Re: stiglitz on soros

[<mosler@xxxxxxxx>]

Date: Mon, 13 May 2002 16:17:08 -0500

To: pkt@xxxxxxxxxxxxxxxx

From: "Paul Davidson" <pdavidson@xxxxxxx> | Block Address  | Add to Address Book

Subject: Fwd: RE: Stiglitz on Soros

Reply-to: pkt@xxxxxxxxxxxxxxxx






Here is his response.

I think  these few notes between Sebastian and myself -- has an important
message for anyone who thinks that it is always desirable to be a debtor
nation and to increase one's international debt in order to increases one's
standard of living.

>Date: Mon, 13 May 2002 17:04:44 -0300
>From: Sebastián Menescaldi <gmenescaldi@xxxxxxxxxxx>
>Subject: RE: Stiglitz on Soros
>To: Paul Davidson <pdavidson@xxxxxxx>
>Cc: mosler@xxxxxxxx
>X-Mailer: Microsoft Outlook Express 5.00.2314.1300
>X-Virus-Scanned: by amavisd-milter (http://amavis.org/)
>
>No one loan us the funds. The foreign companies only accepts cash and we
>don´t can have access to local credit (the financial system is plummeting).
>Also we don´t import products because, with the new exchange rate, they are
>out of the reach of the market.
>
>Sebastian


The numbers below are a bit disorganized,
but they show imports, exports, and net
exports since april 01.  Note the net
exports, with the resulting revenue
going to debt service.  Now, since
debt service is not being paid, 'those
funds' are probably being used for
additional imports, thereby improving
the standard of living, or exports
have been reduced, also improving the
standard of living (exports are  a domestic
'cost', not a 'benefit.')



115 Apr-01
 2,389.0
 1,917.6
 471.4

116 May-01
 2,566.2
 2,081.4
 484.8

117 Jun-01
 2,536.6
 1,778.3
 758.3

118 Jul-01
 2,544.0
 1,768.4
 775.6

119 Aug-01
 2,518.0
 1,817.8
 700.2

120 Sep-01
 2,199.0
 1,431.0
 768.0

121 Oct-01
 2,078.0
 1,511.0
 567.0

122 Nov-01
 2,106.0
 1,333.0
 773.0

123 Dec-01
 1,964.0
 931.0
 1,033.0

124 Jan-02
 1,823.0
 853.0
 970.0

125 Feb-02
 1,822.0
 627.0
 1,195.0

126 Mar-02
 2,075.0
 592.0
 1,483.0



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