Page 480 of 484 FirstFirst ... 380430470478479480481482 ... LastLast
Results 4,791 to 4,800 of 4838

Thread: Recession of 2008 and impact on the DR

  1. #4791
    Platinum
    Join Date
    Jan 2002
    Posts
    23,506
    Post Thanks / Like

    Default

    Quote Originally Posted by the gorgon View Post
    this is the point where playa gets to explain the effects of an increase in Total Factor Productivity, and the effects on an economy when there is no elasticity of demand for the products of that country.
    How about you explain it, as you see it, rather than trying to get into a ****ing contest.

  2. Likes southern liked this post
  3. #4792
    Silver
    Join Date
    Jun 2008
    Posts
    2,943
    Post Thanks / Like

    Default

    Quote Originally Posted by playacaribe2 View Post
    You have a valid point.

    Many countries, including the US and the DR, have had debt fueled growth that must be paid back. And as the interest rates on that debt rise (a likely March 15 rate hike on fed funds in the US which will also ripple through the global economy) more and more of a countries annual budget goes to pay debt service.....leaving less and less to grow the economy....which in turn forces countries like the DR to either sell more debt or raise taxes, or both.

    One of the ways to breaking that cycle, particularly valid in third world economies, is to increase productivity growth. That is best done as Expat 13 pointed out above by raising the education levels/skills of a countries population.

    When that is done, for example, a factory worker in a free trade zone earning minimum wage then raises his/her education/training level to become a skilled worker such as a welder, raises his/her ability to earn higher rates of pay, which in turn also helps raise gdp and real growth.......not the false and eventually unsustainable debt fueled kind.

    To be sure, real growth is also subject to the business cycle, but debt fueled growth, a lot of which the DR currently has, needs to reigned in......or market forces will eventually do the job for them.

    They cannot borrow and/or tax their way to prosperity without real productivity growth.....and real productivity growth is vital in third world economies such as the DR.....lest they become another Argentina or Venezuela....both fueled by heavy debt growth...due to mismanagement in their economies.


    Respectfully,
    Playacaribe2
    There in lies a BIG problem. Most Dominicans have been taught to borrow beyond their means and to the most part never even consider paying it back. Since the gubmint does it, it trickles down to the people. The best way to describe it is;
    "Un préstamo es un regalo". That you learn quickly here.

  4. #4793
    Platinum
    Join Date
    Sep 2010
    Posts
    28,913
    Post Thanks / Like

    Default

    Quote Originally Posted by bob saunders View Post
    How about you explain it, as you see it, rather than trying to get into a ****ing contest.
    i don't feel like...

  5. #4794
    Moderator - North Coast Forum
    Join Date
    Sep 2006
    Posts
    29,932
    Post Thanks / Like

    Default

    Quote Originally Posted by Expat13 View Post
    There in lies a BIG problem. Most Dominicans have been taught to borrow beyond their means and to the most part never even consider paying it back.
    prestamo business is a tough one. very few of the regular folks get away without paying back. prestamistas cannot afford many losses and will go after non payers at full force. i know people who owed relatively little, thought they were the smart ones, stopped paying. a while later they lost everything they owned because of the accumulation of interest.

    many of those who borrow from small prestamistas end up paying their debt few times over. many prestamistas lend at exorbitant rates because they know they can.

    North Coast Moderator

  6. Likes cobraboy liked this post
  7. #4795
    Bronze
    Join Date
    Jan 2003
    Posts
    1,151
    Post Thanks / Like

    Default

    Quote Originally Posted by PICHARDO View Post
    It's hard to swallow your prides and admit total and utter defeat! Huh?!














    What







    defeat? The collapse was held back by central bank intervention on a scale unimaginable in human history. The DR has remained afloat by Dominicans abroad sending money back home (hard currency) and principally by a voracious and insatiable appetite for government bonds (debt currency). With interest rates worldwide at rock bottom prices thanks to the collapse of 2008, there has been no meaningful recovery anywhere.








    The DR is a beneficiary of being a client state that does as it is told by Goldman Sachs. They place the offering, make a hefty commission and the DR government gets the money it needs. Add in Venezuela a failed and collapsed state, for only God knows, continues to give the DR thousands of barrels of oil for FREE!!! Take away these freebies and what would the DR become. A nation which could not continue functioning as a going concern with a population ten times its manageable size. There has been no defeat just a reprieve from the inevitable. The debt orgy will end and rates will rise crushing nations and people alike.

  8. #4796
    Bronze
    Join Date
    Jan 2003
    Posts
    1,151
    Post Thanks / Like

    Default

    When rates normalize to pre-crisis levels, then I'll admit defeat. Until then with rates still hovering at zero, we are right and you Pichardo are wrong. You are a victim of the media and all the Kool-Aid you've been drinking from their spigots. Nothing has changed. All they've done is amass unquantifiable amounts of debt. Rates will never normalize until the cleansing comes through a collapse. It is the only way to rid the system of all this deadweight in the form of debt. It is an anchor on worldwide growth.

  9. Likes bob saunders, Expat13, NY-DR Commuter liked this post
  10. #4797
    Silver
    Join Date
    Jun 2008
    Posts
    2,943
    Post Thanks / Like

    Default

    Quote Originally Posted by Onions/Carrots View Post
    When rates normalize to pre-crisis levels, then I'll admit defeat. Until then with rates still hovering at zero, we are right and you Pichardo are wrong. You are a victim of the media and all the Kool-Aid you've been drinking from their spigots. Nothing has changed. All they've done is amass unquantifiable amounts of debt. Rates will never normalize until the cleansing comes through a collapse. It is the only way to rid the system of all this deadweight in the form of debt. It is an anchor on worldwide growth.
    Liked, liked, liked. They only allow one like here!!! This best summarizes the reality of the DR. Anyone who focuses only on a top line number as their logic for stating a robust economy, is nuts or agenda driven. Would be interesting if this post could also become a poll of those who feel the DR has weathered the previous crisis and is a robust economy vs. those who believe its just a cover up and is not.

  11. Likes Onions/Carrots, Playero liked this post
  12. #4798
    Bronze
    Join Date
    Jan 2003
    Posts
    1,151
    Post Thanks / Like

    Default

    Quote Originally Posted by Expat13 View Post
    Liked, liked, liked. They only allow one like here!!! This best summarizes the reality of the DR. Anyone who focuses only on a top line number as their logic for stating a robust economy, is nuts or agenda driven. Would be interesting if this post could also become a poll of those who feel the DR has weathered the previous crisis and is a robust economy vs. those who believe its just a cover up and is not.
    He also thinks that a ten year time period somehow validates his point. If rates would have normalized in that time period, then he would have been in the right. Central banks would never dare to normalize rates because if they did the worldwide economy would immediately implode. The economic cogs would come to a grinding halt. What we have is a fake economy where money finds no growth and investors pour billions into companies like Tesla and Uber which have never had a profitable year and billions into nations like the DR which are and continue to be 3rd world, middle income designations aside. That's proof of recovery? PLEASE!!!

  13. #4799
    Platinum
    Join Date
    Sep 2010
    Posts
    28,913
    Post Thanks / Like

    Default

    Quote Originally Posted by Onions/Carrots View Post
    He also thinks that a ten year time period somehow validates his point. If rates would have normalized in that time period, then he would have been in the right. Central banks would never dare to normalize rates because if they did the worldwide economy would immediately implode. The economic cogs would come to a grinding halt. What we have is a fake economy where money finds no growth and investors pour billions into companies like Tesla and Uber which have never had a profitable year and billions into nations like the DR which are and continue to be 3rd world, middle income designations aside. That's proof of recovery? PLEASE!!!
    you need to stay with us awhile sometimes...we could all use your very sobering and erudite analysis on a continuing basis.

  14. #4800
    Silver
    Join Date
    Nov 2014
    Posts
    3,492
    Post Thanks / Like

    Default

    The resurrection of this long standing thread is proof that you close down politics and the debate and content moves elsewhere.

    We await the nuevo Marco Polo of this community (he's been enjoying eastern life), to lock horns with our economic PP debater again.

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •