Considering Devaluation of the Peso

Shepsu

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Jul 15, 2003
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On Considering the Devaluation of the Peso

Buyers market/sellers market/or both

excuse my ignorance about money devaluation but in the US many of us do not pay very much attention since we do not invest offshore, and really on recognize interest rates.

Still trying to understand most of what I read dealing with ESCOTT and his situation with the sell of a home and Capital gains taxes.

How long do you'll expect this situation will hold 32:1, and do you ever think that the RD will become equal to the DOLLAR/EURO?

Don't blast me too hard about my ignorance of the subject.
Of course I have thick skin!!!!!!

Shepsu :confused: Concerned: Looking forward
 
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ricktoronto

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Jan 9, 2002
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Shepsu said:

How long do you'll expect this situation will hold 32:1, and do you ever think that the RD will become equal to the DOLLAR/EURO?

Your entire question is not very clear but as to these two points:

NO.

and

NO.

It is past 32:1 now and the chance of parity with the $/Euro is nil.

The only way you'd see that is with a issue of "new" pesos at par with the $ at 35:1 or something and in weeks they'd slide to represent supply and demand anyway and in the interim you would have an unusable currency as the smallest coin or note, e.g. 1 peso would be the same as 35 pesos today, making it impossible to buy anything that today would be less than 35 pesos.

Mexico chopped off three zeros 10 years ago in 1993, e.g. 1000 pesos became 1 peso at a rate of 3 pesos to $1 US. It is now about 10.4 to one.

So 33 cent pesos are already 10 cent pesos.
 

Shepsu

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On Considering the Devaluation of the Peso

RickToronto

That's what you get from a layperson asking questions about issue not quit clear to them.

However, you might have answered my question anyway.

Thanks

Anyone else car to tackle that not so clear question. I will try and amend the title!

Sheps
 

Ken

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Jan 1, 2002
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He answered your questions. What are you complaining about.

The peso is presently 34 to 1, not 32 to 1 and nobody knows whether it will go up or down in the future.

In our lifetime, at least, there is no chance of the peso being equal to the dollar or Euro. It once was, but that was a long time ago. When I came to the DR in 1986 it was 2.50 to 1. It is now 34 to 1.
 

Shepsu

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On considering Devqaluation

Ken



My response to Ricktoronto was not a complaint at all! I simply said in essense - That is what he gets from another who might not be clear of his own question. Due to lack of understanding of the issue!

I am one that believes the only stupid question is the one not asked!



Uptight in Paradise!!!!!!!
 

ricktoronto

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Jan 9, 2002
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Re: On Considering the Devaluation of the Peso

Shepsu said:
RickToronto

That's what you get from a layperson asking questions about issue not quit clear to them.

However, you might have answered my question anyway.

Thanks

Anyone else car to tackle that not so clear question. I will try and amend the title!

Sheps

Jeez you asked 2 simple questions.

2 simple answers NO and NO (en espanol : no y no).

To be extra clear NO to 32:1 since it is 34 already and NO, NEVER, never, ever, not in 1,000,000 years or until the sun is a small lump of coal will it be at parity with the US$, Euro , or CDN$.

Maybe the Turkish Lire. Currently 1.7 Million to $1 US.

If you want some idiot to say yes of course you are right you came to the wrong place, my friend.
 

Shepsu

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Jul 15, 2003
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It is Clear that some are Uptight In Paradise

Look RickToronto A...H... KnowItaLL

I responded to you that you might have answered my question"
and sincerely thanked you, but still would HAVE liked feed back as to how long this issue might last"

NOT Simple to me.

Excuse the hell out of me.

You must be trying my thick skin. Thought this is what this forum was about?

You Got anything else to do?

Maybe you don't but consider "STOP RESPONDING TO WHAT YOU THINK IS A SIMPLE QUESTION!!!!!!"

Or do you feel better now that you get your ROCKS OFF attempting to MAKE OTHERS ISSUES OR QUESTION LOOK SMALL!

ESTEEM CHECK........

Buck Stops Here RickToronto!!!!
 

bochinche

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Jun 19, 2003
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actually ricktoronto was wrong. his answer should have been "no" and "yes".

it should have been "yes" for the same reason he gave in his post.

in a few weeks when the peso is at rd$100 to us$1, the government will probably knock off a couple of zeroes.

- magic rd$1 (one new peso) = us$1.
 

Shepsu

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Jul 15, 2003
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Considering Devaluation

Thanks Bochinche

All the issues I raise are important to me. I will research the issues, but also want to know what "individuals" feel about them as well. There opinions about how the tides might turn.

I have not been registered long in this forum or this site. I would like to belong to an atmosphere of welcome question/response.

This sight has (exempting responses to ESCOTT) appeared to be a sight that one could inquire and feel comfortable somewhat about the question/s asked and response that he/she might receive, reference respect of each others level of understanding.

Don't mind kidding nor argument, debate of any kind or honesty and frankness. DISRESPECT gets under my skin.

Don't need to have what you have! Don't need to know allllll you know. Don't DIS me, be real!



Bochinche I'm sure you understand most of my response was directed elsewhere! Thanks for clearing the HALF TRUTH (giving other possibilities of outcomes to the issue)

;) Shepsu
 

andy a

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Feb 23, 2002
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Shepsu,

I can understand your position. I think that you wanted more information than simple answers.

I also think that ricktoronto's first response was excellent, though maybe shorter than what you wanted to hear.

I think that it might help to say that all currencies are not created equal. There are only a handful of "hard" ones. Most of the others revolve around one of those.

The US dollar is the only true hard currency in the western hemisphere. The others (with the Canadian dollar only partially excepted) are pretty much tied to the dollar but only move one way against it - down.

The minor currencies, even the DR peso, might have actually risen slightly against the Euro and other world currencies in the last month or so - because the dollar has risen strongly during that time (unlike it's earlier weakness). But the peso is most unlikely to rise against the dollar itself, except on a very short term knee jerk reaction.

I compare currencies to parachutes being dropped from high altitude. They're all headed to the ground and eventual worthlessness, but they don't fall at the same speed. Initially, a handful of big parachutes are dropped, representing the hard currencies. They drift down at varying rates, occasionally hitting updrafts. Then each of them release several small parachutes of their own, representing the minor currencies tied to them. The little ones also drift downward at varying rates, occasionally hitting updrafts, but do not go upward against their own "parent" chute.

As others have said, the peso is likely to continue to fall, although not always at the same rate. There will likely be short term knee jerk type reactions upwards, but not sustainable. Even if the peso gets redefined or renamed, it won't change things - over an extended period of time it will simply continue to drop versus the dollar.
 

Shepsu

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Jul 15, 2003
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Clarity on Considering Devaluation of...

Andie A

I understood in part what RickToronto was saying but.....Too technical! Although it explained the surface of my question, As you pointed out.

Your explaination along with Bonchinches' I can grab hold to and calculate a direction. May not work/be right but allows for a better plan. There are other controlling forces!

Makes sense to me
Not Full of Loot!!!! Just trying to make it work!

Thread CLOSED and retained along with other study material!!!!!
 
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Larry

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Mar 22, 2002
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Shepsu

You cant declare a thread closed just because you created it. Hahahaha. That was funny though. I think rick was nice enough to answer your questions in the beginning.
Larry
 

bochinche

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Jun 19, 2003
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Re: Clarity on Considering Devaluation of...

Shepsu said:
.... Thread CLOSED and retained along with other study material!!!!!....

love it! ...i tried that once, couldn't find the bloody button anywhere. got a warning from robert that if i try it again (i changed my identity and everything....blasted ip address gave me away), he'd kick me off or something.

anyway, it's friday night and i've been on the p*ss!
i've come to the conclusion that;
USpt1 = RDpt6 or UKpt1 = RDpt8

that means that for every pint of beer i can get in the u.s. or u.k., i can buy 6 or 8 pints respectively in the d.r.

that too me is a much better exchange rate and proves that this government is not all bad!

good night! god bless!..................hiccup!
 

Shepsu

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Jul 15, 2003
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Wonderful Bochinche

As XanaduRanch would say

Let all pour Libations to that!!!

Sheps;)
 
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ricktoronto

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Jan 9, 2002
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Re: It is Clear that some are Uptight In Paradise

Shepsu said:
Look RickToronto A...H... KnowItaLL

I responded to you that you might have answered my question"
and sincerely thanked you, but still would HAVE liked feed back as to how long this issue might last"

NOT Simple to me.

Excuse the hell out of me.

You must be trying my thick skin. Thought this is what this forum was about?

You Got anything else to do?

Maybe you don't but consider "STOP RESPONDING TO WHAT YOU THINK IS A SIMPLE QUESTION!!!!!!"

Or do you feel better now that you get your ROCKS OFF attempting to MAKE OTHERS ISSUES OR QUESTION LOOK SMALL!

ESTEEM CHECK........

Buck Stops Here RickToronto!!!!

Not only did I give you a staight and true answer (if you have not memorized them it was No and No) I also told you in simple terms that the Mexican example was about the only way to see 1:1 and that lasted a whole 5 minutes and is now 3X worse (so the peso went from 1000:1 to 3000:1 from 1993)

and:

as to the will it go past 32:1 since it was at 34:1 already when you asked that was even easier to tell you and there was no way to explain it any simpler, e.g. 34 is more than 32. Today is today, therefore it is more than 32, today.

It will <B>never never never never </B>be at parity with the US$ . It would have to increase in value 3,400% to meet parity. It cannot.

If you think people are psychic and can gather your depth of knowledge then you are wrong there too. Even with limited knowledge, I think, as do others apparently that it was understandable and accurate.

So don't have a conniption over it.

It wasn't meant to make you look small but your subsequent comments and trying to close your own thread did do that OK on your own, without my help. Don't blame me for that OK?
 

goatfarmnga

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Jun 24, 2003
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devaluation of Peso....

Glad to see I am not the only one who just does not get the DR1 forum sometimes..Shepsu do not worry it will eventually work for you. Do not try to get too technical..these people are willing to help with most anything you ask but really the PESO is The PESO is the Peso, that rate is what it is.. I do not see the problem..History of the US $ against the Peso is easy to figure out to me..a lowly ex-goatfarmer in GA...:) Pam
 

arturo

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Mar 14, 2002
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it wasn't as long ago as it seems...

that the peso was in fact 1 to 1 with the U.S. dollar - it seems like a different world, and it was