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The Last Refuge

It’s Beginning: Economic Micro-Riots Erupt in Mexico…

January 6,2017

by Sundance


Quote:In 2015 we predicted if Donald Trump won the 2016 election, the Southern Border and Security Wall would not only happen as a construct of following through on a promise, but also factually happen as a function of avoiding the crisis of a neighboring economy in complete collapse.

What underpins that prediction is the hidden scale, and almost unquantifiable scope, of the exfiltration of U.S. dollars -legal and illegal- into Mexico.

American taxpayers as voters have no idea of the scale for how much money flows out of the U.S. into Mexico.  The reason no-one knows about it, and the reason economists cannot discuss it, is because the answer reveals a politically inconvenient discussion.

From HERE, is a comment in the thread:

Illegal alien and mother of seven, Florida resident Marita Nelson, receives $240 in food stamps, monthly medications, $700 in Social Security and a housing allowance. And she has been receiving government assistance for over 20 YEARS – ever since she illegally entered the U.S. by swimming the Rio Grande — which up to 290,000 illegals have done since January.This is why we are 20 Trillion in debt besides sending what jobs we have to Mexico. In Arizona cross the border then go sign up for assistance.

No comments about a massive transfer of our wealth being made by millions of illegal aliens?
I was hoping someone else would comment first Tommy. For some reason folks are not paying much attention to Ai-Jane like before. Maybe its the change of command in DC.
It wasn't that the post was ignored, it was more the "What else is new syndrome." After the ten thousand and 2nd report of the same outrage, you can appreciate why Limbaugh's fans adopted the "ditto" byword.
(01-20-2017, 05:00 PM)sunsettommy Wrote: [ -> ]No comments about a massive transfer of our wealth being made by millions of illegal aliens?

Alright, I'm going to comment on your posts Tommy.  I'll go in reverse order.  The video in your second post is what is wrong with the Welfare State and allowing illegal immigrants AND even legal ones to harvest unlawful funds from the taxpayers.  Its horrible and really has to stop.  And it will eventually stop because we will no longer be able to afford doing such.  

Will Trump put a halt to all this?  I hope so, and the truth is that it is really fixable, provided there is enough moral courage among the political class in the country.  It will be interesting to see if the Dumbasses have the guts to tackle this head on.
Continued from above:

As for your first post about the Micro-riots in Mexico, the real message in the "Conservative Tree House" site was about all of the physical dollars leaving he country and headed into Mexico.  And on top of that, it is trying to tell us that this is going to create an economic disaster, because the US will lose its wealth and economic clout as a result.  Basically that is one of the things it is saying.  The other thing is that Mexico is on the verge of a total collapse, and it could well take us down with it.  

First of all, if Mexico's economy does collapse, it will naturally affect ours to a certain extent because we trade with them, just as we do with China.  Remember, we are a world economy, like it or not, and what affects one tends to affect all.  Thank heavens we are.  And yes, we could be swamped with a huge influx of Mexicans trying to enter the country in order to survive economically.  But the truth is that we really don't need a wall to keep them out.  All we need to do is just Enforce the existing law as it is on the books.

Now, this thing about the fear of all those dollars leaving the country, this is not the huge problem the article talks about.  I'm sure Bill will back me up on this because both of us had extensive time on the late Jude Wanniski's "Supply-Side University" site, and took many of Uncle Jude's on line economics classes.  Both of us know a great deal about economics and the truth is that dollars leaving the country, under normal circumstances, are basically useless UNLESS they are returned to the US.

I'll give you an example.  In the late 80s and early 90s the Japanese were spending huge quantities of the trade dollars they had accrued by buying property and real estate(billions worth) in the us.  I think Rockefeller Center was but one of them.  And OHHHH, the wailing, weeping, and wringing of hands with the "America First" folks could be heard all over the country.  Oh, those "Evil Japs" were going to own the US, and we kept stupidly letting them buy the place.  Well guess what? The Japanese economy collapsed(and it really hasn't ever fully recovered to what it was), and suddenly all those Japanese billionaires were selling their original investment at tremendous losses.  Holy Cow Batman!   Say it Isn't So!

Remember this Tommy, the US dollar is only legally good in the US, not in China, Japan, or even Mexico.  They have their own currency, and all the current owners can do is reinvest them into the US economy if they are going to fulfill the "Supply-Demand" equation.  Granted these dollars can be traded around, and the seller usually pays a slight royalty to the purchaser, but the US value is still there, and it takes the purchaser actually exchanging those US dollars for something of equal value in the US.  It could be property, stock, toys, etc, etc.  But it still equals an exchange of goods and services between two consenting entities.  

SOO, all of those migrating dollars MUST come back to the US if they are ever going to be exchanged for value.  That's the way economics works.  Remember, economics is really nothing more than the ancient act of "Reciprocity" which is one of the very first things we anthropologists learn when studying human cultures, both primitive and modern.  "I scratch your back, and you in turn scratch mine."  Or, "I give you something of equally agreed upon value, and you give me something else of equal value in return.  And no matter what it is, it is the current value of the back scratching that counts.  

So don't worry about the escaping dollars.  W
They WILL come back into the country and they will be as purchases, OR investments.  That's elementary Economics 101.   That fellow writing the article is simply hyperventilating about something with which he has little knowledge.  

Economics is perhaps the least understood science in the world, donchaknow.  Spiteful
If I remember it correctly. the real issue in dollars going offshore is the ownership of capital it represents. Money is just keeping track of who owns what. Steel mills in the USA lost marketplace share because of many real world challenges. Who owned the factories was unimportant, it was the output and sales that slowed. IOW, you can sell a steel mill to China, but the dollars spent to secure ownership doesn't change the output from that mill. If you own the mill, the steel it makes can go wherever the owner wants it to go, moderated by regulations, shipping, and the like, but the mechanics involved is parochial. If the new Chinese owners close the USA mill to create a free monopoly for Chinese mills, then difference occurs. The money is just how it was done.