Have you ever imagined a perfect world where no one person wants for any human necessity? One where nations were at peace and economies boomed all while we each enjoyed each other’s culture. Well as we all know reality is far different from this imaginary world and Latin America like many other places is plagued with the some old dogmatic issues as the rest of us. It is my hope to discuss a few of these problems and hopefully shed some light on ways to remedy the problems if I were in the decision seat.
As an excellent reference standard we have Mexico’s organized crime problem. Organized criminals force businessmen and entrepreneurs to invest far more money in private security assets. This is simply to mitigate the even greater loss …show more content…
The main problem is the ever-increasing inflation rate of Brazilian currency in the 21st century. You see in a modern economy buying power is very important to the market, if consumers have more purchase power the consume more goods. With shopping there is lower demand wages are cut and jobs are lost. This is the exact example in Brazil (and the U.S.) where the continued printing of money due to the loss of it in foreign markets and counterfeiting goes a long way to damaging its value. However the biggest issue is the fact that the currency is rated based on GDP (gross domestic …show more content…
But instead to make paper and coin currency have a direct correlating value based on precious metal reserves. You see sometimes precious metals increase in value faster and sometimes slower but they DO NOT reduce in value. When this system is in place it gives national treasuries less flexibility overall however you’re respective country will at least have a checkbook in the black. Also Precious metal reserves are more valuable in exchange rate during times of crisis even for nations no credit check is needed either there are enough ounces of the yellow or not!
Then an example on the opposite end of the spectrum would be Chile a country who for the most part is business successful. With Copper being one of Chile’s main exports and main taxable item they have carved out a great corner of the market as the world’s largest copper provider. Granted copper has gone down some in value per pound yet still fetches a decent price. This and relatively pro business laws and government make up a winning combination for
As an excellent reference standard we have Mexico’s organized crime problem. Organized criminals force businessmen and entrepreneurs to invest far more money in private security assets. This is simply to mitigate the even greater loss …show more content…
The main problem is the ever-increasing inflation rate of Brazilian currency in the 21st century. You see in a modern economy buying power is very important to the market, if consumers have more purchase power the consume more goods. With shopping there is lower demand wages are cut and jobs are lost. This is the exact example in Brazil (and the U.S.) where the continued printing of money due to the loss of it in foreign markets and counterfeiting goes a long way to damaging its value. However the biggest issue is the fact that the currency is rated based on GDP (gross domestic …show more content…
But instead to make paper and coin currency have a direct correlating value based on precious metal reserves. You see sometimes precious metals increase in value faster and sometimes slower but they DO NOT reduce in value. When this system is in place it gives national treasuries less flexibility overall however you’re respective country will at least have a checkbook in the black. Also Precious metal reserves are more valuable in exchange rate during times of crisis even for nations no credit check is needed either there are enough ounces of the yellow or not!
Then an example on the opposite end of the spectrum would be Chile a country who for the most part is business successful. With Copper being one of Chile’s main exports and main taxable item they have carved out a great corner of the market as the world’s largest copper provider. Granted copper has gone down some in value per pound yet still fetches a decent price. This and relatively pro business laws and government make up a winning combination for