News that doesn't receive the necessary attention.

Monday, May 23, 2016

Mexico more dependent than ever on US gardeners and maids. #2 source of Mexico revenue in 2015 was US remittances, money earned by Mexicans in US and sent home. Surpassed Mexico oil revenues. US political class and NAFTA ensure Mexico will never rise from third world status

Feb. 2, 2016, "The Bank of Mexico says money sent home by Mexicans overseas hit nearly $24.8 billion last year, overtaking oil revenues as a source of foreign income for the first time," AP via US News, Mexico City 
"The central bank reported Tuesday that money sent home by Mexicans overseas hit nearly $24.8 billion last year, overtaking oil revenues for the first time as a source of foreign income. 
Remittances were up 4.75 percent from 2014 when they totaled $23.6 billion, the Bank of Mexico said. They had never before surpassed petroleum since the Bank of Mexico began tracking them in 1995.

Analysts pointed to slumping global prices for oil, which earned Mexico $23.4 billion in 2015, and improved economic conditions in the United States, home to more than 11 million Mexicans and the source of nearly all Mexico's remittances.

"There is an advance in the recovery of the U.S. economy that has a very high correlation to jobs available for immigrants, and that has a very important impact on the amount of money they send to Mexico," said Alfredo Coutino, Latin America director for Moody's Analytics.

Alejandro Cervantes, an economist with Grupo Financiero Banorte, said remittances' rise over oil reflects an economy that has diversified since the North American Free Trade Agreement took effect in 1994.

"Before NAFTA the flow of petroleum exports represented nearly 80 percent of the total dollar income for the Mexican economy," Cervantes said, noting that today it is less than 20 percent. "The lesson is that the Mexican economy, on the whole, is no longer so dependent on oil."

Manufacturing exports are currently Mexico's No. 1 source of foreign income."


Added: US political class jumps to its feet and cheers Mexico Pres. Calderon for criticizing US border policies, referenced in 2010 as "the Arizona law." The US political class is cheering itself for erasing the southern US border:

5/20/2010, "Our Traitorous Congress," Susan Speakman, You Tube "President Felipe Calderon of Mexico, a guest in this country, berates the United States Congress. The United States Congress, or most of it anyway, gives him a standing ovation (for about 20 seconds). Disgusting."  Mexican Pres. Calderon on May 20, 2010 criticizes US Arizona law on the floor of the US House of Representatives.  


Mexico would've died without US government policy:

6/17/2013, "Mexico would have died...without the option to send its rural poor--fully one-fifth of its population--to the United States."..."Syria and Egypt can't be fixed," Spengler, Asia Times


Added: Calderon's use of the military against drug cartels created more violence and death, not less: NY Times

4/3/2015, "Study Finds Mexican Troops Did Not Stem Drug-War Killings," NY Times, Elisabeth Malkin

"The murder rate rises and helpless residents implore the government to restore order. The government sends soldiers to keep the peace. But instead, the violence gets worse.
The story was repeated many times during the six-year term of President Felipe Calderón, who began his presidency at the end of 2006 by sending troops into his home state, Michoacán. Now a statistical analysis of homicide rates in 18 regions of Mexico during that time confirms that the arrival of soldiers failed to reduce the number of murders in 16 of those areas. In some of the most notable cases, including the border cities of Ciudad Juárez and Tijuana and the Pacific resort city of Acapulco, the murder rate soared in the year after soldiers were put on the streets, according to a new study published on the website of The American Statistician.
The study, “Did the Military Interventions in the Mexican Drug War Increase Violence?” strongly suggests that the arrival of troops leads to an increase in homicide rates in the short term, or at best, no improvement, said Valeria Espinosa, one of the study’s authors, a quantitative analyst at Google who completed a Ph.D. in statistics at Harvard in 2014."...


Added: More discussion of the border:

2/9/16, "Prescient Trump-Hidden Report: Mexico Remittances Total More Than Entire Mexican Oil Revenue"….

"The evidenced economic dependency that Mexico now has on US remittances to retain their tenuous economy provides us all the leverage we need to get them to pay for the border wall."


Added: Mexican police, justice, and prison systems are all deeply corrupt:

8/26/2010, "Mexico bodies found after shoot out with police," UK Telegraph 

"Some foreign investors have put investment plans in (US-Mexican) border factories on hold....Drug trade analysts say the army alone cannot defeat the cartels and that Calderon risks serious lawlessness if he does not follow through with
  • reforms to the justice,
  • prison systems,


    4/29/2010, "Amnesty International cites abuse of migrants in Mexico," Arizona Daily Star

    Image above, ap



    Two images above, May 20, 2010, Then Mexico Pres. Calderon is cheered by US House, Senate and Executive branch members for criticizing US law. Screen shots from above video

    Remittances sent home by Mexicans working outside the country surpassed petroleum revenues in 2015 for the first time.
    There was a 4.75% increase in money sent from abroad, most of which comes from the U.S., to total US $24.8 billion last year, up from $23.6 billion in 2014, said the Bank of México.
    The bank said it was the first time remittances had totaled more than petroleum revenues since it began tracking them in 1995.
    Oil revenues last year totaled $23.4 billion.
    An important factor in the increase in remittances is the jobs created by economic recovery in the U.S.
    Some 11 million Mexicans are believed to be living in the U.S. and many work in construction. Remittances, 97% of which are sent electronically, averaged $292 last year.
    Prior to the North American Free Trade Agreement, which took effect in 1994, petroleum exports represented almost 80% of U.S. dollar income. Banorte economist Alejandro Cervantes told The Associated Press that today that figure is less than 20%, demonstrating how much the Mexican economy has diversified.
    The top source of foreign income is manufacturing exports.
    Source: CNNExpansión (sp), AP (en)
    - See more at:

    Remittances totaled more than oil income

    Money sent from abroad came to $24.8 billion last year, up 4.75%

    - See more at:

    No comments:


    Blog Archive

    About Me

    My photo
    I'm the daughter of an Eagle Scout (fan of the Brooklyn Dodgers and Mets) and a Beauty Queen.