www.CostaRicaTicas.com

A couple of years ago, the exchange rate,
based on the U.S. Dollar to Colones was
1 to 400, today it is almost 1 to 500.
If we gave a lady 20,000 Colones ($50)
for her services when the exchange rate was
1 to 400, should we now give her 25,000 Colones ($50)
when the exchange rate is 1 to 500?
ShyOne

YES

The colon is devalued daily to a rate of about 10% annually. The 20000 colones ($50.00) is exactly the same as the 25000 colones $50.00) of today.

She makes no more money and it costs you no more money. Remember everything she buys in Costa Rica has been adjusted for the devaluation she is treading water not making any more. In fact when you crank in inflation she can buy less with the 25000 than she could with the 20000.

_________________
Pura Vida
Only Irish coffee provides in a single glass all four
essential food groups:
alcohol, caffeine, sugar and fat.
Alex Levine

Damn......now I'm confused!

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You ALWAYS have an option ....... "NEXT" !!!

What are you confused about Mikey-B?
If you paid a lady $50 two years ago,
and $50 today, you aren't loosing anything
and neither is the lady, but if you paid
20,000 Colones two years ago, and
the same today, she would be out 5,000 Colones
in purchasing power.
I happen to agree with Ding Dong, that the fee for
service should be adjusted based on the exchange rate.
Of course if you only pay in Dollars, the adjustment
is already built in, since she has to exchange the Dollars
for Colones. It would be nice to hear from the "No" voters
why they think the fee for service shouldn't be adjusted.
ShyOne

I use a three month moving average of dollar to colones exchange rate. Of course, I also adjust for seasonal demand and fluctuations in the consumer price index. If I still can't decide, I tie my "pay for play" to the 30 day LIBOR (london interbank offer rate) as an index and add a percent margin for kink level. Other factors in my equation are how she rates on the Saffer Simpson Scale. I will pay more for a category 5 chica than a category 1.

BUT, and a big but I might add,

If she's rocked my little world before, I'll pay $50 anyday...

RHM

ShyOne,
I'm confused too. Let's see here, you're saying that if you pay in dollars, there is no difference between $50 today and $50 2 years ago.

It doesn't matter what currency you use, when one currency is devalued in relation to another, there is loss of purchasing power, no matter which currency you use. Currency devaluation induces inflation, so while they get more colones, they pay more for goods.

Take my word for it. I don't want to have to bust out my credentials.

RHM,
That's pretty involved. I never heard of anybody using LIBOR rates to price hookers before. Do you have some kind of multiplier for Colombianas?

Orange,



As a matter of fact, when it involves a colombiana things get tricky. Since we remember the colombiana sessions the most, I add a present value interest factor for an annuity of memories. Todays lump sum for the future value of reminiscing about: her bolt ons, bleached flaxen hair, and wrapping her legs around me and not letting go until I pop, is a little higher.

Capiche?

RHM

Uh-oh. Time for Orange to open a big can of "Financial Whoop-Ass" !!!!

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You ALWAYS have an option ....... "NEXT" !!!

No need for anything like that Mikey-B.

I bet if the reverse were true more people
would adjust the other way, i.e. if you paid
20,000 Colones one year, which was equal
to $50 (1 to 400), but two years from now
20,000 Colones cost $66 (1 to 300).
Thankfully 20,000 Colones today only cost
about $40.

That's the good thing about a free market,
each of us can do what we think is right,
or keep looking until we are satisfied.

ShyOne

LIBOR.....k...RIST. Hmmmm! I drink tequila, chat up a beautiful chica and check my wallet and tell her I am a poor retired gringo with a little pinga and will not take long.

OK. I gotta try this angle on my next trip! Wish me luck.......!
Thanks Twarag!

Mikey-B

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You ALWAYS have an option ....... "NEXT" !!!