Re: The peso is like a runaway freight train going downhill without brakes.

by Carry Bean Sat Jan 16, 2016 7:49 pm

suegarn wrote:
Clueless wrote:$20 would be fantastic for expats exchanging for pesos, but for the Mx that have to pay their bills (rent/imports for resale), it will really be a disaster and of course, there will be a sharp price increase. Worst hit will be the low income (gardeners, maids, salespeople, etc.) workers who are on a salary or hourly pay.

Why do Americans assume that they are the only 'expats'? Excuse me, but a lot of us living here are Canadian, and we aren't enjoying the benefits of your strong American dollar. In fact, having to pay our rent in US dollars is getting to be a hardship.

Rather a broad brush, Suegarn. A few years ago YOUR CAD was strong while the USD was weak & there was a little gloating going on from YOU Canadians but i'll qualify that by saying it wasn't ALL Canadians. I'd appreciate the same courtesy. And you don't have to pay rent in USD. Plenty of rentals in pesos.

by espíritu del lago Sat Jan 16, 2016 7:52 pm

Very true... And your correct Carry, I remember it well! What goes around comes around... Gotta love Karma..

by Playaboy Sun Jan 17, 2016 5:11 am

viajero wrote:
suegarn wrote:

Why do Americans assume that they are the only 'expats'? Excuse me, but a lot of us living here are Canadian, and we aren't enjoying the benefits of your strong American dollar. In fact, having to pay our rent in US dollars is getting to be a hardship.
Excuse me but any economical impact expats,American,Canadian,British or otherwise have on the Mexican economy in general is minuscule,something Lakeside expats don't seem don't seem to understand.

Expats are the main economic engine of Chapala. Chapala would be hard pressed without them. Actually the municipo is hard pressed having them.

Other areas of Mexico have real, hard goods economies. The world is investing billions to build new manufacturing plants.

Here are some ways a strong USD is a great benefit for Mexico;

1) Remittances from the USA is approx 25 Billion a year. That money goes directly in a families pockets. Mexicans are getting more pesos for their US bucks.

2) 80% of Mexico's exports are to the USA. Right now Mexican made products are at a discount for US companies and consumers. Once consumer demand picks up in the USA (hopefully before the next crash), Mexico will be great position to supply that demand. Mexico is very concerned China will continue to devalue the yuan and be able to offer lower prices on finished goods.

If you didn't have USD's and only earned pesos, investing in physical gold or silver would have been a good purchase to protect against the weakening peso vs USD. IN the last 6 months gold lost 5% in USD but gained 10% in pesos.

by espíritu del lago Sun Jan 17, 2016 8:15 am

Spot on!

by David Sun Jan 17, 2016 10:22 am

Oil is priced in $US, so even though the price of oil has fallen the amount of Pesos the Gov't of MX gets has risen.

by Clete Sun Jan 17, 2016 12:22 pm

David wrote:Oil is priced in $US, so even though the price of oil has fallen the amount of Pesos the Gov't of MX gets has risen.

Yes but as the national banks sells off dollars in an attempt to slow the devaluation the foreign reserves are depleting. If, and it probably won't happen, there is a run on dollars as in years past, the proverbial mierda will hit the fan.

by David Sun Jan 17, 2016 1:21 pm

A run on Dollars? Where? By whom?

by Bill Phillips Sun Jan 17, 2016 1:27 pm

Press release. The Prime Minister of Canada, Justin Trudeau, met with
the President of the United States and strongly supported the war on terrorism.

Prime Minister Trudeau issued the following statement:

CANADIANS WILL HELP AMERICA WITH THE WAR ON TERRORISM. WE HAVE PLEDGED 2 WARSHIPS, 600 GROUND TROOPS, AND 6 FIGHTER JETS.

AFTER THE AMERICAN EXCHANGE RATE, THEY WILL END UP WITH 2 CANOES, 6 MOUNTIES, AND 3 NORTHERN FLYING SQUIRRELS.

by mattoleriver Sun Jan 17, 2016 1:41 pm

oatsie wrote:...AFTER THE AMERICAN EXCHANGE RATE, THEY WILL END UP WITH 2 CANOES, 6 MOUNTIES, AND 3 NORTHERN FLYING SQUIRRELS.

The only terrorists currently in action is Y'all Quiada down on the wildlife refuge in Oregon. Hold back the squirrels, these boys are hell on squirrels!

by Clete Sun Jan 17, 2016 2:08 pm

David wrote:A run on Dollars? Where? By whom?

The same people that did it in 1976, 1981, 1992 etc.

by Ojalero Sun Jan 17, 2016 2:33 pm

I can only find this definition:

A "run on the dollar" means that people are getting rid of their assets in the US Dollar because they fear the value of the US Dollar will decrease. They turn their money into gold or another currency.

Is that the case?

by viajero Sun Jan 17, 2016 3:35 pm

oatsie wrote:Press release. The Prime Minister of Canada, Justin Trudeau, met with
the President of the United States and strongly supported the war on terrorism.

Prime Minister Trudeau issued the following statement:

CANADIANS WILL HELP AMERICA WITH THE WAR ON TERRORISM. WE HAVE PLEDGED 2 WARSHIPS, 600 GROUND TROOPS, AND 6 FIGHTER JETS.

AFTER THE AMERICAN EXCHANGE RATE, THEY WILL END UP WITH 2 CANOES, 6 MOUNTIES, AND 3 NORTHERN FLYING SQUIRRELS.

Love it!!,two canoes,flying squirrels and six mounties!
You,my friend have a sense of humour!

by hockables Sun Jan 17, 2016 5:08 pm

Playaboy wrote:

Expats are the main economic engine of Chapala. Chapala would be hard pressed without them. Actually the municipo is hard pressed having them.

Other areas of Mexico have real, hard goods economies. The world is investing billions to build new manufacturing plants.

Here are some ways a strong USD is a great benefit for Mexico;

1) Remittances from the USA is approx 25 Billion a year. That money goes directly in a families pockets. Mexicans are getting more pesos for their US bucks.

2) 80% of Mexico's exports are to the USA. Right now Mexican made products are at a discount for US companies and consumers. Once consumer demand picks up in the USA (hopefully before the next crash), Mexico will be great position to supply that demand. Mexico is very concerned China will continue to devalue the yuan and be able to offer lower prices on finished goods.

If you didn't have USD's and only earned pesos, investing in physical gold or silver would have been a good purchase to protect against the weakening peso vs USD. IN the last 6 months gold lost 5% in USD but gained 10% in pesos.

Don't go patting yourself too hard on the back.

http://elpasoheraldpost.com/protests-support-grow-for-fired-lexmark-workers-in-juarez/

by David Sun Jan 17, 2016 5:31 pm

Clete wrote:
David wrote:A run on Dollars? Where? By whom?

The same people that did it in 1976, 1981, 1992 etc.

What are you referring to? What people? Where? I don't recall a run on the Dollar in my lifetime.

by Clete Sun Jan 17, 2016 7:31 pm

OK I guess I misphrased that. How about a run on the peso by the sacadolares as happened during other times of an unsable peso?

by David Sun Jan 17, 2016 7:42 pm

That was when the Government controlled the exchange rate. They haven't since 1994. It's a floating currency now subject to the whims of the currency market. BTW, the $CDN has suffered the same fate, due entirely to the price of oil.

by Playaboy Mon Jan 18, 2016 5:47 am

hockables wrote:
Playaboy wrote:

Expats are the main economic engine of Chapala. Chapala would be hard pressed without them. Actually the municipo is hard pressed having them.

Other areas of Mexico have real, hard goods economies. The world is investing billions to build new manufacturing plants.

Here are some ways a strong USD is a great benefit for Mexico;

1) Remittances from the USA is approx 25 Billion a year. That money goes directly in a families pockets. Mexicans are getting more pesos for their US bucks.

2) 80% of Mexico's exports are to the USA. Right now Mexican made products are at a discount for US companies and consumers. Once consumer demand picks up in the USA (hopefully before the next crash), Mexico will be great position to supply that demand. Mexico is very concerned China will continue to devalue the yuan and be able to offer lower prices on finished goods.

If you didn't have USD's and only earned pesos, investing in physical gold or silver would have been a good purchase to protect against the weakening peso vs USD. IN the last 6 months gold lost 5% in USD but gained 10% in pesos.

Don't go patting yourself too hard on the back.

http://elpasoheraldpost.com/protests-support-grow-for-fired-lexmark-workers-in-juarez/

Hocks, what is your point?

by Trailrunner Mon Jan 18, 2016 8:05 am

Ni modo. Hocks rarely has a point. Especially at night. Just ignore.

Yes! I remember the sacadolares well. We were here in 1981 and took a couple of Mexicana flights that were both loaded with sacadolares and their cash.

My understanding is the same as David's, can't happen again.

by Clete Mon Jan 18, 2016 8:14 am

Never say never. There is nothing stopping Banxico from intervening. Monetary policy is not set in stone. But I do believe it would be improbable.

by Trailrunner Mon Jan 18, 2016 8:19 am

Yeah, you're right about that Clete - never say never.

I'm more concerned about the gob devaluing the peso, I'm no financial whiz but that can happen, right? I have friends here that lost a lot the last time.

by David Mon Jan 18, 2016 9:01 am

Banco de Mexico HAS been intervening for many months, often on a daily basis! The Gob has no ability to "devalue" the Peso since they don't determine the value. The last time was 1994, that's when the Gob decided to make the currency a "free market" currency and let the market determine its value.

by viajero Mon Jan 18, 2016 9:10 am

Trailrunner wrote:Ni modo. Hocks rarely has a point. Especially at night. Just ignore.

Oh, I disagree,he usually does have a point,he just injects a some humor into them and that I like.

by Trailrunner Mon Jan 18, 2016 9:16 am

Good, thanks David.

by Clete Mon Jan 18, 2016 1:47 pm

Yep, been selling off dollars trying to slow the fall. And every time they offer dollars the reserves shrink. So where is the threshold when they either can't sell dollars or are unwilling to sell?

by David Mon Jan 18, 2016 1:52 pm

It doesn't matter. Why aren't you worried about the $CDN? It's lost as much value as the $MX. They're both down 30%.

by Clete Mon Jan 18, 2016 6:46 pm

Why would I worry about the Canadian dollar? That's the Canadians problem.

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