Mish Shedlock To Forbes Mexico: “Global Economy Is Clearly Slowing”

Mish Shedlock To Forbes Mexico: “Global Economy Is Clearly Slowing”

mish2Although the global economy is slowing, there are certain bright spots in Mexico, with natural resources booming and the Mexico economy stabilizing, as well as immigration north slowing, the future could be bright in Mexico. 

Guillermo Barba recently interviewed Mish for Forbes Mexico in a revealing interview.  The interview can be read in spanish at Forbes Mexico.

In the interview, Shedlock makes clear his dire view of the global economy, but reserves such a negative assessment of Mexico.

The Atlanta Fed GDPNow Model now suggests 1.1% annualized growth. Should consumer spending falter, and I believe spending will falter, the GDPNow forecast will be on the high side. Even if the GDPNow model is accurate, we are talking first half GDP of 0.3% or so, well below the stall speed.

On June 4th we learned Nonfarm Productivity Collapsed Greater Than Expected 3.1%, Unit Labor Costs Rose 6.7%. That is not good for hiring prospects.  On June 2, the US Census Report showed Factory Orders Down 8th Time in 9 Months; Durable Goods Inventories Highest Since 1992. Economists say this is transitory, but they have been saying that for nine months!

The poor economic situation in China, the Euro Zone, Japan and the US could bring more trouble for the global economy.

“The global economy is clearly slowing led by Asia and the US,” according to Shedlock. “Europe has seen some improvement recently, but it’s based on the beggar-thy-neighbor tactics of QE. For a while, nearly a third of European government bonds traded with negative yields. This is outright lunacy in any market, and even more so if one buys into the recovery thesis. ”

But it is not all negative for Mexico:

“One positive aspect for Mexico is the in-sourcing and near-sourcing trend in US manufacturing, from China,” the registered investment advisor believes. “However, even if manufacturing returns to the North American continent, the jobs will not come with it thanks to robotics.”

At MexResorts, we have written about Hugo Salinas Price and his efforts to re-monetize silver, a development Shedlock has been watchin. In the same post, we mentioned that China and Mexico are forging closer ties, which makes sense considering Mexico’s silver mining prospects and China’s deep interest in precious metals as part of their overall economic policy.

“Mexico’s Hugo Salinas Price is well out in front on this issue. He wants to bring “honest money” back to Mexico. In December of 2014, Hugo penned A Silver Coin that is Money To Calm the National Tantrum in Mexico. It’s an idea well worth considering,” Shedlock believes.

Although there are signs that Mexico’s economy is slowing, others wonder if that regions in Mexico, in particular the border, region, could represent the next economic powerhouse. As Yucatan Times writes:

Mexico is becoming a vibrant middle-class nation. Already, it is the largest trading partner of California, Texas and Arizona, and is responsible for hundreds of thousands of jobs across the Southwest.

And that might be just the beginning. With economic and educational reforms underway, Mexico’s rise could accelerate. By one estimate, Mexico will be the world’s fifth largest economy by 2050.

As Michael Lind writes, The Rio Grande region has spawned a revolution in oil and gas production which has been enabled by hydraulic fracturing. Durango, Chihuahua, Coahuila, Nuevo Leon, and Tamaulipas enjoy a per capita GDP 2.3 times higher than the rest of the country, with Mexico’s middle class having grown to comprise 40 percent of the population. Immigration to the US is declining, also, out of Mexico, hinting at a stabilizing economy.

Share

About the Author

By Michael / Administrator

Follow michael
on Jun 12, 2015

Danish entrepreneur working out of Acapulco, Mexico. CEO @ WB Innovations LTD

Book Your Trip

Tips And News

Follow Us

Booking

Toll-free from U.S. & Canada 1 (855) 221-5637

MexResorts @ Google

Owen Bryant
Owen Bryant
19:42 14 Sep 18
Very competitive rates and a solid booking process. Was able to get set up with an all inclusive resort for our family trip to Cancun. Can definitely recommend MexResorts.read more
Jeremiah Gray
Jeremiah Gray
18:34 14 Sep 18
I booked a trip with flight and hotel included and it was very user friendly, was even able to modify my trip and add transportation. Nice to have it all under one roof. Email support always answered in a timely manor. Will use MexResorts for our next trip for sure.read more
Barbara Brooks
Barbara Brooks
18:25 14 Sep 18
Friendly booking agents and a very easy to use online system. Great Experience!
Daniel Wilson
Daniel Wilson
16:56 14 Sep 18
I booked a trip to Mexico with their online system and had no issues and when I had some questions regarding my booking phone support was super helpful!read more
Mark Brown
Mark Brown
13:34 13 Sep 18
My first time booking with MexResorts and everything went smooth. Staff was nice and their online system is great. Rates are competitive and I will definitely be using them again in the future.read more
Flavio Vangerbert
Flavio Vangerbert
04:05 13 Sep 18
I have booked with Mex Resorts a few times now and every time has been a breeze. Thumbs up to the phone support, always nice and helpful if any issue should arise.read more
Cris Garcia
Cris Garcia
15:41 07 Feb 15
Esta bien el hotel
Luis Fernando Domínguez Mora
Luis Fernando Domínguez Mora
01:09 19 Mar 14
I’ve been using Hoteles Acapulco web page for long time. I’ve checked it a few times against other pages and here it always gave me the best deal without any hidden costs that pop out in the last moment. Frankly speaking I haven’t tried to book a car with Hoteles Acapulco, I didn’t need to, but I have booked two different hotels and once a hotel and flight package. The three times I used the web page I was very satisfied. It is easy to follow, I’m not an internet geek and I didn’t have any problems with the booking and the whole booking process was pretty fast. Once I wanted to stay at Acapulco Playa Suites that I had already known but instead I chose a promotion they offered at that time at Acapulco Copacabana Hotel and I paid almost the same. I have already recommended their services to my friends and they were also happy with their vacation. read more
Morten Nyboe Bach
Morten Nyboe Bach
19:00 08 Mar 14
High Quality service, helping the customer instead of themselves, and very good prices as well compared with other sites. High praises from here!!read more
John Nyboe Bach
John Nyboe Bach
16:22 07 Mar 14
Great hotel prices and the staff was very helpfull!
Camelia Mendoza
Camelia Mendoza
17:35 29 Jun 13
Excelente promociones y muy buena servicio.
Next Reviews

MexResorts @ FaceBook

Mex Resorts
4.9
powered by Facebook
Khalifa PH
Khalifa PH
2018-09-13T04:16:29+0000
I recently booked a trip to Cancun and they made me a great package with everything included from flights to hotel and tours. It's nice to be able to just book everything at one place.read more
Carol Catalan
Carol Catalan
2017-03-11T20:11:20+0000
Roger Fajardo Herrera
Roger Fajardo Herrera
2017-03-11T04:47:29+0000
Giovanna Garcia BG
Giovanna Garcia BG
2017-03-09T23:55:45+0000
José Mandujano
José Mandujano
2017-03-09T18:09:17+0000
Lu Gómez Alemán
Lu Gómez Alemán
2017-03-09T18:05:46+0000
Fabiola Mc
Fabiola Mc
2017-03-09T17:55:24+0000
AxL Hadad Fajardo Felix
AxL Hadad Fajardo Felix
2017-03-09T17:37:43+0000
El mejor servicio y atencion al cliente que puedes elegir, recomendado !!!
Max Cano
Max Cano
2017-03-09T17:31:30+0000
Gladys Fajardo
Gladys Fajardo
2017-03-09T17:18:18+0000
Nicky Bach
Nicky Bach
2017-01-14T23:39:05+0000
Muy buenas ofertas especialmente para Cancun y la Riviera Maya. Volvera pronto!
Bamse Bach
Bamse Bach
2017-01-14T23:38:15+0000
Excelente precios y muy buena atención! Cuentan con lada sin costo y para modificar reservación no hay ninguna problema.read more
Michael Bach
Michael Bach
2016-05-19T15:47:59+0000
Muy buena atencion al cliente y precios competitivos.
Next Reviews