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ncampion
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I agree with the aguachico, I don't see why any price in Mexico is fixed in dollars. I always ask for the price in pesos, although my fido fee is in
dollars and they wouldn't even quote me a price in pesos (this was five years ago).
BTW it's not the weak peso that is causing the climb in exchange rate, it's the strong dollar. The US dollar is up against just about every currency
in the world right now.
Living Large in Loreto. Off-grid and happy.
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Sweetwater
Senior Nomad
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Mood: chilly today hot tomale
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As oil drops and the dollar strengthens, I think we'll see 15 this week....I hope you get paid in USDollars.....
USD-MXN 14.9480 0.1096 0.74% 16:51
Everbody\'s preachin\' at me that we all wanna git to heaven, trouble is, nobody wants to die to git there.-BB King
Reality is what does not go away when you stop believing in it. -Philip K Dick
Nothing is worse than active ignorance. Johann Wolfgang von Goethe(1749-1832, German writer, artist and politician)
When choosing between two evils, I always like to try the one I\'ve never tried before. - Mae West
Experience is what keeps a man who makes the same mistake twice from admitting it the third time around.
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chuckie
Elite Nomad
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MY dad was a Bishop in the church of the I J D M......It just don't matter....Its mexico, pay in pesos...geez, much ado about NADA....
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bajabuddha
Banned
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Quote: Originally posted by chuckie  | | MY dad was a Bishop in the church of the I J D M......It just don't matter....Its mexico, pay in pesos...geez, much ado about NADA....
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Double-Ditto. Yakkity-yack. Price stickers still go up; all balances out, EXCEPT for local's wages. Tip more.
I don't have a BUCKET LIST, but I do have a F***- IT LIST a mile long!
86 - 45*
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Hook
Elite Nomad
Posts: 9009
Registered: 3-13-2004
Location: Sonora
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| Quote: Originally posted by ncampion | I agree with the aguachico, I don't see why any price in Mexico is fixed in dollars. I always ask for the price in pesos, although my fido fee is in
dollars and they wouldn't even quote me a price in pesos (this was five years ago).
BTW it's not the weak peso that is causing the climb in exchange rate, it's the strong dollar. The US dollar is up against just about every currency
in the world right now. |
And you wonder why some businesses fix prices in dollars, after saying this?
Because they hope you will pay in actual dollars, which are much more valuable. And if you decide to ask for the peso equivalent, they will stick you
with a bad exchange rate, and pocket the difference.
Yes, pay in pesos, but do your own exchange. And be smart about how you do the exchange.
Almost 15 to 1 right now.........
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aguachico
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All businesses should have a fixed peso rate for goods and services.
It should be a political mandate because mexican people are paid in pesos and not dollars. The income they receive is not adjusted to the dollar.
I hear businesses say, "a large percentage of our customers are from the US, so we have a fixed rate in dollars" That is the biggest bunch of crap.
They can do the conversion from dollars to pesos and visa-versa.
Some services based from ensenada and north quote their services in dollars and it's a ripoff. I would like to see, just briefly, the peso go strong,
9:1 or 8:1 and then see what those businesses do the their fixed dollar rate and their sudden excuse for changing it.
Better yet, businesses posting the dollar rate need to say say this rate was based on the a peso rate of x:x on date x/x/xxxx.
yeah right...
Got 14.7 again last night.
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Hook
Elite Nomad
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I believe it IS a legal mandate in Mexico, that prices be shown in pesos.
But it's like SOOOOO many things in Mexico; who is going to enforce it?
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Hook
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Crude cratering again, today. Down in the 48s, right now. Could these unbelievable predictions of 30.00/barrel be true??
But the peso seems to hit a ceiling near 15 and then backs off............at least for now. Looney getting pummeled again.
Ten year note back below 2.00%. WOW!!!
If you have dollars, it's looking to be a good year to travel, internationally. Airlines should begin reducing some fares, as competition takes over.
I dont think I would be booking any expensive flights right now. Prices could be less, later in the year.
I'm thinking Argentina, Buenos Aires, Mendoza Valley.............dollar is near yearly highs against the Argentinian peso.
Sure would be nice to see Catena Zapatas and Altas come down a bit. 
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MitchMan
Super Nomad
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The internet Visa credit card exchange rate and the internet Mexican government exchange rate are identical today: 14.9469.
Airfare prices in the upcoming future will be an interesting case and illustration of how markets behave in the real world. One of my economics
professors did his dissertation on airline pricing and he used airline pricing to illustrate to us students how pricing in markets actually works.
One thing to know is that prices are determined by markets and not by cost to produce a product. Prices are set at levels that maximize profits.
There have been times when businesses or entire industries for that matter do not always know what the actual consumer demand is at a given price.
Another way to say that is, sometimes industries guess wrong about how much they can sell a product at different prices.
When gasoline prices jumped as the result of the oil crises of 1973 and 1979, the industry saw just how "inelastic" the demand for gasoline and oil
products were which means that the industry saw that even if they set prices high, people were still willing to buy almost as much oil product as when
the prices were much lower. REMEMBER that those two crises in 1973 and 1979 were not caused because the cost to produce oil jumped by 4 to 10 times
from one day to the next but because OPEC arbitrarily reduced production and increased prices reacting to geopolitical events only.
Once the industry learned that they could get those high prices, pricing, for the most part changed to much higher levels for the future...not because
of cost to produce. Same thing with coffee, in the early 2000s, the price of coffee at specialty shops exposed the public's willingness to pay really
high prices.
For the last 10 years, the airlines have used the high price of fuel to justify raising rates, particularly recently. Now that the excuse of high
priced fuel has evaporated, don't think for one minute that the price of airfares will change in proportion to reduced costs of fuel.
The airlines have gained great knowledge about what people will pay, that is, the airlines are better familiar with the exact "demand curve" of us
consumers (demand, as in 'demand and supply' is actually a curve, not a static point or static price). They have ingeniously employed multipart
pricing with a little bit of divide and conquer to start charging for things that they never charged extra for before. Don't expect that to
disappear either.
Business is business, and that is the American way. It is a reflection of pure self-interest inherent in laissez-faire capitalism. That is the
mission and sole agenda of business in America and in the world.
It's all perfectly legal; our laws were purposely constructed to allow it.
Caveat emptor.
[Edited on 1-6-2015 by MitchMan]
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Sweetwater
Senior Nomad
Posts: 915
Registered: 11-26-2010
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Mood: chilly today hot tomale
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| Quote: Originally posted by chuckie | | MY dad was a Bishop in the church of the I J D M......It just don't matter....Its mexico, pay in pesos...geez, much ado about NADA....
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Well, my 87 yo dad is still running his church....and he continues to explain that his life style is important to him so paying attention is
fundamental to that religion.
The peso is off by about 15% over the past 4 months which stings if you are paid in pesos. The ruble is off over 35% over that same time....and that's
what is predicted for the peso. If the exchange hits 19 per USD, that's devastating (that's what has happened to the ruble). A prolonged period of Oil
price weakness could start some social upheavals in several spots on the globe. Maybe then it will matter?
Everbody\'s preachin\' at me that we all wanna git to heaven, trouble is, nobody wants to die to git there.-BB King
Reality is what does not go away when you stop believing in it. -Philip K Dick
Nothing is worse than active ignorance. Johann Wolfgang von Goethe(1749-1832, German writer, artist and politician)
When choosing between two evils, I always like to try the one I\'ve never tried before. - Mae West
Experience is what keeps a man who makes the same mistake twice from admitting it the third time around.
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Hook
Elite Nomad
Posts: 9009
Registered: 3-13-2004
Location: Sonora
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Potentially big week for the currency markets ahead. The dollar could strengthen significantly, depending on what the European Central Bank announces
this week.
It will also be interesting to see if this rise in oil, late last week, is the start of a trend..............or not.
The dollar actually traded down to about the 14.4 level last week.
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thebajarunner
Ultra Nomad
Posts: 3710
Registered: 9-8-2003
Location: Arizona....."Free at last from crumbling Cali
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So much for the oil price rise,
down under $50 again today on bleak China news.
These low prices are great at the pump
but those of us in the steel center biz are getting killed!
A rising tide does not lift all boats, it seems.
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chuckie
Elite Nomad
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Sure hurting the guys in the patch too..
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J.P.
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When I started in the Patch Floor was 1.00 derrick 1.25 Oil was around 12.oo a barell
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Sweetwater
Senior Nomad
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Registered: 11-26-2010
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The quote function or a cut'n'paste seem to cause my posts to evaporate for this thread....
So....I've got todays rate at 14.64 pesos/USD
and an article that points out that the positive effects of lower energy prices in the USA is disproportionate, lower income groups benefit much more
than higher incomes. They also point out that those are 45% of the population while the energy industry only employs 4% of workers (at most) so the
national benefits should be huge.
The countries that rely on exports for their revenue will be hit harder and need to diversify their economies. It's pointed out that the northern
border of Mexico will do OK with the large number of factories that were started with NAFTA......
Everbody\'s preachin\' at me that we all wanna git to heaven, trouble is, nobody wants to die to git there.-BB King
Reality is what does not go away when you stop believing in it. -Philip K Dick
Nothing is worse than active ignorance. Johann Wolfgang von Goethe(1749-1832, German writer, artist and politician)
When choosing between two evils, I always like to try the one I\'ve never tried before. - Mae West
Experience is what keeps a man who makes the same mistake twice from admitting it the third time around.
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thebajarunner
Ultra Nomad
Posts: 3710
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Location: Arizona....."Free at last from crumbling Cali
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Energy may only employ 4% but the peripheral affect (such as my steel biz, etc.) is much wider
And, the banks will begin to really get whacked over this, right or wrong, they have made a lot of investment into energy expansion and banks in the
oil areas, both North Dakota, and Texas/OK based, will be hit hard. Some banks will go under, and then the ripples really will begin to spread.
Not quite as simplistic as appears on the gas pumps.
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Hook
Elite Nomad
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The banks that might go under are small to middle-sized, regional banks, who made assumptions that oil would just go up, up, up. I think the economy
can weather the loss of these banks, if it managed to weather the "loss" of Bear, Stearns, Lehman Bros, WaMu, Merrill Lynch and Countrywide Funding.
If consumers have more dollars, then it is likely they will spend it on things that use steel; new cars, new appliances, etc., especially with how low
loan rates are becoming. I wouldnt worry about steel just yet.
Every major increase in gas prices (73, 79, 90, 07-08)has been accompanied by a substantial recession. I think it is logical to assume that a major
decrease in oil prices will be a good thing for the overall economy.
And it should be noted that gyrations in the stock market are not indicative of a bad economy. There is so much speculative money in the US stock
market that supply and demand of stocks can sometimes run counter to the supply and demand of goods and services.
I really think The Plan is to put money in the pockets of Americans and hope that we can spend the world out of its economic doldrums. If there's one
thing we Americans are good at, it's spending money.
Think of it as trickle UP economics. The middle class spends. We have to, to live.
It's in our DNA, I think.
[Edited on 1-19-2015 by Hook]
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BajaRat
Super Nomad
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Location: SW Four Corners / Bahia Asuncion BCS
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| Quote: Originally posted by Hook |
I really think The Plan is to put money in the pockets of Americans and hope that we can spend the world out of its economic doldrums. If there's one
thing we Americans are good at, it's spending money.
Think of it as trickle UP economics. The middle class spends. We have to, to live.
It's in our DNA, I think.
[Edited on 1-19-2015 by Hook] |
Silly me, I thought this was about the Saudi's destroying expensive US oil production and exploration while leaving many oil production dependent
countries in financial ruin.
When the new oil exploration and drilling operations in the north are in financial ruin OPEC will return to profitable prices per barrel.
This is economic warfare with many global casualties and the Saudi's are not the only ones pulling the strings.
Who says man cant change the planet
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Hook
Elite Nomad
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Economic warfare that brings overall prices down?
Bring it on!!!! Let the battle begin!!!!
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thebajarunner
Ultra Nomad
Posts: 3710
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Location: Arizona....."Free at last from crumbling Cali
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You should be worried about steel!
| Quote: Originally posted by Hook | The banks that might go under are small to middle-sized, regional banks, who made assumptions that oil would just go up, up, up. I think the economy
can weather the loss of these banks, if it managed to weather the "loss" of Bear, Stearns, Lehman Bros, WaMu, Merrill Lynch and Countrywide Funding.
If consumers have more dollars, then it is likely they will spend it on things that use steel; new cars, new appliances, etc., especially with how low
loan rates are becoming. I wouldnt worry about steel just yet.
Every major increase in gas prices (73, 79, 90, 07-08)has been accompanied by a substantial recession. I think it is logical to assume that a major
decrease in oil prices will be a good thing for the overall economy.
And it should be noted that gyrations in the stock market are not indicative of a bad economy. There is so much speculative money in the US stock
market that supply and demand of stocks can sometimes run counter to the supply and demand of goods and services.
I really think The Plan is to put money in the pockets of Americans and hope that we can spend the world out of its economic doldrums. If there's one
thing we Americans are good at, it's spending money.
Think of it as trickle UP economics. The middle class spends. We have to, to live.
It's in our DNA, I think.
[Edited on 1-19-2015 by Hook] |
Contrary to your comments, both Wells and PNC (the second largest regional bank) are deeply exposed in the oil industry. And US steel is rapidly
losing market share to the Japanese who have developed high strength, low weight steel for auto gas standards.
The negatives from cheap oil are quite apparent, yet we all drool over low pump prices.
I too fear that lack of expansion of our US sources and even shutting down some of our more expensive extraction fields will play directly into the
hands of the Saudi gang.
It ain't an easy answer, my friend....
lo siento....
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