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I'm watching Mexican Pesos creep up on the USD. Now 12.33/1

Did they learn their lesson in the 80's? This might be a solid currency to invest in. As corrupt as the government may be(maybe worse than the USA). They may not be stupid. It seems like they really tried to hang on to silver coins longer than most nations.

Mexico really has a lot going for it. They have everything they need to kick ass economically ,if they wanted to.

Is there a big entitlement spending problem there? NO.

Do they have to have a defense budget? NO.

Their problems just come here to the USA, then we borrow, IE print, money to either take care of Mexican citizens or subsidize the cheap labor they supply.

Go long on Pesos?

Who is their biggest trading partner? What happens if that country goes under?

If their government corruption gets much worse will the people (finally) rise up and start over, probably with a new currency?

The last company I worked at had several plants in MX. The employees received probably a dozen different types of subsidies in their weekly checks. There was housing and groceries and several others. Sure, it seems like the company was offering these benefits, but they were all by gov't decree. It kind of smells like entitlements to me.

The process whereby one gets a position at Pemex is rotten to the core. The employees sell their company badges when they retire to someone looking for work.

The roads mostly suck. Gasoline costs a lot there because of taxes to build/maintain roads, but the money is spent elsewhere. More Pemex goodness.

The united states also liquidated debt to Mexico a few months back. We could see some response from that. I bought a few pesos, but nothing huge.

I'm more interested in the yuan long term to be honest.

I've heard from a couple of sources that Mexico may back their currency with silver in the next 6-9 months. Don't know whether that's fact, conjecture or wishful thinking on the part of those who told me. Makes sense, though, to solidify the Peso as a stable and desired currency.

Know Common Cents wrote:I've heard from a couple of sources that Mexico may back their currency with silver in the next 6-9 months. Don't know whether that's fact, conjecture or wishful thinking on the part of those who told me. Makes sense, though, to solidify the Peso as a stable and desired currency.

That could make it a little more desirable. I haven't heard anything about this. Keep me posted.

John_doe wrote:

Know Common Cents wrote:I've heard from a couple of sources that Mexico may back their currency with silver in the next 6-9 months. Don't know whether that's fact, conjecture or wishful thinking on the part of those who told me. Makes sense, though, to solidify the Peso as a stable and desired currency.

That could make it a little more desirable. I haven't heard anything about this. Keep me posted.

Learn all you can about the plan of Hugo Salinas Price. Here are a few links:

http://www.oroyfinanzas.com/2011/08/entrevista-a-hugo-salinas-price/

http://www.businessinsider.com/the-great-flaw-in-the-free-trade-theory-and-other-vain-beliefs-hoaxes-and-follies-2011-8

Also this, although a bit older:
http://www.gold-eagle.com/editorials_05/salinas092806.html

If you invest in Pesos, hopefully there isn't a repeat of 1993.

Here's a recent speech by Hugo Salinas Price:

http://www.plata.com.mx/mplata/articulos/articlesFilt.asp?fiidarticulo=171