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gnukid
Ultra Nomad
Posts: 4411
Registered: 7-2-2006
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| Quote: | Originally posted by tripledigitken
Holding out for some level of peso to jump in on?
Do so with extreme caution, IMHO.
Buying at 12:1 two days ago would be showing a 14% loss or more today. All the while the dollar is on a 7 month high against most western currencies.
Ken |
For those who are paying local labor and services, please be kind, generous and patient with your payments to Mexicans. This is a very stressful
circumstance for everyone on limited budgets and it doesn't pay to be a harsh enforcer of exchange rates in your local community, especially since the
changes are in our favor at least they appear to be, for your daily purchases any rate in the general range would be fair.
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Woooosh
Banned
Posts: 5240
Registered: 1-28-2007
Location: Rosarito Beach
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Mood: Luminescent Waves at Rosarito Beach
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If it hits 14 again clear the streets! I don't want anyone in the way when I'm driving to the bank that fast! lol
\"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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gnukid
Ultra Nomad
Posts: 4411
Registered: 7-2-2006
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Tis a good chance to buy a few cases of beer for your pals! Wahooo peso devalu/hurricane party 2008!
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Cypress
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Location: on the bayou
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Mood: undecided
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Does this mean that my Mexican friends pesos buy less? Or only that the good 'ole US dollar buys more?
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Cajones
Banned
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Registered: 9-13-2008
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When the peso hit 14:1 today, the Bank of Mexico intervened by selling $2.5 billion of US greenbacks and buying pesos to stabilize the peso. That's
why the peso fell from 14 to 12 within a few minutes. I don't know how long or how often they can do that, as they are peeing away their foreign
reserves.
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Baja-Brit
Nomad
Posts: 138
Registered: 8-28-2008
Location: London, England & La Paz
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Mood: Happy in Baja!
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1.00 GBP = 21.1434 MXN
Happy Days! 
As you were.
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Tiomiguel
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Registered: 8-15-2006
Location: Ontario
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Interesting that the rest of the world currencies are falling, like Canada and Mexico, Brazil is really bad, including UK and Euro but the US dollar
is rising.
Part of Canada and Mexico problem is that our dollars are to a large extent petro dollars, so when oil gets back down to where it should be, ie. $85
to $90, it has an impact on our dollar.
This is not all the explanation for why the US dollar,( in the admittedly in troubled economy of the US), should increase so much against more
fiscally responsible countires, ie. Canada, Germany etc. Seems like when the US catches a cold, some of us catch pneumonia.
The rest of the story may be that the American financial institutions, hedge funds, investors etc. need to bring their foreign investments back to the
US to shore up their own financial situation. This means that money is flooding out of other countries back to the US to protect their position in
the US. This demand for US dollars and selling of other currencies is part of the reason why the other currencies are falling. Our American friends
need their money back at home now and are pulling out of the markets around the world.
When the dust settles, it makes more sense for the US dollar to decline relative to the other currencies somewhat when everyone realizes the huge
deficits that the war and financial propping up in the US gets tallied up. So maybe now is a pretty good time to buy the Peso, as their subprime
problem is pretty much non-existent and the people live more day to day. Who Knows.
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slimshady
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Posts: 291
Registered: 9-3-2008
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I consider this whole financial adjustment a necessary evil for all the american homebuyers who bought homes they could barely afford or lied on loans
to get. I also feel that in my many visits to mexico the last couple of years people began to assume that we americans were multibillionaires. gold.
Its time for a reality check and financial hardships that will bring things to a more realistic levels. I will be buying pesos and will spend my pesos
when i go down this month.
I am particularly speaking of the real estate/ construction market of southern baja where prices are made based on the customers tolerance for pain. I
feel for the average person on the street.
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BajaRob
Senior Nomad
Posts: 722
Registered: 9-15-2003
Location: Bahia Santa Maria y Newport Or
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Mood: Life is good
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11.5 pesos
to the dollar at 2 o PM in Calexico today. I hope that the trend continues. Go
US Dollar.
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shari
Select Nomad
Posts: 13050
Registered: 3-10-2006
Location: bahia asuncion, baja sur
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Mood: there is no reality except the one contained within us "Herman Hesse"
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Boy was I smart to wait to exchange my hard earned US dollars till today...I got 12.62 at BAncomer!!! yupppie.
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gnukid
Ultra Nomad
Posts: 4411
Registered: 7-2-2006
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| Quote: | Originally posted by slimshady
I consider this whole financial adjustment a necessary evil for all the american homebuyers who bought homes they could barely afford or lied on loans
to get. I also feel that in my many visits to mexico the last couple of years people began to assume that we americans were multibillionaires. gold.
Its time for a reality check and financial hardships that will bring things to a more realistic levels. I will be buying pesos and will spend my pesos
when i go down this month.
I am particularly speaking of the real estate/ construction market of southern baja where prices are made based on the customers tolerance for pain. I
feel for the average person on the street. |
The amount of money which accounts for loans which are being defaulted upon is about 100 billion and in no way represents the main issues of this
crisis. As you recall the amount in the false bailout has already exceeded a trillion and is unlimited and shall exceed 1000 trillion. Banks sold loan
securities as investments and bet on the futures of these to a degree which was capitalized 50:1 meaning the bankers were way over leveredged far more
than individual average home owners loans.
Furthermore, the treasury and the fed reserve combined over the last 10-50 years to fuel the market with money based on nothing-no assets-no gold, as
they have since they created the federal reserve-which is a private bank that sells debt as dollars to consumers.
Consider looking into with more than a cursory main stream media perspective. Investigate the credit market, fractional banking and the dollar and
you'll be very surprised to find out what the dollar is-its debt.
I do not have a horse in this race so do not blame it on me, I do not have a bad loan or mortgage. I do not work in banking. But clearly these guys
are crooks, they are going for broke, the actions of the fed and the large banks amount to fraud and theft from you.
They are flooding it to themselves and offering it as debt to you while they gather the title to your assets.
We are seeing inflation at a rate which is never before seen, the true cost of living is double from a year ago. Inflation is a tax on you.
Its time to wake up.
Here is a new video called Zeitgeist Addendum-while I do not agree with its conclusions it does shed light on the Federal reserve and US Dollar
banking as a point of discussion. Good luck.
http://video.google.com/videoplay?docid=7065205277695921912
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Cajones
Banned
Posts: 81
Registered: 9-13-2008
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| Quote: | Originally posted by Tiomiguel
This means that money is flooding out of other countries back to the US to protect their position in the US. This demand for US dollars and selling of
other currencies is part of the reason why the other currencies are falling. Our American friends need their money back at home now and are pulling
out of the markets around the world. |
I'm afraid you got that analysis wrong Tio. What you are witnessing today is called a "flight to quality" In times of uncertainty, people take their
money out of risky securities and put them where they are considered safer. They will also take their money out of risky countries and move it to
safer countries. Right now, the entire world is moving into dollars.
You can tell by looking at the Treasury Yield Curve. Today, 1-month Treasuries are yielding 0.23% (that is about 1/4 of 1%). It is not that our
American friends need their money back home, it is that everybody considers US Treasury debt the safest place in the world.
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Cajones
Banned
Posts: 81
Registered: 9-13-2008
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| Quote: | Originally posted by gnukid
We are seeing inflation at a rate which is never before seen |
No we are not. During the last two years of Jimmy Carter's administration, inflation was hitting 14%. Current inflation is around 5%.
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gnukid
Ultra Nomad
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Registered: 7-2-2006
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| Quote: | Originally posted by Cajones
| Quote: | Originally posted by gnukid
We are seeing inflation at a rate which is never before seen |
No we are not. During the last two years of Jimmy Carter's administration, inflation was hitting 14%. Current inflation is around 5%.
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Keep telling yourself lies, accept the gov economic numbers, refuse to acknowledge the reality. If it feels good. Are you convincing yourself yet?
For me my cost of living doubled, gas went up, travel costs, milk, eggs, cereal, bread are nearly double from just over a year ago.
The true numbers for unemployment, inflation, goods etc has nearly doubled in a about a year while the gov published numbers do not reflect the
reality.
This is hardly our biggest concern in light of other issues such as the increase in military spending budgets and its cost of life, the militarization
of of world, the introduction of GMO, loss of diversity, increases in prisons and incarcerated people, failure of education to create critical
thinkers who graduate.
But keep telling yourself, its fine, we are fine. No problem-even on a day when the peso fluctuated 25% in one day, no problem. 5% yearly
inflation-repeat-5% yearly inflation-repeat-5% yearly inflation-repeat. I feel good.
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fishbuck
Banned
Posts: 5318
Registered: 8-31-2006
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So anybody catching any fish anywhere. How about cold beer. Anybody know where to get cold beer?
"A ship in harbor is safe, but that is not what ships are built for." J. A. Shedd.
A clever person solves a problem. A wise person avoids it. – Albert Einstein
"Life's a Beach... and then you Fly!" Fishbuck
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woody with a view
PITA Nomad
Posts: 15940
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Location: Looking at the Coronado Islands
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Mood: Everchangin'
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| Quote: |
Anybody know where to get cold beer?
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Hook
Elite Nomad
Posts: 9011
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Location: Sonora
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Mood: Inquisitive
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Ballena sighting................no where near San Ignacio!
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Cajones
Banned
Posts: 81
Registered: 9-13-2008
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| Quote: | Originally posted by gnukid
Keep telling yourself lies, accept the gov economic numbers, refuse to acknowledge the reality. If it feels good. Are you convincing yourself yet?
For me my cost of living doubled, gas went up, travel costs, milk, eggs, cereal, bread are nearly double from just over a year ago.
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You live in Mexico and are talking about Mexican prices and inflation, right? You need to meet with oxxo. He insists Mexico, specifically Cabo, is
cheap. You two need to get on the same page.
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BajaGringo
Ultra Nomad
Posts: 3922
Registered: 8-24-2006
Location: La Chorera
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Mood: Let's have a BBQ!
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| Quote: | Originally posted by Cajones
It is not that our American friends need their money back home, it is that everybody considers US Treasury debt the safest place in the world.
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Safe until China decides to start dumping a few trillion that they hold. T-Bills is not something that I would personally recommend right now based on
the current state of financial affairs...
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CaboRon
Ultra Nomad
Posts: 3401
Registered: 3-24-2007
Location: The Valley of the Moon
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Mood: Peacefull
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Friday's peso still dropping
13.61 !!!!
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