Golo, how could you let Hipolito cook up this peso/dollar scheme???

[mondongo]

GET RICH QUICK!!!!!

Have you played the lottery in the hopes for riches?
Want a fast, easy way to make money?

Wellllll.....here it is.....thanks to Hippo himself! He has given you the ability to predict the future..OK...this is how you take advantage of this once in a lifetime opportunity.:

We will use round numbers:

1. Take your life savings in US$, say US$100,000.
2. Exchage them for DR$ at 40to1: DR$4,000,000.
3. Wait for the Hippo decreed rate drop...say 30:1 over the next week or two.
4. Take your DR$4,000,000 and exchange it at 30to1: US$133,333.
5. Voila....in a space of 2 weeks you just made 33% on your money!!!!! What a friggin' country...too bad i'm not down there.

PS I am sure that none of Hippo's friends and family is taking advantage of the fine opportunity (scam).

 

[Texas Bill]

Outside of thread, but a good example of a Government controlling the exchange rate "In Country".
In the 60's thr intrtnational rate for the Turkish Lira was in the neighborhood of L18-25/US$ while the in-country rate was pegged at L9/1.
Hippo can, and will require the rate to be in the range of RD$25-30/1 IN COUNTRY, but cannot control the International rate by even a Peso; that will be decided by world Market Forces.
Why am I saying all this!! All of you know the same thing! You're just not stating it, with the exception of a couple of you.

Texas Bill

 

[arturo]

international rate?

Off shore currency transactions involving Dominican pesos are a combination of rare and inconsequential. Apart from exceptional situations such as the Miami airport or the back rooms of Washington Heights bodegas (neither of which offer compelling terms) you would need to make special arrangements to complete such transactions.

So, by controlling in-country transactions, one could conceivably control all significant currency exchanges. However, I don't think it's possible to control in-country transactions, at least not in the way Hipolito claimed he will be able to. The black market and mafia activities are far too pervasive for this to be possible.

So, I think I am agreeing. The vast majority of supply of foreigh currency and a great deal of the demand originates outside the country, where Hipolito has little if any influence (I don't care how many photo ops he has had with George W. Bush and Hans Hertell).

 

[Texas Bill]

Mondongo;

I'm real sure that the Hippo's will allow you to convert your Pesos back to US$ whenever you want to!!!

If you believe that, I have a very famous structure in Brooklyn that I'll sell REAL CHEAP!

Chiding aside, Your plan looks good on paper, but it just won't fly!

I really think you were making a joke, weren't you???


Texas Bill

 

[mondongo]

Texas, yes indeed an attempt at hilarity. However, the math does not lie.

My guess is that banks and cambios agreed to sacrifice a certain but limited amount of US$. Once this cache runs out....then can you say shortage? What will happen, of course, is that there will be a shortage of US$ and anything it can buy. Rationing may follow..either implicit through price increases or explicitly via govt edicts.

 

[MerengueDutchie]

Get Rich Quick Scheme

Although not available for the general public, from what I've seen the schemes as described by Mondongo and myself will be available for a selected few.

Given the expected influx of dollars into the country over the festive season, this should bring in a good supply of dollars, which need to be changed at the official rate. So even when there are no 'in country' sellers, dollars from tourists need to be changed.

These dollars would normally end up in the hands of the cambio houses. Guess what, a comittee of Generals has met with Hippo and are now supervising the cambio houses to make sure that they will funnel the dollars into the Central Bank. He now has the strong arm to bully the unwilling sellers.

At the end of the festive season, the Central Bank will have a large amount of dollars, bought at an artificially deflated peso rate. These dollars can then be used to pay of foreign debt at a discount or to disappear into the pockets of the people who will distribute them.

During the festive season some of these dollars will also be distributed to 'selected individuals' who can get them for 30 peso to the dollar. Likely targets would be importing companies who are owned by supporters of Hippo. They will claim they need dollars to pay their bills outside the country. They will either pay their overseas bills at a discount or resell the dollars to the banks at a later date at a different rate of 40 peso to the dollar.

Can anybody say re-election please?

To avoid dollarization of the economy, which would prohibit the future use of this instrument, the fixed peso to dollar ratio will be abandoned in a few months time. At that time the dollar will go up again against the peso.

Who will suffer and gain from this scheme?

Losers
1) The cambio houses will loose profit by having to exchange any dollars they currently own (and bought at a real rate) to the Central Bank at a lower rate.
2) The tourists will suffer heavily and may decide to cut down spending. The question is by how much? If they cut spending by the relative amount that the real rate is cut then a zero net effect on the entire DR economy occurs. If they cut their spending by less a net positive effect on the DR economy occurs.

Winners
1) The Central Bank(government; Hippo) they obtain a large supply of dollars against a delfated rate.
2) Selected individuals who will in turn support Hippo in the next election.
3) If part of the additional profit on imports is factored in consumer prices some of this scheme could trickle down to the general populace.
4) If the tourists will not cut their spending by the same relative amount as the real rate will be cut then a net positive effect on the entire economy will occur. The profit from this will also disappear into Hippo's coffers, via the inflated exchange rate. The local economy may suffer due to lessened peso spending.

MD

PS: Sorry about the long post but it is rather complicated and you actually have to give Hippo some credit for finding a new money pump. I don't think this is the last time this instrument will be used.

 

[Onions&carrots]

Our glorious leader has this ability and more. He can control weather cycles, diseases and improve everyone's life with just a command. Up to know he just hasn't wanted to. He allowed the earthquakes and the flooding because it serves his greater purpose. You will all feel like fools when you realize the greater scheme of things. His wisdom is far reaching and his foresight and especially his hindsight is penetrating.

If the cambistas don't listen he'll just have them all executed.

BTW Robert why did you close Analelly's thread? We need a constant Dominican York angle on this board. Wasup manigga? The best dominicans are from Washington Heights. Ghetto all the way just not around me! I like to see them from afar.

 

[Golo100]

Animal Farm revisited

The Dominican Republic has now become "Animal Farm II" with Hippo as Master Pig Napoleon at the helm and the rest of the Dominican animals following his stupid ideas and even believing the crap.

As George Orwell said"Man only exists to serve himself at the expense of others". Hippo has created a special kind of animal called "Pepehachistas" who are hatching these 10 commandmends of "Animal Farm II":
1. All Dominicans will go to PPH heaven if they vote for Hippo
2. All Dominicans are created equal but are not alike
3. Only those who possess dollars are allowed free weekends
4. The Central Bank belongs to Napoleon Hippo
5. Only the rich will be allowed to walk on their hind legs. The poor must return to four legs.
6. Only the rich will cook with gas, the poor will use "carbon" y "cuaba"
7. Jeepetas will be the official vehicle and exclusive of PPHachistas.
8. Jaguars will be the official cars of PPHachistas' mistresses
9. Imports will be reserved for PPHachistas. The poor will continue to eat platanos.
10.The dollar will now be decreed to $15 to $1

As for me,I am doing like that animal who ran away from Animal Farm and went into hiding, except,I took all my dollars and they are not for sale. Not for $50 to $1, Not for $100 to $1, Not for a $1000 to $1.Long live the dollar!!!!! The dollar is not for sale.

TW

 

[Adrian Bye]

Unlike Golo, I'll be happy to sell dollars at 1000:1, so if anyone is interested, please PM me via the board.

 

[arturo]

dollars for sale?

40 to 1 is my benchmark. I don't care what Banco Central officials say. When the peso rate is near my benchmark, I have dollars to sell. The farther below that rate, the fewer dollars I am willing to sell. In a pinch, when the peso is higher than I like, I might sell a few of the euros I hoarded when they were for sale at $0.89 to the dollar.

Lock me up, I am a speculator!!!