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Wednesday, September 15, 2004

 

Einstein's Relativity Theory Applied to Drug Profits


One of the components of Albert Einstein's theory of relativity that has always most puzzled me is the idea that time moves slower as one moves faster, or in space. The ramifications of the theory -- I've read about it in some fine non-academic publications (Weekly Reader?) -- lead to astronauts aging less quickly than they would on earth. Profound stuff that, frankly, I can't really wrap my head around. (In fact, I tend to disbelieve Einstein's entire theory because it seems so illogical, and because things like time and distance are man-made measures. But that's just me...)

Every now and then, though, a story comes along that lends credence to bizarre notions and shakes my faith in having no faith. The latest story, courtesy of Reuters, describes a process by which people can turn Colombian pesos into more Colombian pesos simply by leaving and returning to the country.

Here's a good way to make a buck if you're in Colombia.

Take some pesos to a money changer and swap them for dollars. Then jump on a plane to Miami, deposit the bucks in a bank, and return to Colombia.

Go to any ATM in Bogota, withdraw the funds in pesos, and .... presto! You've got 5-10 percent more pesos than you had when you started.

For years people and some businesses here have legally exploited the availability of cheap cash dollars for profit.

The anomaly drew little attention until earlier in 2004 when a debate emerged about the role of dollars earned by Colombia's huge cocaine trade in the peso's rising value.
Seems like this Einstein character is due a Nobel Prize in economics, in addition to his physics statue. Full story is here.

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