[Golo100]

Yesterday the dollar collapsed in a matter of hours(to some people as little as 20 minutes)from(compra/purchase by exchange agency)nearly $51 to $1 to $45 to $1. This is the deepest fall ever in the history of the dollar in such short time.

It turns out that the whole thing was the latest conspiracy by the PPH to collect some real fast cash for Hippo's campaign. It all started with pressure being put on by Eligio Jaquez, Hippo's chief strategist and dirty tricks man, on all newspapers to keep news about currency from the headlines or economic news and columns. On Friday and Monday there was hardly any reference to the exchange rate. This was a trick to keep people in the dark and be unaware of the big ambush about to occur.

Then the dollar was allowed to climb up after the news that I reported on Banco Central run on certificates became a wildfire in the streets. The plan went like this...Jaquez figured that if enough information is let out about Leonel's possible default on interest payments on certificates if he gets elected, the run on certificates will turn into an estampede. Once the streets were out for dollars and it climbed as high as $53 to $1, then Jaquez and the PPH came to the rescue by calling an impromptu meeting at the palace with bank and money exchange officials. A deal was cut whereas if these people followed the PPHs strategy they would join in huge profits.

At exactly 10:00am on Monday agencies such as Vimenca, La Nacional, Los Primos, Cam-SA, Envios Boya and Santa Cruz were quoting $48 to $48.70 to purchase dollars from holders of dollars. Knowing that a huge number of people had just withdrawn big money from Banco Central and that large sums of transfers were just beginning to arrive from abroad from people who got paid at the end of the month and all this money was rushing to buy dollars, Jaquez ordered a reduction to $45 to $1 at the meeting, which was inmediately phoned in to the agencies by their bosses from the palace meeting. At exactly 1:00pm the coup was in place. Phone callers and people who drove to Maria Montez Street looking to sell their dollars at $48-49 were shocked to hear that it was changed to $45. Just to give you an idea of what a typical person would lose on that trip, on just $1000 dollars your losses would be $3700 pesos(the equivalent of the minimum monthly salary). You add to that gasoline and or transportation, time lost, parking, etc. and the losses would be incredible. But the Maria Montez Gangsters and the PPH enjoyed a good day at the market.

But that's not all. The big money lies ahead as the strategy calls for holding steady until Friday so that all the money comes in with the threat by attendants at the exchange houses that if you don't sell now, you will be sorry 'cause it will go down to $35 to $1.

This is how the dollar mafia operates in DR. My advice to everyone is, that unless you absolutely have to, don't sell your dollars. Let this people suck air. make them lose their pants. Follow the advice of "The Economist"...the dollar will go to $59 to $1. If you have to pay your bills in pesos, sell just enough to cover that and put away the rest. The losses you may have taken by the PPH stunt will be recovered if you follow my advice. In addition, stay away from Banco Central. Do not fall to the charm of Malkum's offers of 60% interest. The whole thing is a pyramid. It will collapse soon. The bank has lost almost US$24 million in reserves in just this past month alone, some of which they spent on prizes for secretaries, parties and free concert and sports tickets to support Hippo's campaign.

Golo