CaboRon
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Good News for US retirees in La Baja
American retirees purchasing power is still growing.
The exchange rate today is 10.8556 pesos for one US dollar.
YEA !!!
CaboRon
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DENNIS
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Good for us...Bad for them. On the other hand, the stock market is getting flushed again.
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Woooosh
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Think we'll see 12 pesos to a dollar soon then? The world economy is headed south fast (and I don't mean Baja sur).
\"The only thing necessary for the triumph of evil is for good men to do nothing\"
1961- JFK to Canadian parliament (Edmund Burke)
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bajajudy
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Ron
Think about the people who make $100pesos a day....that cuts into their buying power. I am not sure that I can celebrate that.
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Woooosh
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| Quote: | Originally posted by bajajudy
Ron
Think about the people who make $100pesos a day....that cuts into their buying power. I am not sure that I can celebrate that.
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Cuts off their buying power where? As long as they are paid in pesos and spend pesos- they are paying the same amount for goods and services. There
is inflationary pressure but that's not the issue.
What this means is more people will send money to their families back in Mexico now that he exchange rate is better.
\"The only thing necessary for the triumph of evil is for good men to do nothing\"
1961- JFK to Canadian parliament (Edmund Burke)
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CaboRon
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Wooosh,
You are absolutely correct ....
Thank you for clearing that up.
CaboRon
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bajajudy
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If the peso is worth less, they will be affected.
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DENNIS
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| Quote: | Originally posted by bajajudy
If the peso is worth less, they will be affected. |
I don't think the peso is worth less. The dollar is worth more in the exchange. It won't have an effect for the low end consumer unless buying
imported products.
Oh, well....I'm not sure that makes any sense to me either. I don't know anything about money. I just spend it.
[Edited on 9-17-2008 by DENNIS]
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Diver
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Here's my take:
The pesos is not worth less in the short term if spent in Mexico than at 10:1.
The dollar currently buys more than it did at 10:1 (for the short term).
If spent in the US, what was $100 US worth of pesos at 10:1 is now worth only $92 in the US.
This would negatively affect those earning in Mexico and spending in US border towns.
The reverse would apply to those earning in the US and living in Mexico.
Given a continuing decline of the pesos vs the dollar, the price of goods coming from the US will eventually increase in Mexico and that WILL affect
not only the Mexicans but the expatriots as well.
In addition, if the cost of US goods increase to the locals, they will have to increase their prices for other goods to compensate.
Don't cheer too long, Ron !
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slimshady
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Its all even because they all still calculate 1 dollar for 10 pesos. So all those times they short changed us on the exchange rate makes us now even.
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slimshady
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Maybe construction costs and real estate prices will be lower since apparently the world economy is hitting the skids. The Euro and Yen are feeling
downward pressure also, therefore less European and Chinese investments.
It is said that when America sneezes the world catches the cold.
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Cajones
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More important to the average Mexican is that the inflation rate is running around 6% right now. If there is no corresponding adjustment in the
minimum wages, people are going to get squeezed. Calderon asked for a "voluntary" freeze on the price of food staples, but it did not hold.
Furthermore, the price of oil has dropped almost 40% this year and oil is Mexico's No. 1 revenue source. Even worse is that Mexican oil production and
exports are falling off steeply in volume as well as price. A double whammy.
Since oil and most of Mexico's food exports to the US are priced in dollars, the weak peso is taking a lot out of the economy.
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Baja-Brit
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At todays rates,
£1 sterling buys 19.6833 pesos
Now thats buying power! 
Actually thats down, it was around 21 pesos mark.
As you were.
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Hook
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This rise in the dollar is only a technical rally.
When we see the extent of the bailouts needed, the dollar will drop to levels lower than it was just a few months ago.
If the nation's largest INSURANCE COMPANY can fail, anything can.
It's probably about time to move back into commodities again, unless the world's economies cant recover and demand simply falls off the table. But I
doubt that will happen. There are too many emerging economies in Asia, S. America, etc.
I have ultra-conservative friends who think this is the start of the move towards a North American currency. Who knows? One thing is certain, it's
pretty scary.
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SDRonni
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I'm beginning to think Chicken Little is right...............
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bacquito
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confuzin', amuzin' and scary!!
bacquito
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woody with a view
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| Quote: |
Furthermore, the price of oil has dropped almost 40% this year and oil is Mexico's No. 1 revenue source. Even worse is that Mexican oil production and
exports are falling off steeply in volume as well as price. A double whammy.
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BUT, i'm pretty sure mexico didn't re-do their budget using those +40% numbers....they got a bump, now things are settling to their "new" normal
levels.
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Udo
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| Quote: | Originally posted by woody in ob
| Quote: |
Furthermore, the price of oil has dropped almost 40% this year and oil is Mexico's No. 1 revenue source. Even worse is that Mexican oil production and
exports are falling off steeply in volume as well as price. A double whammy.
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BUT, i'm pretty sure mexico didn't re-do their budget using those +40% numbers....they got a bump, now things are settling to their "new" normal
levels. |
| Quote: | Mexico's economy just got a major economic boost:
There was $26,000,000 U.S. left by the soldiers in a drug siezure raid in Sinaloa |
Udo
Youth is wasted on the young!
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woody with a view
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$26M? what's that, 3 pesos per mexican? yeah, that IS quite a boost. just enough to rehab la mesa prison.
i wonder how much was there before it was "discovered"?
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Udo
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There were no news on soldier's arrests for confiscating some of the confiscated money.
By the way, OSO, you may know Eduardo de La Pena, from Tijuana. He's not a well-to-do individual, but he was just warned in an intersting phone call
about his possible kidnapping in the very near future.
Udo
Youth is wasted on the young!
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