Something about Finance

The Bank of Mexico cut interest rates to six percent as the economy faces a sever slowdown of its economy. The stock market fell 50 percent in one day and consumer spending is generally down. This is not the first cut, and the addition amounts to a total easing by 225 base points. This is not reflected in the inflation rate, which remains at 6 percent, or the peso, which fell from 9.8 pesos per dollar to 15.6 before climbing to 13. Mexico maintains a goal to slow inflation to 3 percent by 2010. A countrys monetary policy affects it's relations with foreign nations, the domestic consumer confidence and general public support for the government, and the possibility for long term regime stability.

http://online.wsj.com/article/SB123997901566629333.html

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We've Got Our Guns Back, We Promise!

After the semi-succesful meeting between President Obama and President Calderon, Obama stood behind the fact that the United States had successfully "recovered" 90% of the assault weapons that had crossed the Texas-Mexico border, helping to quell the violence and shows the United States dedication to helping it's southern neighbour; however, the 90% is only out of firearms registered with the United States. The true percentage is about 18%.

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Houston Man Convicted for Arming Drug Cartels

John Philip Hernandez, a resident in Houston, was recently sentenced to 8 years in prison for arming drug cartels.  The actual count against him was making a false statement to a gun dealer, which runs about 4 to 5 years standard.  Working through various parties, he accumulated 339 military style weapons over 15 months, claiming that they were all for personal use, and would not be turned over to a third party.  At least 40 of them have already been recovered in Mexico.  His lengthened sentence was because, although he claimed that he didn't know they were going to drug cartels, they are the only serious market for assault rifles and military guns.  Prosecutors felt that he should know that he is only arming hit-men.

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It is from contacts in America that the drug cartels are able to get a majority of their weapons, which undoubtably fuels a fair deal of anger on Mexico's side and thus makes international accords all the more arduous.  Also, we create a sizable market for the drug cartels, in effect fueling the drug wars from almost every angle.  We have never colonized Mexico, but throughout history we have dominated them politically and economically in an extremely one sided arrangement, and only by easing up in our involvement will Mexico be able to develop into a fully industrialized nation.

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Lost in Translation

Obama's visits to Mexico has caused many people's hopes to be raised.  Through assurances of helping the United States southern "partner" and sharing the responsibility for the drug cartels and the war on drugs, it could be that the US and Mexico are starting a "new era" in US-Mexican relations.  Obama and Calderon both made commitments for a new and increased connections in the economy.  However when it comes to real actions, there was little to show.  The Mexicans themselves are happy for now because of the President's expressions of good will, but some commentators are urging the people not to get their hopes up do to previous meeting with many promises turned back on.  Mexico's top two priorities, renewing the assault weapons ban and the restart of the NAFTA pilot program, were left where they were.  Much of Obama's purpose in this visit was to undo the damage done by the previous administrations characterization of Mexico as a failed state.  "Although Mexicans generally saw the Obama visit as purely symbolic, they were gratified that issues such as immigration reform also got an airing. In Mexico, as in Europe, Obama benefits from simply not being George W. Bush."  The visit shows how the United States and Mexico are now going to go forward into a new era of diplomacy and common goals rather than through purely opportunisitic ideologies portrayed by previous administrations

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In Mexico, demand increases for specialization

A new Peace Corps program provides specialized  assitance to Mexico instead of the traditional eager pair of hands.  In this program the Mexican government reviewe the list of approved applicants  and then selected a team of economists and ecologists to assist Mexico's enivironmental agencies.  Generally the volunteers (average age: 48) help the Mexican officals run their own programs instead of doing field work. In Mexico this project is more useful and more likely to endure since it is seen as locally run. Its benefits are twofold : it is good for US-Mexico relations, helps Mexico out, and preserves the environment more effectively.  

This program seems important because it is a program where the US is legitimately actually helping Mexico as opposed to doing little to prevent gun transcations. 

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Got yourself a Gun

The recent spout of drug related violence in Mexico is due to the expiration of a ban in assault weapons trading within the U.S., say members of the calderon government. Estimates on the number of guns imported range as high as 90 percent. This is the subject of the complaint filed by the Mexican ambassador, and while the expiration of the ban may cause resentment on both side, the issue does pose opportunities for cooperation. Obama is visiting the region relatively soon, and the United States has provided eight hundred million dollars in aid. Increasing numbers of armaments is likely to further destabilize the region and regime while decreasing civil participation because they fear for their lives and intact limbs.

http://online.wsj.com/article/SB123956205887011615.html

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A Laundry List of Problems

At last, someone has truly outlined issues in Mexican security and equity, and presented them in a sort of open letter to President Obama.

The article outlines various issues that threaten the welfare of the state of Mexico, including:
- Corrupt court officials that prohibit drug kingpins from being jailed
- No media safety net, as many journalists are taken hostage and/or killed

The article continues on to divide the blame between the United States and President Calderon; the former because of the un-renewed ban on assault weapons and high demand for mexican drugs, and the latter because of his inability to reach out to his "left" allies for help in the time of the country's greatest need.

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