OP-ED Watch Out, America: Mexico May Be the Next Failed State

Housecarl

On TB every waking moment
For links see article source.....
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http://nationalinterest.org/feature/watch-out-america-mexico-may-be-the-next-failed-state-12142

Watch Out, America: Mexico May Be the Next Failed State

Drugs, corruption and vigilantes. Should America be scared?

Ted Galen Carpenter
January 29, 2015
Comments 96

When Enrique Peña Nieto became president of Mexico in December 2012, there was considerable hope that the violence that had roiled that country so badly over the previous six years might subside. Peña Nieto seemed determined to adopt a different approach than his predecessor, Felipe Calderón, to the problems of drug trafficking and organized crime. Calderón had used the military to wage open warfare on the country’s powerful drug cartels during his presidency, and the results were calamitous. More than 60,000 perished in drug-related violence during those years, and at least another 25,000 disappeared under mysterious circumstances.

Early in his presidency, Peña Nieto de-emphasized the confrontational strategy, returning to the more ambivalent posture toward drug trafficking that the Mexican government had maintained throughout the decades before Calderón’s escalation. And for a time, that lower-key approach seemed to work. Although violence between rival cartels—and between various cartels and the government—did not disappear, it did subside. That was especially true in Ciudad Juárez, Nuevo Laredo, Tijuana and other cities on the border with the United States, which had been the epicenters of bloodshed during Calderón’s administration.

But the encouraging trend has reversed in an alarming fashion in recent months. Although some once-dominant trafficking organizations, such as the Gulf Cartel and La Familia, have faded or disappeared entirely, new and equally ruthless competitors have taken their place. Among the latter are the Knights Templar and Los Viagras. Vigilante groups, which have been on the rise for several years as government forces seemed unable or unwilling to maintain order and defeat the cartels, have gained even greater prominence since mid-2014. The spike in vigilantism is especially troubling because it reflects a growing lack of public confidence in Mexico’s police and criminal-justice systems.

Unfortunately, there are ample reasons for that lack of confidence. Mexico has long been afflicted by pervasive corruption, with drug cartels and other criminal organizations easily penetrating governmental institutions. But developments over the past few months suggest that some of those institutions do not merely exhibit mundane corruption, but may be compromised in horrific ways.

The most troubling incident took place in September 2014, when students from a teachers college disappeared in the western state of Guerrero. The students had shown the temerity to conduct a protest demonstration against the mayor of Iguala and his wife. Evidence soon emerged that the students were likely murdered and their bodies burned. Worse, there are strong indications, including eyewitness accounts from two individuals who survived the attack, that elements of both the police and the army, along with enforcers from a local drug cartel, were responsible for the massacre.

The ensuing scandal is rocking Peña Nieto’s administration, as angry demonstrators in several cities have demanded his resignation. Concerns that Mexico might become a “failed state”—which had gained traction during the most turbulent years of Calderón’s presidency—are again on the rise. Such concerns are excessive, since Mexico has an array of powerful institutions ranging from the Catholic Church to well-organized political parties to a significant (and growing) legal business community. Mexico is not Somalia, Bosnia, Yemen, Sudan or other failed states, where such stabilizing features are largely absent; nor is it fractured by bitter ideological or religious conflicts, as those countries have been.

Nevertheless, the recent developments are worrisome. Overall, the drug cartels remain as powerful and ruthless as ever, and some of those organizations are branching out into human trafficking, the hijacking of oil shipments, extortion and other criminal activities to augment their income from the drug trade. Although the challenge they pose to the authority of the Mexican government may have become less blatant during Peña Nieto’s administration, such groups remain very powerful players, and in some areas of the country verge on constituting a “parallel government.”

Equally troubling is the phenomenon of vigilantism from an angry, disgusted population. The awful Guerrero episode will certainly not contribute to any restoration of public confidence in the country’s governmental institutions. Mexico’s police, court system and even the military are riddled with corruption, and the public’s willingness to tolerate that situation is clearly diminishing.

Peña Nieto has exhibited good judgment in abandoning his predecessor’s counterproductive strategy of open warfare against drug-trafficking organizations. He has also shown a refreshing willingness to begin opening Mexico’s economic system of crony capitalism to badly needed free-market reforms. But for Mexico to reach its potential as a modern, well-governed country, he must take steps to stem the corrosive effects of institutional corruption. The Guerrero massacre and its ongoing blowback is a warning of what may happen if he does not take decisive action on that front.

And the United States does not have the luxury of being an indifferent spectator to a new surge of turbulence in Mexico. Instability on our southern border is inherently a national-security issue, since it would exacerbate illegal immigration, the spillover of drug-related violence into the United States and an assortment of other problems. The Obama administration needs to pay more attention to troubling developments in America’s own neighborhood instead of trying to micromanage situations and dictate outcomes in the Middle East, Ukraine, the South China Sea and other distant regions.

Ted Galen Carpenter, a senior fellow at the Cato Institute and a contributing editor at The National Interest, is the author of nine books, including The Fire Next Door: Mexico’s Drug Violence and the Danger to America (2012).
 

topcat46

Inactive
If the entire population of Mexico ever decides to head north our govt won't do anything to stop them plus the media and leftist social justice warriors will be cheering them on. America will collapse right along with Mexico unless we stop them at the border.
 
Paraphrasing Rush, "I hope it fails".

The sooner the better. We need things to come to a head with bloody surges of violence coming over the border at levels that can not be ignored. Instead of tens of dead we need hundreds of dead. We can't save Mexico, but if we don't stop them and those south of them from invading us, we won't save us.
 
If the entire population of Mexico ever decides to head north our govt won't do anything to stop them plus the media and leftist social justice warriors will be cheering them on. America will collapse right along with Mexico unless we stop them at the border.

American Militias will go RED. And the free-for-all will start with maybe a revolution in America as well.
 

Dozdoats

On TB every waking moment
Don't look now, but America is as much a failed state as Mexico in many important ways. While not as rampant as in Mexico, corruption has metastasized through all levels of government here. What used to set America apart was that petty officialdom was widely honest. Not any more. And the "top down" approach to governance has largely replaced the "bottom up" notions that made America what it is. America is more and more a pure, open, unashamed police state.

We don't have much further to go to reach failure, either...
 
Don't look now, but America is as much a failed state as Mexico in many important ways. While not as rampant as in Mexico, corruption has metastasized through all levels of government here. What used to set America apart was that petty officialdom was widely honest. Not any more. And the "top down" approach to governance has largely replaced the "bottom up" notions that made America what it is. America is more and more a pure, open, unashamed police state.

We don't have much further to go to reach failure, either...

Yep! But I have to keep fighting against that failure, no matter what the odds.
 

Be Well

may all be well
Yep! But I have to keep fighting against that failure, no matter what the odds.

MX failed a while ago.... the only reason it doesn't look more failed is all the Mxicans who are illegally in the US and many who send $ back home.

Funny thing, MM - the worse it gets here, in a way, I feel relief - because the real situation - the real motives, the real nature of the failure, is more and more clear. You have to know the enemy, to fight the enemy. I am actually (I know, I"m crazy) very confident of the outcome and it is not, as you know me pretty well, because of any end times eschatology, which I don't adhere to. Check out Moggy's new thread....
 

frazbo

Veteran Member
Years ago I read somewhere that when Europe failed and then a South American country and then Mexico, we were not far from going down the proverbial toilet not too long after Mexico.

Maybe I have the line up wrong with which country goes first, then next, etc., but Mexico was right before us. I think. Anyway, this was quite a few years ago and not sure who I heard it from...I'm old, 'nuff said ;)
 

Cyclonemom

Veteran Member
Years ago I read somewhere that when Europe failed and then a South American country and then Mexico, we were not far from going down the proverbial toilet not too long after Mexico.

Maybe I have the line up wrong with which country goes first, then next, etc., but Mexico was right before us. I think. Anyway, this was quite a few years ago and not sure who I heard it from...I'm old, 'nuff said ;)

Maybe you are thinking of the David Wilkerson prophecy?

http://www.thepropheticyears.com/wo...run-on-american-banks-by-david-wilderson.html

“It is just about to happen very soon; and I am speaking prophetically. If I’ve ever heard anything from God in my life I heard it! About the notions! Poland owes $30 billion and they haven’t even paid the interest in two years! Saudi Arabia is behind on their payments on $8 billion – the richest country in the world as far as Arab states and it is not paying its bills! Very soon a European or North African or Eastern nation is going to default on its international loan and when that happens within two weeks Mexico is going to default. Mexico owes $100 billion – 80% of it to American banks – and here is what is going to happen: About two weeks after the first country goes bankrupt we are going to survive that because most of that money is owed to European banks; German, Swiss and French banks. THe 2nd country is going to go down probably Argentina or Brazil and we will kind of live that out and people will settle down and say “Well maybe its not going to hurt.” But two weeks after the first country goes down, Mexico is going to default on $100 billion. And When the banks open the next day at 9:00 am in the morning $15 billion an hour is going to be withdrawn from our American banks. They are going to be running our banks; the Arabs, all the Latin American countries. They are going to be running our banks – and before the day is over the United States is going to have to declare a bank holiday. And we are going into six months of the worst hell America has ever seen! THere is going to be chaos! Not even the National Guard is going to be able to quiet it down. We are going to have to call out the whole United States Army.

“Now I’ve had visions recently for I’ve been in New York City and I was in Macy’s in vision and I say people walking around stunned because they couldn’t get their money out the bank. Now I’m going to give you a word of advice. The first country that goes bankrupt, and I’ve documented this and I’ve got it sealed in an envelope and I’m going to call all my friends and I’m telling you – this is the first time I’ve said it in a public meeting like this – but the first country that bellies up you get every dime you have – church get your money out of the bank because you’ve got two weeks because there’s going to be a bank holiday and you won’t be able to get a dime for six months. Now of course, there is going to be order restored, but the nation will never be like it is again. There is going to be fear like we’ve never known. Judgment is at the door!

“When I was at Macy’s department store in a vision and I watched people walking around stunned. They didn’t even know what to do. They didn’t know what was happening. Then a bunch of young people walked into Macy’s and suddenly went wild and began to steal. Within an hour everybody, I saw their sprit, everybody in that store = and they were robbing and stealing. They raped Macy’s and destroyed all five floors of Macy’s. It was raped and ruined in period of an hour or two. That is just the beginning.”
 

changed

Preferred pronouns: dude/bro
Years ago I read somewhere that when Europe failed and then a South American country and then Mexico, we were not far from going down the proverbial toilet not too long after Mexico.

Maybe I have the line up wrong with which country goes first, then next, etc., but Mexico was right before us. I think. Anyway, this was quite a few years ago and not sure who I heard it from...I'm old, 'nuff said ;)

It was a Wilkerson prophecy.
 

Bubble Head

Has No Life - Lives on TB
It was the Wilkerson prophecy and it seems to be having no problem as becoming truth. In fact part of the falling oil price is a twofer. Mexico fails because of lost oil revenue and US shuts down production along with huge invasion of Mexicans North thinking they can at least feed themselves. Sounds like a plan to me. It was given to David in a vision years ago but nobody cares.
 

Housecarl

On TB every waking moment
For links see article source.....
Posted for fair use.....
http://www.theguardian.com/world/2015/jan/16/mexican-guerrero-self-rule-protests

Mexican firebrands call for self-rule: 'It’s time for the people to take power'

Away from the spotlight of protests over the disappearance of 43 student teachers, Guerrero may prove a much more serious challenge to state authority

Jo Tuckman in Tecoanapa
Friday 16 January 2015 08.24 EST

Milling around the front steps of the town hall, about 20 men with shotguns began the night watch sipping coffee from styrofoam cups and munching cakes.

The atmosphere was relaxed, but the message was one of revolution.

“It’s time for the people to take power,” said Jésus, one of the guards. “The government has not been able to fulfill its role – and the people are waking up.”

Over the past three months, dozens of town halls across Mexico’s southern state of Guerrero have been taken over by members of an amorphous movement calling for “popular government”. The protesters – some of whom have been armed – have also called for the army to close its bases and leave the region.

Guerrero is a state steeped in a history of rebellion: it was the setting for some of the first uprisings of the Mexican revolution, and home to the country’s most famous rural guerrilla army of the 1970s.

But the current wave of unrest was triggered by the disappearance last September of 43 student teachers in the city of Iguala, after they were attacked by municipal police in league with a local drug cartel.

Anger over the case has prompted months of street protests against President Enrique Peña Nieto. But away from the spotlight, the growing calls for self-rule in Guerrero may prove a much more serious challenge to state authority.

“We took over the town hall as way of pressuring the government to do more to find the missing students, but this goes further now,” said Jésus, outside Tecoanapa’s town hall. “We are dismantling the old institutions.”

That kind of talk resonates particularly loudly in the region around Tecoanapa: 17 of the missing students grew up in the towns and villages of the Costa Chica, a remote and poverty-stricken region which stretches from the foothills of the Sierra Madre del Sur down to the Pacific Ocean.

The victims include the two eldest sons of Doña Oli Parral, who, like many parents of the disappeared, has grown tired of peaceful protest and polite calls for justice.

“We shout our slogans and it makes no difference. The government doesn’t listen to us,” she said, sitting in her spartan home in the village of Xalpatlahuac, just outside Teconapa. “If they want peace, then give back the kids.”

In the Costa Chica, the occupations are led by a group of radical teachers’ unions and the Union of Organized Peoples of Guerrero (UPOEG), a network of vigilantes formed two years ago to combat the killings, kidnapping and extortion by drug gangs in the area.

“The narcos did with us what they wanted. People were intimidated, frightened and desperate,” says Huricel Cruz, a teacher and former student at the radical Ayotzinapa training college where the 43 missing students were enrolled. “Then the people took control and things calmed down.”

The Guerrero militias emerged alongside other vigilante movements in the neighbouring state of Michoacán, although there are important differences.

The Michoacán groups are less ideological, revolve more clearly around local strong men, and are more regularly accused of ties to criminal gangs. Michoacán is also the stage for a high-profile government security operation which broke up one of the country’s most notorious crime syndicates – known as the Family – but has failed to consolidate peace.

Last month, 11 people died during a shootout between two of the most prominent Michoacán vigilante strongmen. A further nine died earlier this month in clashes involving a third group and the army.

The Guerrero militias also face divisions and accusations of abuse, and violence remains a problem in the areas where they operate. Even so, traveling in the UPOEG’s heartland of the Costa Chica feels notably safer than it does in other parts of Guerrero, Michoacán and much of the country.

Stationed behind sand bags, or hanging around under the shade of huge amate trees, armed men with buzzing radios check out identities, inspect vehicles, and control who comes in and who goes out.

Inside the communities, patrols trudge around on foot and in pickup trucks night and day.

The shotguns they carry, alongside the odd machete, are no match for drug-gang arsenals. But, they insist, their sheer numbers and community support deter the criminals far more effectively than the heavily armed state forces they accuse of complicity with the gangs.

“The whole idea of organised crime is a lie,” said Ernesto Gallardo, the head of UPOEG operations in the Costa Chica, who alleged that local police worked hand-in-glove with the criminal gangs. “What there is is crime that is negotiated with and tolerated by the government.”

The protesters have not presented a clear political agenda, but they have made it clear they are determined to prevent elections scheduled for July. The authorities insist that the vote must go ahead, but so far, there has been no attempt to remove the protesters by force.

Meanwhile, local officials have been left powerless. In the town of Ayutla de los Libres, ousted mayor Severo Castro has set up a makeshift office in his front patio.

“This can’t happen in Mexico ... a country of laws,” he said. “I was elected.”

With the political authorities out of the way – even if only temporarily – the self-government movement is now turning its attention to the biggest symbol of state power of all: the army.

Widespread distrust of the military in Guerrero draws on a history of indiscriminate repression in response to guerrilla activity, as well as the army’s failure to contain the narcos.

The army’s reputation was further damaged by the government’s failure to investigate why troops stationed in the area failed to prevent the Iguala massacre. Some relatives of the missing argue that troops must have been involved in the atrocity.

On Monday, violent clashes broke out when protesters demanded to search the army base in Iguala for possible evidence that the disappeared students may have been taken there.

Meanwhile, rumours abound that local guerrilla groups are once again taking up arms, and for some in the region, the mounting tension is becoming close to unbearable.

“We are not afraid of the narcos any more,” said farmer Marcelino Pastrano, as he looked out over the undulating tropical landscape disappearing into the horizon below his hilltop town of Tonala. “The thing I am afraid of is that the army is going to go against us. And if that happens, there will be a real war.”
 

Housecarl

On TB every waking moment
For links see article source.....
Posted for fair use.....
http://www.worldpolicy.org/blog/2015/01/12/restoring-law-and-order-mexico

Restoring Law and Order in Mexico
January 12, 2015 - 10:09am | admin
By Daniel Kapellmann and Jamie Stark

Last week, after nearly three months since the disappearance of 43 students in Iguala, Guerrero, the wife of the Mexican city’s former mayor was charged with organized crime and money laundering. Prosecutors believe that María de los Ángeles Pineda played a key role in the abduction of the students, who were turned over to a drug gang–by order of her husband José Luis Abarca.

The initial kidnapping incident gave rise to a series of protests and demonstrations in numerous Mexican cities, with tens of thousands of people taking to the streets demanding improved security and more transparent governance. The more recent arrests of Pineda and Abarca again exemplifies why so many in Mexico have lost confidence in their elected officials. Perhaps because of the enormous complexity of security in Mexico, few concrete solutions to the underlying problems have gained any traction.

According to the Sustainable Governance Indicators (SGI) by Bertelsmann Stiftung, Mexico remains among the most dangerous countries in the world. It comes dead last in its Safe Living Index which compares all countries in the Organization of Economic Co-operation and Development (OECD) and the European Union. This statistic is hardly a surprise considering that 13 percent of the Mexican population fell victim to assaults or muggings last year, and the country’s homicide rate was the highest amongst OECD states.

Yet addressing Mexico’s safety problem is particularly difficult for several reasons, including disparate local and national security challenges, the collusion of criminal organizations with government agents, the lack of cooperation among organizations that could affect change, and the absence of effective leadership. Further, the enormous size and diversity of a country with 122 million inhabitants makes it tough to formulate holistic policy, thus requiring a more specialized approach for the security of each individual Mexican state. For instance, 2009 data from the OECD indicates that the homicide rate of the northern Mexican state of Chihuahua near the U.S. border was 56 times higher than that of Yucatan to the south.

Inequality and History

Mexican society is deeply divided by systemic inequalities. According to 2012 data from the World Bank, a little over half of the Mexican population lives in poverty. The Gini coefficient, the most common statistical measurement for national inequality, leaves Mexico with a score that stands double-digits above the OECD average.

Worse yet, criminal organizations in Mexico have historically coexisted with state and national governments since the 1960s and ‘70s, when drug trafficking through Mexico began to skyrocket. Since the turn of the 21st century, Mexican leadership has failed to address this problematic relationship. Instead, they’ve elected to engage in ineffectual negotiations with the U.S. to decrease demand from the north, or implement an equally problematic “War on Drugs” of their very own.

More recently, the 2012 arrival of Enrique Peña Nieto to the Mexican presidency brought a new silent media strategy that attempted to enhance Mexico’s image internationally by shifting attention from internal security problems while searching for lasting solutions. This approach worked splendidly throughout 2013, until recent events reminded everyone that a deadly security crisis continued to lurk beneath the facade.

Civil Protests and Social Unrest

As a response to the recent demonstrations, President Peña Nieto offered a proposal for security reform, including the creation of new state-based police organizations, the power to dissolve local governments accused of having links with criminal organizations, and the establishment of a unique national emergency phone number, among other initiatives. This current security reform draft is undoubtedly a first step, but has nonetheless received heavy criticism for its limited approach to the multi-layered dynamics of insecurity in Mexico.

Rather than just an ordinary security overhaul, additional complementary initiatives are required to target differing problems from several angles. Realistic examples include fostering development in crime-prone areas (similar to stimulated developments that took place in Colombia some years ago), judicial reforms to strengthen enforcement and public faith in the system, and restarting negotiations for further collaboration with the U.S. on diplomatic fronts such as an adaptation of the controversial Merida Initiative. This bilateral security program, signed in 2008 between Mexico and the United States, created a shared responsibility scheme to counter drug-fueled violence affecting people on both sides of the border.

Duncan Wood, director of the Mexico Institute at the Wilson Center in Washington, D.C., says promoting a secure environment in Mexico requires active cooperation with the U.S. As a comprehensive diplomatic and economic approach would suggest, mechanisms need to be implemented to address not only the drug supply within Mexican territory but also the external demand for these goods, primarily in the U.S.

If domestic solutions for the growing violence in Mexico can be reached, they must combine ideas that are as diverse as the Mexican populace and landscape. In turn, the flow of revenue for criminal organizations must be cut off, confidence in the authorities must be restored, development and equality must be promoted, stronger social cohesion generated, and active discussion allowed to continue.

If anything is certain, these current security challenges won’t be solved overnight or in the near future. Mexico is now both resigned to and in desperate need of long-term solutions.

*****

*****

Daniel Kapellmann is a Mexican international relations graduate of ITAM and current Information Technologies Consultant for the Competitive Intelligence Unit. Contact him on Twitter at @Kapellmann.

Jamie Stark is an American journalist based in Latin America and a graduate of the University of Wisconsin Journalism School. Contact him on Twitter at @JamieStark.
 

Dozdoats

On TB every waking moment
criminal organizations in Mexico have historically coexisted with state and national governments since the 1960s and ‘70s, when drug trafficking through Mexico began to skyrocket. Since the turn of the 21st century, Mexican leadership has failed to address this problematic relationship

Just as in the USA ... the government IS the drug trafficker of choice. The fabled "War On Drugs" is actually just the war on government competition that's importing drugs. The drug trade is THE most profitable business on the planet. It's been government run since the Opium Wars. Why would anyone think it's different now?

Again - if you have not read The Politics of Heroin (http://www.amazon.com/The-Politics-Heroin-Complicity-Global/dp/1556524838), you have no clue what is happening in your world, and more importantly, WHY.
 
criminal organizations in Mexico have historically coexisted with state and national governments since the 1960s and ‘70s, when drug trafficking through Mexico began to skyrocket. Since the turn of the 21st century, Mexican leadership has failed to address this problematic relationship

Just as in the USA ... the government IS the drug trafficker of choice. The fabled "War On Drugs" is actually just the war on government competition that's importing drugs. The drug trade is THE most profitable business on the planet. It's been government run since the Opium Wars. Why would anyone think it's different now?

Again - if you have not read The Politics of Heroin (http://www.amazon.com/The-Politics-Heroin-Complicity-Global/dp/1556524838), you have no clue what is happening in your world, and more importantly, WHY.

I don't give a damn if every official above dog catcher is corrupt. I will not kneel and submit. I will go down fighting. And I hope many others join me. We owe our ancestors that last hurrah. And maybe, just maybe, we can clean out this stable. It will never be like it was again, but we can hope to prevent an outright NWO Progressive Tyranny. Hell, push the U.S. into anarchy. I would prefer that. Have the bastards try ruling a stinking, burning dung heap.
 

Dozdoats

On TB every waking moment
MM,

The question is one of timing.

Remember that some the blue- clad soldiers who marched off to war singing "John Brown's body lies a-mouldering in the grave" were the ones who hanged him in the first place.

Timing...
 
MM,

The question is one of timing.

Remember that some the blue- clad soldiers who marched off to war singing "John Brown's body lies a-mouldering in the grave" were the ones who hanged him in the first place.

Timing...

When the economy collapses, and the cartels start to rule in the Southwest, and free speech is shut down like in China, and people start disappearing in the night. Then it will be time.
 

imaginative

keep your eye on the ball
A strong USD certainly is making it tougher for foreign loans to be repaid. But $100 billion default? That seems like chump change....does anyone have any info on what Mexico owes so that we could ascertain if this default is likely?
 

Housecarl

On TB every waking moment
A strong USD certainly is making it tougher for foreign loans to be repaid. But $100 billion default? That seems like chump change....does anyone have any info on what Mexico owes so that we could ascertain if this default is likely?

http://www.nationaldebtclocks.org/debtclock/mexico

$ 538,053,109,705


Interest per Year

$35,559,370,000


Interest per Second

$1,128


Debt per Citizen

$4,666


Debt as % of GDP

42.49%


GDP

$1,266,300,000,000


Population

115,323,000
 

Possible Impact

TB Fanatic
The Mexican Peso & Brazilian Real Are Collapsing


Submitted by Tyler Durden on 01/30/2015 09:25 -0500
http://www.zerohedge.com/news/2015-01-30/mexican-peso-collapsing


Back over 15 / USD for the first time since March 2009, the Mexican Peso is
tumbling hard this morning... and the Brazilian Real is also tanking (back near 10-year
lows) - no clear catalyst aside from further weakness in oil producer and EM FX
sentiment.


Peso under pressure


Back to March 2009 lows..


And the Real is close behind (back near 10 year lows)


As Oil Producers FX rates push to new cycle (or record) lows...



Charts: Bloomberg
 

pinkelsteinsmom

Veteran Member
American Militias will go RED. And the free-for-all will start with maybe a revolution in America as well.

So, the militia's are waiting for 100% of mexico's population to come north before they act, 1/2 the population isn't critical? :bwl:

I'm sorry to have to say this, but the militia's, nor anyone else here will not lift a finger until the cities see a last bright flash. The country is already lost to islam and I am shocked at how fast it has been made obvious in just the last few weeks. The cancer has been slowly oozing under the skin of the country for years like fire ants and now they are prepared to sting in unison.
 

Dozdoats

On TB every waking moment
does anyone have any info on what Mexico owes so that we could ascertain if this default is likely?

I'll take "Next Mexican Currency Crisis" for $800, Alex...

This is more of a "here we go again" than anything else. Don't forget, we already had one peso crisis in relatively recent memory...

=========================================

http://worldeconomiccrisis.blogspot.com/2007/12/1994-mexico-economic-crisis.html

1994: Mexico Economic Crisis

The 1994 economic crisis in Mexico, widely known as the Mexican peso crisis, was triggered by the sudden devaluation of the Mexican peso in the early days of the presidency of Ernesto Zedillo. A week or so of intense currency crisis was stabilized when US President Bill Clinton, and other international organizations granted Mexico a $50 billion loan. The crisis is also known in Spanish as el error de diciembre — The December Mistake a term coined by president Carlos Salinas de Gortari. In the Southern Cone and Brazil, the impact that the Mexican economic crisis had on the region was labeled the Tequila Effect (Spanish: Efecto Tequila, Portuguese: Efeito Tequila).

Causes of the economic crisis of 1994

The 1994 economic crisis in Mexico, widely known as the Mexican peso crisis, was triggered by the sudden devaluation of the Mexican peso in the early days of the presidency of Ernesto Zedillo. A week or so of intense currency crisis was stabilized when US President Bill Clinton, and other international organizations granted Mexico a $50 billion loan.
The crisis is also known in Spanish as el error de diciembre — The December Mistake a term coined by president Carlos Salinas de Gortari. In the Southern Cone and Brazil, the impact that the Mexican economic crisis had on the region was labeled the Tequila Effect (Spanish: Efecto Tequila, Portuguese: Efeito Tequila).

While the crisis took place under President Zedillo, the causes are usually attributed to Carlos Salinas de Gortari's outgoing administration. Salinas de Gortari partly coined the term "December Mistake" when he stated in an interview that Zedillo's sudden reversal of the former administrative policies of tight currency controls was "a mistake." It must be mentioned that Salinas de Gortari's popularity and credibility at the time was still high; even though his government's currency policy put an unbelievable strain on the nation's finances, the resulting economic bubble gave Mexico a prosperity not seen in a generation. This period of rapid growth coupled with low inflation prompted some political thinkers and the media to state that "Mexico was on the verge of becoming a First World nation.", and in fact, it was the first of the "newly industrialized nations" to be admitted into the OECD in May 1994.

As in prior election cycles, a pre-election disposition to stimulate the economy temporarily and unsustainably led to a self-fulfilling prophesy of post-election economic instability. Well before this, there were concerns of the sheer level and quality of credit extended by banks during the preceding low-interest rate period, as well as the standards for extending credit. Credit booms often precede credit busts. Later on, the country's risk premium was also affected by an armed rebellion in Chiapas which made investors even more wary of investing their money in an unstable region. The Mexican government's finances and cash availability were further hampered by two decades of increasing spending, debt loads, and low oil prices. It's ability to absorb shocks was hampered by its commitments to finance past spending.
It was a known fact that the peso was overvalued (by at least 20%, according to some sources), but the extent of the Mexican economy's vulnerability was either not well-known or downplayed by Salinas de Gortari's tame políticos and media. Nonetheless this vulnerability was further aggravated by several unexpected events and macroeconomic mistakes of his administration.

Economists Hufbauer and Schott (2005) have commented on several events in 1994, and the macroeconomic policy mistakes that precipitated the crisis:
1994 was the last year of the sexenio or 6-year administration of Carlos Salinas de Gortari who, following the PRI tradition on every election year, launched an amazingly high spending splurge, which translated into a historically high deficit. In order to finance the historical deficit (a 7% of GDP current account deficit) Salinas issued the Tesobonos, an attractive type of debt instrument that was denominated in pesos but indexed to dollars. Mexico experienced (common to those days) lax banking or corrupt practices; moreover, some members of the Salinas family (though only his brother, Raúl, was imprisoned) collected enormous illicit payoffs
The most-likely-to-win candidate, Luis Donaldo Colosio, was assassinated in March of that year; a couple of months later José Francisco Ruiz Massieu, in charge of the investigation, was assassinated as well. The EZLN, an insurgent rebellion, officially declared war on the government on 1 January; even though the armed conflict ended two weeks later, the grievances and petitions remained a cause of concern, especially amongst some investors.
All of these, and the increasing current account deficit fostered by consumer binding and government spending, caused alarm amongst savvy investors that had bought the tesobonos, mainly Mexican and a few foreigners, who sold them rapidly, depleting the already low central bank reserves. The economically orthodox thing to do, in order to maintain the fixed exchange rate functioning (at 3.3 pesos per dollar, within a variation band), would have been to sharply increase interest rates by allowing the monetary base to shrink, as dollars were being withdrawn from the reserves (Hufbauer & Schott, 2005). Given the fact that it was an election year, whose outcome might have changed as a result of a pre-election-day economic downturn, Banco de México decided to buy Mexican Treasury Securities in order to maintain the monetary base, and thus keep the interest rates from rising. This, in turn, caused an even more dramatic decline in the dollar reserves. These decisions aggravated the already delicate situation, to a point in which the crisis became inevitable and devaluation was only one of many necessary adjustments. Nonetheless, nothing was done during the last 5 months of Salinas' administration even after the elections were held in July of that year. Some critics presume this was done in order to maintain Salinas' popularity, as he was seeking international support to become director general of the WTO. Zedillo took office on 1 December, 1994.

A few days after a private meeting with major Mexican entrepreneurs in which his administration asked them for their opinion of a planned devaluation, Zedillo suddenly announced his government would let the fixed rate band increase to 15 percent (up to 4 pesos per US dollar), by stopping the previous administration's unorthodox measures to keep it at the previous fixed level (by selling dollars, assuming debt, and so on). It was no longer possible to maintain the previous fixed rate as reserves were on the brink of depletion (having hit a record low of merely 9 billion). This measure, however, was not enough. The government, being unable even to hold this line, decided to let it float. While experts agree that a devaluation was necessary, some critics of Zedillo's incumbent 22-day-old administration, argue that although economically coherent, the way it was handled was politically incorrect. By having announced its plans for devaluation, they argue that many foreigners withdrew their investments, thus aggravating the effects. Whether the effects were aggravated further or not, the result was that the peso crashed under a floating regime from four pesos to the dollar (with the previous increase of 15%) to 7.2 to the dollar in the space of a week.

The United States intervened rapidly, first by buying pesos in the open market, and then by granting assistance in the form of $50 billion in loan guarantees that same year. [See the following section for a more detailed explanation.] The dollar then stabilized at the rate of 6 pesos per dollar and, for the next two years, before being affected by the Asian Crisis in 1998, remained around 7 to 7.7 pesos per dollar.

Having to comply with the recently signed NAFTA obligations, Mexico did not resort to the traditional Latin American policies in times of crisis of trade protection and capital controls (which might have prolonged the crisis), but introduced strict controls on monetary and fiscal policy, open trade, and devalued currency. The boom in exports that followed eased the recession which turned out to be a 10-month, short-lived recession. By 1996, the economy was already growing (and peaked at 7% growth in 1999). In 1997, Mexico repaid, ahead of schedule, all US Treasury loans.

Financial assistance package

Mexican reserves continued to decrease into January 1995, raising the possibilities of peso inconvertibility, and international debt default. In view of the effects on Mexico's trading partners and the loss of confidence in Latin American economies in general, the IMF, the U.S. Government, and the Bank for International Settlements promised loans and guarantees to Mexico totalling almost $50 billion.

Contributions were as follows:

The United States arranged currency swaps and loan guarantees with a $20 billion total value.
The IMF promised an 18 month Stand-by Credit Agreement of around US $17.7 billion.
The Bank for International Settlements offered a $10 billion line of credit.
The Bank of Canada offered short term swaps with a US dollar value of around one billion.
The United States' assistance was provided via the treasury's Exchange Stabilization Fund. This was a slightly controversial decision, as President Clinton had already tried and failed to pass the Mexican Stabilization Act through Congress. However, use of the ESF allowed the provision of funds without the approval of the legislative branch.

Effects of the economic crisis of 1994

Mexican businesses with debts to be paid in dollars, or that relied on supplies bought from the USA, suffered an immediate hit, with mass industrial lay-offs and several well-publicized suicides. Businesses whose executives attended the meeting at Zedillo's office were spared the nightmare — forewarned, they quickly bought dollars and renegotiated their contracts into pesos. To make matters worse, the devaluation announcement was made mid-week, on a Wednesday, and for the remainder of the week foreign investors fled the Mexican market without any government action to prevent or discourage it until the following Monday when it was too late.

The December Mistake caused so much outrage that Salinas exiled himself in Ireland (he was campaigning worldwide for WTO head at the time). Although the country's GDP contracted approx. 7% in 1995-- the worst decline in the country's history in a single year-- the incident also served to make it clear that his influence (if any) on the Zedillo administration was over.
 
So, the militia's are waiting for 100% of mexico's population to come north before they act, 1/2 the population isn't critical? :bwl:

I'm sorry to have to say this, but the militia's, nor anyone else here will not lift a finger until the cities see a last bright flash. The country is already lost to islam and I am shocked at how fast it has been made obvious in just the last few weeks. The cancer has been slowly oozing under the skin of the country for years like fire ants and now they are prepared to sting in unison.

In order to have more support for the militias, already formed and those yet to be formed, we must wait for an economic collapse, people losing their pensions, their retirement accounts, etc. Otherwise, the sheeple won't have a clue as to why we are fighting the "benevolent" government that prints money to fulfill their every need. People have to be angry, ready to go to the wall, ready to hide and support militia. I am sorry, but anything before then would be counterproductive and expending valuable human capital.

Believe me. If we prevail, we can create a reverse migration.
 

SNOWSQUAW

Veteran Member
Yes- this IF Mexico goes down the currency collapse route then I believe that the Wilkenson prophecy is in process of happening. Holy End Times, Batman!
 
TWO RINO TRAITORS AND ONE PROGRESSIVE!


Bush's DHS Secretaries Join With Napolitano: Fund Obama's Amnesty
January 29, 2015 - 3:25 PM

By Barbara Hollingsworth

http://cnsnews.com/news/article/bar...cretaries-join-napolitano-fund-obamas-amnesty

(CNSNews.com) – Three former secretaries of the Department of Homeland Security (DHS)--including two that served under Republican President George W. Bush--have sent a letter to Senate Majority Leader Mitch McConnell (R-KY) urging him not to include language in the DHS funding bill to prohibit President Obama unilateral executive actions on immigration that will allow as many as five million illegal aliens to stay in the United States without fear of deportation.

They said that if Congress did include such language in the bill "the likelihood of a Department of Homeland Security shutdown increases." In other words: President Obama might veto the bill and shutdown the department.



“We appreciate that Congress possesses the authority to authorize and appropriate funds expended by the federal government,” said the letter, which was signed by former DHS secretaries Tom Ridge, Michael Chertoff and Janet Napolitano. “We do not question your desire to have a larger debate about the nation’s immigration laws.

“However, we cannot emphasize enough that the DHS’s responsibilities are much broader than its responsibility to oversee the federal immigration agencies and to protect our borders. And funding for the entire agency should not be put in jeopardy by the debate about immigration,” the letter continued.

The three former DHS secretaries pointed out that President Obama “has said very publicly that he will ‘oppose any legislative effort to undermine the executive actions that he’ has taken on immigration,” adding that “tethering a bill to fund DHS in FY 2015 to a legislative response” increases the “likelihood of a Department of Homeland Security shutdown.”

Nowhere in the letter is there any indication that the three former heads of DHS are also urging President Obama to reconsider his position.
Administration officials have emphasized that the president will not back down if the new Republican majority in the Senate passes a bill overriding his executive actions on immigration, even if that means vetoing funding for the entire department.

“If a bill that includes such language comes to the president’s desk, his staff and I will recommend to the president that he veto it,” current DHS Sec. Jeh Johnson noted in a letter to House Minority Leader Nancy Pelosi (D-CA) earlier this month. “Now is not the time for the budget of the Department of Homeland Security to become a political volleyball.”


Department of Homeland Security Secretary Jeh Johnson. (CNSNews.com/Penny Starr)

“There is no reason to tinker with the executive actions at all,” added Cecilia Munoz, director of the White House Domestic Policy Council.

However, McConnell himself has pointed out that by bypassing Congress, the president “lacked the legal authority to act."

“The action he’s proposed would ignore the law, would reject the voice of the voters, and would impose new unfairness on law-abiding immigrants – all without solving the problem. In fact, his action is more likely to make it even worse,” McConnell said last November shortly after Republicans won control of the Senate.

“If President Obama acts in defiance of the people and imposes his will on the country, Congress will act,” McConnell vowed.

On January 14, the Republican-led House voted 236-191 to pass legislation funding DHS through the end of September. Current funding for the department runs out at the end of February.

An amendment submitted by Rep. Robert Aderholt (R-AL) and passed on a roll call vote “prevent any funds from whatever source to be used to carry-out the Executive actions announced on November 20, 2014 to grant deferred action to certain unlawful aliens… and four of the ‘Morton Memos’ on prosecutorial discretion and immigration enforcement priorities issued in 2011 and 2012 that effectively prevent certain classes of unlawful aliens from being removed from the country.”

Aderholt’s amendment also “provides that no funds may be used to grant any Federal benefit to any alien as a result of the policies defunded.”

Other amendments require state and local officials to detain criminal illegal aliens who would otherwise be released so that Immigration and Customs Enforcement (ICE) officials can begin deportation proceedings, and prohibit the Executive Branch from using any DHS funds to “consider new, renewal or previously denied DACA [Deferred Action for Childhood Arrivals] applications.”

“We do not take this action lightly, but simply there is no alternative,” House Speaker John Boehner (R-OH) said on the House floor at the time. “This executive overreach is an affront to the rule of law and to the Constitution itself.”

The Senate is expected to consider the DHS funding bill next week.
 

Dozdoats

On TB every waking moment
we must wait

Different people "fall through the looking glass" at different times, as a result of facing individual circumstances. Not everyone wakes up at the same time, or for the same reason.

Meanwhile, it'll shine when it shines ... https://www.youtube.com/watch?v=IFvE2MPHDCA

Seems like everyone is out
Looking for the sun
Singing rain and pain
On he who hesitates

But it'll shine when it shines
You might think I'm wasting time
But I'm just a good old boy
That's learned to wait
 

Melodi

Disaster Cat
You guys really, really DON'T want Mexico to become a totally failed State, it is already a partially failed one; but anyone who thinks a Mexican Civil war or collapse would simply get the militias going or something hasn't really looked seriously at history or what is actually doable.

Years ago, a hurricane hit Central America and the Fruit companies, faced with a 10 year gap in growing banana trees said en mass "nice knowing ya, see ya later" to a population that had become dependent on their mono-culture for over 70 years. Faced with no crops, no homes, no money and no food; entire families (including the tiny babies and the elderly) starting just walking North. Mexico told the US State department they would not stop them either; with the possibility of thousands if not millions of people simply walking to the US border, the US quietly reversed their position and started sending massive aid to the area that went on for a number of years (it may still be, I haven't checked recently).

The US administration knew that not only would the US public not stand for watching women and children mowed down by machine guns and tanks at the border, but also if there were enough people NOTHING would stop them. Even a nuclear blast would be unlikely to take out everyone, and then there is the psychological damage done to troops required to murder babies in arms and grandmothers not as collateral damage but as a direct target, especially when they are only guilty of being hungry and desperate.

If a civil war or worse erupts in Mexico (and I think it likely at some point) if it becomes so horrific that people prefer to face possibly death for a chance of escape than while at first strong measures might work, eventually they are going to spill over into the territorial US and the conflict likely to come along with it.

Even if there were a massive, 100 percent solid wall put up across the entire border, people would still eventually overcome it if they were crazy and desperate enough (and or go around via see, tunnels etc). And, there is not such a wall, nor does there seem to be the money or the will to actually build and man such a structure; such a wall would only be a useful as the amount of resources spent to man it, supply it and keep it going.

At best, your going to wind up with huge (and I do mean huge) tent cities of refugees just inside the US border, perhaps looking more like the "FEMA camps" than anyone wants to really think about and at worst your going to have millions of people spilling into the US for refuge along with fighting, battles, blood shed and death; with natural born (for 500 years) Americans being targeted for their looks or last name and the potential for the US to simply "fail" along with Mexico is totally possible, it would not be a given, but you could end up with "no man's land" along the border for quite a few miles.
 

hiwall

Has No Life - Lives on TB
Mexico ranks 9th in oil production and the drop in oil price has to be really hurting them.
 

Warthog

Black Out
It's already a failed state folks. 1/4 of the Mexican population is up here f***ing my country up!!!:sht:
 

Adino

paradigm shaper
the cartels power comes from the black market

violence comes from the black market

criminals infiltrating guv comes from the black market

all these lessons were learned in alcohol's prohibition

which is why uncle sugar runs the drug trade now

he learned how to control both sides

and we let him keep it by keeping the wod
 

Melodi

Disaster Cat
It's already a failed state folks. 1/4 of the Mexican population is up here f***ing my country up!!!:sht:
If it becomes a truly failed state (say like Sudan, Iraq etc) look for more like 50 percent to 75 percent of the population either in the US or trying desperately to get there taking risks far-far beyond just sending their kids on a dangerous train ride.
 
We really, really want Mexico to become a FAILED STATE for all of the above reasons. We are assuredly being slowly strangled to death, becoming another Venezuela IN EVERY RESPECT. We have nothing to lose, we who want our country back. And everything to gain.

We are currently a country without borders, and there is no desire on the part of the Beltway to change that, (think about that statement, really let it soak in). WE HAVE NOTHING TO LOSE.
 

Richard

TB Fanatic
Thought Mexico was already, Brazil has a major water shortage problem in Sao Paulo.

You guys really, really DON'T want Mexico to become a totally failed State, it is already a partially failed one

It is well on the way, if it wasn't there would be no illegal immigration to the US en masse, the guys on this forum obviously don't want Mexico to be a failed state but they have no influence on the situation at all.
 
Thought Mexico was already, Brazil has a major water shortage problem in Sao Paulo.



It is well on the way, if it wasn't there would be no illegal immigration to the US en masse, the guys on this forum obviously don't want Mexico to be a failed state but they have no influence on the situation at all.

As long as our border is not secure, and we provide a relief valve for corrupt Narco Mexico, the government there will never reform. Things need to come to a head there in Mexico. And things need to come to a head here in the United States. The longer both of our corrupt governments remain in power, the more long term damage that will be done.

We are losing generations of what should be productive people on both sides of the border.

There needs to be wholesale firings of the bureaucracy in D.C. and Mexico City. Whole new parties need to come into being in both countries. And none of that will happen as it now stands. A crisis or series of crises needs to occur. The rot has to be cleared away by sword or fire. I don't care which.
 

Richard

TB Fanatic
As long as our border is not secure, and we provide a relief valve for corrupt Narco Mexico, the government there will never reform. Things need to come to a head there in Mexico. And things need to come to a head here in the United States. The longer both of our corrupt governments remain in power, the more long term damage that will be done.

We are losing generations of what should be productive people on both sides of the border.

There need to wholesales firings of the bureaucracy in D.C. and Mexico City. Whole new parties need to come into being in both countries. And none of that will happen as it now stands. A crisis or series of crises needs to occur. The rot has to be cleared away by sword or fire. I don't care which.

Agreed I still say that if Mexico was a successful country there would be no incentive for illegal immigration. If it were as successful as the USA then there may be moderate exchanges of population legally between the two countries rather than a one way drift through an unsecurable border.
 
Agreed I still say that if Mexico was a successful country there would be no incentive for illegal immigration. If it were as successful as the USA then there may be moderate exchanges of population legally between the two countries rather than a one way drift through an unsecurable border.

The border can be secured. You have read what the Israelis have done, and the Saudis are doing. The WILL is not there. We need another Blackjack Pershing to secure our southern border.
 

Richard

TB Fanatic
The border can be secured. You have read what the Israelis have done, and the Saudis are doing. The WILL is not there. We need another Blackjack Pershing to secure our southern border.

OK has the border even been secured? there has been illegal immigration for decades so I understand
 
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