Author: FalconsLairFalconsLair Date: Jul 10, 2008 15:08
7/10/2008: Commentary: America Has Its Problems, But Mexico Is Worse:
The world’s second-richest man is Mexican. His estimated net worth is
$60 billion. Yet, more than 50 million people living south of the
border live on just dollars per day, and the standard of living for
many millions is about to get worse.
Over the past few years, Mexico has made big strides in reducing
poverty and increasing the standard of living for many. However, it is
becoming increasingly evident that the Mexican miracle was built on a
sand foundation. The economic tide is now turning, and the current
pillars of its economy, oil production, foreign remittances and low
inflation, are being undermined.
Mexico is primed to boil, and the spillover could scathe the United
States. Mexico supplies massive amounts of oil to the United States,
behind only Canada and Saudi Arabia in volume. So any interruption in
the flow of oil will have huge implications for America as well as
Mexico. In dollar terms, oil is the single most important revenue
stream for the Mexican government, providing for a whopping 40 percent
of all federal spending.
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