When the U.S. sneezes, Peru drinks tea. [Featured]

September 23rd, 2008

Find out how Peru is weathering the financial storm emanating out of the US.

They say that “when the U.S. sneezes the rest of the world catches a cold.”

Well it seems Peru was prepared to avoid a cold.

CNN International reported that developing markets were able to survive this global crisis, because developing markets have more cash reserves. That’s true, especially in the case of Peru. While credit use is increasing, it is still relatively new, the majority of daily transactions are done in cash.

After spending 6 months last year in Peru and then returning to the United States, My eyes were opend and I saw the dramatic difference between the two economies. Peru was more cash rich than the United States! In Peru I use cash 99% of the time, while in the United States I use cash 1% of the time. If you think about it, everything is a farce in the States, it is plastic and you never actually OWN your property or possessions. It gives the “American Dream” a whole other meaning.