Friday, November 11, 2011

Why Mexico?

The interest rates of Italy have jumped big the last few days and today there are reports that banks in Europe dumped $300 billion of Italian debt. Why because total debt as a percent of GDP has soared. There are fears that Italy will be unable to service its debt and thus be bankrupt. Look at this chart at how the US compares to Italy. See anything familiar4?

Then I took a look at Public debt to GDP in the US and Mexico. Are the financials better down south?

BTW, "public debt" is the cumulative total of all government borrowings less repayments that are denominated in a country's home currency. Public debt should not be confused with external debt, which reflects the foreign currency liabilities of both the private and public sector and must be financed out of foreign exchange earnings.

Finally, lets look at total debt of the US and Mexico; GDP of Mexico is $1.567 trillion (or 13.5%) Vs  US $14.660 trillion (100%).

Public debt for either country is not a big problem, but total debt to GDP is for the US. It also means we can be blackmailed!

Mexico looks more attractive!

Sunday, November 6, 2011

Mexico on Top | Prestowitz

Mexico on Top | Prestowitz

"Here are some interesting numbers. Mexico's economy is presently growing at 3.2 percent annually or more than twice the 1.3 percent of the U.S. economy. In the past four years, Mexico has increased spending on new infrastructure from 3.3 to about 4.5 percent of GDP. In contrast, U.S. infrastructure spending has been falling as a percent of GDP since 1960 and is now at 2 percent of GDP according to the American Society of Civil Engineers which gives the United States a D on its recent Infrastructure Report Card.
Would you rather talk jobs? Okay, Mexico's current unemployment rate is 5.26 percent versus America's 9.1 percent official rate and closer to 16 percent comprehensive rate (including those too discouraged to look for work, those working part time who would like to work full time, etc.)."
A few reasons for staying in Oregon for part of November have to do with the fall landscaping colors.  Today, Bev and I took a ride to Forest Heights and took pictures of blazing trees and fall foilage: