George Soros gave Ivanka's husband's business a $250 million credit line in 2015 per WSJ. Soros is also an investor in Jared's business.

Wednesday, December 27, 2017

Mexico's proximity to the US gave it advantages under NAFTA that no other Third World nation had. Yet after two decades the model was a failure in can't-lose Mexico, thus unlikely to work anywhere.The same global elites that forced NAFTA through Congress later successfully lobbied the US to sponsor China's full entry into the World Trade Organization (WTO), where workers could be had for 1/8 of Mexican wage-American Prospect, June 2003

"Of all the world's developing countries, Mexico was by far in the best position to exploit the neoliberal model. Its proximity to the US market and a domestic U.S. constituency of millions of Mexican American voters gave Mexico advantages under NAFTA that no other Third World nation had. The testimony of hundreds of thousands of Mexican workers each year making the hard and dangerous trip north is evidence that, after two decades, the model is not working in Mexico. If it is not working there, it is unlikely to work anywhere."

June 2003 article (Vicente Fox was president of Mexico 2000-2006. President Carlos Salinas, in office 1988-1994, negotiated NAFTA)

June 16, 2003, "How NAFTA failed Mexico," American Prospect, Jeff Faux

"For Mexico's oligarchs, the public focus on the condition of Mexican workers in the United States has the great virtue of diverting political attention from the condition of Mexican workers in Mexico. (Vicente) Fox has been eloquent on the maltreatment of undocumented migrants at U.S. farms and factories. Rightly so. But he has been silent about the harsh and brutal conditions suffered by Mexico's own domestic migrants, including those as young as 11 years old who were found -- after Fox's election -- to be working in his own vegetable packing plant.... 

During the 1993 battle over the North American Free Trade Agreement, the proposal's promoters' most politically effective argument was that NAFTA would keep Mexicans out of the United States. As political writer Elizabeth Drew later observed, "Anti-immigration was a sub-theme used, usually sotto voce, by the treaty's supporters." 

The voce was not always sotto. "We don't want a huge flow of illegal immigrants into the United States from Mexico," said former President Gerald Ford, speaking at one of then-President Bill Clinton's pro-NAFTA rallies. "If you defeat NAFTA, you have to share the responsibility for increased immigration into the United States, where they want jobs that are presently being held by Americans." 

Leaving aside the xenophobia, Ford's argument made economic sense: If NAFTA were to create more jobs in Mexico, fewer Mexican workers would leave. When people can earn a decent living in their own country, they would generally rather stay put....

NAFTA proponents...claimed that merely opening Mexico to free trade and unregulated foreign investment would produce the job growth and rising incomes needed to create a stay-at-home middle class. It was the capstone on an effort begun in the early 1980s by a group of U.S.-educated economists and businesspeople who took over the ruling Partido Revolucionario Institucional (PRI) in order to build a privatized, deregulated and globalized Mexican economy. 

Among their chief objectives was tearing up the old corporatist social contract in which the benefits of growth were shared with workers, farmers and small-business people through an elaborate set of institutions connected to the PRI. 

NAFTA provided no social contract. It offered neither aid for Mexico nor labor, health or environmental standards. The agreement protected corporate investors; everyone else was on his or her own. Indeed, NAFTA is the nation-building template imposed on developing countries by recent corporate-dominated U.S. administrations and their client international finance agencies. It is the model for the proposed Free Trade Agreement of the Americas, as well as for the Bush administration's development plans for Iraq.  

Americans' understanding of NAFTA's impact on the Mexican people is obscured in part by the gap between what Mexican elites tell U.S. elites and what Mexicans tell one another. Last December former Mexican President Carlos Salinas, who negotiated NAFTA, told a Washington conference of applauding corporate lobbyists, government officials and free-market think tankers that NAFTA was a great success. "The level of trade and type of products that cross the borders," he said, "silenced even the most ardent critics." 

The next day, in Mexico City, a large group of very ardent Mexican farmers broke down the door of the lower house of the Mexican Congress to denounce NAFTA and demand that it be renegotiated. Similar demonstrations -- joined by teachers, utility workers and others -- have erupted throughout the country, closing bridges and highways and taking over government offices. Polls show that most Mexicans think NAFTA was bad for Mexico. Largely because of the agreement, Salinas is the most unpopular ex-president in modern Mexican history. 

NAFTA's critics did not doubt that it would stimulate more trade; that was, after all, its function. Rather, they predicted that any benefits would go largely to the rich while the middle class and the poor would pay the costs, and that the promised growth would not materialize. They were right.

NAFTA is not the cause of all Mexico's economic troubles, but it has clearly made them worse. Since NAFTA's inception in 1994 -- indeed, for the 20 years of neoliberal "reform" -- the Mexican middle class has shrunk and the number of poor has expanded. Economic growth has been below the old corporatist economy's performance and substantially less than what is needed to generate jobs for Mexico's growing labor force. During his 2000 campaign, Mexican President Vicente Fox promised that under his six-year term the country would grow 7 percent per year. Two and a half years after his inauguration, growth has averaged less than 1 percent.

So the northward migration continues.

Between the U.S. censuses of 1990 and 2000, the number of Mexican-born residents in the United States increased by more than 80 percent. Border-crossings diminished temporarily after September 11, but they are now as great as ever. Some half-million Mexicans come to the United States every year; roughly 60 percent of them are undocumented. The massive investments in both border guards and detection equipment have not diminished the migrant flow; they have just made it more dangerous. In the past five years, more than 1,600 Mexican migrants have died on the journey to the north, including 19 people who were found asphyxiated in a truck near Houston in May. Still, as a neighbor of one of the 19 who left told The Washington Post, "If you're going to improve your life, you have to go to the United States." 

The failure of NAFTA to deliver on its promise of a better life for Mexicans represents more than just a misplaced faith in free trade. Behind the laissez-faire rhetoric, Mexico's neoliberals were pursuing a large-scale program of government social engineering aimed at forcing Mexico's rural population off the land and into the cities, where it could provide cheap labor for the foreign investment that the new open economy would attract. 

Salinas and the PRI reformers did not, of course, announce that they intended to depopulate rural Mexico.. The Mexican government promised that as tariffs on U.S. agriculture products fell, generous financial and technical assistance would enable small farms to increase their productivity in order to meet the new competition. But, after the treaty was signed, the reformers pulled the rug out from under the rural peasantry. Funding for farm programs dropped from $2 billion in 1994 to $500 million by 2000. 

Meanwhile, the U.S. Congress massively increased subsidies for corn, wheat, livestock, dairy products and other farm products exported to Mexico. American farmers now receive 7.5 to 12 times more in government help than Mexican farmers do. This "comparative advantage" enabled U.S. agribusiness to blow thousands of Mexican farmers out of their own markets. But when the displaced campesinos arrived in nearby cities, few jobs were waiting. NAFTA concentrated growth along Mexico's northern border, where factories -- called maquiladoras -- processed and assembled goods for the then-booming U.S. consumer market. Between 1994 and 2000, maquiladora employment doubled while employment in the rest of the country stagnated. 

Neoliberalism was supposed to reduce the income gap between Mexico's relatively rich border states and the poorer ones in the country's middle and south. Supporters claimed that privatizing banks and opening them to foreign ownership would make more capital available for domestic firms in domestic markets. But -- in the depressingly familiar pattern of privatization the world over -- the PRI reformers sold off the banks to friends, then bailed out the new owners when the peso collapsed a year after NAFTA was passed. 

Made whole with more than $60 billion of the taxpayers' money, these crony capitalists resold their banks at a handsome markup to foreign investors. For example, an investment group headed by the well-connected Roberto Hernandez bought Mexico's second-largest commercial bank for $3.2 billion and sold it to CitiGroup for $12.5 billion. Yet, as 85 percent of the country's banking system was being turned over to foreigners, lending to Mexican business actually dropped from 10 percent of the country's gross domestic product in 1994 to 0.3 percent in 2000.

The global bankers were more interested in taking deposits and making high-interest-rate consumer loans than in developing Mexico's internal economy.

Meanwhile, booming investment in the exporting sweatshops of the north has created a social and ecological nightmare. Rural migrants have overwhelmed the already inadequate housing, health and public-safety infrastructures, spreading shantytowns, pollution and crime. Maquiladora managers often hire large numbers of women, whom they believe are more docile and more dexterous than men at assembly work. Earnings are typically about $55 a week for 45 hours -- poverty wages in an area where acute shortages of basic services have raised the cost of living. Families break up as men cross the border in search of jobs, leaving women vulnerable to the social chaos. 

An Amnesty International report on the border town of Ciudad Juárez, where hundreds of young women have been killed, quotes the director of the city's only rape crisis center (annual budget: $4,500): "This city has become a place to murder and dump women. [Authorities] are not interested in solving these cases because these women are young and poor and dispensable." 

As the U.S. economy slowed down after 2000, the number of jobs in the maquiladoras stopped growing. Moreover, the privileged access that Mexicans thought NAFTA had given them began to erode. The same global corporate coalition that forced NAFTA through Congress later successfully lobbied for the United States to sponsor China's full entry into the World Trade Organization (WTO), paving the way for a huge increase in Chinese exports to the United States. In the last two years, an estimated 200,000 maquiladora jobs have left Mexico for China, where workers can be had for one-eighth the Mexican wage. In a deregulated world, there is always someone who will work for less. 

Hope that NAFTA would enable Mexico to export its way to prosperity has largely vanished. In order to relieve the pressures of unemployment, (then pres. Vicente) Fox has been badgering George W. Bush to liberalize migration, create guest-worker programs, and provide Mexican migrants with civil rights and social benefits. The Mexican president regularly refers to migrants in the United States as "heroes," and their remittances have become one of the country's most important sources of foreign earnings.... 

It is an odd notion of economic development that rests on the meager savings of low-wage Mexican workers in America while wealthy Mexicans regularly ship their capital to New York, London and Zurich....

As in many developing countries, the largest part of Mexico's economic problem lies not in restricted export markets but in the stifling maldistribution of wealth and power that restricts internal growth. The gap between Mexico's rich and poor is among the worst in the Western Hemisphere. The rich hardly pay any taxes....Mexico -- even more than did the poorest nations of Western Europe -- needs substantial investment in education, health and infrastructure to create sufficient jobs for its people. A contribution to that investment by the United States and Canada equivalent to the EU's cohesion funds would approach $100 billion....Anything near that level would require, among other things, a dramatic democratic reform of Mexico's corrupt and inefficient public sector.... 

One lesson is already clear: Of all the world's developing countries, Mexico was by far in the best position to exploit the neoliberal model. Its proximity to the U.S. market and a domestic U.S. constituency of millions of Mexican American voters gave Mexico advantages under NAFTA that no other Third World nation had. The testimony of hundreds of thousands of Mexican workers each year making the hard and dangerous trip north is evidence that, after two decades, the model is not working in Mexico. If it is not working there, it is unlikely to work anywhere."






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Tuesday, December 26, 2017

The term "global markets" is a euphemistic sound bite promoted for 3 decades to convince us that it's only natural the US become a 'service oriented economy' via so-called trade agreements to include shaping of US political policy. Stakeholders who assumed we were conquered face going broke with America First economics. Thus, they oppose Trump and the interests of 63 million Americans who elected him to stop their exploitation of us

"The same voices claimed the American economy was consigned to become a “service-driven economy.” What was always missed in these discussions is that advocates selling this global-economy message have a vested financial and ideological interest in convincing the information consumer it is all just a natural outcome of economic progress. It’s not."...

12/26/17, "Exiting NAFTA – The Myth of Global Markets," tcth, sundance 

"Approximately a decade ago the U.S. Dept of Agriculture stopped tracking, and reporting, U.S. consumer food prices. The food sector joined the ranks of fuel and energy in no longer being measured to track inflation and backdrop Fed monetary policy. Not coincidentally this was simultaneous to U.S. consumers seeing massive inflation in the same sector.

There are massive international corporate and financial interests who are inherently at risk from President Trump’s “America-First” economic and trade platform. Believe it or not, President Trump is up against an entire world economic establishment.

When you understand how trade works in the modern era you will understand why the agents within the system are so adamantly opposed to U.S. President Trump.

The biggest lie in modern economics, willingly spread and maintained by corporate media, is that a system of global markets still exists. It doesn’t.

Every element of global economic trade is controlled and exploited by massive institutions, multinational banks and multinational corporations. Institutions like the World Trade Organization (WTO) and World Bank control trillions of dollars in economic activity. 

Underneath that economic activity there are people who hold the reigns of power over the outcomes. These individuals and groups are the stakeholders in direct opposition to principles of America-First national economics.

The modern financial constructs of these entities have been established over the course of the past three decades. When you understand how they manipulate the economic system of individual nations you begin to understand understand why they are so fundamentally opposed to President Trump.

In the Western World, separate from communist control perspectives (ie. China), Global markets” are a modern myth; nothing more than a talking point meant to keep people satiated with sound bites they might find familiar. Global markets have been destroyed over the past three decades by multinational corporations who control the products formerly contained within global markets.
 
The same is true for “Commodities Markets”. The multinational trade and economic system, run by corporations and multinational banks, now controls the product outputs of independent nations.

The free market economic system has been usurped by entities who create what is best described as ‘controlled markets’.

U.S. President Trump smartly understands what has taken place. Additionally he uses economic leverage as part of a broader national security policy; and to understand who opposes President Trump specifically because of the economic leverage he creates, it becomes important to understand the objectives of the global and financial elite who run and operate the institutions. The Big Club.

Understanding how trillions of trade dollars influence geopolitical policy we begin to understand the three-decade global financial construct they seek to protect.

That is, global financial exploitation of national markets. 

FOUR BASIC ELEMENTS:

Multinational corporations purchase controlling interests in various national outputs and industries of developed industrial western nations.

The Multinational Corporations making the purchases are underwritten by massive global financial institutions, multinational banks.

♦The Multinational Banks and the Multinational Corporations then utilize lobbying interests to manipulate the internal political policy of the targeted nation state(s).

♦With control over the targeted national industry or interest, the multinationals then leverage export of the national asset (exfiltration) through trade agreements structured to the benefit of lesser developed nation states – where they have previously established a proactive financial footprint.

Against the backdrop of President Trump confronting China, and against the backdrop of NAFTA being renegotiated, revisiting the economic influences within the import/export dynamic will help conceptualize the issues at the heart of the matter. There are a myriad of interests within each trade sector that make specific explanation very challenging; however, here’s the basic outline.

For three decades economic “globalism” has advanced, quickly. 

Everyone accepts this statement, yet few actually stop to ask who and what are behind this – and why?

Influential people with vested financial interests in the process have sold a narrative that global manufacturing, global sourcing, and global production was the inherent way of the future. The same voices claimed the American economy was consigned to become a “service-driven economy.”

What was always missed in these discussions is that advocates selling this global-economy message have a vested financial and ideological interest in convincing the information consumer it is all just a natural outcome of economic progress. It’s not.

It’s not natural at all. It is a process that is entirely controlled, promoted and utilized by large conglomerates and massive financial corporations.

Again, I’ll try to retain the larger altitude perspective without falling into the traps of the esoteric weeds. I freely admit this is tough to explain and I may not be successful.

Bulletpoint #1: ♦ Multinational corporations purchase controlling interests in various national elements of developed industrial western nations.

This is perhaps the most challenging to understand. In essence, thanks specifically to the way the World Trade Organization (WTO) was established in 1995, national companies expanded their influence into multiple nations, across a myriad of industries and economic sectors (energy, agriculture, raw earth minerals, etc.). 

This is the basic underpinning of national companies becoming multinational corporations.

Think of these multinational corporations as global entities now powerful enough to reach into multiple nations-simultaneously- and purchase controlling interests in a single economic commodity.

A historic reference point might be the original multinational enterprise, energy via oil production. (Exxon, Mobil, BP, etc.) 

However, in the modern global world, it’s not just oil; the resource and product procurement extends to virtually every possible commodity and industry. From the very visible (wheat/corn) to the obscure (small minerals, and even flowers).

Bulletpoint #2 ♦ The Multinational Corporations making the purchases are underwritten by massive global financial institutions, multinational banks.

During the past several decades national companies merged

The largest lemon producer company in Brazil, merges with the largest lemon company in Mexico, merges with the largest lemon company in Argentina, merges with the largest lemon company in the U.S., etc. etc. National companies, formerly of one nation, become “continental” companies with control over an entire continent of nations.

…. or it could be over several continents or even the entire world market of Lemon/Widget production. These are now multinational corporations. They hold interests in specific segments (this example lemons) across a broad variety of individual nations.

National laws on Monopoly building are not the same in all nations. But most are not as structured as the U.S.A or other more developed nations (with more laws). During the acquisition phase, when encountering a highly developed nation with monopoly laws, the process of an umbrella corporation might be needed to purchase the interests within a specific nation. The example of Monsanto applies here.

Bulletpoint #3 ♦The Multinational Banks and the Multinational Corporations then utilize lobbying interests to manipulate the internal political policy of the targeted nation state(s).
 
With control of the majority of actual lemons the multinational corporation now holds a different set of financial values than a local farmer or national market. This is why commodities exchanges are essentially dead. In the aggregate the mercantile exchange is no longer a free or supply-based market; it is now a controlled market exploited by mega-sized multinational corporations.

Instead of the traditional ‘supply/demand’ equation determining prices, the corporations look to see what nations can afford what prices. The supply of the controlled product is then distributed to the country according to their ability to afford the price. This is how the corporation maximizes it’s profits.

Back to the lemons. A corporation might hold the rights to the majority of the lemon production in Brazil, Argentina and California/Florida. The price the U.S. consumer pays for the lemons is directed by the amount of inventory (distribution) the controlling corporation allows in the U.S.

If the U.S. harvest is abundant, they will export the product to keep the U.S. consumer spending at peak or optimal price. A U.S. customer might pay $2 for a lemon, a Mexican customer might pay .50¢, and a Canadian $1.25.

The bottom line issue is the national supply (in this example ‘harvest/yield’) is not driving the national price because the supply is now controlled by massive multinational corporations.

The mistake people often make is calling this a “global commodity” process. In the modern era this “global commodity” phrase is particularly BS.

A true global commodity is a process of individual nations harvesting/creating a similar product and bringing that product to a global market. Individual nations each independently engaged in creating a similar product.

Under modern globalism this process no longer takes place. It’s a complete fraud. Massive multinational corporations control the majority of production inside each nation and therefore control the global product market and price. It is a controlled system.

EXAMPLE: Part of the lobbying in the food industry is to advocate for the expansion of U.S. taxpayer benefits to underwrite the costs of the domestic food products they control. By lobbying DC these multinational corporations get congress and policy-makers to expand the basis of who can use EBT and SNAP benefits (state reimbursement rates).

Expanding the federal subsidy for food purchases is part of the corporate profit dynamic.

With increased taxpayer subsidies, the food price controllers can charge more domestically and export more of the product internationally. Taxes, via subsidies, go into their profit margins.

The corporations then use a portion of those enhanced profits in contributions to the politicians. It’s a circle of money.

In highly developed nations this multinational corporate process requires the corporation to purchase the domestic political process (as above) with individual nations allowing the exploitation in varying degrees. As such, the corporate lobbyists pay hundreds of millions to politicians for changes in policies and regulations; one sector, one product, or one industry at a time. These are specialized lobbyists.

EXAMPLE: The Committee on Foreign Investment in the United States (CFIUS)

CFIUS is an inter-agency committee authorized to review transactions that could result in control of a U.S. business by a foreign person (“covered transactions”), in order to determine the effect of such transactions on the national security of the United States.
CFIUS operates pursuant to section 721 of the Defense Production Act of 1950, as amended by the Foreign Investment and National Security Act of 2007 (FINSA) (section 721) and as implemented by Executive Order 11858, as amended, and regulations at 31 C.F.R. Part 800.
The CFIUS process has been the subject of significant reforms over the past several years. These include numerous improvements in internal CFIUS procedures, enactment of FINSA in July 2007, amendment of Executive Order 11858 in January 2008, revision of the CFIUS regulations in November 2008, and publication of guidance on CFIUS’s national security considerations in December 2008 (more)
Bulletpoint #4With control over the targeted national industry or interest, the multinationals then leverage export of the national asset (exfiltration) through trade agreements structured to the benefit of lesser developed nation states – where they have previously established a proactive financial footprint.

The process of charging the U.S. consumer more for a product, that under normal national market conditions would cost less, is a process called exfiltration of wealth.

It is never discussed.

To control the market price some contracted product may even be secured and shipped with the intent to allow it to sit idle (or rot). 

It’s all about controlling the price and maximizing the profit equation. To gain the same $1 profit a widget multinational might have to sell 20 widgets in El-Salvador (.25¢ each), or two widgets in the U.S. ($2.50/each).

Think of the process like the historic reference of OPEC (Oil Producing Economic Countries). Only in the modern era massive corporations are playing the role of OPEC and it’s not oil being controlled, it’s almost everything.

Again, this is highlighted in the example of taxpayers subsidizing the food sector (EBT, SNAP etc.), the corporations can charge U.S. consumers more. Ex. more beef is exported, red meat prices remain high at the grocery store, but subsidized U.S. consumers can afford the high prices.

Of course, if you are not receiving food payment assistance (middle-class) you can’t eat the steaks because you can’t afford them. (Not accidentally, it’s the same scheme in the ObamaCare healthcare system).

Agriculturally, multinational corporate Monsanto says: ‘all your harvests are belong to us. Contract with us, or you lose because we can control the market price of your end product. Downside is that once you sign that contract, you agree to terms that are entirely created by the financial interests of the larger corporation; not your farm.

The multinational agriculture lobby is massive. We willingly feed the world as part of the system; but you as a grocery customer pay more per unit at the grocery store because domestic supply no longer determines domestic price.

Within the agriculture community the (feed-the-world) production export factor also drives the need for labor. Labor is a cost. The multinational corps have a vested interest in low labor costs. Ergo, open border policies. (ie. willingly purchased republicans not supporting border wall etc.).

This corrupt economic manipulation/exploitation applies over multiple sectors, and even in the sub-sector of an industry like steel. China/India purchases the raw material, ore, then sells the finished good back to the global market at a discount. Or it could be rubber, or concrete, or plastic, or frozen chicken parts etc.

The ‘America First’ Trump-Trade Doctrine upsets the entire construct of this multinational export/control dynamic. Team Trump focus exclusively on bilateral trade deals, with specific trade agreements targeted toward individual nations (not national corporations). ‘America-First’ is also specific policy at a granular product level looking out for the national interests of the United States, U.S. workers, U.S. companies and U.S. consumers.

Under President Trump’s Trade positions, balanced and fair trade with strong regulatory control over national assets, exfiltration of U.S. national wealth is essentially stopped.
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This puts many current multinational corporations, globalists who previously took a stake-hold in the U.S. economy with intention to export the wealth, in a position of holding contracted interest of an asset they can no longer exploit.

Perhaps now we understand better how massive multi-billion multinational corporations and institutions are aligned against President Trump."




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Monday, December 25, 2017

Collusion between media and government is common in Mexico, payoffs so accepted that some reporters are listed as government contractors. Co-opting of media is normal in third world countries but is most serious in Mexico. Two thirds of reporters self-censor-NY Times, 12/25/17


12/25/17, "Using Billions in Government Cash, Mexico Controls News Media," NY Times,

that spends exorbitant sums on advertising with a simple warning: “I do not pay you to criticize me.”

That client is the government of Mexico.

President Enrique Peña Nieto’s administration has spent hundreds of millions of dollars a year in government money on advertising, creating what many Mexican media owners, executives and journalists call a presidential branding juggernaut capable of suppressing investigative articles, directing front pages and intimidating newsrooms that challenge it.

Despite vowing to regulate government publicity, Mr. Peña Nieto has spent more money on media advertising than any other president in Mexico’s history — nearly $2 billion in the past five years, according to government data compiled by Fundar, a transparency group. It found that his administration spent more than twice the generous media budget Mexican lawmakers allotted it for 2016 alone.

And that is just the federal money.

Leaders from all parties marshal hundreds of millions of dollars in state money for advertising each year, money they dole out to favored news outlets, Fundar calculated. According to the executives and editors involved in the negotiations, some government press secretaries openly demand positive coverage from news organizations before signing an advertising contract.

The result is a media landscape across Mexico in which federal and state officials routinely dictate the news, telling outlets what they should — and should not — report, according to dozens of interviews with executives, editors and reporters. Hard-hitting stories are often softened, squashed or put off indefinitely, if they get reported at all. Two-thirds of Mexican journalists admit to censoring themselves.

“If a professional reporter wants to cover the dirty elements of what is happening in the country today, neither the government nor private companies will give them a penny, said Enrique Krauze, a historian who edits Letras Libres, a Mexican magazine that receives some government money. “This is one of the biggest flaws in Mexican democracy.” 

Mr. Peña Nieto’s Institutional Revolutionary Party, also known as the PRI, pioneered this system during its 70 years in power. Former President José López Portillo explicitly laid out the government’s expectations decades ago — he was even quoted as saying that he did not pay the media to attack him — and the practice continued when the opposition claimed the presidency in 2000, then again in 2006.

But the government’s influence over the media goes well beyond the advertising spigot, with officials sometimes resorting to outright bribery. In Chihuahua, the former governor spent more than $50 million on publicity, officials say, in a state saddled with huge public debts. Yet that was just the official figure.

Prosecutors have also collected signed receipts for bribes to local journalists--payoffs so common that some reporters were even listed as government contractors, documents show. With so much government money circling around, entire news websites sprang up with a single purpose, prosecutors contend: to support the former governor’s agenda.

The relation between the media and power is one of the gravest problems in Mexico,” said Javier Corral, the new governor of Chihuahua. There is collusion, an arrangement, in terms of how the public resources are managed to reward or punish the media. It’s carrot and stick: ‘Behave well, and I’ll give you lots of money and advertising. Act bad and I’ll get rid of it.’”

Reliance on Public Advertising

Pick up a newspaper, tune into a radio station or flip on the television in Mexico and you are greeted with a barrage of government advertising. In some papers, nearly every other page is claimed by an ad promoting one government agency or another. At times, as much airtime is dedicated to venerating the government’s work as it is to covering the news.

The extraordinary spending comes at a time when the Mexican government is cutting budgets across the board, including for health, education and social services. The federal government spent as much on advertising last year, about $500 million, as it did to support students in its main scholarship program for public universities. 

The co-opting of the news media is more fundamental than any one administration’s spending on self-promotion, historians say. It reflects the absence of the basic pact that a free press has with its readers in a democracy, where holding the powerful accountable is part of its mission.

“It’s a common problem in the developing world, but the problem is much, much graver in Mexico,” said David Kaye, the United Nations special representative for freedom of expression. “It’s remarkable what the government spends.”

Most news outlets have relied on public advertising for so long that they would not survive without the government, giving officials tremendous leverage to push for certain stories and prevent others, analysts, reporters and media owners say.

Guerrero, Bloomberg
“This is an economic problem,” said Carlos Puig, a columnist at the newspaper Milenio, which receives substantial government funding. “The classic American model does not exist here.”

Last year, a public outcry erupted after a top official in the Peña Nieto administration went to Milenio’s offices to complain about a story. The article, criticizing a national anti-hunger initiative, was taken down from the newspaper’s website right after the visit.

The piece later went back up, with a far less damning headline. The newspaper says the reason was simple: The article was “deplorable,” an inaccurate and “vulgar” attempt to smear an official, requiring an apology to readers. But journalists and democracy advocates, citing the power of government advertising, cried foul and the reporter resigned in protest, claiming to have been censored. Eventually, the original headline was restored.

Overt government interference is often unnecessary. Sixty-eight percent of journalists in Mexico said they censored themselves, not only to avoid being killed, but also because of pressure from advertisers and the impact on the company’s bottom line, according to a three-year study by Mexican and American academics.

Francisco Pazos did. He worked for years at one of the largest papers in Mexico, Excélsior. One of his most frustrating moments came in late 2013, he said, when the government was in the throes of a fight with commuters over a transit fare increase.

Mr. Pazos said he tried to explore the commuters’ anger in detail, until an editor stopped him, telling him the paper was no longer going to cover the controversy.

“I came to understand there were issues I simply couldn’t cover,” Mr. Pazos said. “And eventually, I stopped looking for those kinds of stories. Eventually, you become a part of the censorship yourself.”

Many media owners and directors say they have so few independent sources of income outside the government that they face a stark choice: wither from a lack of resources, or survive as accomplices to their own manipulation.

“Of course, the use of public money limits freedom of expression, but without this public money there would be no media in Mexico at all,” said Marco Levario, the director of the magazine Etcétera. “We are all complicit in this.”

The model means that some media outlets in Mexico can scarcely afford their own principles. Twenty years ago, the newspaper La Jornada was one of the most beloved in the nation, a critical voice and a must-read for intellectuals and activists who carried the tabloid around town, tucked under their arms.

But the years have not been kind to the paper. A few years ago, it was on the cusp of financial ruin. Then the government intervened, rescuing the publication with more than $1 million in official advertising and, critics say, claiming its editorial independence in the process.

“Now they own them,” Mr. Levario said. “The paper has been like a spokesman for the president.”

Other business ties link news outlets to the government. Many media companies are part of larger conglomerates that build roads or other public projects. The same person who owns Grupo Imagen, which includes radio, television and print media, also owns a major construction firm, Prodemex. It has earned more than $200 million in the past five years building government facilities, and will play a role in the construction of the new Mexico City airport. 

La Jornada, Excélsior and Excélsior’s parent company, Grupo Imagen, did not respond to repeated requests for comment.

The nation’s Supreme Court recently took up the issue of official advertising, ruling in November that the government must act on the president’s promise to regulate the flow of public money in an unbiased way.

“The absence of regulation in official publicity allows for the arbitrary use of communications budgets, which restricts indirectly freedom of expression,” said Arturo Zaldívar, a Supreme Court justice.

In a statement, the president’s office referred to its official advertising as a form of constitutionally backed publicity that enables it to inform and educate the public about its work. But it rejects the assertion that such spending skews the media’s coverage of important issues or stifles free speech in any way.

“Every day journalists in Mexico question, with absolute freedom, the government’s actions and those of our representatives, including the president,” it said. “There is a permanent criticism from Mexican journalists toward the government. Just by opening any newspaper, turning on the television and going to social media, you can verify this.”

When he came to office in 2012, the president vowed to more fairly distribute the government’s advertising dollars. Shortly after his election, Mr. Peña Nieto’s team came up with a plan to regulate media spending, according to three people familiar with the proposal.

But Aurelio Nuño, the president’s former chief of staff, said the effort never got far enough to produce a draft of any legislation that could yield action. The effort was subsumed by other campaign promises and left behind, he said.

‘Heating Them Up’ 

 As the editor for recruiting at the newspaper Reforma, Diana Alvarez has grown accustomed to the flexible definition of journalism in Mexico. 

A few years back, she said, she interviewed one young woman from a large paper in Mexico City. The woman, who had a master’s degree in journalism, said her job at the paper consisted of creating files of negative press clippings on governors across the country. 

Those files were turned over to the paper’s sales department, which then approached the governors to sell them “coverage plans” to improve their public image, the young woman explained. 

Mrs. Alvarez rattled off more examples. One applicant, an editing candidate, boasted that he knew how to work his relationships with politicians to score more advertising money.


He called it “heating them up,” which involved showing the target a critical story that his newspaper was planning to publish. Then, as he explained to Mrs. Alvarez, an advertising contract with his paper would help “put out the fire.”

Yet another applicant, a former state government employee, said he knew how to “deal with the press,” Mrs. Alvarez recalled. He told her how he had been in charge of distributing envelopes filled with cash for reporters as bribes. 

“I wish I could say these are isolated cases, or just a few, but it isn’t the case,” Mrs. Alvarez said. “There have been many like these, where they come and speak about these practices in a way that makes you realize they have normalized them.”

Daniel Moreno, the director of the digital publication Animal Político, says he receives almost nothing from the federal government, and relatively small amounts from state governors.

It’s not because he doesn’t want the money, Mr. Moreno says. It’s just that the kind of critical coverage his news team does is not rewarded with government contracts, he contends.

Recently, Mr. Moreno said he received a call from officials in the state of Morelos, which spends about $3,000 a month with him on advertising. The governor’s wife was going through a rough period over claims that she was politicizing aid for earthquake victims — an accusation she rejected — so a state official suggested that Animal Político do a few positive stories on her.

Mr. Moreno politely declined.

“They were pretty offended,” he said with a shrug. “And I’m pretty sure that money is gone.”

Still, that was better than it is with most states, Mr. Moreno said. As a policy, Animal Político publishes a banner on pieces that are paid advertising, so readers know the work is not independent journalism, he said. 

But officials in the states of Chiapas, Oaxaca and Sonora have refused to pay for content unless it is published without the banner, he said. Mr. Moreno refused.

“I’ve lost more money than I’ve earned that way,” he said with a laugh.

This month, news organizations came together to denounce the violence against the press in Mexico, where the murders of journalists hit a record this year. Thirty-nine media groups signed on.

But a few, including Animal Político, were missing--on purpose. 

They had insisted on some extra lines in the announcement about the damage that official publicity does to free speech.

A small uproar ensued, they said. Some large newspapers that rely heavily on government money objected.

Ultimately, the letter was sent without the lines — and without the signature of Mr. Moreno and his compatriots. The news media, it appeared, would not challenge its livelihood.

An Exposé Raises Questions

On Aug. 23, Ricardo Anaya, the president of the opposition National Action Party and now a candidate for president in next year’s election, woke up to find his name and family splashed across the front page of El Universal, a major newspaper.


The story went into details about his father-in-law’s real estate empire and, more pointedly, the ways in which Mr. Anaya’s political career had helped propel that fortune.

The narrative was a familiar one in Mexico: A political leader had used his influence to enrich himself and his family. El Universal laid out the addresses and values of the various properties, and even published head shots of his entire extended family, 14 people in all. News outlets across the country carried the story.

The only thing missing, a court ultimately decided, was accuracy. Mr. Anaya managed to show that much of the information was flawed, skewed or simply wrong. While his in-laws clearly owned a number of properties, many had been in their possession before his political career began, public deeds showed.

Even more puzzling, Mr. Anaya said, were the photographs of his family. They had not been public before, as far as the family knew. In fact, they looked an awful lot like passport pictures.

Given that such photos were held by the foreign ministry, which issues passports, Mr. Anaya suspected that his rivals in the government had leaked the pictures to the newspaper.

“They are trying to destroy my political career with this campaign,” he contended. You can't compete with a government that pays $500 million a year to the media."

For the next two months, the newspaper dedicated more than 20 front pages to Mr. Anaya, accusing him of misusing public funds, benefiting financially from his position and fracturing his party.

Mr. Anaya filed suit. In October, the court found that El Universal had misrepresented his in-laws’ wealth and wrongly accused Mr. Anaya of using his office to benefit them.


El Universal claimed that it was entitled to publish the story under the right to freedom of expression, an argument the judge questioned because the paper “had not based its investigation in facts.” The newspaper has appealed the court’s decision.

The case raises national questions of trust in a country where the news media receives so much money in government advertising.
El Universal receives more government advertising than any other newspaper in the nation, about $10 million last year, Fundar found. Critics argue that the newspaper has become something of an attack dog for the government ahead of presidential elections next year.

The suggestion is “false and offensive,” the newspaper says. Government advertising “does not affect in any way the editorial line of the newspaper,” it says, adding that “thinkers of all political parties” are represented in its pages.

Not all its journalists agree. In July, a half-dozen columnists announced their resignations in protest over what they called biased coverage, saying the owners had destroyed the institution’s credibility.

Salvador Frausto, an investigative editor who earned the paper many awards, also left. Colleagues said he was clearly uncomfortable with how close the paper was becoming to the PRI and its new presidential candidate, José Antonio Meade.

The person who replaced Mr. Frausto as the new investigative editor was most recently a press officer at the foreign affairs ministry, according to his LinkedIn profile.

And the news director of El Universal had close ties with the new candidate: His wife was Mr. Meade’s international press chief at the finance ministry.


The paper says that there is no conflict of interest, and that it does not tolerate biased coverage of any kind.

But it isn’t the first time the paper’s journalists have challenged its independence. Writers said that in 2012, when Mr. Peña Nieto was running for office, editors and news directors began changing columns critical of the candidate, sometimes at the last minute, without warning them.

“The reason I resigned is because I no longer felt like I was guaranteed a free space,” Andrés Lajous, now a doctoral student at Princeton University, wrote in an article recounting the events.

‘It Was the Feds’

Witnesses were calling it an execution.

In January 2015, Laura Castellanos, an award-winning reporter, was sent by editors at El Universal to cover a pair of shootouts involving the federal police.

At the time, self-defense groups had taken up arms to fight against organized crime, and Ms. Castellanos, who had written extensively on the subject, was considered an expert.

She spent 10 days reporting the story, tapping old sources and interviewing witnesses in the state of Michoacán, where 16 had been killed and dozens wounded.

The issue was especially delicate because a close ally of the president, Alfredo Castillo, who had been appointed to oversee the security situation in Michoacán, claimed that the deaths came from a shootout with armed assailants.

Ms. Castellanos said she recorded interviews with 39 people — victims, bystanders, hospital workers — and came to a different conclusion. The federal police had summarily executed unarmed suspects, including some as they surrendered on their knees with their arms in the air, she said her reporting showed.


After days of editing and fact-checking, she said the story was ready to run. Only it didn’t.

Ms. Castellanos and her editors were not surprised. Mr. Peña Nieto was already under heavy public pressure for his handling of the disappearance of 43 college students, as well as his wife’s purchase of a multimillion-dollar home from a major government contractor.

But after two and a half months--during which time one of her sources was tortured and killed, she said--Ms. Castellanos worried her story would never run.

Working with lawyers, she said she discovered a loophole in her contract--one that allowed her to publish the material elsewhere. 

One of the few publications willing to take the story was a new website founded by Carmen Aristegui, another award-winning reporter, who had lost her radio station job after breaking the story about the president’s wife.

But the morning the Michoacán story was scheduled to publish, under the headline “It Was the Feds,” Ms. Aristegui’s website went dark.

Eventually, they figured out what happened: The website had been hacked.

The two eventually published the story, but the case again raised questions about independence in a country awash in government advertising.

Neither the killings, nor the hacking, have been fully resolved. El Universal said it had not published Ms. Castellanos’s story because it did not meet the newspaper’s standards.

The next year, Ms. Castellano’s article was awarded Mexico’s most coveted journalistic prize: the national award for investigative reporting."

"A version of this article appears in print on December 25, 2017, on Page A1 of the New York edition with the headline: Mexico Spends Big on Ads To Tame the News Media." 

Image caption: "Most news outlets have relied on public advertising for so long that they would not survive without the government. Credit Hector Guerrero/Bloomberg"

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Sunday, December 24, 2017

'The presidency is not a popularity contest. Whether we like his personality or not is irrelevant. What is important is the health and welfare of our nation, and our freedom'-Democrats Against UN Agenda 21, Rosa Koire

"The presidency is not a popularity contest. Whether we like his personality or not is irrelevant. What is important is the health and welfare of our nation, and our freedom." (end of article) 

6/1/2017, "TRUMP DUMPS AGENDA 21 REGIONALIZATION MASK / PARIS CLIMATE TRAP,"
Democrats Against UN Agenda 21, Rosa Koire
 
"As I watched President Trump's speech today, I cheered. I think he gets it. After Angela Merkel's comment that the Paris Climate Accord is a "key agreement that shapes globalization" it is clear to all who listen that United Nations treaties and agreements are about systems inventory and control. The Paris Climate Accord is not about whether the planet heats up another 1/10 of 1 percent in 50 years. This agreement is about crippling the ability of the United States to recover from years of a collapsed economy and loss of individual certainty.  This agreement is about eroding national boundaries and national sovereignty all over the world, and about strengthening the power of the United Nations and non-governmental organizations.

Although the Paris Climate Accord was never brought to the Senate for ratification it is important that it be rejected by President Trump. Agenda 21 was also not a treaty and was not brought before the Congress, except obliquely, but it was 'de facto' made binding by President Clinton who implemented it administratively and by federal pressure on the States.

President Obama and Hillary Clinton had every intention of implementing the Paris Climate Accord through the usual channels: federal pressure, grants, regulations, restrictions, HUD/EPA/DOT grants and lawsuits, and bogus non-profits working the grassroots.

During President Trump's speech today he mentioned American sovereignty several times
and referred to the Accord as a redistribution of wealth that favored other nations and debilitated American business. That it clearly does do so is apparent in the treatment of China and India as "developing countries" who are exempt from regulations and controls for years---years in which they will continue to grossly pollute while producing cheap goods for export to the United States.

I searched President Obama's speeches for mention of American sovereignty. I didn't find it. What I did find was his address to the United Nations General Assembly in the fall of 2016 stating that we in America 'must bind ourselves to international rules' and not fall prey to 'nationalism.' The term 'nationalism' is now equated with Hitler or isolationism. What we are protecting is not just a sense that our country has self-interests both social and economic, but our Constitution, our rule of law, our sovereignty.

By refusing to abide by the Paris Climate Accord President Trump is sending a message to those of us who have fought consistently against UN Agenda 21's message of globalization/One World Government. It takes time and effort to destroy the economy of one of the world's wealthiest nations.  We are hugely in debt and struggle with homelessness, youth who feel hopeless about their future,  polarization of the races exacerbated by compressed Smart Growth mega-cities, more and more drug use...we need help.

"The presidency is not a popularity contest. Whether we like his personality or not is irrelevant. What is important is the health and welfare of our nation, and our freedom."  
 
THE PARIS CLIMATE ACCORD IS UN AGENDA 21."


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Added: At least Merkel admits that US taxpayers exist only to be sold to global parasites:

"Merkel said that the Paris agreement was so important that there should be no compromises on it. "The Paris deal isn't just any other deal," she said. "It is a key agreement that shapes today's globalization."

5/27/17, "Merkel: G7 climate talks with Trump 'very unsatisfying,'" dw.com/en, Deutsche Welle

"The G7 declaration will give US President Donald Trump time to decide whether to keep the US in the Paris climate agreement."

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I'm the daughter of an Eagle Scout and World War II Air Force pilot born in Brooklyn, finally settling in New Jersey.