Please consider In Double Whammy, Fitch Downgrades Mexico and Moody’s Lowers Outlook.
Cutting Mexico’s rating to BBB, nearing junk status, Fitch said the financial woes of state oil company Pemex were taking a toll on the nation’s prospects.
Fitch said mounting trade tensions influenced its view, according to a statement issued shortly after the end of a meeting in the White House in which Mexican officials tried to stave off tariffs U.S. President Donald Trump has vowed to impose next week.
Following a surge in mostly Central American migrants arriving at the U.S. border, Trump threatened blanket tariffs on Mexican imports if it did not do more to stem the flow.
“Growth continues to underperform, and downside risks are magnified by threats by U.S. President Trump,” Fitch said.
The latest moves by the ratings agencies on Mexico’s sovereign rating could also ratchet up pressure on the oil company’s own rating, which is teetering on the brink being downgraded from investment grade.
One Step Above Junk
https://twitter.com/Schuldensuehner/status/1136394983349608448
#Mexico‘s rating was downgraded by Fitch to BBB, the 2nd-lowest investment grade score, from BBB+, warning that ballooning debt from state-owned oil comp Pemex represents growing risk to public finances. Outlook to stable from negative. pic.twitter.com/yDOXbjKGda
— Holger Zschaepitz (@Schuldensuehner) June 5, 2019
Don’t Exactly Count on Trump
https://twitter.com/UPFINAcom/status/1136426482220376064
https://twitter.com/UPFINAcom/status/1136426482220376064
I believe he means one step above Junk.
Just Like the Wall
Who cares, it will pay for itself.
https://twitter.com/cabaum1/status/1136425282188009472
Maybe the threatened tariffs on all Mexican goods is a backdoor way for Trump to get Mexico to pay for that border wall of his! 😉😉😉😉😉😉 😉😉😉😉😉😉😉😉😉😉😉😉😉😉😉😉(Just in case the sarcasm isn’t obvious.)
— Caroline Baum (@cabaum1) June 6, 2019
Mexico Peso vs US Dollar
Up is down in this view.
Today’s 1.5% move does not even register on a long-term chart.
Since mid-2008, the Peso has declined (19.59-9.85) / 19.59 = 49.7%.
If Mexico defaults or devalues the peso, it will sink much further.
Trump won’t exactly like that as it will make Mexican exports to the US much cheaper.
Trump Bullsheet
https://twitter.com/realDonaldTrump/status/1136402984923852801
….talks with Mexico will resume tomorrow with the understanding that, if no agreement is reached, Tariffs at the 5% level will begin on Monday, with monthly increases as per schedule. The higher the Tariffs go, the higher the number of companies that will move back to the USA!
— Donald J. Trump (@realDonaldTrump) June 5, 2019
The higher the tariffs go, the more US customers will pay.
Hooray!
Such is the bragging of a complete economic illiterate.
By the way, what the heck happened to the idea that Mexico would pay for the wall?
Lie of the Day
https://twitter.com/realDonaldTrump/status/1136185948411191297
“House Republicans support the President on Tariffs with Mexico all the way, & that makes any measure the President takes on the Border totally Veto proof. Why wouldn’t you as Republicans support him when that will allow our President to make a better deal.” Thank you @GOPLeader
— Donald J. Trump (@realDonaldTrump) June 5, 2019
Please note Senate Republicans Warn White House Against Mexico Tariffs
Republican senators sent the White House a sharp message on Tuesday, warning that they were almost uniformly opposed to President Trump’s plans to impose tariffs on Mexican imports, just hours after the president said lawmakers would be “foolish” to try to stop him.
Politico reports Republicans threaten revolt, may block Trump’s Mexico tariffs.
At a closed-door lunch Tuesday, two Trump administration officials laid out the president’s view: There is a crisis at the border and Mexico needs to stem the surge of migrants to avoid the new levies.
Senate Majority Leader Mitch McConnell (R-Ky.) told reporters the party spent “almost our entire lunch” going back and forth with the administration and warned afterward “there is not much support in my conference for tariffs, that’s for sure.”
Summing up the mood of the lunch, Sen. James Lankford (R-Okla.) said, according to sources familiar with the matter: The administration “is trying to use tariffs to solve every problem but HIV and climate change.”
In March, 12 Republicans moved to reject Trump’s emergency declaration on the southern border, eight short of a veto-proof majority. But given the strong free-trade inclinations of the Senate GOP, the president could face a far larger condemnation if he ends up moving forward on the tariffs.
Sen. Ron Johnson (R-Wis.) told the administration officials that they could not count on the same level of support this time, according to two sources familiar with the meeting.
Increasingly Preposterous Lies Over Time
Trump actually had the gall to Tweet “Republicans support the President on Tariffs with Mexico all the way.”
Trump’s lies get more and more preposterous over time.
Mike “Mish” Shedlock
The decline of the Peso against the US Dollar, like most other currencies, has been declining long before Trump’s tariffs, which means their issues are not tariffs, but debt, big govt, and corruption.
If the corporations that would be impacted don’t like the tariffs, I suggest they call CONgress and the Mexican govt and tell them to find the money to build the wall and stop the flow of ILLEGALS (I’m sure you never thought this could’ve been the strategy all along).
Since you have been a “never Trumper” from the beginning, I must ask – what do you think comes after Trump? There is no doubt that this is when the SHTF, as no sane Patriot that is qualified will want to step into the establishment’s hornet nest, which means only an establishment hack will be left, and the Patriots/Trump supporters will not accept this Death March to Bataan.
When the alternative is so much worse, why are you such a Trump basher, without proposing any REALISTIC solutions yourself?
Can’t answer for Mish, but Trump is a very flawed man. There’s quite a bit to not like, especially his desire for more cheap Fed money and belligerent foreign policy.
Eventually everyone has to face the fact that we’re not voting our way out of this mess. You asked what follows Trump? Depending on the timetable, civil unrest follows in the not-too-distant future. It’s inevitable, and if you think Trump will stand beside you in a SHTF scenario, you’re sorely mistaken.
Eventually everyone has to face the fact that we’re not voting our way out of this mess. You asked what follows Trump? Depending on the timetable, civil unrest follows in the not-too-distant future. It’s inevitable, and if you think Trump will stand beside you in a SHTF scenario, you’re sorely mistaken.
You should try to answer for Mish, as he never answers the tough questions. As far as Trump being “very flawed”, give me a break. Put his flaws up against EVERYONE he ran against 2016, and will run against in 2020, and they have more to dislike, especially when it comes to debt and cheap Fed money.
I also don’t understand your “belligerent foreign policy” comment – please elaborate. Prissy apologist, like Obama, made zero headway with our foes, and our allies have been taking advantage of us for decades. NATO allies not carrying their weight is a simple example. Meanwhile, Trump has been consistent about backing the interest of America, as he discussed with Oprah back in 1988 – link to youtu.be.
I certainly agree that civil unrest is coming, but since the driver of the unrest is economics, Trump will provide a more competitive backdrop for our businesses than anyone running. While we can’t avoid the reset by voting, we can minimize the chances that a totalitarian path will be taken in response to the reset. I think you are sorely mistaken if you think an establishment candidate or any of the establishment members of CONgress will have your back more than Trump. No matter what you think of Trump, he is a Patriot that loves this country, and more importantly, he loves what the Founders desired for this country.
The sad truth is we will likely not have a good choice in 2024, and it is between 2024 and 2032 when the fate of our nation will be decided.
link to newsmax.com
Bear in mind that you’re talking to someone who hasn’t voted in 15 years, and even then it was for third party candidates. Not liking/trusting Trump does not equal love of mainstream candidates.
On economics Trump is no better than his predecessors since his game revolves around artificially low interest rates. He wants the Fed to cut and it looks like he’ll get his wish soon. He also runs massive deficits like Obama and W Bush.
What’s not to understand about foreign policy criticism? His team oversaw a failed coup in Venezuela a few weeks ago. There is constant jawboning with Iran. We won’t leave Syria or the half dozen other conflicts we’re involved in. Who knows where the rhetoric with China leads, and tariffs are counterproductive to begin with.
Binary thinking is unhelpful here. It’s not an either/or with Trump or some other politician. Trump didn’t cause our problems but he’s not helping them either, nor is he to be trusted when things get dicey. He’ll be looking out for himself at that point, not you or me.
Irrational exuberance has its limits ,a tsunami of defaults is on the horizon…
Why do you think defaults are coming? With MMT and negative rates, I don’t see defaults. The central banks will keep the zombies alive. They have been doing this since 2009 and are now sure that it works!
In the first place I was thinking about Mexico, its Petroleos company and other developing nations and their corporations…. In the US and the EU, too big to fail zombies might indeed be kept afloat as long as possible , others though will default massively; even at 0% interest rates, the in recent years exponentially increased principals still have to be paid back…. I think , but then I am probably too stupid to fully understand today’s Ponzi Scheme Ultd.
Get in compliance or be downgraded. Oh well, at least I see some effort on Mexicos part recently to halt future democrat voters.
Weaponizing the Dollar-centric (for now) global financial system will eventually turn out to have been a very bad idea.
Was taking you seriously until I noticed you quote the NYTimes and Politico.
This is an immigration war, plain and simple. There are basically two sides: those who want more illegal immigration or those who don’t. I know which side I’m on in this war. Personally, I’d like to see Trump completely close the border with Mexico. Mexico is already a fully blown socialist state which is transmogrifying into a total Marxist state. So, let’s decouple from Mexico – here and now. NAFTA was a failure. And we don’t need tens of millions of low skilled Peronists flooding into our country to mow our lawns or wash the dishes, either. The fat-assed Americans and their fat-assed kids need to quit stuffing their faces with fast carbs and get out and mow the lawn and get some physical exercise…
Speaking of exercise, Americans should be rallied to help report and round up 40 million illegal Invaders who need to be sent back home. Period. No ifs, ands or buts….
Whatever it takes, Mr. President. Tarrif the shit out of Mexico and trigger the shit out of your enemies, Mr. President. Trump 2020!
And we don’t need tens of millions
According to DHS there were 12M illegals in the country in 2015. If we add 5 years at 1M you get 17M illegals . BTW a big chunk of that are illegals coming legally and overstaying their visas. Total illegals immigration from Mexico has gone from about 900K in 2007 to about 150K 2019. There are more Mexican leaving USA than coming in. Tariff will cause higher unemployment in Mexico which will increase illegals crossing from Mexico to USA. Your orange guy policies will actually increase the flow of immigrants into the USA. There is no wall tall enough to deter desperate people. Your MAGA will eventually slap you…
Carlos,
Why hasn’t Mexico ever turned into a first world country? NAFTA was supposed to do this and failed. Maybe the responsibility for making Mexico a place people want to stay or even immigrate to is the responsibility of the Mexican people.
I don’t think making the USA into a less desirable country to live in for it’s ordinary citizens is the best way to address the flow from the south.
NAFTA was supposed to do this and failed.
So it is hard to argue with some one that has a reading comprehension problem. Read my post again. Mexican immigration has been dropping now for years since NAFTA. Mexicans moving back to Mexico is increasing. BTW there are about 10M Americans living in Mexico, many illegally. You know why the Mexican government does not deport them? Like I said Trump policies will bite you in your arse
Carlos,
Thanks for the good news. Glad to hear Mexico is doing so well. I guess here in the US we can drop the bilingual education. Maybe we can tax remittances and accelerate the return? Would 10% work?
Seems like a lot of people have not figured out what a great place Mexico is or the surge at the US border would stop and they would stay in prosperous Mexico. Maybe Mexico needs to do a better job of advertising.
As for why Mexico doesn’t deport US illegals. my first guess would be money. The second guess would be corruption.
As expected you still having issues with the comprehension part when reading. So sure causing a recession or depression in Mexico is going to reduce the number of people trying to cross into the US. I will stop now since trying to reason with a Trump supporter is about impossible. A lack of education formal or informal is to blame I suppose
The Donald may not be that great economically, but I’ll still take him over the globalist Killary. Tariffs should be been set up in 1999 instead of NAFTA being signed by Bubba, not to mention repeal of Glass-Steagal in 1999.
If President Trump is reelected 2020 then S&P and Moodys will downgrade China to one level below junk. Rightly so. China should have signed the trade agreement rather than pursue a war with USA.
China has more hell to pay than loss of credit, failed banks, 200 million unemployed, famine, revolution, and embargo. Think sword of Damoclese.
Aside from that the inflated US university system should not expect 300 thousand Chinese students to return and pay out of state tuition next year.
Round and round the mulberry bush the monkey chased the weasel. The monkey thought ’twas all in fun. Pop! goes the weasel.
It’s not “if” Trump is reelected. He will be. It’s high time we stop empowering bad actors around the world.
The high prices wont last because demand destruction will occur via job losses first. We are at a tipping point folks. The markets may not react well to layoffs.
Layoffs in Mexico and China won’t hurt US stocks.
Fitch downgrades Mexico to BBB? Weren’t they the agency that rated Chicago’s bonds AAA in 2017? I think the rating agencies may need a rating agency or maybe a political rating system.
You need to stop pretending that our trade with Mexico is free and that “free” trade agreements are free because they are not. They are in fact anti free trade agreements designed to benefit rich gigantic corporations by stealing wages from workers.
Trump should end subsidies to corporations that pay them if they fire American workers and replace them with foreign workers in other countries.
Trade with is not free. It’s super duper govmit regulated against workers for rich gigantic corporations.