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To: Toddsterpatriot

“They devalued the peso because they inflated before their election and couldn’t hold the peg.”

That might be true, but as it related to the NAFTA debate, Gore and others made much of the fact that we had an almost $1 billion trade surplus with Mexico. That was being helped along by the overvalued peso which made Mexican exports to the US more expensive. Once the peso was more realistically valued after NAFTA passage, it was obvious that Mexican exports to the US would be cheaper and therefore increase. And US exports to Mexico would become more expensive and that small trade surplus would be long gone.

That played a part in the debate, but every half honest person (which included few proponents of NAFTA) knew that small trade surplus would be gone in flash as soon as the peso was devalued.


11 posted on 03/03/2008 2:50:42 PM PST by Will88
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To: Will88
That might be true,

You're funny! Learn some history.

Once the peso was more realistically valued after NAFTA passage, it was obvious that Mexican exports to the US would be cheaper and therefore increase

And if NAFTA didn't pass and the peso was revalued, what would have happened?

And US exports to Mexico would become more expensive and that small trade surplus would be long gone.

Hmmmm......it almost sounds like you're not blaming NAFTA for the trade deficit with Mexico.

12 posted on 03/03/2008 3:04:35 PM PST by Toddsterpatriot (Why are protectionists so bad at math?)
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