Independent Journalism

Mexico\’s Past, The World\’s Future Currency Devaluations
It seems the world is doomed to repeat the same mistakes, from wars to large economic shocks that could have been avoided. All this, without a doubt, is the responsibility of leaders, who are often blinded by today’s apparent prosperity, or by the desire to postpone the inevitable, leading entire nations to what will eventually end in tragedy.

The influential forces that these leaders possess, including political, economic, monetary, and even military, impede for actions to be taken against them, allowing them to act discreetly and individually.

Of course, this does not imply we should rise in opposition to faulty government and monetary policies. On the contrary, bear in mind that rulers often hide or suppress movements and initiatives for change until they prove unstoppable. By then it is too late for any preventive action and panic ensues.

In this sense, Mexico has been no exception experiencing several such episodes in its recent history. Mexico’s experiences from the past can serve as a model for other nations as an example of what to avoid.

It’s 2012, and Mexico is nearly thirty years past its period of devaluations, yet it is once again on a path toward recurring crises, which have coincided almost exactly with its changes in government every six years.

The famous crisis of 1982 was the unwinding of a global process, not only relevant to Mexico but to the world, as the first consequences of the break from the gold standard (Bretton Woods In 1971) [read more]