If Mexico & The Global South - Are To Save Its Economy?

  • from being plunged into austerity, place inflation, unemployment, and social chaos, they have to suspend their payments on foreign debts denominated in dollars,
2 Likes

Michael Hudson I think is correct here

1 Like

Hudson makes some sound observations. With DJT itā€™s hard to tell how much is bluster / narrative creation, and how much he really will be satisfied within the ā€˜dealā€™ struck. There will be all sorts of short term displacements / disturbances and then things will adjust. Listening to a precious metals show this morning and there is a rush to get metals moved across borders into the US before any tariff goes into effect. But the demands on Mexico and Canada are not that onerousā€¦stop illegal immigration. Stop the flow of drugs. These are reasonable and do-able things. I expect the tariffs to go away pretty quickly once reality sets in to these nations that they have to behave responsibly or face consequences.

On impoverishing their nations to repay debt on money printed from thin air I am for some reason reminded of the Guy De Maupassant story ā€˜The Necklaceā€™ where a couple impoverished themselves working multiple jobs to pay for (buy a replacement for) a borrowed (lost) party necklace only to find years later that it had been a fake, not real diamonds.

2 Likes

I find Hudsonā€™s breath & scope of economics a solid foundation.
Whereas, Paul Craig Roberts knows how the policy drills down - into reality.
Dr. Farrell provides the unseen realities; that nether of the other two mention.
Whether they are aware of what is being kept secret or not, I donā€™t know.
Yet, when Dr. Farrell and Catherine Austin Fitts discuss these matters;
I find having Hudson & Roberts viewpoints, adds more to the overall picture.

Still, as all will attest to: itā€™s a crap shoot as to what will happen.
An open system with just too many moving parts.
Plus, the wild card - the off-world Joker[s] in the deck.

I remember reading that years ago. Good analogy.

The story I remember reading was by Steinbeck.
I was taken by the writing & the story.
Like Hitchcock; there was no definitive ending.

There may be a similar Steinbeck story, IDK.

In ā€˜The Necklaceā€™ (a short storyā€¦quick readā€¦but Iā€™ve spoiled it telling the end) a middle status young woman/husband borrow a special (apparently) diamond necklace from a wealthy friend for a party. In the horse-drawn cab on the way home the necklace is lost. In a panic, the couple finds a close enough replacement from a jeweler and heavily indebts themselves to pay for it. He works two jobs, she takes in laundry and seamstress work to make payments on the note. They disappear from society. In the end their lives have been ruined repaying the extravagant debt from that failed loan. She lost her beauty, vigor, youth. She and her friends cross paths far into the future and her friend notes her condition. She confesses the loss / debt to replace the borrowed diamond necklace. And her friend comments ā€œBut my dear, it was only pasteā€ (fake diamonds).

The take away here is be as responsible as you can be but donā€™t wreck your nation/country repaying debts that were issued under dubious circumstances using a currency that cost the lender basically a keystroke to create. The WEF is famous for working itā€™s way into control of a nationā€™s resources making loans they donā€™t believe the nation can pay. We all know this story.

1 Like