People at Lakeside are complaining that prices are going up, and some have taken to buying their cornflakes out of a sack.
As many of you know, this illusion of higher prices is caused by the peso’s value against the dollar, both U.S. and Canadian.
Currencies go up and down based on ... God only knows. (He himself has to check with Bloomberg.) For example, the U.S. dollar and the yuan renminbi, the official currency of China (whose value China sometimes decides as it suits them), tend to be strong, stable currencies. And the wobbly peso tends to struggle against these stronger currencies.
In fact, China may have enhanced this process of weak vs. strong currencies centuries ago. History tells us China actually invented banknotes. (In 812, they applied another of their inventions, paper, which was made from old linen rags and fashioned it into what they decided to call “cash.” (True. But if we had invented it, that’s what we would have called it, right? They considered calling it “dough” or “moolah” but changed their minds when the emperor laughed his head off.) Point being that paper banknotes eventually replaced more stable coins of the realm, which they were made of precious metals.
Please login or subscribe to view the complete article.