NALs and PICHARDO, say it ain't so!

Robert

Stay Frosty!
Jan 2, 1999
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Asset laundering creates inflationary bubble

National District prosecutor Yeni Berenice Reynoso said that asset laundering creates an inflationary bubble that gives the misleading appearance of economic growth that really does not exist, as reported in Hoy. She explained that this is why you see high rises and so many luxury vehicles in the cities, when most of society perceives there is a high level of social inequality.

Complete story in today's DR1 news.


NOTE:
Any poster of any rank, that posts smart a$$ comments, personal attacks or goes off topic will be sent "On Vacation". I suggest some of you participate on a "read only" basis. Don't say you haven't been warned.
 
May 12, 2005
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Makes sense to me. If I owned a business and I saw all these people driving late model jeepetas and building expensive housing, I worldwide assume that there a lot of well to do folks, and raise the cost of my products accordingly.
 
For those who do not receive or read the daily news



I have cut and pasted the article which will be gone tomorrow with the newest edition of the Daily News


National District prosecutor Yeni Berenice Reynoso has called for reforms in national and international policies for the prevention and prosecution of money laundering. She said that organized crime has no borders, as reported in Listin Diario. "Organized crime is now global; its prosecution nevertheless is undertaken on a national level since to obtain international cooperation we have to go through 11 steps of red tape". Reynoso was speaking on How Asset Laundering Affects the Country during the Third Bancamerica Anti-Laundering Conference held at the Hilton Hotel in Santo Domingo. She stated that the amount of asset laundering is difficult to quantify because it does not pay taxes.

The conference focused on how asset laundering affects the country. In her address, Reynoso said that free trade treaties, technology and the opening of markets and ports have also helped asset laundering. She added that the money is laundered in real estate, banking and in the purchase of award-winning lottery tickets.

Reynoso said that asset laundering creates an inflationary bubble that gives the misleading appearance of economic growth that really does not exist, as reported in Hoy. She explained that this is why you see high rises and so many luxury vehicles in the cities, when most of society perceives there is a high level of social inequality. She called for the authorities to see asset laundering with new vision. She mentioned that many government officials consider asset laundering to be good because it creates jobs. But she reminded the audience that it also brings an increase in violence, contract killings, and political and democratic instability.

Reynoso also addressed the legalization of drugs in Latin America. She said it was a very complex problem, and that countries in Latin America are not prepared for decriminalization.

She sees it as a public health problem, with consequential collateral crimes. She mentioned that in many cases, gender violence occurs when men act under the influence of drugs.



Fiscal DN afirma lavado activos crea una burbuja inflacionaria - Hoy Digital
 

PICHARDO

One Dominican at a time, please!
May 15, 2003
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Big difference from:

La fiscal del Distrito Nacional Yeni Berenice Reynoso afirm? ayer que uno de los efectos del lavado de activos en la econom?a de los pa?ses es que genera una burbuja inflacionaria “que da la apariencia de un crecimiento econ?mico que realmente no existe”, dijo


TO:

National District prosecutor Yeni Berenice Reynoso said that asset laundering creates an inflationary bubble that gives the misleading appearance of economic growth that really does not exist

That's alluding to the DR as case example...





 

Chirimoya

Well-known member
Dec 9, 2002
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For those who do not receive or read the daily news

I have cut and pasted the article which will be gone tomorrow with the newest edition of the Daily News
As it's in the Friday edition it will be up until early afternoon Monday.
 

NALs

Economist by Profession
Jan 20, 2003
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When the Central Bank adjusts the interest rates to control and guide the economy a certain way and the economy reacts in ways that its not suppose to given the intention of the Central Bank, then I'll say the economy is being moved by money laundering. Until then, I will not because the evidence is simply not there, regardless who says what.

By the way, has anyone noticed that most economists don't fall for the Dominican-economy-is-based-on-money-laundering theory? There's a reason for that. Its quite similar why doctors never make the claim that catching a cold is due to being exposed to a very cool wind without proper warm clothing. Even though most Dominicans think that's how a cold is caught, most doctors know the actual reason is transmission of viruses and not weather. Everyone claims one thing, the experts something else. :)
 

cobraboy

Pro-Bono Demolition Hobbyist
Jul 24, 2004
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When the Central Bank adjusts the interest rates to control and guide the economy a certain way and the economy reacts in ways that its not suppose to given the intention of the Central Bank, then I'll say the economy is being moved by money laundering. Until then, I will not because the evidence is simply not there, regardless who says what. :)
What if the CB is "in" on it?

Is it not in their best interest to have the appearance of "growth?" Does not drug $$$ spend as effectively as CB created economic multiplier?
 

PICHARDO

One Dominican at a time, please!
May 15, 2003
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What if the CB is "in" on it?

Is it not in their best interest to have the appearance of "growth?" Does not drug $$$ spend as effectively as CB created economic multiplier?

But how do you trace it as part of the formal economy and still keep it hidden enough from prosecution, in your above statement?


That there's money laundering in the DR is a given, just like elsewhere in the known world.

To imply that it's the actual motor of growth and implicate the same as parental to the economy is baseless.

Her speech was manipulated out of context in regards to the DR, and it's sadly part of our lacking journalism experience to sort facts as they are presented in the DR media by large.

At worst I would estimate money laundering to have a good 2 to 3% share of our GDP from all sources.

That's a sizable piece of the pie, but much less impacting when broken down by industry and economic sector.

It has become very hard to hide money laundering operations in the DR, to the point where the country is being used only as a bridge to transport the same money to other markets to commit in laundering operations of major scale.
 

william webster

Platinum
Jan 16, 2009
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Guiding the Economy

Yes, a CB can guide the economy.
Any government can 'influence' its performance.

RD may do that.

Canada appears robust by allowing an Immigrant Quota in every year.
Housing, white goods, etc never dip too much.

SDQ is amazing with its current construction projects.
Not only are they plentiful, they are breathtakingly beautiful.

Its a bit hard to fathom that drug money has that kind of panache -- they might -- just hard to fathom.
Thre seems to be a pride in these projects.

Do yourself a favor and go to SD for a day.... these new bldgs are SPECTACULAR!!!

Its quite a conundrum....

Maybe its dirty money............ it certainly juices the economy
 

NALs

Economist by Profession
Jan 20, 2003
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What if the CB is "in" on it?

Is it not in their best interest to have the appearance of "growth?" Does not drug $$$ spend as effectively as CB created economic multiplier?
I doubt it.

First, our economic crisis wouldn't be as bad as the CB data clearly shows, that is, whenever the Dominican economy does suffers from a severe crisis.

Second, money laundering companies function on a set of rules that are not based on profit maximization or demand. The CB adjusts interests rates to affect demand and companies that are based on sound economic principles react accordingly because their demand has been affected. The companies that don't react as expected is because they are not bound by changes in demand.

Any economic sector that is dominated by money laundering activities will lack any response to CB controls. That has not proven to be the case in any sector of the economy.

One other thing, the prosecutor mentioned the perceived greater levels of inequality, which is true as far as public opinion is concerned. But in reality, inequality has been steadily declining since the year 2000, and has even accelerated after 2007. People can believe what they want based on what they want to believe, but for those that look for the evidence, its simply not there.
 
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Criss Colon

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Jan 2, 2002
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The "DOCTORS" Are In The "HOUSE!"

Unfortunately,they are using the same "Diagnosis" that all Dominicans,"Doctors" or not,ALWAYS use.
First,"It's not true!"
Second,"It's the same everywhere!"
And, as far as my "Limited Ability" to read "Spanish" goes,the DR1 translation,is the exact same thing as what she said in Spanish,except in ENGLISH!
Sorry "BOYS" your "Yola" don't float!"
And Chip,you came late to THIS party!
Now that Robert posts something negative about the DR,you are all over the story with your,"People have been saying that for a long time" comment!
Too Little,Too Late"!
Pardon me if I must "GLOAT" a little here,"Hell" make that "A LOT"!
But when respected Dominican Government official makes a statement publicly,what some of us have been saying here on DR1 for several years, I need an "Attaboy!"
I am speaking not just for myself here,there are a large number of other DR1ers who have been saying the same thing.I would try to list them,but I don't want anyone I forget to feel left out,but you all know who you are!
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I just read "Nals" attempt to negate the facts in the story,"Sorry Charlie,TOUR TUNA Just Isn't GOOD ENOUGH for "Starkissed!!!"
 
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PICHARDO

One Dominican at a time, please!
May 15, 2003
13,280
893
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Santiago de Los 30 Caballeros
Unfortunately,they are using the same "Diagnosis" that all Dominicans,"Doctors" or not,ALWAYS use.
First,"It's not true!"
Second,"It's the same everywhere!"
And, as far as my "Limited Ability" to read "Spanish" goes,the DR1 translation,is the exact same thing as what she said in Spanish,except in ENGLISH!
Sorry "BOYS" your "Yola" don't float!"
And Chip,you came late to THIS party!
Now that Robert posts something negative about the DR,you are all over the story with your,"People have been saying that for a long time" comment!
Too Little,Too Late"!
Pardon me if I must "GLOAT" a little here,"Hell" make that "A LOT"!
But when A Dominican Govsernment official make the statement publicly,what some of us have been saying here on DR1 for several years, I need an "Attaboy!"
I am speaking not just for myself,there are a large number of other DR1ers who have been saying the same thing.I would try to list them,but I don't want anyone I forget to feel left out,but you all know who you are!
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC

So where exactly is your logical counter to all that you listed????


From an economic standpoint that is!:smoke:
 

Criss Colon

Platinum
Jan 2, 2002
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"Say WHAT??"
I guess I just THOUGHT you could understand "ENGLISH!"
I LOVE watching you two try to "SPIN" your way out of this one!!!!"
As "MacDonald's says,"I'm Lov'n It!!"
CCCCCCCCCCCCCCCCCCCCCCCCC
 

windeguy

Platinum
Jul 10, 2004
42,087
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Sound economic principles would indicate that buildings, like the towers in Santo Domingo, are built to be profitable and not just erections for money that has no place else to go.

Does anyone have figures on them with regards to the percentage sold/rented/occupancy rates with people actually living in them?
 

Robert

Stay Frosty!
Jan 2, 1999
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dr1.com
Let's take a different approach...

Why would the National District prosecutor say this?
I'm guessing she has a much better insight into illegal money flow than anyone on this board.

If what she is saying is complete BS, why are we not seeing the local economists all over this, along with the politicians, press denouncing that she is clueless and this is why it ain't so?
 

PICHARDO

One Dominican at a time, please!
May 15, 2003
13,280
893
113
Santiago de Los 30 Caballeros
Let's take a different approach...

Why would the National District prosecutor say this?
I'm guessing she has a much better insight into illegal money flow than anyone on this board.

If what she is saying is complete BS, why are we not seeing the local economists all over this, along with the politicians, press denouncing that she is clueless and this is why it ain't so?

Robert, did you read the speech by the NDP?

Then, from there we can debate all the issues behind this thread...
 

Chip

Platinum
Jul 25, 2007
16,772
429
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Santiago
Fact, there is money laundering here. The question is how much does it drive the economy.

The DR has consumers and they buy goods and need to be served. Many Dominicans from what I've seen are good business people and are able to save up money when they need to. Many also have family abroad that give them seed money to start a business. With a prudent business sense, low overhead or high margins and practically zero liability due to financing it's easy to save money.