Posted on 10/01/2021 2:07:24 PM PDT by MNJohnnie
The Bank of Mexico raised the benchmark interest rate by one-quarter percent to 4.75 percent in a 4:1 split vote on Thursday over short-term inflation concerns.
The central bank of the second-largest Latin American economy, also known as Banxico, revised upward the inflation in the latest inflation forecasts because of “global inflationary pressures and bottlenecks in production.”
Mexican consumer prices during the first half of September rose 0.42 percent to reach annual inflation of 5.87 percent, already edging above the 5.59 percent clocked for August, official data showed last week.
Banxico still expects inflation will be short-term and is going to decrease after the fourth quarter of 2021.
Banxico said that annual headline and core inflation projections are expected to decrease, particularly for one year and beyond, and to converge to its 3 percent target by the end of the forecast horizon.
“Banxico’s decision to raise was consistent with our expectations and accompanied by yet another upward revision to inflation forecasts for the first half of 2022. But the emphasis of the statement remains on the transitory nature of price pressures and suggests Banxico does not see a lot more monetary tightening ahead,” said Charles Seville, Americas Sovereign co-head at Fitch Ratings.
This is the third time Banxico raised the benchmark interest rate since 2018 after it raised the rate in June and August at the same pace.
US national, state, and municipal debt is about to hit the wall as short term rates start to rise.
Ye, if rates rise, most levels of government are going to have a collective stroke.
Me, in times of uncertainty like these, you should move your money to a safe place like Illinois state bonds.
In times of uncertainty it’s best to move at least some of your money into tangible assets like silver, gold, copper, machined steel products, and lead.
Yep, lead, lots and lots of lead.
Neemo : So if you want these horses, I sell them to you. Did you bring some gold with you?
John Simpson Chisum : No.
Neemo : Silver?
John Simpson Chisum : Just lead!
Is there even such a thing? Perhaps jacking up oil prices but Inflation is usually a function of a country's total currency.
Yep, and as those rates rise, a number of states will go
belly up. Then they’ll want Uncle Sam, you know, the guy
they won’t participate in the pledge of allegiance for,
to bail them out.
We’ll see who gets the last laugh on wokeness, when
reality hits home.
Inflation is a product of supply and demand. Too much demand chasing too little supply
With the US and the West using Govt action to cut back fossil fuel production to “fight climate change” at the same time China’s demand for fuel is sky rocketing there is too much demand chasing too little supply.
Things like Oil, Nat Gas, Coal are mobile. The producers can sell to the highest bidders. Inflation in energy cost effects everything from production of raw materials to distrusting finished good to commuting to work.
Mexico has done this before and Americans deposited dollars as hoped. You know the story.
In the case of Mexico it is about 50% -- tolerable.
https://take-profit.org/en/statistics/government-debt-to-gdp/mexico/
Russia did the same yesterday (ratio: 17%).
In the US the ratio is 107% which eliminates this mechanism.
My money market savings account would like to see half that amount.
The problem is — when interest rates go up, so does the cost of living.
If we had any brains we would raise rates too but that would collapse the house of cards, Humpty Dumpty would fall off the wall and the Queen would lose her bloomers.
Yes, if only every state economy was as rock solid as Ill.
Hmm doesn’t seem to matter here—cost of living is going up even with no interest increase for savings.
107 and loaded for more. Wheeeeeeeeeee!!!!!!!!!
Perhaps a portion should go into physical gold and silver. As the saying goes, "If you can't hold it in your hand, you don't own it."
Article on old days....
ANYBODY REMEMBER MEXICO IN THE ‘80S?
Bill Barnhart
CHICAGO TRIBUNE, January 16, 1995
Here’s a quote from the Dec. 4, 1985, Wall Street Journal: “Today, instead of being a model for other nations, Mexico is a lesson in how quickly an economy on the mend can spin out of control.”
The peso plunged to more than 350 to the dollar in 1985 from about 23 to the dollar in 1980. But that decline in value was just the beginning. It went on to trade at more than 3,000 to the dollar before the Mexican government in 1993 issued new pesos and simply wiped out three digits from the exchange rate.
The nature of the crises, then and now, is different in many respects. Mexico declared in the early ‘80s that it was unable to pay its debts to non-U.S. banks, which had gone overboard in what they thought was a lucrative decision to finance the budding Mexican economic miracle of that era.
Doesn't take the left long to destroy just about everything they touch.
I think it was a joke.
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