
Mexico is in a unique position to reap many of the benefits of the decline of the US economy. In order to not violate NAFTA and other agreements, the U.S.A. cannot use direct protectionism, so it is content to allow the media to play this protectionist role. The U.S. media – over the past years – has portrayed Mexico as being on the brink of economic collapse and civil war. The American news media was particularly aggressive in the weeks leading up to spring break. The main reason for this is money. During that two-week period, over 120,000 young American citizens poured into Mexico and left behind hundreds of millions of dollars.
Let’s look at the reality of the drug, corruption and kidnappings problems. Secretary of State Hillary Clinton was clear in her honest assessment of the problem. “Our insatiable demand for illegal drugs fuels the drug trade. Our inability to prevent US made weapons from being illegally smuggled across the border to arm these criminals causes the deaths of police officers, soldiers and civilians,” Clinton said. The other large illegal business that is smuggled into the U.S.A. that no one likes to talk about is Human Traffic for prostitution.
It is critical to understand that the violence in Mexico is mostly confined to three border towns, Tijuana, Nogales, and Juarez. The Mexican government is so serious about fighting this that they have committed over 30,000 soldiers to these borders towns. The desperate violent response from the cartels indicates the effectiveness of the government action.
Is there corruption in Mexico ? YES!!! Is there an equal amount of corruption related to this business in the U.S.A. ? YES!!! When you have a pair of illegal businesses that generate over $300,000,000,000 in sales you will find massive corruption. Make no mistake about the Mexican Drug Cartel; these “businessmen” are 100 times more sophisticated than the bumbling bootleggers during Prohibition. They form profitable alliances all over the U.S.A. They do cost benefit analysis of their business much better than the US automobile industry does.
FOX News continues to scare people with its focus on kidnapping. There are kidnappings in Mexico . The concentration of kidnappings has been in Mexico City, among the very rich. However, Phoenix Arizona is worse and Detroit has a higher murder rate per capita.
Getting Rich in Mexico – Mexico’s Real Economic Future
Mexico has completely avoided the sub-prime problem that has devastated the U.S. banking industry. The Mexican banks are healthy and profitable. Mexico has a growing and very healthy middle and upper middle class. The very recent introduction of residential financing has Mexico in a unique position of having over 90% of current homeowners owning their homes outright. U.S. banks are competing for the Mexican, Canadian and American cross border loan business. It is and will continue to be a very safe and very profitable business.
Mexico is currently sitting on a cash surplus and an almost balanced budget. Most Americans had never heard of Carlos Slim (the worlds richest man), until he loaned the New York Times $250 million. After that it became clear to many investors around the world what Mexicans already knew: that Mexico had been able to avoid the worst of the U.S. economic devastation. Rosalind Wilson, President of the Canadian Chamber of Commerce on March 19, 2009 said, “The strength of the Mexican economic system makes the country a favorite destination for Canadian investment”.
We would offer a word of caution for investors in Mexico . Do not be seduced by the endless natural beauty that is everywhere, both inland in colonial towns and along thousands of miles of beach. Apply conservative medium and long term investment strategies without emotion. The top two choice locations are always ocean front and ocean view.
Mexico , with the world’s 13th largest GDP, is no longer a “Third World Country”, but rather a fast growing economically secure state, as the most recent six-year history of its financial markets when compared to the U.S.A. ‘s financial markets suggests.
Dow Jones Averages: May 2004 – 10,200; August 2010 -10,600 = 1% GAIN IN 6 YEARS
Mexican Bolsa: May 2004 -10,000; August 2010 32,900 = 329% GAIN IN 6 YEARS
Want to make money?
Where should you invest? Oceanfront lots starting from $75,000 !