An Unstoppable Force Meets an Immovable Object
Mexico is a crazy place to say the least–one element that makes it so crazy is its sheer level of unpredictability. If I don’t write a book about my experiences here–I’m a fool. However, one could start writing a book about what is shaping up to be a New Mexican civil war between criminal entities. The government and the criminal organizations.
Mexican Cartel Organizations are the unstoppable force and the stubbornness of expanding leftist government are the immovable object. One seeks more and more wealth and power; the other seeks more & more fame and control.
It would appear that Mexico is heading towards something amounting to a civil war; Law abiding poor population holding anti-wealth/revolutionary positions & want free items are going to have less purchasing power + less jobs as Sheinbaum gets aggressive with CAN & USA. Meanwhile, 91% of Mexican companies are consider small businesses–USA corps are a major employer of the big industry jobs that everybody fights over. USA can pull the plug when they are comfortable to do so–and China cannot easily replace them. The expanding socialistic, extremely regulated & economically damaging state is the immovable object.
At the same time, Narcos are estimated to employ 1/5th of the population and are as involved with legal activity (hotels, restaurants, resorts, tours, farming) as they are with illegal activity. Biden’s lack of a border has allowed Narco groups to receive 10-20K PER HEAD for 4-6 years. So what? Well it amounts to cash numbers larger than Coca Cola (JUST on the Border Trafficking). Their returns on Crystal methamphetamine sent to Australia are 50-100X more profitable than local markets also leading to market net profits into the low billions. They have literally never been this powerful/influential, not only in Mexico but in the world. When Trump says the “cartels are running Mexico” it’s partly true.
Needless to say, one is failing and one is rising. Unstoppable force meets an immovable object
Mexico is a failed state, already
What makes this matter worse is that Mexico is already a failed state. Government operations hardly work, the police system is nearly entirely fraudulent and captured, rules and regulations are not entirely enforced (enforced randomly), laws are dependent on ‘who you are’ and so forth.
However, government, in so far they do matter, have been taking actively destructive policies amongst their neighbours and against all sizes of businesses.
But… It’s WORSE Than That
AMLO has been playing the useful, low IQ idiots of Mexico saying that the “people” like all communist would say, will appoint the judges of the country. Of course, his goal is to destroy the constitution of the country, strip the Supreme court and all of its workers not faithful to him to hold all three branches of power under his control. This is an unprecendeted event given that the last time the Supreme court had went on strike was during the Mexican revolution AND Mexicans are literally split on the result of him having dictatorial power over all.
Examples of Economic Decay
- Anti-Mining policies effectively banning open-pit mining. Canadian companies have been in endless lawsuits with Mexican courts over the last 6 years. A continuation of this is expected and the mineral deposits are to be left alone
- Work Hour Change–> Read our Article Here
- Having a ‘Big Dick’ competition…for NO reason
- Despite record rates for airports; AMLO’s administration entered regulations and policies to cap profits and air travel usage.
- AMLO also requesting huge amounts/favours from the USA during the NAFTA agreement and stirring up political tensions with their greatest trading ally.
- A radical Tax reform of 2020 that left many large corporations and legal firms scrambling given the vagueness, inaccuracy, contradictory language and uncertainty of the laws written. Almost all liberations free from taxation have been closed under AMLO.
- The entry of a Jewish communist greeny, who is eager to support people who do nothing and penalize the productive types. Her robbery of foreign corporations runs the risk of them pulling out completely.
- The seeding of an anti-capitalist narrative
- Mayor murdered in Michoacán, leading to protests in 83 states
- Civil War in Sinaloa and troops being mobilized across the country (narcos) and now the uprising in Guadalajara
- Not to mention… the MAJOR reform whereby workers are only able to work 40 hours a week and their right to off-days has been extinguished.
It’s Illegal to Mine; But So is Methamphetamine… It will be done
91% of all big businesses in Mexico are from foreign companies. If they stay, it’s because we get paid in a dying currency, if they leave, it means we have no jobs and many will take up work for criminal gangs
Speaking of Mexican mining…did you read my article here with State Speculator? A separate dedicated e-letter on Substack
https://statespeculator.substack.com/p/silver-under-siege-how-chaos-shapes
In other words, as matters get worse for your common citizen, they will be roped into this “true free market” let’s say.
If the US Sneezes, the World Catches a Cold
- The Mexican economy is largely supported by the United States economy. Mexicans produce and sell to the Americans who finance their purchases. I’d be lying if I thought this was going to end anytime soon; but at some point, its feasibility will be drawn into questions as more and more begin to question the United States dollar and more view it as a hot potato.
It is already happening with the US domestic economy weakening. We can see the debt load, interest payments, off-balance sheet unfunded liabilities and fiscal spending are all exponentially rising–leading to new levels of currency creation (M2 supply). In a situation where the US economy purchases less from Mexico, the Mexican economy will correspondingly decline.
Wealth Divide Internally
Claudia Sheinbaum has overturned the constitution to go ‘full woke’, she has offered free everything for “Marxist education” (borrowed spending) and now crunched down with price controls. Literally in lockstep with Maduro’s Venezuela (whom I may add Mexico City is very favourable towards)
Mexico has many far-leftist, feminist, lazy, socialist-types lurking about. The number of those who are wanting to destabilize the economic viability of the country is truly staggering. It’s not so much that there is a Jewish communist in Mexico City but the fact that any policies that “punish” the wealthy or productive seems to be supported–we know how this ends up and it will only ensure that everybody, especially these as Vladimir Lenin called them “useful idiots”, will remain poor. [you are seeing this now with respect to American and Canadian retirees; they are threatened and encouraged to leave despite them being a major source of wealth, opportunity and spending to their local towns]
- Mexico has large income inequality and it’s only getting started. Jalisco, one of the most European and wealthy states; Quintano Roo, home of the Riviera Maya; Nuevo Leon, the manufacturing & industrial hub of the country. At the same time, other states are being left behind in the past. The most educated & driven will abandon their past for the future in “wealthy” Mexico–furthering this gap domestically. This will lead to an unstable situation where you will be able to see visible differences in the people, quality, infrastructure and wealth between regions. “The only people Mexicans hate are other Mexicans”.
- Mexico has a lot of guns. A LOT. BUT, it’s extremely difficult to acquire one legally–furthering the case that violence will continue to erupt.
Will Mexico Become Another LATAM Nightmare?
Little Things Adding Up
Please see this tweet below:
In fact, he believed Mexico was precisely heading in the wrong direction, too.
Where Does This Leave Us?
The picture I am trying to paint is one whereby things are inherently failing in the so-called law-abiding state; the number of jobs, the number of opportunities, the purchasing power of the peso are all in decline. Counter this with an illegal force (who certainly have their own legal influence throughout the world) who are always looking for new members so to speak. They literally have never been this wealthy, powerful or influential in their entire existence. Needless to say, they, speaking for all of them, are on the rise inside of the country. This dynamic is made possible due to a communist government who are committed to ruining what still functions in Mexico and the non-existence of rule of law that has no accountability for these groups who now are militaristic.
So far I’ve just named a bunch of Mexican facts that seem random. Although I try to highlight a dynamic playing out here–we have a rising force on one hand and a weakening one on the other–it’s a matter of time until these clash. Likewise, we have a mindset motivated by money/influence and one motivated by security (free market vs. government oversight). A percentage of the poor people will seek to join these illegal organizations who will partake in money generation regardless of the laws, morals & regulations; the other will be content with their government support and call for more punishments against law-abiding entrepreneurial types trying to generate more wealth and opportunities. These types of mindsets or psyches are generally incompatible with each other in a functioning nation.
Something will have to give and I believe that will be a Civil War after about a five year period, spreading throughout.
#StayOnTheBall
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