Cuba to end circulation of US dollar

[bemildred]

Havana - Cuba announced on Monday that it was ending circulation of the US dollar in its territory as of November 8 in response to tightened US economic sanctions.

---

A 10 percent commission will be charged for changing dollars into the local currency, the decree said.

The government encouraged Cubans living abroad to send cash remittances to their relatives in Cuba in other currencies, such as the euro, the British pound, Swiss francs and Canadian dollars, to avoid exchange costs.

IOL

[UpInArms]

1. for every action

there is an equal and opposing reaction

(I wonder if * ever learned this lesson?)

[VegasWolf]

4. chimp doesn't believe in science. n/t

New Information Shows Bush Indecisive, Paranoid, Delusional

[Sporadicus]

2. This Could Work Against *

as relatives living in the US have to take the extra trouble to convert dollars into other currencies before sending the money to Cuba.

[pacifictiger]

3. the US $$ is in the toilet internationally

with the booming deficit and shaky economy. No surprise here that they feel other currencies are a safer bet for the long term.

[Psephos]

12. I say let the dollar swirl around in the bowl for a while longer...

The main reason for the weak dollar is slack foreign investor demand for dollars because of historically low US interest rates. In other words, why buy dollars and dollar-denominated bonds (like T-bills) when you only get a couple of percent annual return? The interest rates are low because of politically independent actions by Alan Greenspan and the Federal Reserve Bank. It's really not a repuke vs. donk issue.

The dollar will strengthen as interest rates rise, which is only a matter of time (as has been true many times in the past).

A strong argument can be made that a weak dollar is a good thing, as it makes American exports very attractive to overseas buyers. In other words, it helps redress the balance of trade deficit. It helps preserve jobs, and it makes imports more expensive, which means things that are "Made in America" are more attractive to domestic consumers. Sayonara Suzuki, Hello Harley.

There are also arguments against the weak dollar, of course. But I am tired of typing.

[Bandit]

21. Except our trade deficit has grown even as interest rates have dropped

Your argument is logical but not really sound as it is incomplete. There is far more than just interest rates involved. There is emotion and an understanding of the direction of the Worlds greatest economy. It is sinking rapidly because of poor economics. People are switching to the Euro not because their interest rates are better but because there is good economics involved with the European Union. Also to think Greenspan is not partisan is using Bush* logic IMHO.

[Psephos]

25. You make a good argument...

That's the kind of discussion I like to have here. :-) Your point about the psychological, rather than purely economic, influences is especially strong. (One must only recall the term "irrational exuberance" and the NASDAQ at 5000 to understand the role of psychology in market prices, whether it's stocks or currencies.)

The trade deficit has grown mostly due to a tsunami of cheap imports from China and other manufacturing nations who exploit dollar-an-hour labor. (With China alone, the trade deficit is over $100 billion.) It also reflects the importation of more than half of the oil we use, which has doubled in price in the last year or so. I read yesterday on one of the MSM news sites a study that said if we simply applied current hybrid technology to the vehicles on US roads, we'd not only meet, but beat, Kyoto emissions standards proposed for the US. The price of oil would drop back to normal historical levels due to decreased demand, and our trade deficit would be slashed due to the twin factors of buying less oil, and the lower price of the oil that we did buy. Less need for oil means less stimulation to conservatives to be thinking about Middle East "security."

Wow. This is something I would like to push politically.

Anyway, despite the glad-handing done for the cameras, Greenspan appears to piss off Booosh about as often as he pissed off Clinton (especially during the years before the stock market boom of Clinton's second term), so I take that as a rough indicator that he doesn't particularly hew to either party as much as to his own ideology. Notice I didn't say he's not a partisan - he is. But it's the Greenspan party. The man has a serious ego.

[robcon]

5. Castro penalizes his people

The 10% commission is a heartless act for those who live by the remittances from the U.S.

[tkmorris]

14. No it isn't

All they have to do is send said remittances in a different currency. All it really does is further weaken the dollar, though admittedly not much.

[Judi Lynn]

6. The last sentence you posted should illuminate the situation

for a few who might not notice it at first read:

The government encouraged Cubans living abroad to send cash remittances to their relatives in Cuba in other currencies, such as the euro, the British pound, Swiss francs and Canadian dollars, to avoid exchange costs.

By transferring the funds in these currencies, the person receiving remittances won't be charged 10%.

[Mika]

8. Conversion rate is different for locals vs tourists

Cubans, foreign residents and tourists will have to use locally printed convertible pesos, equal in value to the dollar

Cubans? Which ones? The Miami Cubans? Foreign residents? And tourists.

Not a completely accurate story, or misleading at least.



Here's how the dollar exchange works (or worked) in Cuba,

For foreigners and tourists - 1 US Dollar = 1 Cuban Peso

For local Cubans - 1 US Dollar = 26 Cuban Pesos

[RivetJoint]

15. And where do most

of the people sending money to relatives in Cuba live? The US. So they would be receiving dollars, not Lira, Francs, or Euros.

[Judi Lynn]

16. Were you aware you can handle things like this through your bank?

Probably even easier if you live in Miami, which launders kazillions in currencies from Latin American countries regularly.

On edit:

If you're really worried about the new US/Cuba relations, you might consider distancing yourself from _Bush who is moving to crush Cuba, no matter how shabby, brutal, and crooked the measure taken.

You will see the U.N. General Assembly vote overwhelmingly in the next week or two to condemn _Bush's embargo. Rightwingers would snicker witlessly, but the rest of the world condemns it with great seriousness.

[Mika]

17. Not all Cuban-Americans decry this move

http://www.miami.com/mld/miamiherald/10015115.htm

But those who send remittances said they will continue to do so, just at a higher cost.

-

''I trust that the Cuban government is doing what they think is best for their economy, which is what any responsible government does,'' Levy said. ``Let's hope it is only a transitionary measure until the economy gets better on the island.''

If one were to believe most of the US librul press then one would believe that all Miamicubanos are ardently anti Cuban government. Not so. Many, many Cuban-Americans will continue to sent their remittances in US dollars, knowing and willing to accept the "tax" on their remittances.

Why? Because many Cuban-Americans do not object to taxation that yields results - as it does in Cuba. They know that their families back in Cuba rely on the full social infrastructure and complete safety net that Cuba has for all of its citizens. This costs money. A 10% "tax" on their remittances is not out of bounds, considering the return that Cuban taxation yields for the the Cuban people.





Mr Kerry, Tear down the wall of ignorance and hate!

[RivetJoint]

22. Sure and then pay the banks

commissions for the exchanges? No thanks. This hurts the poeple trying to send money to their relatives back home.

Cuba is free to trade with every other country in the world. Let Canada and mexico fill the vacuum our lack of presence in Cuba has created.

[blindpig]

24. "Cuba is free to trade with every other country..."

Theoretically, yes. Practically, not really. While the US does not maintain an embargo against Cuba the cumulative effect of our policies is virtually the same thing. While the loss of direct trade is not inconsiderable the restrictions on third parties really hurts, Essentially we will not do business with your company if you trade with Cuba and if we catch you then you will be fined. Couple this with denial of access to the IMF, which every other struggling country has and which forces Cuba to use private borrowers with much higher interest rates for capital improvement and you've got a really tough situation. The fact that the Cubans have maintained a civil society in the face of this undeclared war displays resilience and ingenuity that will serve them well as Peak Oil defines our future.
I fear we shall not do so well.

[VegasWolf]

7. Hell, I would rather be paid in euros than dollars thanks to awol.

It makes plain economic sense as the dollar continues to erode.


New Information Shows Bush Indecisive, Paranoid, Delusional

[PassingFair]

9. Uh Oh...

Georgie don't like that kinda action. Look what he done when Saddam pegged oil to the Euro...

[Hand]

10. HAR HAR!!

VIVA FIDEL! VIVA LA PUEBLA CUBANA! VIVA LA REVOLUCION!!!

ARBUSTO PENDEJO HIJO DE PUTA!!!!!!!!!

:yourock:

[Judi Lynn]

11. U.S. freezes assets of co. tied to Cuba

Monday, October 25, 2004 · Last updated 10:55 a.m. PT

U.S. freezes assets of co. tied to Cuba

By JEANNINE AVERSA
ASSOCIATED PRESS WRITER

WASHINGTON -- The Bush administration identified an electronic money transfer business that it suspects is linked to Cuba and thus will not be allowed to do business in the United States.

The action by the Treasury Department's Office of Foreign Assets Control against the company, Sercuba, means any of the company's assets or property found in the United States are frozen and that Americans are barred from doing business with the company.

Treasury said that Sercuba provides a way for people in the United States to send money to Cuban nationals via a third country or through Sercuba's Web site. The company has a call center in Havana and 16 offices in Cuba as well an office in Italy and one in Spain, the department said."The entity is organized under Cuban laws and is supported by Cimex," a company the U.S. government has previously identified as being linked to Cuba, Treasury said.

Companies identified by the United States as being owned or controlled by the Cuban government or Cuban nationals are subject to having their financial assets blocked in this country and barred from doing business with Americans.
(snip/...)

http://seattlepi.nwsource.com/national/apwashington_story.asp?category=1152&slug=Treasury%20Cuba

[Judi Lynn]

13. Photos of Santa Clara, Cuba

Santa Clara, 1899:






Che Guevara, Santa Clara



José Martí Provincial Library,
Santa Clara, Cuba

Interesting information on the Cuban literacy program after the revolution, outdated by a couple of years now:

http://www.communitytechnology.org/cuba/photos.html

~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Santa Clara is the town where Cuba's President Fidel Castro was speaking when he fell down a step last week.

[Judi Lynn]

18. Cuban policy discussion stays respectful

Posted on Tue, Oct. 26, 2004

FLORIDA INTERNATIONAL UNIVERSITY

Cuban policy discussion stays respectful

With days left in a bitter election season, a dozen ideologically divided Cuban Americans discussed their differences and disagreements.

BY OSCAR CORRAL
[email protected]


Florida International University was the host Monday night for a town hall meeting to discuss Cuban-American politics and U.S. policy toward Cuba.

And although the speakers ranged from ardent supporters of the U.S. embargo to some who would like to see more economic, political and social interaction between the United States and Cuba, the tone of the discussion never departed from the respectful.

''Cuba policy today, both on the right and left, is being designed by Cuban Americans,'' said Joe Garcia, a leader of the New Democrat Network and former executive director of the Cuban-American National Foundation.

Garcia, relishing this new role, which allows him to speak more forcefully against President Bush and Republicans with partisan rhetoric, said the biggest threat to the U.S. embargo today comes from Republican lawmakers -- who want to do business with Cuba -- not Democrats, as it once did.

Garcia said that if Castro died during a Kerry administration, ``what we'll see is probably some type of attempt at reconciliation.''
(snip/...)

http://www.miami.com/mld/miamiherald/news/10014844.htm
(Free registration required)

[Mika]

19. Joe Garcia is an asshat

Joe G must be taking some of Rush's oxycontin..


First he boasts this,


http://www.miami.com/mld/miamiherald/news/10014844.htm

'Cuba policy today, both on the right and left, is being designed by Cuban Americans,'' said Joe Garcia, a leader of the New Democrat Network and former executive director of the Cuban-American National Foundation.

Then he says this,

Garcia, relishing this new role, which allows him to speak more forcefully against President Bush and Republicans with partisan rhetoric, said the biggest threat to the U.S. embargo today comes from Republican lawmakers

HUH?

So, which is it? Do Cuban Americans design US Cuba policy, or do lawmakers (in this case its the repugs who are the greatest "threat" to the embargo - last time I checked Ileana Ros Lehtinen and the two Diaz Balart brothers are repug Cuban-American lawmakers).


Joe Garcia is a seriously silly asshat.

[Judi Lynn]

26. You've not it! How could a man who was 100% connected

to the often terroristic organization, the Cuban American National Foundation, composed of radical reactionary right-wing extremists suddenly turn 180º and become reborn as a "New Democrat?" Oh, puhleeze!



Oh,grow up,Joe.
Stop clowning around.

Can you imagine a worse mistake than taking this guy SERIOUSLY? I would hope John Kerry's advisors have studied Miami long enough to steer him away from this guy. He's not trustworthy.

[ShinPath]

20. Ending the dollar

North Korea switched from dollar to Euro for all transactions, so they are following suit. Big deal...

[amazona]

23. the $$$ isn't worth **** anyway

I should have bought euros when they first came out -- the dollar has completely collapsed against the euro in a very short time as a result of Bush's "soft dollar" policy.