyana then it has to be the latter. The advantages of a strong currency far outweigh the advantages of a weak currency.

A weak currency results in higher prices for goods and services and a transfer of wealth from the poor and middle class to the rich. A strong currency on the other hand results in cheaper imports and lower prices for goods and services. This also results in imported technology for manufacturing and infrastructure being cheaper and leads to increased productivity which by far outweighs the long term advantages of a weak currency.

Because official gold backing for the currency can raise the ire of some countries towards a small country like Guyana, the backing has to be unofficial but be an open secret. This will also attract foreign capital into the country.

Whoever, wins the elections please resist the urge to create money un-encumbered and work towards backing the currency with 20% gold reserves.

Replies sorted oldest to newest

Former Member

When dem bais stop tief de gold den abe goh get wan strong currency. Hey hey hey...

1/28/155:22 PM

Former Member

Many countries including Guyana already hold some gold as FX reserves. Several Caribbean states have maintained stable and 'strong' currencies without gold backing. For Guyana to get a stronger currency it will first need political cohesiveness. You can't have the two main groups pulling in different directions and expect a solid economy and currency. Only tiefman politicians will prosper in disunity. History shows a currency is essentially a creature of the state (or in old times the emperor) and it really has little to do with whether the fiat is backed by gold. Once you get the society to psychologically accept a stable currency (like Eastern Caribbean, Barbados, The Bahamas and lesser extent Belize), you are in business.

1/29/159:44 AM

Former Member

Originally Posted by TK:

For Guyana to get a stronger currency it will first need political cohesiveness. You can't have the two main groups pulling in different directions and expect a solid economy and currency.

Once you get the society to psychologically accept a stable currency (like Eastern Caribbean, Barbados, The Bahamas and lesser extent Belize), you are in business.

1/29/1510:32 AM

DjangoAdmin

In the 1980's the exchange rate was GY$10

to US$1 around Hoyte era when cambios

was established it climbed to GY$200

1/29/151:23 PM

Former Member

Originally Posted by Django:

In the 1980's the exchange rate was GY$10

to US$1 around Hoyte era when cambios

was established it climbed to GY$200

What would Cheddi would have done in 1990 if the election was not postponed to 1992? How was he going to make the parallel market rate and official rate equal without a devaluation?

1/29/151:35 PM

Former Member

Originally Posted by Django:

In the 1980's the exchange rate was GY$10

to US$1 around Hoyte era when cambios

was established it climbed to GY$200

And BTW the exchange rate did not reach G$200 under Hoyte. When he left it was about G$120. Today it's G$210.

1/29/152:06 PM

NehruBig Mouth Member

Also when Hoyte left Minimum wage was 11 per hour.

1/29/152:09 PM

Former Member

Originally Posted by Nehru:

Also when Hoyte left Minimum wage was 11 per hour.

Pavi that would have been so much better with two dancing bananas .

1/29/152:11 PM

DjangoAdmin

Originally Posted by TK:

Originally Posted by Django:

In the 1980's the exchange rate was GY$10

to US$1 around Hoyte era when cambios

was established it climbed to GY$200

And BTW the exchange rate did not reach G$200 under Hoyte. When he left it was about G$120. Today it's G$210.

TK..what strategy can be used to lower the exchange rate.

1/29/152:17 PM

Former Member

Originally Posted by Django:

Originally Posted by TK:

Originally Posted by Django:

In the 1980's the exchange rate was GY$10

to US$1 around Hoyte era when cambios

was established it climbed to GY$200

And BTW the exchange rate did not reach G$200 under Hoyte. When he left it was about G$120. Today it's G$210.

TK..what strategy can be used to lower the exchange rate.

Pavi our GNI jester has a great solution.

1/29/152:21 PM

NehruBig Mouth Member

How come the Voodoo Economist dont have an answer???

1/29/152:27 PM

Former Member

Originally Posted by Nehru:

How come the Voodoo Economist dont have an answer???

When meh done with the Kali Mai puja I will get back to you.

1/29/152:33 PM

Mr.TI pity the fool

Originally Posted by politikalamity:

Regardless of who wins the next general elections in Guyana, they should work towards strengthening the Guyana dollar. One way to do this is to unofficially back the currency with 20% gold reserves.

This is the man who told us to buy gold the last time he outlined his vision. Those who listened then and hoarded the stuff are now able to look back at that advise as a total disaster.

Now he wants us to invest in the local currency. with the loans that the PPP has in mind to burden Guyana with, the Guyana dollar will be too expensive to even print in low domination values.

1/29/155:05 PM

Former Member

Originally Posted by TK:

not a single Caribbean country has a strong currency when measured against gold for one generation and none has a 20% gold backing, if so please tell me which one does.

If you want to know how bad an unbacked currency can be, please check deterioration of the purchasing power of the USD from 1971 to now.

A strong military can make for a strong currency but if you want a more equitable distribution of wealth in the country you have to back it by at least 20% physical gold - not paper gold.

1/29/1510:28 PM

Former Member

Originally Posted by politikalamity:

Originally Posted by TK:

not a single Caribbean country has a strong currency when measured against gold for one generation and none has a 20% gold backing, if so please tell me which one does.

If you want to know how bad an unbacked currency can be, please check deterioration of the purchasing power of the USD from 1971 to now.

A strong military can make for a strong currency but if you want a more equitable distribution of wealth in the country you have to back it by at least 20% physical gold - not paper gold.

Boy you have some curious ways of reasoning .

1/29/1510:45 PM

Skip to main content

Topics

Add Reply

Membership Required

Remove From Your Block List

Manage Follow Preferences

Block

Premium Membership Required

GNI VIP Member

Please wait...