Anecdote: To tie in with the China discussion
Several years ago, in the mid 1990’s, our bank called us and invited us to discuss some investment possibilities with their in-house advisor.
We made an appointment, and met a nice individual whose role was as an investment advisor.
My spouse and I discussed our assets at the time, and were pleased that he was impressed with our situation when compared to where others in our age group were “asset wise”. He then discussed various options, and then discussed Mexico.
If you recall, around that time….NAFTA was being introduced. There were many discussions in the media about American companies opening up factories in Mexico, to take advantage of the cheaper labour pool, which would assist Mexico in becoming a more modernized country.
Our advisor laid out a very good case on why Mexico would be a good basis to invest.
As the country grew…their would be demand for Cement, Steel…Heavy Equipment etc,etc…..which made investing in these sector seem a prudent growth investment.
We listened…discussed it and thank him for his time.
While it sound intriguing, we never pursued it.
However, ,several months later…I was involved in a project and needed some workers, labourers., and placed an ad. Two of the applicants were from Mexico. One was a lawyer, the other an engineer, both in their late 20’s . I asked them what they were doing looking for work in Canada. They said that the Mexican currency had collapsed….and was in an economic crisis, which forced them to look outside Mexico for work.
So, this anecdote serves to show how the system and its promises are a means to create economic havoc. Mexico was promoted as a “growing emerging economy”, but this was due to factory closures and job losses in the US. Then it appears that China became the “new Mexico”…..that the manufacturing jobs lost in North America went oversees.
In addition, there are estimates of over 10 million illegal immigrants in the US, most of them Hispanic, and the US Gov’t is being lobbied to grant immunity to them.
Thus, all of the aforementioned may have been by a master design, all connected.. whereby the American industrial base was to be gutted, thus weaken the middle class. Mexico got caught up in lies false hopes and unfulfiilled promises, but in the end had the rug pulled out from under it. Then the Mexican economy collapsed, illegal immigration to the US soared, which causes a lot of resentment in the US, ie job losses, undercutting of wages, and a system that provides Gov’t benefits to low wage earners.
This of course results in chaos, and the lowest common denominator re: standard of living. A classic strategy by politicians is to develop ethnic voting blocks….ie if Obama creates blanket amnesty for the illegal immigrants, one can be certain they would vote for him and /or his party.
Ultimately China “won”, at least in the short term, on this economic war waged in the US and Mexico and Canada as well, ie a gutting of North America.
( To Be Continued)