So appreciate the SL shilling to get it's value up which means more money in the pocket with little to no effort. The problem is, other than cracking down on black-market exchange and dollar proliferation, what other means are there in sorting out the monetary issue?
The reason the shilling is shit is because it is not Somalilands official currency, its the dollar.
The shilling is used in the form of change.
To turn the shilling into a working currency you need the following steps.
1.enact currency controls, meaning no dollar used inside the country
2.print more shillings with 10,000 note and 5000 note and more of the 1000 notes as well.
3. spend the shillings on public works, roads, bridges, irrigation/water systems, drainage/sewage, and city beatification/ public parks gardening etc
there is so much work to be done, that needs only labour very little hard currency this is where the shiling comes in
This is public credit the central bank should act like a central bank and do some work for once.
This approach has been successfully done in several countries , with the best example the commonwealth bank of australia in the 1920's to the 1970's when it was privatized.
4. You will initially need to back up the shilling with some dollar reserve but most of the value will be the future wealth of the country credit to you now to be used,.
This is only the first step to be honest.
you will need a C3( commercial credit circuit) for business to business
http://www.lietaer.com/2011/09/commerci ... ircuit-c3/
this is already working and all the kinks have already been ironed out, if brazilian favela con run their own system, then i am sure burco, or hargiesa can run their own also moqadishu imagine what one for bakara market would do, you would get a boom like 15% increase in business anually.
eventually i envision several C3 currencies , several local and regional currencies .
and later on sectoral currencies like the saber
http://www.investopedia.com/terms/s/saber-currency.asp
and Fureai kippu
http://en.wikipedia.org/wiki/Hureai_kippu.
Most economics schools ignore money they dont touch the subject, they do not teach economic history either in all major universities
you would think it is an important subject, maybe the most important.
In an interview with Paul Krugman he was talking about how he was asking his mentor and professor while he was a postgrad for advise .
he was told if you want to me make it big maybe win a nobel prize, you should stay away from discussing the nature of money or economic history.
This is all because ignorance of the nature of money helps those with special interests to keep their power, i.e the bankers.
money has 3 properties/roles
1. a store of value : savings
2. a measure of value: a unit of measure like cm, grams, Celsius/Fahrenheit
3. a means of exchange
nobody said that a currency should do all 3, why not split the roles and let separate currencies do each task?
to sum this up i think a quote by
henry ford says it best.
"It is well enough that people of the nation do not understand
our banking and monetary system, for if they did,
I believe there would be a revolution before tomorrow morning."