The Mexicans are noticing the effects across their northern border of the weakness of the dollar and the creeping economic crisis.
An article translated by Watching America.com from the Spanish-language newspaper, La Jornada warns that the U.S. systemic economic problems are soon to affect the world.
The current state of affairs with the increasing deficit as a proportion of GDP, is incompatible with long-term stability. For that reason, the question is not simply whether trade deficits will be reduced, but whether the adjustment will be painful and destructive to the global economy.
And most worrisome perhaps to the U.S. should be that its financial health is in the hands of the Chinese…
China may restructure its portfolio of currencies at any time. And any reconfiguration of Chinese reserves certainly implies a massive sale of dollars, which could trigger herd behavior and panic in the financial markets.
Read this Mexican commentary on the U.S. and global economy here on Watching America.com
Robin Koerner is a British-born citizen of the USA, who currently serves as Academic Dean of the John Locke Institute. He holds graduate degrees in both Physics and the Philosophy of Science from the University of Cambridge (U.K.). He is also the founder of WatchingAmerica.com, an organization of over 100 volunteers that translates and posts in English views about the USA from all over the world.
Robin may be best known for having coined the term “Blue Republican” to refer to liberals and independents who joined the GOP to support Ron Paul’s bid for the presidency in 2012 (and, in so doing, launching the largest coalition that existed for that candidate).
Robin’s current work as a trainer and a consultant, and his book If You Can Keep It , focus on overcoming distrust and bridging ideological division to improve politics and lives. His current project, Humilitarian, promotes humility and civility as a basis for improved political discourse and outcomes.