Guillermo Ramon Adames y Suari: The Imminent Devaluation of the Mexican Peso Guillermo Ramon Adames y Suari - PVNN
April 14, 2013

So, according to the world economic perspective for Mexico, the title sounds definitely crazy I must admit... but the devaluation of the peso is imminent. The real question is:  Why my diagnosis? The main ingredient is Mexicans have no memory whatsoever and what happened in the past is usually “excused”. But the facts are there.

There are various facets that have to be considered. The first and more decisive one is the PRI is back in all its beauty, and everything comes down from this fact. First it was 2013’s version of the “Quinazo” right after the appointment of the president Peña Nieto. The second indicator was that life is beautiful since the PRI is back and from now on:  Crime figures have come down (?) and today, thanks to the PRI, there are fewer disturbances than before. The third indicator is that upon appointment, the president started traveling all over the world. He wants foreign investment to come to Mexico: What can Mexico offer? First there is no competition “against” any industry. Mexico has no Mexican industry whatsoever: Mexico works for foreign companies. Take the “Mexican car industry” What is it? Ford? Chrysler? Mazda? Nissan?... We all do parts for them, and for that matter, for ANY other industry. But the real competition is between Ford and Volkswagen, or between Nissan and Chrysler... VERY Mexican industries. The fourth indicator is the PRI’s path: When you analyze 70 years of PRIism the “modus operandi” has been to raise all prices and when inflation really starts going on, devaluate the peso and tourism flourishes. And money gets into the country even if it goes to international hotels with representation in Mexico. Today prices have raised, (to start with the illogical and systematic raise of gas prices) the country is starting inflation indicators so the PRI’s “modus operandi” is bound to start any time soon.

Also, Mexico cannot generate enough jobs for the continuously growing Mexican population. So we ask for “foreign investment” so that we do not have an internal revolution because of job shortage.  So we will have all of our people working… of course, working for other countries and you better shut up because you have a job. It is in this context that the Mexican President went all over and the world and the conclusion was: We are cheaper and better than China and the BRICS.  But what if we are “still cheaper”?

Got the message? Who cares on the prices for the people, the point is to complete the presidential period without problems from the people. The Mexican handwork is for sale by the government but please do not talk of slavery.

Guillermo Ramon Adames y Suari is a former Electoral Officer of the UN

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