# Inflation or Gouging?



## Bobbyb (Mar 9, 2014)

Almost every day I read in El Imparcial about more products with price hikes. Every article refers to the price of fuel and the weak peso as the cause. In most cases it appears to be more like greed. Today the discussion was about construction materials. Steel in one state was up by 40%. Cement by 20%. 2 weeks ago it was milk, eggs, beef, bread, flour, tortillas and more. I cannot believe that the extra cost of transportation and the drop in the Peso has affected what are mostly Mexican products by huge percentages. Cement is a slap in the face as Mexico is an exporter of cement!! Varilla and beams are all made in Mexico. Inflation is going to be out of sight.


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## RVGRINGO (May 16, 2007)

except for the cement, your entire list depended upon the importation/transportation of corn & wheat, most of it from the USA. It is what cows & chickens convert into milk, eggs, meat, etc. The steel is also imported, mostly from China.


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## Zorro2017 (Jan 9, 2017)

We haven't seen the end of it yet. Once NAFTA is opened up for renegotiation, and it will be I think, I see the peso going to 24 or lower.


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## Bobbyb (Mar 9, 2014)

We can only hope that a bill that is being introduced today may help. The bill would require approval of congress for any changes to trade agreements. Millions of jobs in the USA depend on exports to Mexico. Even more for exports to Canada. But any meeting between the 3 stooges will be a joke. 2 wimps and a bully!


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## DiverSailor123 (Sep 17, 2016)

I can see the Peso going to 50 or more.. (( Not meaning this thread to go political but )) Mexico and Canada to a lesser degree , may well see what happens when The Most Powerful Country in The World with one of the largest financial influences in the world is run by someone with no better understanding than Joe Plumber... This has been in the works for no less than a decade. Convince the ignorant masses that a G 9 country can be run from the kitchen table with a check book ledger and a pad of paper.. Don't Forget for a minute.... When the USA catches a cold many other countries , all but die from pneumonia.. Imagine our country ( the USA) being a Jig-Saw Puzzle. Except the pieces never really touch each other. Every side of every piece has springs mounted to it .. Some springs are strong some not so others are long and others are short... and Every piece you insert effects every other piece on the board but not necessarily directly and never equally to the piece next to it.. And Now Joe The Plumber Arrives to put all the pieces together.. Joe says HE is going to make America Great Again...


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## Gatos (Aug 16, 2016)

Zorro2017 said:


> We haven't seen the end of it yet. Once NAFTA is opened up for renegotiation, and it will be I think, I see the peso going to 24 or lower.


I haven't seen this idea out there yet - why don't they move the (unemployed) American workers to Mexico to work in the Mexican industries ? Kind of like an intern program.


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## DiverSailor123 (Sep 17, 2016)

Because Jose can come to the USA and work at a job that used to pay $15 an hour but now pays $10 an hr but he can work 50 or 60 hr's a week versus $3 an hr in Mexico for maybe 20 to 40 hr's a week. Jose finds out quickly he can spend half of it living better than he has ever lived before in his life and he still can send half of it back home and his family is still ahead financially with him being gone.. 
Doesn't work the other way around..


Gatos said:


> I haven't seen this idea out there yet - why don't they move the (unemployed) American workers to Mexico to work in the Mexican industries ? Kind of like an intern program.


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## Gatos (Aug 16, 2016)

DiverSailor123 said:


> Because Jose can come to the USA and work at a job that used to pay $15 an hour but now pays $10 an hr but he can work 50 or 60 hr's a week versus $3 an hr in Mexico for maybe 20 to 40 hr's a week. Jose finds out quickly he can spend half of it living better than he has ever lived before in his life and he still can send half of it back home and his family is still ahead financially with him being gone..
> Doesn't work the other way around..


Let's assume Jose is 100% legal. Who is the better worker Jose or Joe the Plumber ?

(Not really related - and perhaps I shouldn't bring it up again - but if you have the time google "wiki trumps grandfather"). The article does give a certain taste of immigration/emigration/deportation...


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## joaquinx (Jul 3, 2010)

Zorro2017 said:


> We haven't seen the end of it yet. Once NAFTA is opened up for renegotiation, and it will be I think, I see the peso going to 24 or lower.


U.S. goods and services trade with Mexico totaled an estimated $583.6 billion in 2015. Exports were $267.2 billion; imports were $316.4 billion. The U.S. goods and services trade deficit with Mexico was -$49.2 billion in 2015. https://ustr.gov/countries-regions/americas/mexico

You start to play with these figures and no only will Mexico feel the pinch but the US will see a rise in unemployment and possibly the decline of the USD. Not much, but you will notice it.


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## Bobbyb (Mar 9, 2014)

So far all we have seen are a few CEO's sucking up to Trump. If they impose that 35% tax Mexico will retaliate with countervailing duties. A trade war is the result. Then the CEO's of the companies that live off exports to Mexico will lay off workers The Trump won't be able to brag about all the jobs he created. I really don't think that imposing duties on only one mfr. is legal. Normally duties are imposed on a sector: ie: all automobiles imported from Mexico. A world trade war will not only result in inflation it can lead to real wars! In some countries democracy is gone and dictators or Communists take over. Too bad Mexico does not have a real president.. I feel for Mexican workers who have made advances in the last 20 years. Add a few million Paisanos that may return to Mexico and the poster who predicted 50 pesos to the dollar could be right!


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## RVGRINGO (May 16, 2007)

Chinese steel goes to Mexico and Canada and is combined with US and Mexican plastics (oil) & Japanese electronics, to produce 40% of all the new cars sold in the USA. Oh Yeah, household appliances to guacamole too, and your Docker pants, etc. It is a complicated apple cart and the USA has not had the capacity, facilities or even the qualified workers to accomplish this for many, many decades.....almost a century, perhaps. Shoe factories, textile mills, clothing manufacturers, steel mills, etc., etc., are all gone by our own choice. We are even eating foreign fish, beef, fruit, vegetables. etc. We are interdependent. Isolationism could be our route to the greatest depression ever. The rest of the world can survive without us if it comes to that. Scary!


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## DiverSailor123 (Sep 17, 2016)

Well said RV its not 1946...Its why the trailer park crowd cannot be entrusted to correct our economic issues..


RVGRINGO said:


> Chinese steel goes to Mexico and Canada and is combined with US and Mexican plastics (oil) & Japanese electronics, to produce 40% of all the new cars sold in the USA. Oh Yeah, household appliances to guacamole too, and your Docker pants, etc. It is a complicated apple cart and the USA has not had the capacity, facilities or even the qualified workers to accomplish this for many, many decades.....almost a century, perhaps. Shoe factories, textile mills, clothing manufacturers, steel mills, etc., etc., are all gone by our own choice. We are even eating foreign fish, beef, fruit, vegetables. etc. *We are interdependent. Isolationism could be our route to the greatest depression ever*. _The rest of the world can survive without us if it comes to that_. Scary!


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## Bobbyb (Mar 9, 2014)

diver sailer: I don't understand your last response. What does the trailer park crowd have to do with this discussion. If you are referring to RV'rs in Mexico there are barely enough to even notice. I really don't think they ever participate in this type of discussion??


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## DiverSailor123 (Sep 17, 2016)

Ahhhh that would be.... a no... I think you have been out of the loop awhile 

DJT pandered to a particular group of people , and though in reality few are actually living in double wides , that's still part of the saying .. 
Large Numbers of simple minded uneducated people expressing opinions on what they think will work to correct the problems found in the USA.. 
aka A WALL BUILD A WALL Those folks screamed that at every DJT event but its a stupid idea and it never really worked... Educated solution.. Stop Hiring Them..In Fact its Illegal To Hire Them ... When you find them ? Fine them and deport them and ARREST THE EMPLOYER.. If you REALLY want Illegal Mexicans out of America they will be gone in less than a year.. Eliminating safe guards such as the EPA and OSHA will turn us into a 3rd world country and ONLY Make more money for a very few.. It Will Not Pave Our Streets With GOLD! 
Import Tariffs will NOT fix our trade imbalances and bring back jobs and make our world perfect.. and on and on and on... Its NOT 1946 we are NOT the only country able to produce the products the world wants and needs.. We were then... we are not NOW. 



Bobbyb said:


> diver sailer: I don't understand your last response. What does the trailer park crowd have to do with this discussion. If you are referring to RV'rs in Mexico there are barely enough to even notice. I really don't think they ever participate in this type of discussion??


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## Gatos (Aug 16, 2016)

Do the sugar barons still import Jamaicans to cut the cane in South Florida every season ? They used to provide housing, food etc. (Back breaking work).


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## Bobbyb (Mar 9, 2014)

diver sailor: I feel dumb. In Canada we call them trailer trash! Unfortunately DJT must appeal to a lot of more normal people. I can never understand that! The next 2 years will be interesting as the USA becomes inward and other countries stop buying their products. Trump and his followers want life to be like Father Knows best! A number of years ago a Canadian Reporter wrote an article in the National Post. He spoke of how looking at History many countries have been leading nations. Britain was once a power house. A long time ago it was France and Spain. The gist of his article was that the USA has had their decades of being a leader and they are doomed to be like Britain. Could be!


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## DiverSailor123 (Sep 17, 2016)

Dumb your not... I just didn't phrase it as I have in the past... yes Trailer Trash.. works for me.. Trailer Trash Mentality isn't confined to those living in trailers. 

Yes I regretfully see exactly what the reporter was talking about and it is a cycle.. I ... as much as I LOVE THIS My COUNTRY.. can see that no country was ever meant to be THE Leader forever.. Lots of countries have risen to the top only to sink to the bottom.. some never rise again a few do.. Look at China.. yet in the same breath look at Portugal .. This time around , if in fact the USA fails, we will drag no fewer than our two most directly connected neighbors to the bottom of the pit with us.. 



Bobbyb said:


> diver sailor: I feel dumb. In Canada we call them trailer trash! Unfortunately DJT must appeal to a lot of more normal people. I can never understand that! The next 2 years will be interesting as the USA becomes inward and other countries stop buying their products. Trump and his followers want life to be like Father Knows best! A number of years ago a Canadian Reporter wrote an article in the National Post. He spoke of how looking at History many countries have been leading nations. Britain was once a power house. A long time ago it was France and Spain. The gist of his article was that the USA has had their decades of being a leader and they are doomed to be like Britain. Could be!


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## Bobbyb (Mar 9, 2014)

I am trying to be non political. Probably politics is not allowed on this forum. The last few days have convinced me that the USA is doomed. No one is able to stop his nonsense and the USA is quickly becoming a dictatorship. Canada will survive but Mexico is likely to return to the Mexico of 1960! I feel for our Mexican friends. They were on the way to having a very large middle class. What a shame.


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## DiverSailor123 (Sep 17, 2016)

The Mods have seemed to be liberal with discussion of political views as long as no one gets out of hand etc etc .. So could you answer me why you think Canada will be immune to the cancer beneath its southern border? Canada exports a lot of cars and trucks to the USA.. https://en.wikipedia.org/wiki/List_of_automobiles_manufactured_in_Ontario

The Billionaire ( or at least a proven liar who claims he is ) Wants concern for wages benefits environment and worker safety off the table and out of the work place and that huge void to be replaced by Increased Wages for CEO's and Company Profits that mostly benefit the top 5%.. 



Bobbyb said:


> I am trying to be non political. Probably politics is not allowed on this forum. The last few days have convinced me that the USA is doomed. No one is able to stop his nonsense and the USA is quickly becoming a dictatorship. Canada will survive but Mexico is likely to return to the Mexico of 1960! I feel for our Mexican friends. They were on the way to having a very large middle class. What a shame.


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## Bobbyb (Mar 9, 2014)

Canada is the USA's largest trading partner. The trade is very equal. 30 states export more to Canada than any other country. Trump cannot say that Canadian workers are underpaid. If he fools with that trade the USA will suffer. Actually with all his recent proclamations US manufacturers are going to lose a lot of business. Will probably result in a loss of jobs not the gains he is touting. I still find it hard to believe that all of the Republicans say nothing. He is going against their Republican principles. Almost like a dictator. I never realized that a US President has this much power. Not like that in Canada.


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## DebInFL (Dec 1, 2016)

Gatos said:


> I haven't seen this idea out there yet - why don't they move the (unemployed) American workers to Mexico to work in the Mexican industries ? Kind of like an intern program.


We can't force people to leave the country unless they are being expatriated. Most of them wouldn't go. There are plenty of jobs in the U.S. that they could be forced to take. The United Farm Workers tried to give them job, but 99% of them were too lazy to do them. Out of over 10,000 who applied, most didn't show up for work and most of the ones who did quit within a week because the work was too hard. Only 100 stayed to work over a year.

Then there is that minimum wage thing. Companies move to Mexico so they can pay less with no benefits. Americans must be paid minimum wage. I think I read that most U.S. businesses in Mexico pay at the most $6 an hour.

Americans are spoiled and lazy. They have no idea how good they have it with a government that takes care of them even to the small extent it does. Most of them wouldnt' last a month in Mexico. If Trump thinks he can fix that, more power to him.


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## Bobbyb (Mar 9, 2014)

Deb in Florida. I would suggest that before you post something a little research is in order. By law Mexican workers do get benefits. There are minimum wages and as far as I know none are $6.00 an hour. Much less. Auto workers get under $200 a week. Depending on the state some start at $125 a week. The benefits include a pension, socialized health care and workers comp. There are some other perks in certain trades. Sometimes they can get a subsidized loan or mortgage. I have quoted USD but of course they get paid in Pesos. My figures are about 6 months old so the USD will be different.


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