That's a stupid policy. Why let terrible American monetary policy drag you down, as well?

It's not possible with Bitcoin, anyway, since it's not possible for the system to back BTC with anything (which is required to maintain a fixed exchange rate).

The bitcoin community is really going to go places with it's "authority" figures shooting down newcomers ideas as "stupid".

I was not suggesting that we accept the USD forever. I am not suggesting that we peg it at the same rate as Belize does. I am not even suggesting we peg it to USD.

Think about the IDEA for a moment, before you shoot somebody down. Belize is a small economy like Bitcoin (actually, it overshadows the bitcoin economy by almost a factor of 1,000 - but it is still tiny).

Who in their right mind would invest any money in belize if their currency's value fluctuated as wildly as bitcoins?

How old are you, theymos? Seriously.

Do you think I automatically argue against ideas without thought? I did think about the idea, and I concluded that it would defeat one of the main goals of Bitcoin, which is freedom from bad monetary policy. I don't want my wealth to be controlled by any other entity. I also know that it's impossible to enforce such a policy with Bitcoin.

In the case of Belize, the policy is especially stupid because the US Federal Reserve doesn't care about the effects to Belize when it takes action. (Not that the US ends up much better...) China, which also uses a dollar-backed currency, is suffering from this right now.

The currency of Belize might not fluctuate at all in relation to the dollar, but in relation to gold or other currencies, it's just as bad as the dollar.

Who decides the rate and who enforces it ?

What happens to someone if they set a different rate ? Do the bitcoin police pay a visit ?

What happens to some belizean local who pulls one over on a tourist and charges $1 USD per $1 BZD?

Probably nothing. Buyer beware.

The seller decides what to offer and the customer what to accept, it's kinda a dance (or perhaps it's more like Capoeira?).

The only way Bitcoin can be "pegged" is if there's an extremely wealthy individual that publicly asserts that he will buy and sell Bitcoins at $.50 USD. This person's attempt to peg Bitcoin will last as long as he or she doesn't run out of Bitcoins (at which point the value of Bitcoin will rise)  or US$ (at which point the value of Bitcoin will fall).

This person will have to do this with the understanding that he or she will lose money in this process. The "Pegger" will always be buying Bitcoin above what others will pay and selling Bitcoin below what others will pay. For this reason it's extremely unlikely it will happen.

I think adopting something like a seven day floating average might be a convenient step in between pricing things in USD and then converting to BTC and just pricing things in BTC.

An individual or group with a lot of money could do it but why would they? I suppose they could find a way to profit out of it but I hate the idea of manipulating the market at all.

Yeah but if you were able to manipulate it reliably then you could make money. Cause a  run then buy in when it bottoms out and others follow and it goes back up etc.
I'm not an expert on this, just thinking anytime you know which way a market is going you should be able to profit.