Collapsing Mexico

villa and zapataCollapsing Mexico was not the intent of Lawrence Summers, Obama’s new US Secretary of Treasury, but he has pulled it off BIG! Mexico’s economy today is shedding hundreds of thousands of badly needed jobs and is providing negative economic growth to its continually growing population rather than any positive numbers. Lawrence Summers is the architect of that catastrophe, so let’s review his US-Mexican resume some for those who are unaware of it. And let’s see what might be in store for Mexico’s neighbor, the USA?

Lawrence Summers was Clinton’s offerer of the US government’s move to tie Mexico into the NAFTA con, and point man to convince the Mexican PRI dictatorship, led by Ernesto Zedillo, to totally tie their country’s economic and political cart to an elephant and a donkey from the North. The carrot was a ‘giant bailout’ loan offer of billions of US treasury dollars (>$55 billion to be more exact). Many of Mexico’s PRI tied business men jumped at the opportunity and headed towards behind the scenes funding of the actual setting up of an American style 2 party con game, instead of the holding tight to the one party regime they had been supporting for so many decades. The final result was an acceptance of the billions coming from the US and a turn to setting up the Vicente Fox-PAN into the Mexican White House (Los Pinos). National debt to the US was set as something to worry about in the future, meanwhile they planned to ride high on the hog short term, and they did.

But now the US sowed genetically altered corn is coming come to roost, as Mexico has become caught totally tied to the US economy as the international collapse of all the world markets is underway. Mexicans are returning from the US because they cannot find jobs in the collapsing US economy, and returning under-aware of Mexico’s collapsing economy. A dark storm is beginning to brew, and just last weekend several hundred thousand people demonstrated in the capital against their US government enforced upon them government. John Ross, America’s foremost commentator on Mexican politics, writes of the unfolding situation this week in his commentary When (Mexican) Millionaire Mummies Mourn
Davos vs. Belem; Swine vs. Pearls

Why should Americans care about any of this? Isn’t the US collapsing world economies (China, Japan, Russia, European, and so on),one on top of the other anyway? What’s so special about what the US con-omy is doing to Mexico? Well…….? It is simply the fact that Mexico and the US are so intimately tied to each other and have been for centuries now. Wither Mexico, wither Latin America as a whole, too? It’s a volatile brew that is being stirred. BANG!

Keep an eye on Mexico as the economic downturn continues. The US government is losing its authority to direct…. to direct the people of Mexico in their own internal affairs with the collusion of their corrupt death squad loving elites who follow the order of our US elites. Don’t believe for a second that this development will not impact our own political turmoil ahead. Mexico will always be the key ‘foregin’ society for Gringolandia, and its just South of our ‘Homeland Security’. We are in this mess our corrupt capitalists have created for the common folk all of us together, and it has become a brewing Cauldron, Presidente Calderon.

Mexico slides into political chaos

There is little news in the US press about it, but Mexico is beginning to sink into chaos. After stealing the Mexican federal presidential election in mid 2006 with US support, Felipe Calderon (FeCal), now acting president, began a struggle to obtain some public legitimacy by initiating a war with Mexico’s drug lords. He is now losing that war.

Of even more potential interest to the Mexican public as well as to the international public, is a split forming in the Mexican political establishment, exemplified by a new book by long time PRI leader, Roberto Madrazo entitled ‘La Traicion’ (The Betrayal). Madrazo book claims that Mexico was betrayed, as well as himself, by a secret pact made between previous Mexican presidents Ernesto Zedillo and Vicente Fox. He dates that secret pact as having begun in 1994.

The essence of that pact was to seemingly end the over a half century dictatorship of one party, the Partido Revolucionario Institucional or PRI, and to begin a planned-on ‘alternancia’, where political power would alternate between the PRI and PAN kind of like it does in the US between the Democratic and Republican parties. Except the pact was actually broken when Felipe Calderon followed Vicente Fox into presidential office, since both are from the same political party. Madrazo knows about this secret plot well, since he was a full participant to it when it was initiated. But he thought that it would guarantee him the presidency in 2006. Instead, he came in third, hence the ‘betrayal’.

But what political forces actually launched this secret plot? Roberto Madrazo dates this well and it is easy to follow the money. He dates the plot as beginning in 1994 and it was in precisely the time that the Clinton Administration and Mexican PRI government were negotiating an economic ‘bailout’ to stop the Mexican economic crash of that time. In 1995, the cash began to flow to the tune of over $55 billion dollars from the US into Mexico. What was purchased by the US government?

The US was sick of having ties to a corrupt Mexican dictatorship that had no world legitimacy. The European Union was formed as an economic bloc, but the US only had Mexico and Canada to work with, and Mexico had a most unsavory reputation. What was purchased by the bailout was an agreement to open up the Mexican system to another pro-big business political party, the Partido Acion Nacional or PAN. That way, the US would not be seen as dealing with a dictatorship.

The PRI establishment wanted some guarantees as to their future though, and Roberto Madrazo wanted the 2006 presidency to come back to himself. Well it simply didn’t, as change began to spin out of control of the PRI bigwigs in charge up to that time of all that was Mexico.

So where will the political chaos brake at? A lot will depend on what happens in the war of Mafias now engulfing Mexico. Presidente FeCal (Felipe Calderon) thought he had the best armed and best situated mafia. Perhaps not? Like Colombia, Mexico might now best be considered an evolving Narco-Death Squad state. Lots of dealing and wheeling gone bad. And FeCal as well as Roberto Madrazo may well fall to the wayside.