Getting Twumped - how the Donald's tweets are a major problem for Mexico.

O

Oscurito

Before anyone starts, this isn't a Trump-bashing thread. It's merely a wry reflection on how the mainstream media feeds these days of less newsworthy developments on social media and how fickle and over-reactive financial markets can be.

For 120 million Mexicans, it must be deeply humiliating that their economic well-being is being undermined by the social media utterances of a wealthy, ageing gringo. Nevertheless, that's the way it's been this week for folks south of the Rio Grande. The crisis started back in November. As it gradually became clearer that Trump was going to win the presidential election, the Mexican peso crashed on the international markets as the graph below shows.



A mere three tweets in the last couple of days have started the rout all over again.

Meanwhile, riots have broken out in several Mexican cities in protest at a sharp rise in the cost of petrol, driven in part by the fall in the value of the peso last year. The more recent fall in the value of the Mexican currency suggests that worse is to come for the beleaguered Mejicanos and one "We're building that wall" tweet from The Donald could be enough to cause a total economic meltdown.

 


Alan Alda

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I dunno Hombre, I think Mexico had problems , pre Trump.
U.S certainly have some responsibility , but Trump , specifically ? Hmmm. Not so sure.
 

NYCKY

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They did have problems but they have more now.

I'm not saying Trump is morally responsible but he is having an effect. Read the links in the OP.

EDIT:
For example, this one:
Peso Plunges To Record Low After Trump Tweet
Crazy stuff and to think Trump promised to make Mexico great again. Go figure!

What next? A Mexican President putting America ahead of it's own interests.

It could catch on. Next thing you know, we will have Enda Kenny promoting Scotland at EU gatherings.

Taoiseach Enda Kenny defends support of Scottish first minister Nicola Sturgeon | Irish Examiner
 

Polly Ticks

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As a lover of all (well, almost all) things Mexican... Mexico needs to sort its own sh1t out.

Yes, it's shocking that tweets from the President-elect of another country can undermine your currency so much.

The real shame though is that a country with so many natural resources, and such great people with great talent, are so vulnerable to Trump's wafflings in the first place.
 
O

Oscurito

As a lover of all (well, almost all) things Mexican... Mexico needs to sort its own sh1t out.

Yes, it's shocking that tweets from the President-elect of another country can undermine your currency so much.

The real shame though is that a country with so many natural resources, and such great people with great talent, are so vulnerable to Trump's wafflings in the first place.
Fair point. For a country its size, it's far too dependent on the USA.
 

Polly Ticks

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Fair point. For a country its size, it's far too dependent on the USA.
Absolutely. Terrible corruption. Poverty and violence. Practically a caste system in place too.

Mexico is magnificent, despite all that, but it could be so much more.
 
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O

Oscurito

the secretary

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Someone should take Trumps phone and throw it in the sink. These tweets should be stopped by now. The man is due to be sworn in soon.
 
O

Oscurito

Someone should take Trumps phone and throw it in the sink. These tweets should be stopped by now. The man is due to be sworn in soon.
Well, he has a right to express his views. What's wrong is how the rest of the world is (over-)reacting.
 

ruserious

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Ironically the weaker the Mexican economy becomes vis a vis the US economy, Trump will be dealing with a greater illegal immigration problem.
 

EoinMag

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Well, he has a right to express his views. What's wrong is how the rest of the world is (over-)reacting.
It's not him, it's everyone else?
 
O

Oscurito

Ironically the weaker the Mexican economy becomes vis a vis the US economy, Trump will be dealing with a greater illegal immigration problem.
And a weaker peso will in the short term:
- make Mexican exports more competitive in the USA
- make it more profitable for American companies to send more jobs south

Swing and roundabouts.....
 

ruserious

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His latest comments against Toyota are mad altogether. Telling them stop building in Mexico and relocate to US or face a border tax. Does he not realise the logical outcome of this? Massive taxes on US goods being exported to Japan. With resulting job loses in US due to loss of competitiveness.
 
O

Oscurito

It's not him, it's everyone else?
Analysts in financial markets are being paid big bucks to be intelligent and use their heads. They should be able to realize that he won't be able to do a lot of the stuff he's talking about.
 

the secretary

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Well, he has a right to express his views. What's wrong is how the rest of the world is (over-)reacting.
I'm all for freedom of expression but the man is due to be sworn in as president of the USA in a few weeks. It's time to lay off.
 


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