Wow, the markets in America are really hurting right now. After talking about it with my friend Jenna, she asked some interesting questions regarding Cambodia's financial institutions.
Right now, Cambodia really isn't feeling the pains that the bigger economies of the world are feeling. The fact that there is currently no stock market and the economy runs on a cash-based system rather than a credit-based system has kept them afloat as the rest of the world seems to be quickly sinking. Although, the Cambodian riel is pegged to the U.S. dollar, so the country still needs to keep an eye on this financial situation as U.S. stocks continue falling. It has also seen the increase in consumer items that the U.S. has experienced in the past year.
I can't say I know too much about Cambodia's financial history. My brain tends not to think so much about money issues if it can help it. I have, however, learned a few tidbits you might find interesting. Cambodia switched from the gold standard to the USD standard in the 1960s. In the mid-1980s, inflation rose so quickly that once new riel were printed, they were deemed worthless and used to wrap fish at the markets and to create purses as momentos. For perhaps a more official history, check out the National Bank of Cambodia's website. Cambodia has no federal reserve, but this bank is probably as close as you can get.
So I'd like to hear the thoughts of people state-side. Is the U.S. going to fall into another depression? How long should I hide out in Cambodia until the coast is clear?
3 comments:
It does seem to be bad over here with all the raving. I have heard of a lot of people losing out on their retirement...ouch. I am not worried about things at our age unless my bank goes under which it does not seem like it will since they have had little to no past problems but I guess anything can happen. (nice run on there) As far as staying in Cambodia, it is likely that life here in the US unfortunately will still be better off than a lot of foreign countries. Its too bad and I wish I could help them more. Point being is that unless you will have some sort of trouble getting a job here, its not bad enough to avoid coming back. At least not yet...who knows what could happen. Side note: I have been thinking about getting registered to carry a weapon for the sake of it being my right to do so in case of emergencies.
If you want my opion....I think you should come home.....
Here's my prediction: People are going to tighten their belts for awhile on commodities. Case in point: The farm is doing fine this year (because really? Halloween IS a necessity), but they aren't buying some of the more frivolous things such as candles and fog machines. I bet Christmas shopping gets a little tighter this year, too.
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