DR economic problems in perspective

Simon & Nicky

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Feb 3, 2004
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I was having a chat with Scott the other day about the size of the national debt here in the DR against that of the American debt. We were unsure as to how much the national debt of the United States was. Well here it is:

Debt Clock

Makes me glad to be British! You'd better hope they take IOU's! ;)

Simon :)
 

Criss Colon

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Jan 2, 2002
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If that is what it takes to make you glad you are "British",

I'll stay "AMERICAN"!
"National Debt",taken by it's self is neither "Good",or "Bad",too many other things to consider.CCCCCCCCCCCCCCCCCCCCC :rambo:


Robert,it looks like 3 minutes!!!!!
 

MommC

On Vacation!
Mar 2, 2002
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Is there a Dominican Debt Clock???

It definitely would be interesting to compare the two.
I'll take bets that the DR debt may prove to be more "payable" than that of the US or Canada's for that matter. While "developed" nations can "postpone" payment indefinitely simply be making interest payments, third world nations usually have to actually pay some of the principal amount owing in order to keep avenues of financing "open".
Just my thought on the subject!;)
 

NALs

Economist by Profession
Jan 20, 2003
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There is no point in comparing the US debt with the DR debt for the simple reason that the USA is the largest debtor in the world.

No other country in the world owes more than the USA, why? Well, there is alot of confidence in the US government paying back the money it owed with interest sometime in the future. Why? Because, the United States government is the only government in the world that has never in its history defaulted on a debt. That is also why government bonds in the US are much more secure than those of other countries, because the US government guarantees it will pay you the principal and interest once the bond matures.

That's not to say the US will never default, there is a first to everything, it's just that it will probably not be anytime soon. If the US did not defaulted in its early days when it was an agricultural empoverished and uneventful country, then its safe to assume that it will not default anytime soon since now the US is the world's richest, largest, most effecient economy and its the only global superpower!

Keep in mind, I'm Dominican and although, I don't have grudges against the US, I am not very fond of it either. However, I do realize that the truth is the truth and what I have mention here my friends is the truth.

Stop comparing apples to oranges because that gets you to nowhere.

Now, if you want to compare the DR debt, lets compare it to Haiti, Nicaragua, Panama, Costa Rica, etc.

Those are my 38 pesos in this. (adjust the figure in your mind to the current exchange rate, kidding).
 
Oct 13, 2003
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Nal0whs said:
There is no point in comparing the US debt with the DR debt for the simple reason that the USA is the largest debtor in the world.

No other country in the world owes more than the USA, why? Well, there is alot of confidence in the US government paying back the money it owed with interest sometime in the future. Why? Because, the United States government is the only government in the world that has never in its history defaulted on a debt. That is also why government bonds in the US are much more secure than those of other countries, because the US government guarantees it will pay you the principal and interest once the bond matures.

That's not to say the US will never default, there is a first to everything, it's just that it will probably not be anytime soon. If the US did not defaulted in its early days when it was an agricultural empoverished and uneventful country, then its safe to assume that it will not default anytime soon since now the US is the world's richest, largest, most effecient economy and its the only global superpower!

Keep in mind, I'm Dominican and although, I don't have grudges against the US, I am not very fond of it either. However, I do realize that the truth is the truth and what I have mention here my friends is the truth.

Stop comparing apples to oranges because that gets you to nowhere.

Now, if you want to compare the DR debt, lets compare it to Haiti, Nicaragua, Panama, Costa Rica, etc.

Those are my 38 pesos in this. (adjust the figure in your mind to the current exchange rate, kidding).

US treasury notes are classified as AAA,this means highest investment grade. They are in the exact same league as German, Japanese, Swiss, Spanish, UK, French and Dutch bonds.

Last I looked, DR treasury notes are classed as CC+ the lowest investment grade (junk-bonds).

Basically the difference between the two grades is the difference between lending $5 to your rich uncle who hasn't got a small bill in his wallet just now (but 10 brand new $ 100 bills) and lending it to a crack-junkie who needs to change it "just around the corner" and who will be "right back".

There is no comparison...

The US will almost always be attractive to invest in future earning power, the DR will not be attractive without a good financial balance in place.

Mis dos cheles,

MD