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<title>Zihuatanejo-Ixtapa Message Board - Mexican Economy</title>
<link>https://www.zihuatanejo.net/tablero/</link>
<description>Information for visitors and locals about Zihuatanejo, Ixtapa, Troncones, Barra de Potosí and the surrounding region of the Costa Grande in Guerrero, Mexico</description>
<language>en</language>
<item>
<title>Mexican Economy (reply)</title>
<content:encoded><![CDATA[<p>It’s not so simple. Wealth isn’t a pie that can be easily divided. Wealth is created. There will always be a wealth disparity because of this.</p>
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<link>https://www.zihuatanejo.net/tablero/index.php?id=168751</link>
<guid>https://www.zihuatanejo.net/tablero/index.php?id=168751</guid>
<pubDate>Thu, 30 Nov 2023 21:15:41 +0000</pubDate>
<dc:creator>nicatnit</dc:creator>
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<item>
<title>Mexican Economy (reply)</title>
<content:encoded><![CDATA[<blockquote><p>Can  someone  explain to me  why  all  countries  are in crazy ass debt?<br />
Shouldn't  it be...like... a  zero sum game? Maybe I was too invested in Milton Bradley board games in my youth.</p>
</blockquote><p>There is plenty of wealth. The problem is the distribution of that wealth. </p>
<p><em>A study by the World Institute for Development Economics Research at United Nations University reports that the richest 1% of adults alone owned 40% of global assets in the year 2000, and that the richest 10% of adults accounted for 85% of the world total. The bottom half of the world adult population owned 1% of global wealth. </em></p>
<p><em>A 2006 study found that the richest 2% own more than half of global household assets. </em></p>
<p><em>The Pareto distribution gives 52.8% owned by the upper 1%.</em></p>
<p><a href="https://en.m.wikipedia.org/wiki/Distribution_of_wealth#:~:text=half%20of%20the%20world's%20net,97%25%20of%20the%20total%20wealth.">https://en.m.wikipedia.org/wiki/Distribution_of_wealth#:~:text=half%20of%20the%20world's%20net,97%25%20of%20the%20total%20wealth.</a></p>
<p>The masses demand more equitable distribution of the wealth that they produce. Governments provide that through government programs. </p>
<p>But the masses don’t have enough wealth to pay for the programs and the wealthy refuse to share their wealth through taxation. </p>
<p>So government debts increase.</p>
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<link>https://www.zihuatanejo.net/tablero/index.php?id=168695</link>
<guid>https://www.zihuatanejo.net/tablero/index.php?id=168695</guid>
<pubDate>Tue, 28 Nov 2023 12:14:00 +0000</pubDate>
<dc:creator>Little Guy</dc:creator>
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<item>
<title>Mexican Economy (reply)</title>
<content:encoded><![CDATA[<p>Can  someone  explain to me  why  all  countries  are in crazy ass debt?<br />
Shouldn't  it be...like... a  zero sum game? Maybe I was too invested in Milton Bradley board games in my youth.</p>
]]></content:encoded>
<link>https://www.zihuatanejo.net/tablero/index.php?id=168692</link>
<guid>https://www.zihuatanejo.net/tablero/index.php?id=168692</guid>
<pubDate>Tue, 28 Nov 2023 02:24:55 +0000</pubDate>
<dc:creator>Yandosan</dc:creator>
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<item>
<title>Mexican Economy (reply)</title>
<content:encoded><![CDATA[<p>I believe you are right Rob. Mexico, compared to other countries, including the US has been more disciplined with regard to debt. </p>
<p>This is from the Federal Reserve Bank of Dallas on Sept 23, 2023: </p>
<p>The unusual strength of the peso, which makes up 13.8 percent of the Fed’s trade-weighted dollar index, can be attributed to short-run factors such as high interest rate differentials relative to the U.S. and investor positioning, as well as longer-run macroeconomic fundamentals.</p>
<p>The real (inflation-adjusted) policy rate differential between Mexico and the U.S. widened notably in 2021, when Banco de México raised its policy rate, initiating monetary policy tightening almost a full year before the Fed started its tightening cycle. Mexico’s central bank cumulatively increased its policy rate 7.25 percentage points, exceeding the Fed’s 5.25-percentage-point rise. </p>
<p>This is from PBS, not exactly a far right media outlet, on Aug 16, 2023: </p>
<p>Even President Joe Biden has some regrets about the name of the Inflation Reduction Act: As the giant law turns 1 on Wednesday, it’s increasingly clear that immediately curbing prices wasn’t the point. While price increases have cooled over the past year — the inflation rate has dropped from 9 percent to 3.2 percent — most economists say little to none of the drop came from the law.</p>
<p>NEW YORK/WASHINGTON, Nov 10 (Reuters) - Moody's on Friday lowered its outlook on the U.S. credit rating to &quot;negative&quot; from &quot;stable&quot; citing large fiscal deficits and a decline in debt affordability, a move that drew immediate criticism from President Joe Biden's administration.</p>
<p>Back to the Federal Reserve of Dallas: </p>
<p>In 2022, Mexicans living in the U.S. sent home a record $55.9 billion, representing 4.5 percent of Mexican GDP. Mexico’s current account deficit would have exceeded 4 percent of GDP over the past three years, meaning the country’s demand for foreign currencies would have increased, exerting downward pressure on the peso. The remittances helped push Mexico’s current account deficit to 1.2 percent of GDP in 2022.</p>
<p>In the US, the current account deficit grew from an average of 2.3% from 2012 - 2119 to 2.9% in 2020, 3.6% in 2021 and 3.7% in 2022. </p>
<p>The US doesn't have foreign remittances, so it borrows to plug the gap.</p>
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<link>https://www.zihuatanejo.net/tablero/index.php?id=168689</link>
<guid>https://www.zihuatanejo.net/tablero/index.php?id=168689</guid>
<pubDate>Mon, 27 Nov 2023 22:48:03 +0000</pubDate>
<dc:creator>Ixtapachris</dc:creator>
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<title>New General’s location Ixtapa (reply)</title>
<content:encoded><![CDATA[<p>Sorry end comment was not to compare to a year or 3 years ago…you are also making more money on investments just by having higher % interest rates and GIC’s</p>
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<link>https://www.zihuatanejo.net/tablero/index.php?id=168685</link>
<guid>https://www.zihuatanejo.net/tablero/index.php?id=168685</guid>
<pubDate>Mon, 27 Nov 2023 20:47:43 +0000</pubDate>
<dc:creator>BigMac1</dc:creator>
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<item>
<title>New General’s location Ixtapa (reply)</title>
<content:encoded><![CDATA[<p>Thanks for the feedback on General’s new location and lack of outdoor seating. Shorty’s will benifit from the old location as most people like being outdoors!<br />
As far prices on restaurant food or groceries it is all relevant as prices have gone up everywhere in North America and the Canadian and U.S. dollar exchange has taken a hit.<br />
Really the comparison is what would it cost to buy these food items at home and are items at the markets/stores still cheaper vs.buying at home today….. it a year or 3 years ago?</p>
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<link>https://www.zihuatanejo.net/tablero/index.php?id=168684</link>
<guid>https://www.zihuatanejo.net/tablero/index.php?id=168684</guid>
<pubDate>Mon, 27 Nov 2023 20:45:00 +0000</pubDate>
<dc:creator>BigMac1</dc:creator>
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<title>Mexican Economy (reply)</title>
<content:encoded><![CDATA[<blockquote><p>Most restaurants, and Soriana for that matter, are more expensive. Food inflation in Mexico was up 14% in 2022 and is running about 9% in 2023. The $1.2 trillion 'inflation reduction act' in the US gave other countries more latitude to print money and inflate away their outstanding debts. Mexico has even higher interest rates than the US, which in part affects the peso to dollar exchange rate.</p>
</blockquote><p>Mexico has always maintained higher interest rates than the USA for much longer than the 34 years I've lived here, which is why we never take out bank loans. I believe you are mistaken about the impact of the USA's &quot;Inflation Reduction Act&quot; on Mexico. Mexico never had the level of inflation as the USA, never went through the recent economic meltdown of the USA, and the peso has been gaining ground on the dollar for at least the past 5 years. Mexico currently occupies one of the top 5 places among the G-20 nations for economic growth. A far cry from what the naysayers claimed would happen under AMLO.</p>
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<link>https://www.zihuatanejo.net/tablero/index.php?id=168680</link>
<guid>https://www.zihuatanejo.net/tablero/index.php?id=168680</guid>
<pubDate>Mon, 27 Nov 2023 20:07:14 +0000</pubDate>
<dc:creator>ZihuaRob</dc:creator>
</item>
<item>
<title>New General’s location Ixtapa (reply)</title>
<content:encoded><![CDATA[<p>We were discussing that this morning during our monthly dog food run at Sam's.  We moved here permanently 6 years ago.  Just in dog food, peanut butter and roast chickens, (all we buy at Sam's) the prices have gone up 20 to 25%.  </p>
<p>Other prices everywhere have done about the same.  It's just a fact of life.  Probably more if we were still in Southern California.</p>
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<link>https://www.zihuatanejo.net/tablero/index.php?id=168679</link>
<guid>https://www.zihuatanejo.net/tablero/index.php?id=168679</guid>
<pubDate>Mon, 27 Nov 2023 18:19:16 +0000</pubDate>
<dc:creator>Talley Ho</dc:creator>
</item>
<item>
<title>New General’s location Ixtapa (reply)</title>
<content:encoded><![CDATA[<p>Most restaurants, and Soriana for that matter, are more expensive. Food inflation in Mexico was up 14% in 2022 and is running about 9% in 2023. The $1.2 trillion 'inflation reduction act' in the US gave other countries more latitude to print money and inflate away their outstanding debts. Mexico has even higher interest rates than the US, which in part affects the peso to dollar exchange rate.</p>
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<link>https://www.zihuatanejo.net/tablero/index.php?id=168676</link>
<guid>https://www.zihuatanejo.net/tablero/index.php?id=168676</guid>
<pubDate>Mon, 27 Nov 2023 14:56:16 +0000</pubDate>
<dc:creator>Ixtapachris</dc:creator>
</item>
<item>
<title>New General’s location Ixtapa (reply)</title>
<content:encoded><![CDATA[<p>The Generals never did impress us and others visiting Ixtapa.<br />
Atmosphere zip, food and service so so. Could be anyplace in the states with sports bar setting.<br />
Many other places in Ixtapa to go that has the local flair.</p>
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<link>https://www.zihuatanejo.net/tablero/index.php?id=168670</link>
<guid>https://www.zihuatanejo.net/tablero/index.php?id=168670</guid>
<pubDate>Mon, 27 Nov 2023 01:55:34 +0000</pubDate>
<dc:creator>Steveo</dc:creator>
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<item>
<title>New General’s location Ixtapa (reply)</title>
<content:encoded><![CDATA[<blockquote><p>What is the new place like….is there still a big outdoor area to eat and drink. Have the prices changed?</p>
</blockquote><p>A large hot sweat box.</p>
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<link>https://www.zihuatanejo.net/tablero/index.php?id=168667</link>
<guid>https://www.zihuatanejo.net/tablero/index.php?id=168667</guid>
<pubDate>Mon, 27 Nov 2023 01:11:48 +0000</pubDate>
<dc:creator>midalake</dc:creator>
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<item>
<title>New General’s location Ixtapa (reply)</title>
<content:encoded><![CDATA[<p>Just returned from a 7 week stay and overall there has been an increase in prices of everything. This coupled with a decreased exchange rate from a year ago. Canadiens who arrived my last week really commented on what they called an increase in prices based on what they experienced the previous year and what they budgeted for this year.</p>
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<link>https://www.zihuatanejo.net/tablero/index.php?id=168665</link>
<guid>https://www.zihuatanejo.net/tablero/index.php?id=168665</guid>
<pubDate>Mon, 27 Nov 2023 00:20:07 +0000</pubDate>
<dc:creator>Max</dc:creator>
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<item>
<title>New General’s location Ixtapa (reply)</title>
<content:encoded><![CDATA[<p>It is in front of Ruben's Burgers and it is a large indoor place.</p>
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<link>https://www.zihuatanejo.net/tablero/index.php?id=168664</link>
<guid>https://www.zihuatanejo.net/tablero/index.php?id=168664</guid>
<pubDate>Mon, 27 Nov 2023 00:13:42 +0000</pubDate>
<dc:creator>Max</dc:creator>
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<item>
<title>New General’s location Ixtapa (reply)</title>
<content:encoded><![CDATA[<blockquote><p>What is the new place like….is there still a big outdoor area to eat and drink. Have the prices changed?</p>
</blockquote><p>No outdoor dining at all, but rumor has it they are trying to get some space. More room inside. Get used to higher prices everywhere. Plus you have probably lost 15% on the exchange rate. The Shorty's moved into their old place.</p>
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<link>https://www.zihuatanejo.net/tablero/index.php?id=168661</link>
<guid>https://www.zihuatanejo.net/tablero/index.php?id=168661</guid>
<pubDate>Sun, 26 Nov 2023 23:47:40 +0000</pubDate>
<dc:creator>wisconsinjuan</dc:creator>
</item>
<item>
<title>New General’s location Ixtapa</title>
<content:encoded><![CDATA[<p>What is the new place like….is there still a big outdoor area to eat and drink. Have the prices changed?</p>
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<link>https://www.zihuatanejo.net/tablero/index.php?id=168659</link>
<guid>https://www.zihuatanejo.net/tablero/index.php?id=168659</guid>
<pubDate>Sun, 26 Nov 2023 23:25:22 +0000</pubDate>
<dc:creator>BigMac1</dc:creator>
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