US-Mexico Border in Arizona
COMMENT: Greetings from the other side of the Wall (i.e. Mexico)Mr Armstrong! First, I would like to thank you for what you do, as a young person committed with helping the world thrive I cannot tell you how empowering it was to discover your work and get to know your story, and how inspiring it is to see upright people like yourself and your team take on the biggest challenges we face today as a planet, being consistent with what you say and actually doing something! That been said I wanted to share something that’s happening here in Mexico City, and because it is related to one of the main topics of your blog, i.e. the hunt for taxes I thought it would be worth sharing. Right now, Mexico City is going through some administrative changes. Beginning in 2018 Mexico D.F. (D.F. stands for Federal District) will no longer be the center of the powers of the federation but the 32nd federal entity of the union. That doesn’t only mean that Mexico D.F. will officially change its name to Ciudad de Mexico (CDMX) but that by the end of this month (January, 2017) CDMX will have its own Constitution. It is here that it gets interesting. In its 21st article, the draft proposed that “the increase in the value of the land derived from the process of urbanization, will be considered part of the public wealth of the city” that effectively meant that all the capital gains of a property will be taxed!! This resulted in a strong opposition specially from groups, associations and businesses concerned with the real estate business. The mayor of the city, surprised and pressured, answered that he would veto any new tax that comes into his desk and proposed an immediate modification of this article, which makes you wonder if he read the draft of the constitution in the first place! After the announcement, the commission in charge of the ruling of that article said it would be revised and modified so that a tax of this nature would not be allowed.
Fiufff!! That was close and everybody went home or headed out to the beach for some sunny winter holidays. Oh wait, except that our “public servants” being the way they are, apparently removed the provision from the draft of the constitution but still added it to the Housing Act which authorizes the administration to “implement mechanisms to capture capital gains, generated form urban development actions”. The Act was passed a nd approved the 26th of December!! The press reported this until the 28th which in Mexico is our April fool’s day, making us wish it was a terrible “December fool’s day” joke. I guess you have to have a sense of humour. I mean this guys are relentless when it comes to making a dishonest buck. I don’t know what Socrates says about Mexico but from my biased point of view it doesn’t look pretty. Higher prices, higher taxes, insecurity, a higher dollar, a debt worth almost 50% of GDP and growing, which at least I think it’s in pesos so I guess it could be worse. I was not alive then but there was a time when the peso fell greatly against the dollar maybe Mexico’s cycle is back down but I’m sure you know that. But there was also a time when the peso was close at par with the dollar, which makes me wonder when does the cycle turn up. Anyway, I guess by that time it’s either a strong peso or a worthless dollar!
Again, thank you and your team for all your work. Have a wonderful and spectacular year!
XA
REPLY: Hello from the other side of the wall. Most people do not realize that the Mexican 8 reales silver coin was commonly known as the “pillar dollar,” and cutting it up into pieces like a pie is what we hear in pirate moves — a piece of eight, meaning a piece of this coin. Here is a piece of eight stamped “St Lucia” for a Caribbean island.
These pillar dollars or Spanish dollars as they were known, were widely used by many countries as an international currency in modern times because of its uniformity. Some countries countersigned the Spanish dollar so it could be used as their local currency, as did even Britain during the shortage of currency under George III. In fact, these pillar/Spanish dollars were the coin upon which they originally constituted the United States “dollar” as they refused to adopt the British system of pounds. In fact, pillar/Spanish dollars were actually considered to be legal tender in the United States up until the Coinage Act of 1857.
Most people have no idea that the Mexican peso (8 reales ceased to be issued in 1897 after it was replaced by the peso) was on par with the dollar, and in fact, the US dollar was based upon the peso. The debasement of the 8 reales (peso) began slightly in 1729 when it was reduced to .7972 of a troy ounce down from .8102. It was debased slightly again in 1772, dropping to .7858 oz followed by another slight debasement to .7797 in 1791.
It was restored back to .7859 oz in 1811 where it remained until the 8 reales was called the peso with .786 oz. It returned to .7859 oz in 1910, which lasted only until 1917. As silver rose in value during the Panic of 1919, and European demand rose for reestablishing a monetary system, the Peso was sharply debased to .4663 oz before it dropped further two years later in 1920 to .3857 oz where it remained until the end of World War II.
In 1947, the peso was debased to .2251 oz and then the financial crisis of 1949, which saw the sharp collapse in the British pound, impacted the peso by dropping it further to .1286 oz in 1950. The crisis hit again in 1957, and the peso was debased to .0514 oz where it remained until 1967. The rising US dollar postwar was critical worldwide and Mexico was not exempt. That was the Recession of 1958, also known as the Eisenhower Recession, which began in 1957 and lasted for eight months. That led to a sharp worldwide economic downturn in 1958, aided by the Fed raising interest rates to try to fight postwar inflation. Then in 1967, silver vanished from the monetary system with the birth of the two-tier gold market in London during 1968.
The answer to the question, “When will Mexico recover from this political mismanagement?” appears to be due in 22 years — 2038. This is most likely reflecting the younger generation really taking charge.
https://www.armstrongeconomics.com/international-news/mexico/from-behind-the-wall-mexico/
Today at 10:03 am by Rocky
» The Minister of Transport participates in the “Future Aviation Conference 2024” in Saudi Arabia
Today at 7:05 am by Rocky
» Al Rasheed Bank launches a batch of loans to support graduates and job seekers
Today at 7:02 am by Rocky
» For the first time after its accession, Iraq participates in the 33rd session of the European Bank G
Today at 6:59 am by Rocky
» Signing an initialed contract to develop the Mansouri gas field
Today at 6:55 am by Rocky
» Al-Sudani: The United Nations asked us for two years to finish the work of their mission in Iraq
Today at 6:49 am by Rocky
» Al-Shuhada announces the launch of the link to apply for financial aid
Today at 6:47 am by Rocky
» Important security laws awaiting legislation. Learn about them
Today at 6:45 am by Rocky
» A parliamentary demand to legislate a law to recover the proceeds of corruption
Today at 6:45 am by Rocky
» Oil signs a contract with a coalition of Chinese companies JERA and Iraqi Petroleum
Today at 6:43 am by Rocky
» Increase in foreign remittance sales at the Central Bank of Iraq auction
Today at 6:41 am by Rocky
» Among them is related to capital...economic questions haunting the work of digital banks
Today at 6:39 am by Rocky
» "Rentier economy"... Iraq counts its revenues within 3 months
Today at 6:37 am by Rocky
» Iraq signs a contract to develop the Mansouriya gas field
Today at 6:36 am by Rocky
» Al-Allaq announces the start of the second phase of the banking sector restructuring plan
Today at 4:46 am by Rocky
» Al-Allaq announces the start of the second phase of the banking sector restructuring plan
Today at 4:46 am by Rocky
» The path to development... transportation explains the importance of contracting with an internation
Today at 4:45 am by Rocky
» Muhammad Mokhber...from the presidency of the Setad Investment Fund to the helm of power in Iran
Today at 4:43 am by Rocky
» Iraq recently contracted to purchase it. Learn about the type of the Iranian president’s crashed pla
Today at 4:42 am by Rocky
» An unprecedented step.. Kurdistan takes a new measure regarding its non-oil revenues
Today at 4:40 am by Rocky
» The Iraqi Trade Bank announces facilities for the health sector with external transfer operations
Today at 4:40 am by Rocky
» Al-Sudani describes basic services as “items of interconnection” between the citizen and the governm
Today at 4:39 am by Rocky
» The Central Bank begins the second phase of its banking reform strategy
Today at 4:37 am by Rocky
» Sudanese: Priority is for service and infrastructure projects
Today at 4:34 am by Rocky
» May 26th...the date for the “trial census”
Today at 4:33 am by Rocky
» Starting the second phase of the banking sector restructuring plan
Today at 4:32 am by Rocky
» 90 billion dinars to move to clean energy projects
Today at 4:31 am by Rocky
» National Security dismantles a fraud network
Today at 4:29 am by Rocky
» Work: There is a great demand for registration with the Social Security Law
Today at 4:28 am by Rocky
» The Federal Republic rejects the challenge to the seat distribution system in the local elections
Today at 4:27 am by Rocky
» Opening 3 pharmaceutical factories
Today at 4:26 am by Rocky
» An Iraqi medical delegation prepares for the evacuation of wounded Palestinians to Baghdad
Today at 4:25 am by Rocky
» Kurdistan is awaiting a “parliamentary decision” and the region’s presidency has set its sights on “
Today at 4:22 am by Rocky
» The International Monetary Fund calls on Iraq to cancel appointments to correct financial conditions
Today at 4:20 am by Rocky
» After yesterday's "chaos"... How do you resolve the "dilemma" of choosing the Speaker of the Iraqi P
Today at 4:18 am by Rocky
» Iraq: Shiite pressure to end the tasks of the UN mission under the pretext of exceeding powers and f
Today at 4:17 am by Rocky
» Dr. Goldran Abdel Rahim, Professor of Banking and Finance: We must pay great attention to technology
Today at 4:16 am by Rocky
» The Federal Court rejects the appeal regarding the seat distribution system for the provincial counc
Today at 4:14 am by Rocky
» Heyman Murad: The number of people working in the agricultural sector in Erbil exceeds 150 thousand
Today at 4:13 am by Rocky
» Another 15 thousand employees in the Kurdistan Region receive their salaries through “My Account”
Today at 4:12 am by Rocky
» Al-Mashhadani will not return.. How did Humam Hamoudi’s house meeting overthrow Al-Maliki’s candidat
Today at 4:11 am by Rocky
» The Minister of Electricity calls for the ministry's energies to be mobilized in preparation for the
Today at 4:10 am by Rocky
» The Iraqi Central Bank reveals a trend to license digital banks
Today at 4:07 am by Rocky
» Former Iranian Minister: America caused a major plane crash
Today at 4:04 am by Rocky
» Legal odds are that Al-Mandalawi will remain Speaker of Parliament until the end of the current sess
Today at 4:01 am by Rocky
» The Foreign Ministry confirms Iraq's readiness to provide all forms of support to Iran
Today at 4:00 am by Rocky
» Al-Sudani: The development path is the strategic corridor that will connect the interests of the reg
Today at 3:59 am by Rocky
» The President of the Republic offers his condolences on the death of the Iranian President and his F
Today at 3:58 am by Rocky
» The Council of Ministers votes on the budget schedules and refers them to Parliament
Today at 3:56 am by Rocky
» An unruly policy or a necessary need? .. Floating the currency between economic benefit and disadvan
Yesterday at 8:27 am by Rocky
» utube 5/19/24 BRICS to Open a Central Bank Iraqs Relationship to BRICS Exchange Rate Up
Yesterday at 7:30 am by Rocky
» Floating the Iraqi dinar A solution to fill the "gap" of its turbulent price against the dollar
Yesterday at 7:08 am by wciappetta
» Kanna: The Constitutional Amendments Committee was completely marginalized for two reasons
Yesterday at 7:06 am by Rocky
» The repercussions of the Ukrainian company continue.. Is Iraq facing a real economic disaster?
Yesterday at 7:01 am by Rocky
» A government body sends an invitation to the Central Bank regarding the Hajj dollar
Yesterday at 7:00 am by Rocky
» Pessimism surrounds the electricity situation during the summer: the suffering will be repeated and
Yesterday at 6:58 am by Rocky
» Presidency of Parliament is Haqq Anbari.. Why does “Progress” stand against this entitlement? - Urge
Yesterday at 6:55 am by Rocky
» Bloomberg: Iraq achieves sufficiency in diesel fuel and stops importing it
Yesterday at 6:53 am by Rocky
» Hajj calls on the Central Bank to direct banks to open their doors to pilgrims to exchange dollars
Yesterday at 6:50 am by Rocky
» In an extraordinary session...the Council of Ministers votes today on the budget schedules
Yesterday at 6:49 am by Rocky
» Al-Khanjar: Parliament members presented a chaotic model that does not befit Iraq
Yesterday at 6:47 am by Rocky
» The President of the Republic told NATO: The Iraqi army has the readiness to face security challenge
Yesterday at 6:46 am by Rocky
» List of countries exporting most goods and services in the world.. What is Iraq’s rank?
Yesterday at 6:44 am by Rocky
» The General Tax Authority initiates a package of reforms to achieve “two goals”
Yesterday at 6:42 am by Rocky
» A Jordanian minister reveals "significant" coordination with Iraq and talks about smuggling operatio
Yesterday at 6:41 am by Rocky
» The Sudanese confirms to his Kuwaiti counterpart the depth of the two countries’ relations and the s
Yesterday at 6:38 am by Rocky
» With documents... Finance publishes controls that concern the segment of employees, including promot
Yesterday at 6:35 am by Rocky
» A female representative explains the government’s ambition to reach the production of 8 million barr
Yesterday at 5:31 am by Rocky
» Next month... a major conference to announce 8 cities as investment opportunities
Yesterday at 5:30 am by Rocky
» The presence movement: Iran urged Barzani to participate in the region’s elections
Yesterday at 5:28 am by Rocky
» In a strange incident, they disowned him because of Al-Halbousi’s anger at him
Yesterday at 5:26 am by Rocky
» Race for the Presidency of Parliament.. The Sunni conflict is worsening
Yesterday at 5:25 am by Rocky
» Responding to the challenge to the constitutionality of the seat distribution system in the provinci
Yesterday at 5:25 am by Rocky
» Demanding an increase in the allocations for two ministries in the current year’s budget
Yesterday at 5:24 am by Rocky
» Parliamentary Finance: Employee salaries amounted to 8 and a half trillion
Yesterday at 5:23 am by Rocky
» In the amount of 10 million... an Iraqi government bank begins granting loans to married couples
Yesterday at 5:20 am by Rocky
» Hajj and Umrah Authority: Iraqi banks refrain from receiving pilgrims
Yesterday at 5:19 am by Rocky
» The Minister of Electricity calls for mobilizing energies in preparation for the upcoming summer sea
Yesterday at 5:17 am by Rocky
» The United Nations Development Program approves the electronic payment services system in Iraq
Yesterday at 5:16 am by Rocky
» Iraqi oil exports to America declined within a week
Yesterday at 5:15 am by Rocky
» Parliamentary praise for the government’s plans to implement projects to solve the housing crisis
Yesterday at 5:14 am by Rocky
» Has the government succeeded in controlling crowding by changing working hours?
Yesterday at 5:12 am by Rocky
» “Ali is not compensated with money, but I demand my rights.” An Iraqi sues a British oil company for
Yesterday at 5:11 am by Rocky
» Planning: The pilot census will start on the 26th of this month
Yesterday at 5:09 am by Rocky
» A project to develop a climate investment plan in Iraq
Yesterday at 5:07 am by Rocky
» Parliament awaits “budget schedules”
Yesterday at 5:06 am by Rocky
» Parliament: Infrastructure is the most important challenge of the housing crisis
Yesterday at 5:05 am by Rocky
» Announcing 8 cities as investment opportunities
Yesterday at 5:04 am by Rocky
» Minister of Health: We are proceeding with a project to manage modern hospitals by specialized compa
Yesterday at 5:02 am by Rocky
» An Iraqi initiative to ban the political exploitation of religions
Yesterday at 5:01 am by Rocky
» 70% completion of the Kompsan Dam in Erbil
Yesterday at 5:00 am by Rocky
» Paying off external debt is a step to promote stability and recovery
Yesterday at 4:59 am by Rocky
» An economic forum discusses business opportunities with Islamic countries
Yesterday at 4:57 am by Rocky
» More than one billion dollars in sales from the Central Bank of Iraq within a week
Yesterday at 4:56 am by Rocky
» Pakistan and its economic challenges
Yesterday at 4:55 am by Rocky
» Economic researchers emphasize promoting the culture of electronic payment
Yesterday at 4:54 am by Rocky
» The events in Parliament were “intended”... A politician accuses “Taqaddum” of preventing a figure f
Yesterday at 4:51 am by Rocky
» The Federal Court rejects the challenge to the constitutionality of a text in the seat distribution
Yesterday at 4:50 am by Rocky
» Primitive management of waste and medical waste in Baghdad... another danger threatening the populat
Yesterday at 4:49 am by Rocky