Mexico

Peso Soars To Pre-Brexit Levels As Mexico Raises Rates More Than Expedcted

A day after the most awkward three-way handshake in history between Obama, Trudeau, and Nieto, the latter's central bank just pushed rates higher by a bigger than expected 50bps to 4.25% (exp +25bps). The Peso is surging back (extending its bounce off January lows) retracing all the post-Brexit losses... on what seems like fears of a surge in food inflation.

These Three Survey Responses Explain Everything That Is Wrong With The US Economy

"The economy is nervous, shaky and uncertain. Fed policy has us locked into a lethargic and tenuous position. It appears the Fed doesn’t know how to get off the horse it created. The Fed talks interest rate increases but looks for every reason not to do it. Until the Fed backs out of trying to manage the economy, we will be stuck on the cusp of slow growth and a recession."

Oil Tumbles Amid Bad News For Glut As US Offshore To Hit Record In 2017

WTI Crude has tumbled back to a $46 handle this morning (from over $50 on Friday) with Brexit volatility weighing on every asset class and Nigeria and Canada restart production (following rebel attacks and wildfires respectively) but as OilPrice.com's Charles Kennedy notes companies pumping oil from the Gulf of Mexico will ramp up production in coming months, propping up American output, despite efforts to curb production and raise barrel prices.

Scotland Threatens To Veto Brexit

Earlier today Scotland's First Minister Nicola Sturgeon told the BBC that the Scottish Parliament could try to block the UK's exit from the EU. As we predicted yesterday, the Scottish National Party leader, who went through her own UK independence referendum  two years ago and is now considering yet another referendum, said that "of course" she would ask MSPs to refuse to give their "legislative consent".

The End Of Cheap China - 16 Emerging Low Wage Economies

International capitalism requires a low-wage, high-growth region for high rewards on risk capital. In the 1880s it was the United States, for example. China was the most recent region, replacing Japan. No one country can replace China, but we have noted 16 countries with a total population of about 1.15 billion people where entry-level manufacturing has gone after leaving China.

Deadlocked Supreme Court Blocks Obama Immigration Plan

In one of today's widely anticipated rulings by the Supreme Court, the highest US legal institution dealt a blow to President Obama on Thursday, after it was deadlocked over the legality of the president's controversial immigration programs. In a one-sentence decision, the court affirmed a lower court's ruling blocking the programs from going forward. The 4-4 split leaves intact an appeals court ruling that said Obama overstepped his authority, along with a trial judge’s order preventing the program from taking effect.

Fed Up With The Corruption: Mexico On Brink Of Revolution

The Mexican government’s deadly crackdown on a teacher’s union protest has rattled the nation in recent days, as 200,000 doctors on Wednesday joined the ongoing national strike against President Enrique Peña Nieto’s neoliberal reforms. Anti-government sentiment is mounting after police forces opened fire on a teacher protest in Oaxaca on Sunday, killing at least eight.

The Triviality Of Terrorism

The horrors of terrorism should not be ignored. Rather, it’s that we should see the situation as it is. And for those of us in the West, the situation is that terrorism is a political weapon, wielded by politicians in the service of what Dwight Eisenhower termed the “military-industrial complex.” Terrorism is a deadly reminder of just how deceived humans can become. Eliminating it will be awfully hard if we remain terrified and deceived ourselves.

IRS Admits To Illegally Seizing Bank Accounts; Agrees To Give The Money Back

It's the stuff of libertarian dreams. The IRS admits that it wrongfully took money from innocent citizens, and it gives the money back. This is actually happening to victims of a little-known form of civil asset forfeiture carried out by the IRS on the premise of "structuring" violations. In case you didn't know, depositing or withdrawing just under $10,000 from your bank account multiple times is viewed as suspicious and possibly criminal activity.

Trump Slams Hillary As "The Most Corrupt Person To Ever Seek The US Presidency"

Following a scathing speech by Hillary Clinton yesterday, in which the Democratic candidate warned a Trump presidency would unleash a recession, Trump on Wednesday retaliated with a blistering attack of his own on Hillary Clinton, assailing her as “a world class liar” and failed secretary of state who can’t be trusted on issues ranging from the turmoil in the Middle East to immigration and trade. His resounding punchline was that “Hillary Clinton may be the most corrupt person to ever seek the presidency of the United States,” during a speech in his hotel in SoHo, reading from a teleprompter in his first major speech of the general election.