Immigrant Son

IMMIGRANT SON – Breaking News, Provocative Stories, Global Economic Analysis

U.S. Criticized Over Immigrant Rights by Amnesty International

Amnesty International has said tens of thousands of people are being held in US immigration jails without receiving a hearing to determine whether their detentions are warranted.

About 30,000 immigrants are held on an average day, the rights group said in a report released on Wednesday, triple the number in custody a decade ago…


Filed under: Politics, World, , , , , , , , , , , , , , , , , , ,

Study Shows That Wages and Employment Rose After Immigration Raids

“Wages and employment increased for legal workers after raids on six Swift & Co. meat-packing plants in several U.S. states in 2006, a study indicated.

Noting that the plants raided were back in production within five months, Jerry Kammer of the Center for Immigration Studies said there was “good evidence” that the number of U.S.-born workers increased, concluding that the plants “could operate without the presence of illegal workers,” The Hill reported….”

Filed under: Economics, , , , , , , , , , , , , ,

Mexico Slaps U.S. With $2.4 Billion Tariffs on 90 Products

Mexico slapped the United States with $2.4 billion worth of tariffs on 90 unnamed industrial and agricultural products. The move comes in retaliation after the U.S. Congress cancelled a pilot program that would allow a handful of Mexican truckers to deliver goods throughout the U.S.

According to Gerardo Ruiz Mateos, Mexico’s Economy Minister, the tariffs are allowed under the 1994 North American Free Trade Agreement (NAFTA). “We consider this action by the United States to be wrong, protectionist and clearly in violation of the treaty,” Ruiz Mateos added.

Mexico’s actions might be coming at one of the worst times in the U.S.’ economic history. In January, exports from the U.S. to the world fell 12.5% from the month prior. Since August the figure has plummeted 33.45%. To Mexico alone, that figure has fallen to levels last seen in Jul. 2005 or by 34% since August.

U.S.’ southern neighbor might be hurting itself too. Mexico’s Peso has tanked after hitting a 6-year high against the U.S. Dollar of 9.85 on Aug. 04th. It reached an all-time low only three days ago of 15.58. Such a violent change in price will make it more expensive for Mexicans to purchase goods produced north of its border. But with the enactment of such tariffs, the inflationary pressure felt from Peso weakness will only be exacerbated. Thus the new trade policy may actually prove to hurt Mexico as much as it does the United States.

– LG

UPDATE: Mexican, U.S. Officials to Discuss Trucking Dispute

Filed under: Global Economics, World, , , , , , , , , , , , ,



Mexican Drug War “Bleeds” Across Border…

X-Caliber Guns, LLC Tried For Selling AK-47s to Mexican Drug Gangs…

1,000 Killed in Mexican Drug Violence First 56 Days of 2009…

U.S. Defense Sec. Gates to Give Aid to Mexican Military… “It clearly is a serious problem…”


Filed under: Obama, , , , , , , , , , , , ,

Mexico: The Third War?

STRATFOR: There are many different shapes and sizes of criminal gangs in Mexico. While many of them are in some way related to the drug cartels, others have various types of connections to law enforcement — indeed, some criminal groups are composed of active and retired cops.

Filed under: Crime, World, , , , , , , , , ,

Mexico’s Bank Chief Ortiz Ensures Peso Intervention (A Long Rant on Mexico’s Economy)

The Mexican Peso Has Lost 30% Against The U.S. Dollar Since August

The Mexican Peso Has Lost 30% Against The U.S. Dollar Since August

In a speech given yesterday, Guillermo Ortiz, Governor of the Bank of Mexico (BANXICO), promised that he would defend the Peso for the “foreseeable future.” The expectation-anchoring announcement came after the Mexican currency tumbled 30% against the U.S. Dollar – over the previous six months. Indeed, the currency has become Latin America’s worst-performing one over the said period. At the Peso’s low, Feb. 4th, the greenback could purchase 14.70 units of the Mexican currency…a stark contrast from it’s 6-year high, Aug. 04th, 2008, of 9.85 units.

In a speech given minutes ago, Mexico’s Deputy Finance Alejandro Werner stated that the 110 million-person nation could see the economy shrink by as much as 1.0% in 2009. This estimate seems overly optimistic considering the fact that his nation’s exports have been significantly sliding since October. December and November alone saw the metric decline by 19.7% and 16.1%, respectively. Beyond this fundamental-based skepticism, Governor Ortiz added that forecasting in this environment is “very difficult.”

“A little late in the game” seems to be the theme surrounding BANXICO’s delayed reaction to the U.S.’ credit crisis. While most of the G7 central banks slashed rates, Ortiz raised them – from 7.50 to 8.25% over a three month period between May and August of 2008. It was not until January’s meeting that the monetary authorities nipped the rate by 50bp – a small move compared to the three digit point slices being slashed off the overnight rate in many countries like New Zealand and the UK.

Overall, with 85% of Mexico’s exports headed towards it’s northern neighbor and U.S. demand for goods deteriorating drastically the Mexican economy will probably recede by more than 1.0%. With growth slowing, the BANXICO will likely slash rates further. If indeed the prolonged global recession deepens, Mexico may have to adopt a near-zero interest rate policy that will surely cost them any strength remaining in the Peso’s shadows. As such, Ortiz’ defense of the currency will cost his country it’s much needed foreign reserves. – LG

Filed under: Economics, World, , , , , , , ,