Straight Talk About Mexico and the U.S.A.

September 19, 2012

Hi Everyone, Time for some straight talk about Mexico.. and the USA and our relationship one with the other.

I recently received a rather long, interesting and enlightening article forward to me by the president of our local Chapala Association of Realtors.

I found it extremely enlightening. It doesn't pull any punches/ It's a serious article that is sure to offend some, inspire some, and perhaps even scare a few.

As you know I do my very best to tell it like it is here at Lake Chapala. The views expressed in this article are not necessarily my own, but I felt an obligation to share with our readers the views expressed. You make your own call on what to believe, what to doubt, and what to disagree with.

With that disclainer, Here's part 1.

Mexico is in a unique position to reap many of the benefits of the decline of the US economy. In order to not violate NAFTA and other agreements the U.S.A. cannot use direct protectionism, so it is content to allow the media to play this protectionist role. The U.S. media – over the last year – has portrayed Mexico as being on the brink of economic collapse and civil war. The Mexican people are either beheaded, kidnapped, poor, corrupt, or narco-traffickers. The American news media was particularly aggressive in the weeks leading up to spring break. The main reason for this is money. During that two-week period, over 120,000 young American citizens poured into Mexico and left behind hundreds of millions of dollars.

Let's look at the reality of the massive drug and corruption problem, kidnappings, murders and money. The U.S. Secretary of State Clinton was clear in her honest assessment of the problem. "Our insatiable demand for illegal drugs fuels the drug trade. Our inability to prevent the weapons from being illegally smuggled across the border to arm these criminals causes the deaths of police officers, soldiers and civilians," Clinton said. The other large illegal business that is smuggled into the U.S.A. that no one likes to talk about is Human Traffic for prostitution. This "business" is globally now competing with drugs in terms of profits.

It is critical to understand, however that the horrific violence in Mexico is over 95% confined to the three transshipping cities for these two businesses, Juarez, Tijuana and Nogales. The Mexican government is so serious about fighting this, that they have committed over 30,000 soldiers to these borders towns. There was a thoughtful article written by a professor at the University of Juarez. He was reminded of the Prohibition years in the U.S.A. and compared Juarez to Chicago when Al Capone was conducting his reign of terror capped off with The Saint Valentine's Day Massacre. During these years, just like Juarez today, 99% of the citizens went about their daily lives and attended classes, went to the movies, restaurants, and parks.

Is there corruption in Mexico? YES !!! Is there an equal amount of corruption related to this business in the U.S.A.? YES !!!. When you have a pair of illegal businesses that generate over $300,000,000,000 in sales you will find massive corruption. Make no mistake about the Mexican Drug Cartel; these "businessmen" are 100 times more sophisticated than the bumbling bootleggers during Prohibition. They form profitable alliances all over the U.S.A. They do cost benefit analysis of their business much better than the US automobile industry. They have found over the years that the cost of bribing U.S. and Mexican Border Guards and the transportation costs of moving marijuana from Sinaloa to California have cut significantly into profits. That is why over the past 5-7 years they have been growing marijuana in State and Federal Parks and BLM land all across America. From a business standpoint, this is a tremendous cost savings on several levels. Let's look at California as an example as one of the largest consumers. When you have $14.2 billion of Marijuana grown and consumed in one state, there is savings on transportation, less loss of product due to confiscation and an overall reduction cost of bribery with law enforcement and parks service people. Another great savings is the benefit to their employees. The penalties in Mexico for growing range from 5-15 years. The penalties in California, on average are 18 months, and out in 8 months. The same economic principles are now being applied to the methamphetamine factories.

FOX News continues to scare people with its focus on kidnapping. There are kidnappings in Mexico. The concentration of kidnappings has been in Mexico City, among the very rich and the three aforementioned border Cities. With the exception of Mexico City, the number one city for kidnappings among NAFTA countries is Phoenix, Arizona with over 359 in 2008. The Phoenix Police estimate that twice that number of kidnappings goes unreported, because like Mexico 99% of these crimes were directly related to drug and human traffic. Phoenix, unfortunately, is geographically profitable transshipping location. Mexicans, just like 99% of U.S. Citizens during prohibition, go about their daily lives all over the country. They get up, go to school or work and live their lives untouched by the border town violence.

These same protectionist news sources have misled the public as to the real danger from the swine flu in Mexico and temporary devastated the tourism business. As of May 27 2009 there have been 87 deaths in Mexico from the swine flu. During those same five months there have been 36 murdered school children in Chicago. By their logic, if 87 deaths from the swine flu in Mexico warrants canceling flights and cruise ships to Mexico, then close all roads and highways in the USA because of record 43,359 automobile related deaths in the USA in 2008.

What is just getting underway is what many are calling the "Largest southern migration to Mexico of people and real estate assets since the Civil War" A significant percentage of the Baby Boomers have been doing the research and are making the life changing decision to move out of the U.S.A. The number one retirement destination in the world is Mexico. There are already over 2,000,000 US and Canadian property owners in Mexico. The most conservative number of American and Canadian Baby Boomers who are on their way to owning property in Mexico for full or part time living in the next 15 years is over 6,000,000. Do the math on 6,000,000 people buying a $300,000 house or condo and you will understand why the U.S. Government is trying to tax this massive shift of money to Mexico through H.R. 3056. The U.S. government calls this "The Tax Collection Responsibility Act of 2007". Those who will have to pay it are calling this the EXIT TAX."


  • Dpeiser

    I totally agree with this article…and look forward to others.

  • Spinoza

    Yes there are drugs going north and money and guns going south.
    I love Mexico and find 99% of the
    people very sane and muy amable. However, don’t try and put deodorant
    on something very rotten. Mexican police, courts, prisons, and many
    politicians are corrupt and open to bribes and a real narco cancer
    has spread through out the country; large violent organized criminal
    organizations now exist. While there are similar parallels of
    corruption in the U.S. and abuses of loose gun laws, we would never
    allow the sick, vicious criminal brutality that exists in Mexico.
    Once this criminal narco element reaches a certain size & wealth
    and becomes numb to horrific violence- exercising it will take
    decades. And once these narco organizations become indifferent to
    violence, they may very well move more into kidnappings, extortion,
    industrial theft, and intimidation. Can you imagine if 20 headless
    bodies showed up on a street in the U.S.? All hell would break lose
    tracking down those responsible.

    Side note: Growing of marijuana in
    public forests in California is small potatoes compared to the
    amounts grow on private property by citizen growers. Marijuana should
    be legalized to free up resources to go after the real scourges-
    meth, cocaine, heroin and prostitution. I also wonder how many of
    those 2 million American/Canadian property owners are
    Mexican-Americans with dual citizenship?

  • Sid Grosvenor

    I received an e mail re-published in part below as an update on this article,

    I enjoyed your latest posting on “Straight Talk About Mexico and the U.S.A” but it wasn’t until I got to the bottom that I really sat up. That was the reference to H.R. 3056 and the federal government’s efforts to impose an exit tax on people relocating out of the country. I’d never heard of this (luckily, we got ourselves and all our stuff out without paying an exit tax).

    So I googled H.R. 3056 and found that it seems to have been reborn as something a good deal more benign and under a new name (and number). Perhaps your readers would be relieved to know this?

    Jim Dickinson, Editor

    FDA Webview/FDAReview/FDA Update (”

  • Sid Grosvenor

     You make several good points, Thanks for sharing your views with us. Tu amigo, Sid

  • Sid Grosvenor

     Glad you enjoyed the article, Tu amigo, Sid

  • Mbengoaduprey

    Very well stated. Good article.

  • Sid Grosvenor

     Thanks for your kind words, I try to mine the Internet to find relevant content to keep our readers informed,

  • Palmtrees4u

    Very good information.  I agree crime is crime whether in the US or Mexico.  I plan to spend time in Lake Chapala as soon as possible

  • Sid Grosvenor

    Hi Palmtrees4u,

    Thanks for your nice comments. Let us know when we can help you to spend time at Lake Chapala. Tu amigo, Sid

  • Rita Holley

    Sid, I appreciate this insightful article. Common sense told me that things were not any worse there than in the US. People are people everywhere you go. The US has had it own contributions to this problem, mainly due their narrow minded laws on drugs. I am hopeful that some of that is coming to light with Americans. We are having a very Testy election her, as I am sure you know. I hope the Right Man gets in office. I want to move to the Lake Chapala area as I think I can live a much better life there. I have been ttrying to find out more about the new laws in Mexico regarding health insurance there. I would appreciate any assistance you could give me. I am delighted to be able to communicate with someone there.

  • Sid Grosvenor

    Hi Rita,

    IMSS (Mexican Social Security Health System) is slowly going broke and
    has tightened the rules about pre existin conditions etc. The door has not
    slamed shut yet for North Americans, but it could at any time.

    Private policies are aavilable here. Blue Cross is accepted at some of
    the major hospitals in nearby Guadalajara as well.

    SkyMed has emergency evacualtion plans so that for major situations
    they wil fly you home so you can use your health care in the USA.

    Some folks just put away a fixed amount for their health care needs and
    will pay out of pocket as needed.

    Many times a doctor visit here is the same or less than the co pay would be in
    the USA.

    There’s a new system of government hospitals started, but not sure of this system
    will be available for North Americans.

    I have a friend who is a dual citizen and she uses the local IMSS and for major
    things she goes to the USA and uses her Medicare there.

    I belong to IMSS and have for 16 years and never used it. I use private doctors here rather than the local clinic, but would noit hesitate to use the IMSS hospitals
    here for anything that would be a major expense as a private payer.

    Hope this helps some, Tu amigo, Sid

  • Ritaholley52

    Thanks Sid, I appreciate the information.

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