Archive for January, 2017

Anticrisis Currency

January 13th, 2017    Posted in News

Here in Mexico, since I can remember (and stating that a few years are no longer that I have to remember) we have had economic crises. Frequent devaluations. Persistent price increases. Nothing desirable, but present with everything and accompanied by bitterness. We already had quite a few years without seeing a significant devaluation of our weight. Although the recent has not been one big, yes it is noticeable and affects the family budget. The weight is devalued these days at least one twenty per cent. If we have learned anything it is the ease with which currencies lose their value from one day to another! Why does it occur so? You reader, if he has had the privilege of cashing your check product of sweat from his forehead and has at the moment a ticket in your pocket, I ask you please remove it and examine it carefully.

See it. Be 20 pesos. Or 50, 100, 200, 500 or even 1,000. Attaches to being mere paper? How much is this bit of paper worth? If it were coins, we would be talking about nickel, stainless steel and in some cases copper, these metals not precious and therefore of little value. The value of the currency, including the U.S. dollar, is merely an illusion based on the perception of the users of the money. If a person believes that it may acquire in the future goods and services desired with your currency, then continue striving to that currency. When trust disappears for any reason, users of money change to the currency you perceive will yield them the greatest value.

It is then when we have a scene of devaluation. The important point is to possess a strong devaluation-proof coin. Resistant to perceptions, or better said, that always is perceived strong regardless of accidents of the bags of values and public and private finance.

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