Inflation In January 9.23%

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DCfred

New member
Jun 19, 2003
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The Central Bank reports that the inflation rate for January was 9.23%. At this rate, the yearly inflation rate will reach 110%, which puts us closer to my prediction of 100 pesos to the dollar. And we have not factored in the flood of election pesos that are about to start circulating. These pesos will only make the situation worse. If the PRD thinks is going to lose, watch people coming out of government offices with computers, desks, furniture, not even the pelos will be left.
 
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Guillermo P?rez

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Feb 13, 2004
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No... I doubt it...

Things are not that obvious... perhaps Mej?a negotiated his freedom as HE and leonel Fernandez did Leonel's when PRD came up, by handing own the election in a first run (primera vuelta)... I mean they all know they're lost... by making it easier for PLD and guranteeing no " compa?eros" on the street.

This kinds of things are not so simple... there are many negotiations and such... inflation is high, but that's PESO inflation... the cost of everything in dollars has remained but the same... it's really devaluation... and devaluation DOES NOT AFFECT capital, if it's in dollars... and there is NO SERIOUS CAPITAL in pesos... that's the whole deal really.

Pesos are what people use to get by... if the goverment screws up, and big dollar capturing businesses speculate, it all gets taken out on people... dominicans who make a living in pesos... they just cut salaries down 70%... this peso inflation is NOT inflation it's all the same dollars... as I said capital doesn't get screwed... dominicans get screwed.

This whole panorama happened before... we've seen it... with the same people in goverment... but it stops now... they already made what there was to be made... they have taken us to the brink of tolerance... now they give us a "show" in wich they show they've reached "stability"... we're stuck with 20 years of calculated inflation in one year... there's your money for the whole baninter, Bancredito thing... while the people that had their capital there, as high risk interest investing have it all back... to the last penny... and in dollars.
 
M

mondongo

Bronze
Jan 1, 2002
1,533
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"Main Macroeconomic Projections
--------------------------------------------------------------------------------
(for 2004)
.....

CPI Inflation (12-month percent change, eop) 14.0"

The Central Bank posted on its website a list of promises to the IMF. One of the promises was that inflation for 2004 would be 14%. These promises and projections are also available on the IMF website. Mejia and the IMF used these projections to facilitate the issue of the new loans.

A few days after the inflation projection was made (14% for the entire year), the Central Bank comes out with the January 2004 accumulated inflation of 9%. This means that for the rest of the year, Malkum and Mejia expect accumulated inflation of only 5%.

Either that is great news for those living in the DR.....or Malkum was lying through his phucking teeth when he made this new "promise" to the IMF in order to get the cash.

I wonder what the IMF economists thought of this inflation projection?
 
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DCfred

New member
Jun 19, 2003
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I wonder what the IMF economists thought of this inflation projection?


Nobody believes it. But the USA is concerned of a flotilla of boat people coming to the US during an election year. The only way to stop inflation now is for the government to cut spending dramatically, which is not willing to do, not at significant levels.
 
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