BajaNomad

Brexit causes Peso drop to 19.5187 to the dollar

wiltonh - 6-24-2016 at 03:51 PM

I see that Scotland is flying the Mexican flag due to some of Trump's comments and that the Brexit has caused the peso to drop again.

http://mexiconewsdaily.com/news/peso-hits-record-low-on-uks-...

Politics does have an effect on us whether we like it or not.

Bajaboy - 6-24-2016 at 04:42 PM

Quote: Originally posted by David K  
Great news that hopefully will cause more Norte Americanos to again take a Baja vacation!


Yes David, a wall street plummet is always good for tourism:?: Are you for real?!

David K - 6-24-2016 at 05:15 PM

Quote: Originally posted by Bajaboy  
Quote: Originally posted by David K  
Great news that hopefully will cause more Norte Americanos to again take a Baja vacation!


Yes David, a wall street plummet is always good for tourism:?: Are you for real?!


The subject of this thread is the drop in the peso value against the dollar. It is like anything that goes on sale, it is good for business!!

When the dollar can buy more pesos then it is a sale on Mexico travel for Americans.

Where is the stock market mentioned in the opening post? [stay on topic, as you would ask of me]

danaeb - 6-24-2016 at 05:25 PM

Yeah David. My 401K just went on sale today too.

Bajaboy - 6-24-2016 at 05:32 PM

Quote: Originally posted by David K  
Quote: Originally posted by danaeb  
Yeah David. My 401K just went on sale today too.


So you should buy more! Buy low, sell high, right?
[let's stay on topic... cheap pesos, not cheap stocks]


I guess you can't argue with simpleton logic:light:

rts551 - 6-24-2016 at 05:32 PM

Cheap peso for the tourist. Higher cost for Mexicans buying imports from the USA. Hurts the USA exporters and the Mexican consumer.

DENNIS - 6-24-2016 at 05:55 PM


Speculation isn't only reserved for the experts, is it.

fdt - 6-24-2016 at 06:00 PM

Quote: Originally posted by David K  
Great news that hopefully will cause more Norte Americanos to again take a Baja vacation!

You've always had that idea, historicaly your posts on the devaluation of the peso are always a good thing for the people.
The day you start understanding the culture and the people the way you do the mission sites, you will have a different mind set.
You can't even imagine how terrible this all is for the mexican economy and even worse for Baja California since we don't depend on Mexico as much for the basics as we do from imports.
I believe that you are really honestly thinking that the people of Baja California can't wait to see you back and expecting to pay them .50¢ for a beer you paid $1.00 a couple of years ago.
Do you think they are happy to know that instead of 10 pesos now they need 20 pesos to go buy the same pair of reading glasses at the dollar store?
That is what I mean when I say understanding them. I now it's hard for some people.
saludos

woody with a view - 6-24-2016 at 06:01 PM

so goes the world.... we need to shake things up! all of the Bernie backers gotta see the logic!

BTW, sold a bunch of AUMN this morning at .62 = 22% profit and by the end of the day bought it all back for .55 it's all about opportunities, seeing them for what they are and grabbing them by the neck!

chuckie - 6-24-2016 at 06:15 PM

LOL! Good term "Simpleton Logic" Gee, my 401 k and my investment portfolio and my pension fund all went down today...Guess I'll buy pesos and go on a Mexican Vacation..

David K - 6-24-2016 at 07:28 PM

I saw this as good news for Baja people if it brings south more tourists. I did not think of myself, as most of you have. So, that explains the negative I guess. Sure, stocks reacted to the British decision to become independent again. The change doesn't happen for 2 years, so I think they will come back soon, as investors will buy now.

mojo_norte - 6-24-2016 at 07:55 PM

Quote: Originally posted by David K  
The change doesn't happen for 2 years, so I think they will come back soon, as investors will buy now.



Huh ??

DENNIS - 6-24-2016 at 08:08 PM


Ferna........the retail price of imported goods will adjust to the dollar amount paid by importers. A walk through Costco, for instance, sees price changes daily. How does this immediately and directly affect the retail price of domestic products?
We've seem, just recently, the Peso/Dollar exchange soar from 13 to 19 to one, but gas and domestic beer [for instance] have stayed the same. I can't imagine PEMEX or Modelo taking a loss voluntarily.




.

[Edited on 6-25-2016 by DENNIS]

woody with a view - 6-24-2016 at 08:10 PM

UK has two years to formally give the EU the boot. stocks will recover (or not!) and this will be a distant memory by then.

rts551 - 6-24-2016 at 08:31 PM

Obviously, very hard for some to understand.

SFandH - 6-24-2016 at 08:58 PM

Quote: Originally posted by rts551  
Higher cost for Mexicans buying imports from the USA. Hurts the USA exporters and the Mexican consumer.


Bingo! The top 2 US export destinations are Canada followed by Mexico.

A possible scenario: Aeromexico may no longer be able to afford the 5 new Boeing jets it needs. The result, fewer jets than Aeromexico needs to provide good service and Boeing loses sales. It's a lose/lose situation.

What the US exports to Mexico, all of which cost Mexicans quite a bit more than it did a few years ago.

1. Machinery: $42.1 billion
2. Electronic equipment: $41.1 billion
3. Vehicles: $22.4 billion
4. Oil: $18.6 billion
5. Plastics: $16.5 billion
6. Medical, technical equipment: $6.7 billion
7. Iron or steel products: $5.2 billion
8. Organic chemicals: $4.8 billion
9. Aircraft, spacecraft: $4.3 billion
10. Iron and steel: $4.1 billion

http://www.worldsrichestcountries.com/top_us_exports.html

fdt - 6-24-2016 at 11:15 PM

Quote: Originally posted by DENNIS  

Ferna........the retail price of imported goods will adjust to the dollar amount paid by importers. A walk through Costco, for instance, sees price changes daily. How does this immediately and directly affect the retail price of domestic products?

It does not affect the domestic products, thing is that here in Baja California everything is more expensive than down in México since we don't get that much domestic product that has to be shipped all the way to us and we depend a lot on import and that is affected daily and not just Costco.
Quote: Originally posted by DENNIS  


We've seem, just recently, the Peso/Dollar exchange soar from 13 to 19 to one, but gas and domestic beer [for instance] have stayed the same. I can't imagine PEMEX or Modelo taking a loss voluntarily.


And you probably won't anytime soon and this is because you have to take into account the subsidies that gas has and in the case of beer, they depend on domestic grown cereal grains (that fermented makes your malted barley) and domestic hops, local water and domestic bottles, so 100 pesos remains 100 pesos.
The curious part here and I' glad you brought beer into the subject is that all this artisan / micro brewery boom that is happening in Baja California and not in México is because of the availability to purchase those cereals and hops via San Diego. Down south it's not that easy. So Ensenada, Tecate, Mexicali, Tijuana and as far south as Cabo San Lucas are seeing this new thing called "Cerveza Artesanal".
So Dennis, if 3 months ago, a sampling of 4 beers at any artisan brewery was 35 pesos, 1 month ago it was 45 pesos and with this new it might go up to 65 or 75 pesos, don't know but it must go up in order for these breweries to make some profit because even the bottles they us are imported.

So to sum it up, this is not about the people of Baja will be happy to see the nortemericanos back, that is bull caca and it always has been, they want their economy back. They are hard workers that are only asking to be able to have their money be of value.

micah202 - 6-25-2016 at 01:30 AM

.

...peso didn't drop at all,, USD gained strength on many economies, with the brits selling pound and buying USD

..precious metals surging too ;)


.

[Edited on 6-25-2016 by micah202]

fishbuck - 6-25-2016 at 02:52 AM

I thought DavidK's suggestion was a good one. Heck anytime is a good to vaca in Baja!
Anytime I think I can get a good deal on anything north or south the border... I sieze the day or capture the moment etc.
Anytime I benefit it's a good thing.
If I want to go to Baja and enjoy myself and spend a bunch of my hard earned money and if me having fun benefits someone in Baja... I'm ok with that.
But that's not why I went there.

[Edited on 6-25-2016 by fishbuck]

DENNIS - 6-25-2016 at 07:06 AM


Thanks, Ferna. I would never suggest any form of "carpetbagging".......taking advantage of an unusual conversion disparity, but if travel is more affordable, it might be a fair reconsideration. The US public has financial problems and restraints as well as does Mexico.
Perhaps your observations about the need for imports illustrates a more serious need for domestic manufacturing.
Micro breweries will be [if not already] depending much more on Amazon than So. Cal suppliers.
A last point....... I pay my domestic help, gardener and housecleaner, 600 pesos for fours hours of work, and so does everyone else around me. That's more than I made for half of my working life, so I'm fast losing my sympathetic motivation for the Mexican worker in this area.

chuckie - 6-25-2016 at 07:34 AM

Dennis, put into that perspective, makes one think a bit differently...I worked many jobs for a dollar an hour when I was growing up, and 150 pesos/hour is about or above what the US min wage is/was...Very good point!

DENNIS - 6-25-2016 at 07:47 AM




Yeah....it was a different time, Chuckie, but the point is still there. You start climbing a ladder from the bottom. I had my dollar an hour jobs too. [ I sure hope this doesn't morph into a "share the wealth" discussion]

AKgringo - 6-25-2016 at 08:46 AM

I worked after school, and on Saturdays for $1.25 per hour, minimum wage. I graduated in 1964, the last year that US coins were made of 90% silver.

At today's spot price for silver, the melt value of a 1964 quarter is $3.21, which bumps my old minimum wage to over $16 per hour!

edit; Just a reminder of what 'real money' is.

[Edited on 6-25-2016 by AKgringo]

mtgoat666 - 6-25-2016 at 09:07 AM

Quote: Originally posted by DENNIS  



Yeah....it was a different time, Chuckie, but the point is still there. You start climbing a ladder from the bottom. I had my dollar an hour jobs too. [ I sure hope this doesn't morph into a "share the wealth" discussion]


The economy is not big enough for all to climb the ladder. Many people are destined to spend their working life on the bottom rung. If we all climbed to the upper rungs, the ladder would collapse. Your house keeper, for example, may spend her life on lower rung. A liveable minimum wage is the right thing given the reality of inequalities in our society.

mjs - 6-25-2016 at 09:54 AM

Quote: Originally posted by mtgoat666  
Quote: Originally posted by DENNIS  



Yeah....it was a different time, Chuckie, but the point is still there. You start climbing a ladder from the bottom. I had my dollar an hour jobs too. [ I sure hope this doesn't morph into a "share the wealth" discussion]


The economy is not big enough for all to climb the ladder. Many people are destined to spend their working life on the bottom rung. If we all climbed to the upper rungs, the ladder would collapse. Your house keeper, for example, may spend her life on lower rung. A liveable minimum wage is the right thing given the reality of inequalities in our society.


So while I don't disagree with this statement, the problem becomes how to define "livable". Is that some basic food on the table and shelter? Or does it include steak dinners? Maybe a new smartphone? 60" flatscreen? Or the ability to buy a car and take a 3 week vacation?

Is a $15/hr wage livable? Or a $5/day wage? In some parts of the world $5/day would be way above livable.

So maybe the term "livable" needs to be taken in the context of the local economy and customs. What's livable in Africa may not be the same as China. Or India. Or Mexico. Or pick your country. Trying to extrapolate a North American sense of value or entitlement on the rest of the world's economies is unrealistic. And not economically sustainable on a global basis. Just some food for thought. YMMV.

As someone who lives in Baja and likes to travel I'll enjoy the strong dollar while I can. As someone invested in the market, I'll keep my market decisions separate from my travel plans even if they may have an effect on one another.

[Edited on 6-25-2016 by mjs]

fdt - 6-25-2016 at 10:09 AM

Quote: Originally posted by mjs  
the problem becomes how to define "livable". Is that some basic food on the table and shelter? Or does it include steak dinners? Maybe a new smartphone? 60" flatscreen? Or the ability to buy a car and take a 3 week vacation?



Also back then, the basic was all there was. You couldn't buy a smart phone or an iphone or a 60" flat screen or pay for cable or dish or buy a computer or a laptop or a tablet, you couln't even order pizza over the phone and so many other things simply because they didn't exist. So yes, you could afford to buy a car and take a family vacation. Just sayin

David K - 6-25-2016 at 11:05 AM

Quote: Originally posted by AKgringo  
I worked after school, and on Saturdays for $1.25 per hour, minimum wage. I graduated in 1964, the last year that US coins were made of 90% silver.

At today's spot price for silver, the melt value of a 1964 quarter is $3.21, which bumps my old minimum wage to over $16 per hour!

edit; Just a reminder of what 'real money' is.

[Edited on 6-25-2016 by AKgringo]


Not much change to 1976 when I earned $1.90 part time student min wage making pizzas at Straw Hat. The big bucks came when I made $5/hr in construction on weekends.

DENNIS - 6-25-2016 at 11:48 AM

Quote: Originally posted by AKgringo  

Just a reminder of what 'real money' is.



Fantasy wealth.

DENNIS - 6-25-2016 at 11:58 AM

Quote: Originally posted by mtgoat666  

The economy is not big enough for all to climb the ladder. Many people are destined to spend their working life on the bottom rung. If we all climbed to the upper rungs, the ladder would collapse. Your house keeper, for example, may spend her life on lower rung. A liveable minimum wage is the right thing given the reality of inequalities in our society.


If all were wealthy, conversely all would be poor.
We have an economic class structure. Venezuela and North Korea don't. Follow your dream....not mine.

chuckie - 6-25-2016 at 01:09 PM

Right on Dennis...AND I maybe didn't lust after an IPAD or such..It was a Leather Jacket like the Fonz, and a Pump shotgun...People have always had wants and aspirations...AND I went out and got more work...GIT ER DUN....

AKgringo - 6-25-2016 at 01:40 PM

I like the ladder analogy! I did not climb as high as I could have, or should have, but I am pretty solid where I am and can help steady it for others. I am pretty much done climbing, but I will be OK, as long as there is still a ladder!

I have members of my close, and extended family that are doing alright on their way up the ladder. A few others need to turn around and get back on it, and a couple that might as well just get out of the way because the choices they have made entitles them to just the scraps tossed down from those who have made the climb.

wessongroup - 6-25-2016 at 01:48 PM

Spot on AKgringo

elgatoloco - 6-25-2016 at 01:53 PM

Ditto!

fishbuck - 6-25-2016 at 02:04 PM

Be careful who you step on when climbing up the ladder of success... you may need their help on the way back down..

wiltonh - 6-25-2016 at 02:11 PM

My first job away from home was mowing lawns at one dollar per hour. I wanted a car so when I was 14, I saved up $300 and purchased a 1928 Model A Ford. In Washington you had to be 16 to have your name on the title so my mother put her name on it. We purchased the car from the original owner.

I have now owned that car longer than the original owner. It is still sitting in my garage and over the last few months, I have purchased a new battery and will have it back on the road shortly.

It is an experience that I wish, I could give to my grandson.