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Santo Domingo.– The Dominican government has postponed to January whether it will sign a stand-by or other kind of financial supervision agreement with the International Monetary Fund (IMF), said Economic, Planning and Development Minister Temistocles Montas.
Montas, who spoke during a televised debate on the economy, is optimistic that 2008 will be a good year, given what he describes as the prudent monetary policy instrumented by the government over the past three years.
He also highlighted that the economy grew 8% in 2007, despite the rising price of oil. He recognized that the weakening US economy would affect the Dominican Republic, whose economy will not grow by 1.4%.
Hacienda Minister Vicente Bengoa has publicly favored not signing a new agreement with the IMF, while business sectors strongly favor the IMF surveillance to control government borrowing abroad and spending, especially given that 2008 is an electoral year.
Former Central Bank governor Carlos Despradel said that the current Dominican economic model is unsustainable and pointed out that the growth of the economy has come from an increase in imports and commerce, rather than growth of the productive sectors, as it should be.
Economist Apolinar Veloz, a former Central Bank manager, stated that the fiscal reform enforced in January 2007 had budgeted RD$17 billion in additional revenues, but instead reaped RD$35 billion. He criticized that the government chose to spend the surplus instead of building a reserve or applying it to the quasi-fiscal debt.
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The first step in its main trick for pillage is getting states to sign a piece of paper that purports to be a loan from the IMF to the state or to private elements of the local bourgeoisie for which the state stands as guarantor for a loan.
Second step is for the Fund to deposit the proceeds of the loan in a US bank and not allow the state that "borrowed" the money to withdraw it; only a few crumbs and scraps of money are paid over to the state or local bourgeoisie.
Third step, the Fund waits until the state defaults on a payment of interest or principal or both.
Fourth step, Fund refinances or reschedules the "bad loan" -- old principal, accrued interest, default penalties, and new principal.
Fifth step, the whole process begins again.
The shylocks of the la costra nostra were more moral.
This thief is called the "free market." US reactionaries love it.
You and Hitler's Goebels would make a good team. him providing the media bites and you writing the op ed. You know, that bit about telling the public something often enough and whether it is true or not they're bound to believe it.
But how anyone in their right mind, knowing how the IMF worked would believe you hogwash, is beyond me.
You know the debtors have access to the money borrowed; it is never withheld unless they violate the agreement in some way. The loan is made to the Governing body, not to individuals.
You think that by just saying something is so, it is. Let me tell you something Mr. Red, you got it all wrong. Most of us check the references given and you don't even qualify for the "most stupid" post.
I think you should go to school and get some smarts. You're previous tenure obviously did you no good, since you learned nothing of value.
TB
I'm happy to report that the governments of Brazil, Argentina, and Ecuador ... to mention only a few ... entertain a lower opinion of the IMF than I do. What's more, these government have made no secret of their contempt for this imperialist financial institution.
I'm appalled that you dissent from the mainstream view that is so correct. After all, I didn't even mention most of the low down, dirty tricks to which the Fund resorts.
Perhaps, if you read this somewaht apologetic acount of the IMF by Wiki, you will accept a more sober view of the Fund's operations.
http://en.wikipedia.org/wiki/IMF
Forever assisting,
Belial
In reality, IMF only gets states to sign a piece of paper obligating the states to pay the IMF a lot of money. Then the IMF transfers a sum of money from one IMF account to another IMF account and declares "There, we paid you the money. If you miss one payment, you forfeit a degree or all of your sovereignty and the IMF will take over your country and run it."
To get the "loan," the "borrowing" state has to deposit some or all of its currency reserves with IMF-affiliated institutions as collateral for the "loan." The "loan" are structured so that default is unavoidable and IMF usurps the sovereignty of the state and refinances the "loan" as a higher interest rate. The foreign debt grows into a uncontrollable monster.
This is the "free" market that rotten capitalism offers.
As to Belial's explanation of what happens to the monies loaned to the countries by the IMF and the World Bank, well seems like he read the wrong paper on that one. The money is doled out periodically based on the borrowing country's performance. When the country doesn't perform, ie., play by the rules it agreed to. then the funds are stopped until they begin to go by the rules again.
Get it right Belial, and don't make up stories just to suit you own agenda of denigration and liable.