cut edwarda a break, respect the fact that this man is at least in his 60's, if he remembers the 50's, so if he is off a little cut him some slack. i am in my 50's and can't remember exactly when the ford mustang was introduced, was it 1966, 67, 68? i do get his point very clearly............and i doubt he was trying to BS anyone............
- Thread starter Camden Tom
- Start date
Global financial scene
Wow, the strange little man has already been "sin bined" I thought he was rather amusing........... in an off beat sort of way.
Again failure to grasp or at minimum understand the DR's internal economy is showing hereto...
Let me try and teach some stuff to the 1st world denizens that "think" they could get away with applying their "well versed" knowledge in their home-countries to that of the DR:
#1 - The DR is not a "free" floating economy, it's very much controlled via the exchange rates by the CB; as such, the economic indicators one would associate in 1st world countries is useless here.
Take the imbalance between the import/export for the closing 2008 as a clear example of this. Volume went up very fast as the decline on the dollar made its way into the local dynamics of commerce. Once the Dollar gained strength overseas, the CB actually adjusted the rates and not as much the buy rate for the same on the period. That's to say if you control the gate the flow of capital is reduced as much as 20 to 30% in some instances to the local commerce. Volume is not translated into higher import investments but an increased on goods for much less value than before.
The recent charges from the gov to the retailers in the country, shows that example with clear luster. Goods import increased their volumes, yet the markups stood at their pre-devaluation rates. That's to say that retailers are selling the imported goods at inflated markups given the decreased costs incurred in their import as of late.
#2 -The DR's economy is not a mono-economy based on tourism as the leading center of our internal commerce. Tourism generates foreign currency, which in other situations would have been created via exports. The fall in exports has been also shown to be replaced by the increase of services that don't require the shipping of goods, to reach the same levels of income generation to the country.
Each sector that previously was in descending has increased ending 2008 where exports are related. Most are increases in goods that utilize almost 100% national raw materials and generate a steady stream of foreign currency to the economy.
Please study a bit the export sectors that fell into hard times (as affected by the USA's economic downturn) in the DR. See how these same sectors only provided marginal jobs to the nation, use raw materials that are imported in a greater % than other sectors of our economy, that most of the income generated was actually derivative and not directly from the net production of these biz. Just b/c you churned out 1 million shirts to feed to some big box retailer in the US didn't mean that we got to see a penny in taxes generated to the country per shirt at all. FTZ served their purpose at the time the kind of manufacturing plants were setting shop in the DR. We needed the marginal jobs back then as you may need to drink water today or breathe each second.
The same is not playing anymore in the DR, as most industry has advanced greatly from those days. The industry in those days was represented by Agrupaciones Campesinas, Coperativas, etc... The ones that today make a formidable bloc presentation of the industries they integrate nationally.
Each 1st world economy touched by the US crisis is today in shambles, we're only miles away and represent a huge volume of commerce into that country from our local perspective; yet here we're after almost 1 year since the collapse came and went! That on itself speaks volumes of our internal economy's strength...
The year 2009 just started and over 5 billion US$ are already posted to commence investment into the DR. Several even bigger projects are underway and more opportunities are opening to our markets today and tomorrow. And... That's not wishful thinking but reality!
Visit the US and most countries in the EU and tell me how you explain the complete stoppage of most biz trying to expand into other areas at all, while in the DR just this year the internal players are due to open several new big box stores nation wide, new malls, new high risers, new housing developments, new ports, new airports, airport expansions, new inter-city high speed train services, new metro lines, new international big brands coming full force into the local market, etc...?
I guess Ikea knows very little about biz as they'll be opening a store in the DR (a little one?)...
Wal-Mart is on the wings trying to get a big local player to take the bait and sell out to them, may see the W very soon in those big boxes opening in the DR everywhere...
But I guess these guys understand very little about the DR's economy and all... I mean... Weren't we supposed to be belly up already in bed with a pneumonia since the US sneezed and got bronchitis since 2008?!?!?!?
But what does a Dominican knows about his own nation's internal economy???
Only thing is that this BS happens to be grounded to facts in the DR and not PC-forum "experts" that can barely make it in the DR at all...
But hey! Maybe this will be the year the DR's economy comes crashing down in a ball of flames?!? Or not...
The DR: Inagotable! LOL!!!!!!
Just the facts ma'am...
But hey! Maybe this will be the year the DR's economy comes crashing down in a ball of flames?!? Or not...
The DR: Inagotable! LOL!!!!!!
Just the facts ma'am...
I hope my post didn't contribute to Edwarda being "sin bined". He was very amusing and will be missed.
Last edited:
The effect was created as strict measures were taken to curtail risks involved with too much pasivos w/o much concrete collateral in the financial sector. Before the melt down in the US economy and shocks to other markets, the local dealers were pushed to better sales as the banks were offering low rate loans to new car buyers in auto shows every other month.
The cuts and higher interest rates did the initial damage along the hike in the monthly payments car owners then had to face.
The cuts to interest rates will eventually make it down again to the car buyers, as well as the CB backed program to insure loans to more consumers this evolving 1Q of 2009.
Compare the dip to the US or Japan markets and then come back to the DR's mini-market and you can see that even at the present rates of lost sales, the DR is in fact looking waaaaaaaaay much better than both.
We need to break the car culture in the DR, as our present energy imports represent the highest ratio of loss in the import/export trade balance.
A ban could be placed on any new or used vehicle for the next 5 years, time at which we could have implemented a serious home renewable energy program; thus making the import of flex fuel, hybrids and electric vehicles a must if we are to break the addiction to foreign oil.
I see this as the perfect chance to implement such mid to long term program!
Again, check the tag of a brand spanking new vehicle in the DR to that of its origin market, then you'll understand that the drop is way less horrible as the double digits seem to make it appear...
The present slow market means that those that can really pay for the loans are the ones buying the cars; hence the strength of the DR's economy and financial institutions...
You see the bad and I see only positive potential to resolve future problems since now...
By 2014 the DR will manufacture our own buses in the country using over 90% national raw materials and technical labor. The same buses will employ national renewable energy fuels by at least 85%...
Driving a vehicle that uses just petrol should be taxed to the maximum as to get people off their foreign energy addict vehicles.
Each turn of the coin provides even more incentives and eases the changes to take place for the better in the DR.
I hope that sales fall flat to 0% period!
We have too many private cars on the roads today. What we need is mass transportation that can be 99% reliable, affordable, safe and overall and foremost "public".
The DR will pull ahead as always has been done in this country, even before you got to call it home...
Pichardo,
do you really believe a BAN on vehicles can be done by the gubmin?, and for a time period of 5 years?
so that means we stop to use modern new Vans and busses to transport people throuout the country, we have to use the old ones, and a transport company which needs additional vehicles would be forced to buy old ones here because new ones are banned to enter the DR. within a very short time period even the oldest vehicle would be worth more than gold. so from the moment on the Ban starts til the day when the DR finished it's manufacturing of own vehicles such companies could not expand their business, no new companies could get formed for such for leak of vehicles.
do you really believe that the DR will be ready in just a 5 years time period to manufacture own vehicles/a own brand which is using only natural fuels?
i don't believe it will ever happen.
i believe before such happens a brand like Toyota will open a fabrication on the Isle to save on import taxes aso, but even such i don't believe much in to happen.
the worldwide crisis will effect the Dominican Republic the same way and with the same power than it effects the rest of the globe.
than more developing a country is in progress than harder the effects, because for development a country like the DR needs urgently and in highest amounts foreign resources/assistance/MONEY and over a long time period, and such is due to that discussed worldwide crisis actually not available.
the Dominican Republic is in no way a independent country which can develop/survive without foreign relationships/assistance/investments/knowledge, and those are going down everywhere, so the develpment here will slow down in the same pace.
in my own personel opinion, and that's just that, my own thinking, the DR will not manufacture any own dominican branded and 80-90% local materials manufatured vehicle/car/bus/truck running on alternative fuel within the next several decades, there will not be any exclusive use of smart guns, and the gubmin sorrily most likely will go on to dump a lot of money on non profitable Metros while there is by far not enough money left for the urgently needed push on the educational sector.
in my eyes the right push in education would bring up the needed number of ingenieurs aso who in the mid term future may be able to produce such a alternative dominican branded vehicle, such a push in education would the future generation prevent from the danger of clueless gubmins who produce laws like the actually everywhere discussed law about the S.A.'s and CxA's which will hinder/destroy a lot of small and medium sized businesses and reduce tax incomes of this gubmin a lot.
but that's my opinion/thinking about the situation and i will go on and read other opinions to get myself informed, like a selfeducation which life is, and i am glad that my selfeducation does not depend on this gubmin's financial assistance.
happy weekend everybody
Mike
do you really believe a BAN on vehicles can be done by the gubmin?, and for a time period of 5 years?
so that means we stop to use modern new Vans and busses to transport people throuout the country, we have to use the old ones, and a transport company which needs additional vehicles would be forced to buy old ones here because new ones are banned to enter the DR. within a very short time period even the oldest vehicle would be worth more than gold. so from the moment on the Ban starts til the day when the DR finished it's manufacturing of own vehicles such companies could not expand their business, no new companies could get formed for such for leak of vehicles.
do you really believe that the DR will be ready in just a 5 years time period to manufacture own vehicles/a own brand which is using only natural fuels?
i don't believe it will ever happen.
i believe before such happens a brand like Toyota will open a fabrication on the Isle to save on import taxes aso, but even such i don't believe much in to happen.
the worldwide crisis will effect the Dominican Republic the same way and with the same power than it effects the rest of the globe.
than more developing a country is in progress than harder the effects, because for development a country like the DR needs urgently and in highest amounts foreign resources/assistance/MONEY and over a long time period, and such is due to that discussed worldwide crisis actually not available.
the Dominican Republic is in no way a independent country which can develop/survive without foreign relationships/assistance/investments/knowledge, and those are going down everywhere, so the develpment here will slow down in the same pace.
in my own personel opinion, and that's just that, my own thinking, the DR will not manufacture any own dominican branded and 80-90% local materials manufatured vehicle/car/bus/truck running on alternative fuel within the next several decades, there will not be any exclusive use of smart guns, and the gubmin sorrily most likely will go on to dump a lot of money on non profitable Metros while there is by far not enough money left for the urgently needed push on the educational sector.
in my eyes the right push in education would bring up the needed number of ingenieurs aso who in the mid term future may be able to produce such a alternative dominican branded vehicle, such a push in education would the future generation prevent from the danger of clueless gubmins who produce laws like the actually everywhere discussed law about the S.A.'s and CxA's which will hinder/destroy a lot of small and medium sized businesses and reduce tax incomes of this gubmin a lot.
but that's my opinion/thinking about the situation and i will go on and read other opinions to get myself informed, like a selfeducation which life is, and i am glad that my selfeducation does not depend on this gubmin's financial assistance.
happy weekend everybody
Mike
I think Mike has more than adequately demonstrated his knowledge of doing business in the DR. He has proven himself to be trustworthy and honest, and he has more than enough personal and practical experience to validate his opinions. He has nothing more to prove to anyone.
Mike has offered his opinion often and consistently, and without reserve or condition. He deserves a great deal of respect and appreciation from everyone who have benefited from his knowledge.
From what I've read, Mike's positions on issues aren't determined by what is most expedient, nor does he selectively post only what is in his best interest. He tells it as it is, based on what he has personally observed.
Mike has no hidden agenda, as is often the case with a few others who declare themselves expects, with unassailable credentials, but often provide nothing more than sterile statistics and the usual government pronouncements.
Mike reports what he observes as a businessman and long-time resident. He states his opinion clearly and honestly. I believe what Mike has to say has as much, if not more, value than the opinions of others, who obviously have an axe to grind and an agenda of their own.
Mike has offered his opinion often and consistently, and without reserve or condition. He deserves a great deal of respect and appreciation from everyone who have benefited from his knowledge.
From what I've read, Mike's positions on issues aren't determined by what is most expedient, nor does he selectively post only what is in his best interest. He tells it as it is, based on what he has personally observed.
Mike has no hidden agenda, as is often the case with a few others who declare themselves expects, with unassailable credentials, but often provide nothing more than sterile statistics and the usual government pronouncements.
Mike reports what he observes as a businessman and long-time resident. He states his opinion clearly and honestly. I believe what Mike has to say has as much, if not more, value than the opinions of others, who obviously have an axe to grind and an agenda of their own.
Yes indeed it can...
Anything moving from a sindicato is pure junk, will continue to be junk no matter how many times the gov provides them with collateral funds to upgrade their piles of junk and rust on wheels and will always have the same effect of the new vehicles just being sold to private owners and the old ones re-inserted into the routes.
Private transportation services have never been affected by ANY ban on imports (100% sure of that), they also keep their fleets more or less modernizing each passing term.
Public transportation subsidize by the gov will continue to be able to import buses unimpeded as such.
The ban should cover private vehicles only, not commercial of special niches...
Too old vehicles will be hard to continue to work using E85 ethanol and other fuels, namely not NCG or Propane (which we don't pump nationally and as such is not a renewable in nation energy source).
A higher tax rate to these cars will be apply, unlike the other hybrids, electric and flex fuel. Along with the end of selling non ethanol based fuels in the country, this will speed up the evolution process a lot.
Old cars in fact will become less and less atractive to the resell market and be exported to Haiti (our next big market for the retiring vehicles).
Buses for public transportation? Yes! General private vehicles/commercial? NO!
Ongoing talks are happening on this front as we post here in the forums all these days and months. The logistics are endless but doable...
Manufacturers like Toyota in Asia, the US and EU will continue to export their goods to the DR, always that the vehicles are one of the listed above and not the present unleaded gas kind...
Projects to the tune of EU $billions are being just started this year, ample coverage given as they initiate in the media. Others even bigger are in fact developing by stages, ever so undetected by the media on purpose by the investors and gov alike. There's soon to be an almost the size of a mini city with an incredible high riser skyline developing in the DR non stop. With the biggest Mall of the Caribbean and possibly LA included.
We're talking more than a mere few billions there...
Did you see the new Marina inaugurated lately? Just wait and see...
Just don't you dare take a ride on the Santiago - SD high speed train to buy some flip flops in el Conde and back in Santiago to parade them!!!!!
Things take time my dear friend, but make no mistake about it, the goals will be reached b/c the people behind them believe they can be done unlike many here...
The next batch of trained teachers is being tooled as of today; first you stand, then walk and later run... The education system we have today is just DOA as we know it. Wait and you shall see with your own eyes!
Tax is not the issue with the changes, but legal framework to support a globalize economy internally 100% is. I know is very hard to grasp the concept now, but once it's functioning it will be hard to miss the effect.
Me too!
Projects in development out of the media in the DR:
Just ONE of a many going on right now in the DR...
Touch?!
Just ONE of a many going on right now in the DR...
Touch?!