Summary
Article from EL FINANCIERO supplement
Of LA PRENSA September 21, 2010 entitled
“LOCAL CURRENCY OR THE DOLLAR? THAT IS THE QUESTION”
Panama has always had the dollar as its national currency. The time has come for a change. In March 1988 the U.S. Government froze the funds held by the Banco Nacional de Panama at the FEDERAL RESERVE SYSTEM in New York. That should have been warning enough for Panama to establish its own bank.
The value of the dollar dropped in 1995. At that time well-known financial expert Jose
Nessin Abbo proposed the free circulation of several currencies in Panama. The United
Nations has also suggested a new currency to replace the dollar. What is Panama waiting for? It seems that this problem will not be solved until the dollar collapses, or the
international community agrees on a system to replace the present one. After 150 years of using the dollar, Panamanians have the idea that the dollar is our national currency. This problem cannot last much longer.
The housing bubble has been deflated. The price of gold has doubled, and there seems to be no political will in the United States to face the problem. The U.S.A. is waging a $2 billion war and plans to expand the war to other areas. Other Latin American countries have dollarized their economy, but for different reasons from Panama.
Now Panama has a Canal and a solid economy that generates thousands of millions of
Dollars. Brazil, Colombia, Chile and Peru have Central Banks that function perfectly. There is no reason for Panama not to follow their example.
The truth is that the dollar will collapse sooner or later. The collapse could be caused by a political or economic shock or as a result of an agreement among the great powers. From a historical viewpoint, this phenomenon is inevitable.
Summary by Juliette Passer, Esq. and Mario Talavera
Trust experience and knowledge.TM
www.panamanagement.com
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