debt payments...it now begins

Now we're beginning to see how the massive borrowing (stealing) will handicap the Dominican eocnomy. If the peso is truly allowed to float, look out below.

Wouldnt it make sense if there is a problem with the bonds that the interest rates on Dollars will just go up because of the need to repay the dollars.

I am not sure how the Peso will be affected but I believe that dollar investments will.

Scott

hard times ahead

yes... demand for hard dollars will sky rocket... by definition this will cause the peso to plummet...

additionally the corrosponding interest rates will follow, scare dollars will cause USD rates to rise.

Some will argue that all this money coming from the loans will offset this and it will temporarily. Unfortuantly the money has to be returned to the lenders with interest. Because the loans were not used as intended to improve the economy, the NET cash flow will end up heading out....

Likely result? the rich will get richer and fewer in number, the poor will get poorer and more in number... Someone has to pay for this, and it wont be the people controlling the money...

Be warned and beware