I wouldn't call it "mexican wages," I would call it somewhere in between what Mexican dock workers currently make and the price controlled-wages that American unionized dock workers currently make.
And I think everyone knows that if no one is buying, the free market forces you to lower your price.
Isn't that called deflation? What effect would that have on our foreign debt? As dollars become harder to come by, wouldn't that increase the number of defaults on mortgages?