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Looming Mexico Crises/Collapse aka Venezuela

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Recent News from "south of the Border" has taken a interesting turn for the worse. Mexico has instituted  a free Market solution on Petro products.. (gasoline).

A 20% rise in the cost of Fuel has brought about a interesting effect.. Looting, Protests & near Riots.

Factoring in remittances,  you have then, underpinning a prediction which, is hidden in scale, and almost YUGE in scope, is the exfiltration of U.S. dollars -legal and illegal- into Mexico. What remains for the American taxpayer, is the scale of US Dollars entering Mexico, Legal & Illegal, that is for the most part, LARGER than the entire Mexican energy sector, (oil and gas) combined.. 

Link-->  http://mexiconewsdaily.com/news/remittances-totaled-oil-income/

A honest evaluation of all possible currency transfer streams puts the outflow well over several hundred billion per year. Well over. so How much, U.S. dollars actually cross the southern border?

Well No one knows, except the Financial Mexican Minister that was recently replaced.. This doesn't even include the Tax loophole that Mexican Economic Migrants defraud the American tax-payer each year, amounting to Hundreds of BILLIONS remitted back to Mexico. We’re talking about a multi-billion dollar fraud scheme here that’s taking place and no one is talking about it, . The scheme involves illegal immigrants — illegal immigrants who are filing tax returns.

See here--> http://www.wthr.com/article/tax-loophole-costs-billions

Here are 3 Red flags, which flew under the radar for most economically minded followers.

1. Mexico’s Central Banker, Agustin Carstens, ‘unexpectedly’ quit --> http://www.zerohedge.com/news/2016-12-01/mexican-central-bank-head-quits-amid-fears-over-trump-impact

2. The Peso is rapidly depreciating, and Mexican Inflation is rising fast. While, Jose Antonio Meade, watches nervously as state controlled gasoline price setting is removed in favor of free market prices.--> http://www.reuters.com/article/us-mexico-gasoline-idUSKBN14G15M?utm_campaign=trueAnthem:+Trending+Content&utm_content=5862915004d301409adb9b39&utm_medium=trueAnthem&utm_source=twitter

Then you have the News of various International companies scrapping moving to Mexico, Such as Carrier & Ford.. -->  http://www.foxnews.com/politics/2017/01/03/ford-to-scrap-mexico-plant-invest-in-michigan-due-to-trump-policies.html

Mexico's Economy is beginning to teeter, as a American business titan and  political reformer is taking office in the White House,… who campaigned on an absolute promise to renegotiate NAFTA, and the DC priorities following the executive office expectation…. well,  Mr Carstens, (Former Mexican Central Bank Chief), didn’t need to be an astrologist to note his place in the universe amid the economic planetary alignment.

For Our Third Red flag... Mexico has been starting to wage a FX, Currency War. Mexican government is selling it’s SILVER hoarde…. for U.S. Dollars, which it is then selling, and buying… PESOS with it! So they’re trying to drive down the dollar (because they’re selling lots of it) and drive up the Peso (because they’re buying lots of it)… but ultimately they’re trading a fairly stable commodity (silver) for a falling currency (their own Peso).--> http://www.zerohedge.com/news/2017-01-06/peso-tumbles-mexican-central-bank-intervenes-again

The end result is this, AKA Venezuela.. Bumpy Road on the Horizon.. 

 

 

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Trying to defend their currency is probably the dumbest thing they could do. 

Never fight the market...

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A ball buster is being inaugurated to the north and our southern friends know the doormat Era has ended.

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jbcmh escaped to this paradise. Wonder how long until he returns.

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Liberals complain about our police, look how these guys show up on the scene. They are SHOOTING at looters and hitting them with cars.

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Mexico is about to get interesting. Peso down to 22 and fuel prices are soaring and the people are mad. 

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5 hours ago, No snow for you said:

Mexico is about to get interesting. Peso down to 22 and fuel prices are soaring and the people are mad. 

I always lol when a state says they are buying their currency. It never works and it is like a call to funds to go in for the kill.

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1 hour ago, user13 said:

I always lol when a state says they are buying their currency. It never works and it is like a call to funds to go in for the kill.

As Nick Leeson was told in Rogue Trader, "don't fight the market". 

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1 hour ago, ORH_wxman said:

As Nick Leeson was told in Rogue Trader, "don't fight the market". 

Yep, Mexico could be a black swan this year. We really do not need them to fall into the crapper.

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