Posted on 11/07/2016 10:46:09 AM PST by Lorianne
The fear of a Donald Trump victory has reached fever pitch in Mexico this weekend, as the nation’s economists pontificate on the potentially devastating effects such an outcome would have on both the country’s currency and its broader economy. In recent weeks, Mexican financial authorities even ordered local banks to stress-test the potential impact on their balance sheets of Trump winning the U.S. presidential election.
While the effects of a Trump victory on Mexico are likely to be huge, there are plenty of other reasons the country’s economy and currency are under growing pressure, including a consumer slowdown in the U.S. In fact, all the hullabaloo about a prospective Trump presidency provides the Mexican government with a perfect smokescreen for many of the country’s deep-seated homegrown problems, chief among them the ongoing decline and fall of its debt-burdened, money-losing, fast-shrinking, state-owned oil company Pemex.
In the last three years alone, Mexico’s oil revenues have shrunk from 6% of GDP to 2.5%, on the back of sharp declines in both international oil prices and domestic production. The export figures are just as ugly. In 2011, when the price of Brent crude averaged over $100, Pemex’s export revenues hit a historic peak of $49 billion, a monthly average of $4.11 billion. In the first quarter of 2016 the monthly average was just $893 million. That’s a plunge of 78%.
SNIP
Clearly, the Mexicans are quite fond of blaming their internal woes on anything and everything but themselves.
The Woman at the Pemex
excerpt:
My husband pulled our high-top white van with the dogs in the backseat into the Pemex, the ubiquitous gas stations of Baja California, Mexico. We were returning to the outskirts of La Paz, a busy little town that fronts a bay and is held in by the mountains. He spoke in Spanglish to the attendant about the price of gas as the van was serviced. I sat inside, drowsy from a day of walking along soft surf. From my side of the van, I watched a woman approach the car to the right of me. She moved towards it slowly, choosing it from all the other cars in line at the busy bays. The car was not a new model, the paint discolored from too much intense sun. When the older male passenger in the back seat got out to get something from the bright and modern looking convenience store, I could see that the upholstery had gone shabby. But the woman who approached the car seemed not to notice or make judgements on whether or not they were the sort of family that would want their car pampered. She was carrying a large yellow wash cloth made of microfiber and began to rub down the exterior of the vehicle with somber care.
https://bestplacesintheworldtoretire.com/stories/story/the-woman-at-the-pemex
It seems like just about every OTHER country on the planet depends on the USA for THEIR prosperity.
It’s about time these countries started to figure out a way to be prosperous without relying on the Washington kick backs. It’s as if all these nations are on welfare and the USA taxpayer is stuck paying the checks.
America should be an example of how to do it right, rather than a source of self-devouring handouts.
A Trump regime could see something like this. There is so much possible upside to Trump that it is dizzying. The problem, of course, would be with future generations and what they do with the wealth thus inherited. It can always be perverted to evil schemes and pride, and come sliding back down. We can’t stop that from happening, and the bible tells us it will happen. But if even one more triumph of faith and prosperity can be had to the Lord, I pray that it would in fact transpire.
The big problem with PEMEX is past deferred maintenance has resulted in high costs just to keep operating. That’s what happens when government runs business they skim the profits off and run them into the ground.
Mexicans may be wise to demand that Pemex be privatized.
Government corruption takes a million forms, but they all lead to poverty, illiteracy, crime and gangsterism.
Sounds like a window into our future if we elect Hillary.
Yup.
Under obama, we’ve become a Banana Republic; let’s hope it’s not too late to recover.
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