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1 posted on 01/19/2004 2:24:56 PM PST by Clive
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2 posted on 01/19/2004 2:25:17 PM PST by Clive
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To: Clive
The reason the domestic currency is strengthening compared to the previous black market rates is simply because it is now legal to trade it. A currency that can be legally converted at any kind of market-set rate is inherently more useful and therefore more valuable than one that can't be.

Also, the old prohibition combined with an artificially high rate announce to the world a policy to print monopoly money and pretend it was worth something, and thereby steal from anybody forced to use the official system. The present move to allowing trading, in contrast, suggests the government will be forced to exercise some restraint in its printing operations - since otherwise the free market price will just drop like a stone again.

Now that it is legal to trade the currency, think they might take the next step and make it legal to produce anything domestically? Or will robbers still be given all the productive assets of the country, which of course robbers have no intention of actually working to operate?

6 posted on 01/19/2004 2:56:35 PM PST by JasonC
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