Mexican standoff

Canada Free Press ^ | 01/27/17 | Matthew Vadum

[Tammy8]

Yes though there might be (likely is) a reason Trump used the word tax. Even if a tax it would have the same effect as a tariff on their economy. Mexico’s economy right now is so bad most think adding 20% would break the country. Many think that 20% would just be passed on to buyer, but the price has to be considered fair or the buyer will simply not buy. In reality, especially on lower priced items like produce the grower would end up absorbing most if not all of the cost because they cannot raise the price enough to cover it. If the grower is working on a small profit margin they cannot absorb the cost and go out of business. American companies would likely move back to the U.S. to avoid the tax/tariff so that would further hurt the Mexican economy.

Tax, tariff whatever it is called is most useful as leverage in negotiations about NAFTA and the wall- all of our relationships with Mexico. The leadership in Mexico knows how much damage we can do to their already messed up economy. The only reason their president is even putting up a strong front is because most of the Mexican people do not understand that we have the power we do over their economy right now. The people of Mexico perceive us as weak and themselves as strong so they are demanding their leaders stand up to Trump. Mexico is very, very close to having a revolution/economic collapse right now and that is another reason we need a wall and border enforcement yesterday. As bad as the border is it would get far worse with a revolution/economic collapse next door. Our media is not really reporting the whole story on Mexico but it is really falling apart at the seams.

[sit-rep]

thanks for shining the light on a couple thing for me!!