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Author: Subject: GAS PAINS.......ONE POSSIBLE EXPLAINATION
DENNIS
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[*] posted on 1-6-2017 at 07:09 PM
GAS PAINS.......ONE POSSIBLE EXPLAINATION



If this is repeatedly redundant, forgive me.



http://www.forbes.com/sites/timworstall/2017/01/02/mexico-de...




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[*] posted on 1-6-2017 at 08:36 PM


Nothing that a Tums tablet couldn't fix.
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[*] posted on 1-6-2017 at 09:07 PM


Well, that is a reasonable article.... if you were to take out the complete and absolute corruption of even the bare cost making it's way back to the public some how.

I dunno.... it ain't a perfect political world down here.... unless you're a politician!

Wait until electricity is deregulated.... that's gonna really kick people in the naugles.
Of course, if you read the articles from the last year or so regarding this it is going to lower prices for electricity......

:biggrin:
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[*] posted on 1-7-2017 at 07:43 AM


Since the year I started coming down here in 69, the government has seldom been distinguishable from a criminal conspiracy.

It's a bit better at the local level as the local cops are part of the communities so there are some limits to their behavior.

A far deeper problem is the lack of any sort of a progressive tax system that actually yields any money from the sometimes rather well to do.

Generally the richer you are the more you are subsidized by the government. (Gee! Sound like at home.) Got money? You get the street fixed in front of your house.

Gas prices don't matter much at all to me but they sure affect the panga fishermen! And a shortage stops them dead. They have no resources or facilities to store any significant quantity of fuel.

I'm a guest here and I try to be a good one. Refuse change much of the time. Pay top dollar for workers. Tip generously.

I get cranky with a few of my neighbors who whine about what I pay. "Ohh! You'll drive up their expectations!" Like $3.50 an hour is going to feed much of a drug habit?

I'm a violent opponent of predatory capitalism but in my 73 years I have never seen a centrally planned economy work. Life is too complicated.

Enough snorting and complaining. Time to go riding.
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[*] posted on 1-7-2017 at 07:55 AM


Good read Dennis....I agree with most all of it...Thanks



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[*] posted on 1-7-2017 at 08:46 AM


Thanks Dennis! Great article. When you add this to the selling off of nearly a $billion USA to stabilize the Peso, this week, you see Mexico is serious about their economic woes.

I wonder if it wouldn't be better to use their refineries more and then sell the good stuff instead of the crude? It would require an investment in more machinery, but it would provide jobs, and bring in more money than the crude. Thus getting more money to the people. Or, most likely, that money may just stay in the pockets of big oil, so no go!
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DENNIS
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[*] posted on 1-7-2017 at 09:19 AM


Quote: Originally posted by Nashville Frank  

I wonder if it wouldn't be better to use their refineries more and then sell the good stuff instead of the crude? It would require an investment in more machinery, but it would provide jobs, and bring in more money than the crude. Thus getting more money to the people. Or, most likely, that money may just stay in the pockets of big oil, so no go!


I believe there's a compound problem here, Frank. Mexico doesn't [as they claim] have money for an upgrade of the oil infrastructure.
Add to that, the emotional outcry from the citizenry to avoid foreign investment in the oil industry. It wouldn't go well, especially on Expropriation Day. Throwing out the foreigners was and is a national symbol.

https://en.wikipedia.org/wiki/Mexican_oil_expropriation




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[*] posted on 1-7-2017 at 09:31 AM


Quote: Originally posted by DENNIS  


I believe there's a compound problem here, Frank. Mexico doesn't [as they claim] have money for an upgrade of the oil infrastructure.
Add to that, the emotional outcry from the citizenry to avoid foreign investment in the oil industry. It wouldn't go well, especially on Expropriation Day. Throwing out the foreigners was and is a national symbol.

https://en.wikipedia.org/wiki/Mexican_oil_expropriation


You are correct. I know of this xenophobic tradition, I learned about in my school boy days in California. But its not healthy.

Didn't it also lead to the ejido land structure that gives everyone fits?
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[*] posted on 1-7-2017 at 10:59 AM


Same president, same left of everything solutions........government control of everything.



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[*] posted on 1-7-2017 at 05:06 PM
Mo Mex Woes on the Way


Wait until they get the Bill for the Wall.
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[*] posted on 1-7-2017 at 05:09 PM


As of noon today 1-7-17 all stations in Santa Rosalia are pumping with no lines.
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DENNIS
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[*] posted on 1-7-2017 at 05:26 PM



Maybe they didn't get the memo? :lol:




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[*] posted on 1-8-2017 at 10:20 AM


The article doesn't take into account that 1/3 of the fuel price in Mexico is taxes. The country is taxed to death, much of which goes to line the pockets of corrupt politicians, if they really wanted to get their fiscal house in order, they would tackle that problem, instead of constantly trying to squeeze more out of the people.



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DENNIS
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[*] posted on 1-8-2017 at 12:45 PM




Well...I don't get it. The price of gas goes in two directions. Part goes to the station franchisee....a large part in fact, to make their investment profitable, as well as encourage new investment in station franchises, making station operation unnecessary for Pemex,...and the second part goes to Pemex. All of that portion must be considered tax since a tax by any other name is still a tax.




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[*] posted on 1-8-2017 at 01:25 PM


Government corruption will not end spontaneously any time soon or ever, unless and until the people, the majority of the electorate, decide to do something about it.

It is entirely within the Mexican electorate's power to do something about the corruption in their government. They collectively and with adequate popular consensus have to first "decide" to do something about it with their vote and then do the work and exercise requisite vigilance and scrutiny of future nominees and current office holders and then vote accordingly. That all takes a majority group "will" to do that by the people themselves.

So far, the collective interest and will of the Mexican electorate are not currently sufficient, nor have they ever been sufficient to do the work of nominee scrutiny nor has the majority of the Mexican people been willing to do sufficient and adequate vigilance and scrutiny of current office holders.

A successful democracy takes work, majority will, vigilant information gathering and perpetual scrutiny of current and future elected office holders and the intelligence, knowledge and understanding of the salient issues and a collective will to consistently accept the results of the elections by recognizing the right of the victors to hold and execute the duties of the office that they were elected to, whether they were from their party or not.

So far, as in the past, I do not and have not seen evidence of the will of the majority of the Mexican electorate to do the work that is required about their corrupt government in meaningful terms as described above.

It's on them, the people, the electorate.

A democratic government does not change spontaneously. Government corruption only reduces when the people elect corrupt free politicians on a perpetual basis...and that takes work and vigilance by the electorate.

I normally do not support slogan philosophy, but the old saying that "people get the government that they deserve" I believe has some gravitas regarding this issue.


[Edited on 1-8-2017 by MitchMan]
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[*] posted on 1-8-2017 at 02:06 PM


Part of the reason that Mexico ranks so badly in the world with regard to wealth disparity is because of their taxing practices. A 16% IVA together with hiding the IVA by inclusion in the total of stated and advertised prices, AND their leniently low marginal income tax rate, not to mention the packing of the price of gasoline with taxes are all measure that are so "regressive" that they perpetuate the aforementioned disparity.

Severe disparity of income and wealth itself are giant downers to the economy...any economy, as the vast majority of accredited economists world wide have noted.

BTW, Mexico is in the top 2 in the world with income disparity...the USA is number 3. But, what is worse is that the USA is #1 in the world in wealth disparity.

[Edited on 1-8-2017 by MitchMan]
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DENNIS
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[*] posted on 1-8-2017 at 02:12 PM



Up to 60% of Mexico’s workers don’t pay taxes and the government doesn’t dare go after them..................



https://qz.com/125708/why-mexicos-tax-reforms-wont-apply-to-...

[Edited on 1-8-2017 by DENNIS]




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[*] posted on 1-8-2017 at 02:18 PM


Quote: Originally posted by monoloco  
The article doesn't take into account that 1/3 of the fuel price in Mexico is taxes. The country is taxed to death, much of which goes to line the pockets of corrupt politicians, if they really wanted to get their fiscal house in order, they would tackle that problem, instead of constantly trying to squeeze more out of the people.


Taxed to death? Little income tax (and huge underground economy), little property tax..... does not equate to taxed to death.....

Fraud yes, Huge capital and business/corporate tax yes, IVA that hits people hard yes.......
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[*] posted on 1-8-2017 at 02:36 PM


For those 60% who are poor, the government should adopt a tax policy that exempts them from income tax, all else should be pursued with reasonable collection policies. Those poor in the 60% already pay 16% of their income in the form of IVA as much of their expenditures are subject to IVA at point of sale.

"Up to 60% of Mexico’s workers don’t pay taxes and the government doesn’t dare go after them.................."
All the more reason to tax the wealthy even more in order to make up for lost uncollected revenue. This would make taxation policy more practical. As a previous tax analyst, the income tax policy, rules, codes and regulations use "practicality" or more correctly stated, "wherewithal" as one of the several tenets that tax law is predicated upon. Then, when Mexico comes down in world ranking in income and wealth disparity, then changes to tax policy would be in order to maintain a decent world ranking (together with other policies) instead of the indecent shameful world ranking it currently has.

Did I mention that the USA ranks #1 in the world for wealth disparity?
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[*] posted on 1-8-2017 at 03:29 PM


Taxes??? my property taxes went from $2,000 to $15,000 this year. I'm in the process of having that changed but HOLY _ _ _ _ what are they thinking? GRINGO!



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