Home » Posts tagged 'mexico'

Tag Archives: mexico

Olduvai
Click on image to purchase

Olduvai III: Catacylsm
Click on image to purchase

Post categories

Post Archives by Category

Mexico is about to experience its ‘highest temperatures ever recorded’ as death toll climbs

Mexico is about to experience its ‘highest temperatures ever recorded’ as death toll climbs

The extreme heat smothering much of Mexico has killed dozens of people across multiple states

A red sun rises against a red sky
The sun rises amid high temperatures in Mexico City on Thursday. Extreme heat in Mexico, Central America and parts of the U.S. South has left millions of people in sweltering temperatures, strained energy grids and resulted in iconic howler monkeys in Mexico dropping dead from trees. (Marco Ugarte/The Associated Press)

The extreme heat smothering much of Mexico has already killed dozens of people, but the hottest temperatures are yet to come, officials say.

“In the next 10 to 15 days, the country will experience the highest temperatures ever recorded,” researchers from the National Autonomous University of Mexico (UNAM) said in a statement earlier this week. They called the heat wave “unprecedented.”

According to the Weather Channel, by early next week, temperatures in Veracruz are expected to soar to 37 C, Tabasco will be 40 C and Mexicali will reach temperatures of 40.5 C.

Temperatures in the capital, Mexico City, could reach a record 35 C in the next two weeks, said Jorge Zavala, director of UNAM’s Institute of Atmospheric Sciences and Climate Change.

Most of the metropolitan area’s 21 million residents — accustomed to more temperate weather — lack air conditioning. Earlier this month, the capital was one of at least 10 cities in Mexico that registered their hottest day on record.

A boy walks alongside the ocean
A boy dives into the sea on a hot spring day in Veracruz, Mexico, on Tuesday, amid a nationwide drought and heat waves that have sent temperatures soaring across much of the country. (Yahir Ceballos/Reuters)

Mexico has been reeling from a high-pressure weather phenomenon known as a “heat dome,” which has trapped hot air over much of the country, creating record-breaking temperatures that have surpassed 45 C in some places.

…click on the above link to read the rest of the article…

Major cities in Mexico running out of water as extreme heat continues

Major cities in Mexico running out of water as extreme heat continues

Some major cities in Mexico are facing a shortage in their water supply. This comes as the country has been dealing with extreme heat leading to a severe drought. Telemundo’s Vanessa Hauc talks to Mexican residents on how the shortage is affecting their communities. 

…click on link above to watch video…

‘A serious risk’: Mexican villagers take on cartel-backed avocado farms as water dries up

‘A serious risk’: Mexican villagers take on cartel-backed avocado farms as water dries up

A man shows a pump removed from an unlicensed water intake in the mountains of Villa Madero, Mexico, 17 April 2024.
Copyright AP Photo/Armando Solis

After enduring years of drought and ‘invading’ fruit farmers in Mexico, these locals are taking matters into their own hands.

Desperate Mexican villagers are taking direct action on commercial avocado farms that are drying up streams while a severe drought drags on.

Rivers and even whole lakes are disappearing in the once green and lush state of Michoacan, in the mountains west of Mexico City. Drought has combined with a surge in the use of water for the country’s lucrative export crops, led by avocados.

In recent days, subsistence farmers and activists from the Michoacan town of Villa Madero organised teams to go into the mountains and rip out illegal water pumps and breach unlicensed irrigation holding ponds.

A potential conflict looms with avocado growers – who are often sponsored by, or pay protection money to, drug cartels.

How are Mexican residents taking on commercial farms?

Last week, dozens of residents, farmworkers and small-scale farmers from Villa Madero hiked up into the hills to tear out irrigation equipment using mountain springs to water avocado orchards carved out of the pine-covered hills.

The week before, another group went up with picks and shovels and breached the walls of an illegal containment pond that sucked up water from a spring that had supplied local residents for hundreds of years.

“In the last 10 years, the streams, the springs, the rivers have been drying up and the water has been captured, mainly to be used for avocados and berries,” said local activist Julio Santoyo, one of the organisers of the effort.

…click on the above link to read the rest of the article…

Mexico to Stop Exporting Oil in 2023 in Self-Sufficiency Quest

Mexico to Stop Exporting Oil in 2023 in Self-Sufficiency QuestOctavio Romero, CEO of PEMEX, speaks during an interview. (Alejandro Cegarra/Bloomberg)

Mexico plans to end crude oil exports in 2023 as part of a strategy by the nationalist government of Andres Manuel Lopez Obrador to reach self-sufficiency in the domestic fuels market.

Petroleos Mexicanos, the Mexican state-owned producer known as Pemex, will reduce crude oil exports to 435,000 barrels a day in 2022 before phasing out sales to clients abroad the following year, CEO Octavio Romero said during a press conference in Mexico City on Dec. 28.

The move is part of a drive by Lopez Obrador to expand Mexico’s domestic production of fuels instead of sending its oil abroad while it imports costly refined products, including gasoline and diesel. Mexico currently buys the bulk of the fuels it consumes from U.S. refineries.

If fulfilled, Pemex’s pledge will mark the withdrawal from the international oil market by one of its most prominent players of the past decades. At its peak in 2004, Pemex exported almost 1.9 million barrels a day to refineries from Japan to India, and was a participant in meetings by the Organization of Petroleum Exporting Countries as an observer.

Last month, the Mexican company sold abroad slightly more than 1 million daily barrels, according to Pemex data.

The export reduction will come as Pemex increases its domestic crude processing, which will reach 1.51 million barrels a day in 2022 and 2 million daily barrels in 2023, Romero said. The Mexican driller will plow all of its production into its six refineries, including a facility under construction in the southeastern state of Tabasco and another one being bought near Houston, Texas. This plant is considered part of Mexico’s refining system even if located across the U.S. border.

…click on the above link to read the rest of the article…

Méxican Seeds

Méxican Seeds

Last month’s ruling by the country’s Supreme Court fuels sustainable farming worldwide, writes Ernesto Hernández-López.

Mexico’s Supreme Court in Mexico City. (Ricardo Daniel Maldonado, CC BY-SA 4.0, Wikimedia Commons)

Last month México’s Supreme Court provided hope for biodiversity, especially in the Global South, while flaming fear for seed companies. In a historic step, it ruled for corn advocates and against genetically modified (GMO) corn. The decision was a momentous act in country where maíz (corn) carries daily and sacred significance.

This promises a way out of stale GMO debates that plague us. One side argues that genetic changes to seeds increase harvests. Seed companies and industrial agriculture make up this side. Another side says GMOs damage plant DNA.

Small-scale farmers and environmentalists stand on this side. Neither addresses the other. This standstill keeps GMO policies ineffective. The court’s decision offers a path out of this by cutting at seed company positions.

We should follow slow grown Mexican resistance to GMOs.

By emphasizing biodiversity, the ruling fuels sustainable farming worldwide. In legal terms, the decision found that it is constitutional for courts to block commercial permits for GMO corn. 

Seed companies, like Monsanto, Syngenta, Dow, and PHI, need these to sell seeds in México. They lost.  

Global GMO Push 

Inside the COP26 climate conference in Glasgow, Scotland, in early November. (UNclimatechange, Flickr)

But much more is at stake than permits and court orders. These agrochemical companies pursue a global push for GMO agriculture, not just in México. Farmers worldwide worry that companies control GMO seed use (not growers) and that seeds cause permanent environmental harm.

Frustrations persistently spread, evident at this year’s UN COP26 and UN global food summit.

…click on the above link to read the rest of the article…

Spiking Inflation, Rate Hikes, and Debt Defaults in Latin America

Spiking Inflation, Rate Hikes, and Debt Defaults in Latin America

Mexico and Brazil, having seen the economic destruction that high inflation can wreak, don’t want to see it again.

Latin America will soon be hit by a wave of business bankruptcies and defaults, according to Jesús Urdangaray López, the CEO of CESCE, Spain’s biggest provider of export finance and insurance. CESCE insures companies, mainly from Spain, against the risk of their customers not paying due to bankruptcy or insolvency. It also manages export credit insurance on behalf of the Spanish State.

CESCE’s biggest clients are large Spanish companies with big operations in Latin America. For many of those companies, including Spain’s two largest banks, Grupo Santander and BBVA, Latin America is its biggest market. CESCE’s three biggest shareholders are the Spanish State and, yes, Spain’s two largest banks, Grupo Santander and BBVA.

BBVA, which is heavily invested in Argentina, warned about the worsening situation in the country. If Argentina’s economy continues its inflationary spiral, it could end up affecting BBVA’s overall performance and financial health, the Spanish bank said.

Argentina’s government is once again trying to restructure its foreign-currency debt with the IMF, having already defaulted on the debt once since the virus crisis began.

Ecuador was first to default on its foreign currency debt, followed by Argentina, then Surinam, Belize, and Surinam twice more — six sovereign defaults so far in 13 months.

Latin America has been hard hit by the virus crisis. But the region’s cash-strapped governments with weak currencies and surging inflation cannot afford to provide the sort of financial support programs being rolled out in more advanced economies. Fiscal response has added just 28 cents of extra deficit spending for every dollar of lost output…

…click on the above link to read the rest of the article…

Unwelcome Inflation Heats Up in Mexico, Brazil, and as Always in Argentina

Unwelcome Inflation Heats Up in Mexico, Brazil, and as Always in Argentina

Brazil’s central bank struck back with shock-and-awe rate hike. Mexico’s central bank faces tough spot after big hit to economy. Argentina’s inflation exceeds 42%.

Around the world, there has been massive fiscal and monetary stimulus, an unprecedented growth in government-guaranteed lending, an explosion in the broad money supply, coupled with low inventories, supply chain shocks, rising shipping costs, and surging demand for certain commodities and consumer goods in developed countries, particularly the US. Companies are able to raise prices and pass on higher costs without triggering a buyers strike as the inflationary mindset has kicked in.

Many emerging economies are also having to contend with the additional inflationary impact of weaker domestic currencies. They include Mexico, where consumer prices rose to 4.7% in March — their highest level since December 2018. Prices are now firmly above the Bank of Mexico’s target inflation rate of 3%, with a one percentage point tolerance threshold above and below that level. In March alone, consumer prices grew 0.8%:

The items that saw the biggest month-on-month price increases were domestic LP gas (5.2%), low-octane gasoline (6%), and staple foods such as eggs (8%).

Surging commodities prices are being passed on to retail products. The price of corn reached $5.68 per bushel in March, up 74% from a year ago. Since last June, the price of this essential grain, for both human and livestock consumption, has risen every month. With consequences: The price of corn tortilla, Mexico’s most important staple food, rose by almost 3% in March from February.

Last year Mexico’s economy suffered its biggest contraction (8.5%) since the worst year of the Great Depression, 1932. It also appears to have contracted in the first quarter of 2021. But prices continue to rise, leaving the Bank of Mexico little choice but to abandon its plan to cut interest rates this month.

…click on the above link to read the rest of the article…

Paper Dollars in Circulation Globally Spike amid Hot Demand. But a Mexican Bank, after Run-ins with the US, Can No Longer Unload its Hoard of Paper Dollars

Paper Dollars in Circulation Globally Spike amid Hot Demand. But a Mexican Bank, after Run-ins with the US, Can No Longer Unload its Hoard of Paper Dollars

Triggering a showdown — Government of Mexico v. Central Bank — over paper dollars, with ramifications in the US and globally.

The amount of “currency in circulation” – the paper dollars wadded up in people’s pockets and purses, stuffed under mattresses, or packed into suitcases and safes overseas – jumped again in the week ended December 30 to a new record of $2.09 trillion, according to the Federal Reserve’s balance sheet, where currency in circulation is a liability, not an asset. This was up by 16%, or by $293 billion, from February before the Pandemic. The amount has doubled since 2011:

This amount of currency in circulation is a function of demand – and that demand has been red hot: US Banks have to have enough paper dollars on hand to satisfy demand at ATMs and bank branches. Foreign banks will also request paper dollars from their correspondent banks in the US, or return unneeded cash to them.

When there is demand for paper dollars, banks buy more of them from the Fed. They pay for them usually with Treasury securities they hold or with excess reserves they have on deposit at the Fed.

The surge of paper dollars is a sign of hoarding, not of increased payments. In the US, the share of paper dollars for payments has been declining for years, replaced by electronic payment methods, such as credit and debit cards, PayPal, Zelle and similar systems, all kinds of smartphone-based payment systems, the automated clearinghouse (ACH) system, and checks every now and then.

During periods of uncertainty, people load up on cash, as they have done leading up to Y2K, during the Financial Crisis, and now during the Pandemic.

…click on the above link to read the rest of the article…

 

Bring Them Home for Christmas


Pablo Picasso Dans l’atelier 1954
“There is nothing in Afghanistan worth the life of a single American soldier.”
– Douglas Macgregor

I’m having a bit of a problem finding the right format for this essay. I want to highlight a whole number of quotes, but I also would like you to read the original setting they came from. Please bear with me.

CNN: “A Pentagon spokesman confirmed Wednesday that retired Army Col. Douglas Macgregor “will be serving as a Senior Advisor to the Acting Secretary of Defense. Mr. MacGregor’s decades of military experience will be used to assist in the continued implementation of the President’s national security priorities.”

Also CNN: “Macgregor once advocated for the use of lethal force against unarmed migrants [..] and has made a litany of racist comments.”

I must admit even my encyclopedic brain had never heard of Macgregor, and I’m sure most of you hadn’t either, but I’m taking a liking to the man. “The use of lethal force against unarmed migrants” sounds bogus off the bat, that’s “Putin eats babies” territory, and accusing someone of “a litany of racist comments” without naming even one, doesn’t do it for me either.

And even then. The man wants to bring US troops home. Oh wait, but that’s why you accuse him of all these unsubstantiated “facts”. Gotcha. What I do know is for instance this Nov 6 2019 interview Macgregor did with Tucker Carlson, in which he sounds like a reasonable yet worried man. And while opinions may differ on how big of a threat drug cartels may be to the US, his view appears to have its merit.

…click on the above link to read the rest of the article…

CHART OF THE WEEK: Mexico & Peru Silver Production Big Declines Again In May

CHART OF THE WEEK: Mexico & Peru Silver Production Big Declines Again In May

According to the data released by Mexico and Peru’s governmental mining data, domestic silver production continued to be depressed in May.  Interestingly, the production data just released from Mexico’s INEGI shows that the country’s silver production in May was even less than what they reported for April.

I first wrote about this in my article, World’s Two Largest Silver Producers Mine Supply Cut Drastically In April.  The combined silver production loss from Mexico and Peru in April was 432 metric tons or 53% versus the same month last year.  Peru accounted for the largest of the decline in April at 237 metric tons (mt) compared to 195 mt for Mexico.

However, Mexico’s silver production in May dropped to 298 mt compared to 301 mt in April.  Here is the combined silver production by Mexico and Peru from April 2019 to May 2020:

The net loss of silver production from Mexico and Peru over the last three month period (March to May) is 770 mt, or 32% less than it was during the same period last year.  Thus, just these two countries have lost nearly 25 million oz of silver production.  I imagine once we factor in losses of silver production from other countries, we could see upwards of 35-40+ million oz decline so far.

But, this is only PHASE ONE of the collapse in global silver production.  I stated that as the U.S. and the global economy begin to roll-over in the second half of 2020, and onwards, we are going to see a reduction in base metal demand.   With so many people becoming unemployed, the global recession-depression will cause a significant decrease in copper, zinc, and lead demand.  Thus, in PHASE TWO, demand for base metals will decline, and with it, the curtailment of copper, zinc, and lead production.

…click on the above link to read the rest of the article…

‘Catastrophic Flooding Expected’ – Hanna Hammers Virus-Infected South Texas

‘Catastrophic Flooding Expected’ – Hanna Hammers Virus-Infected South Texas

Tropical storm conditions are expected for South Texas and northeastern Mexico on Sunday after Hurricane Hanna roared ashore on Saturday as a Category 1 storm. 

Hanna was the first hurricane of the 2020 Atlantic hurricane season and came ashore on Saturday afternoon around Port Mansfield, Texas, with maximum sustained winds of 90mph. The National Hurricane Center (NHC) downgraded the hurricane to a tropical storm early Sunday.

Chris Birchfield, a meteorologist with the National Weather Service (NWS) in Brownsville, told AP News the storm’s real threat continues to be heavy rainfall. “We’re still expecting catastrophic flooding,” he said. 

Rainfall estimates are in the range of 6 to 12 inches through Sunday night, with isolated areas could receive upwards of 18 inches. Willacy County, Texas, which is near Brownsville and the border with Mexico, has already reported 12.6 inches. Brownsville is reporting 5.6 inches and Reynosa, a city in Mexico, has already seen 11 inches. 

Here’s the latest update on Hanna via NWS: 

Here’s the latest update on Hanna via the National Oceanic and Atmospheric Administration (NOAA).

…click on the above link to read the rest of the article…

PERU EXTENDS LOCK-DOWN ALONG WITH MEXICO: An Estimated 40% Of Global Silver Mine Supply Now Offline

PERU EXTENDS LOCK-DOWN ALONG WITH MEXICO: An Estimated 40% Of Global Silver Mine Supply Now Offline

Now that the Peruvian Government announced an extension of the country’s state of emergency until April 26th, the world’s first and second-largest silver producers have taken 40% of global silver mine supply offline for a month.  Actually, Peru first announced its national quarantine on March 15th.  So, the country’s mines will be shut down for more than a month when the state of emergency is projected to end on April 26th.  But, will it?

According to the Reuters article, Peru’s Vizcarra extends state of emergency to April 26th; thecountry will remain on lockdown for an additional two weeks:

Including Mexico’s state of emergency issued on April 2nd to last until the end of the month, the total estimated silver production lost from these two countries could be 28 million oz (Moz).  That is 40% of global mine supply. But, what if additional mines have been shut down in other countries?

As I stated in previous articles and my Youtube video updates, we could see between 100-150 Moz of global silver mine supply lost this year.  However, if we just consider the estimated 28 Moz of silver production lost from Mexico and Peru, that would equal 28,000 of the 1,000 oz wholesale silver bars.

With the continued surge in demand for silver bullion pushing availability of products back weeks and for months, it has also impacted the 1,000 oz wholesale silver bar market. How will the reduction of 28,000 wholesale 1,000 oz silver bars impact the market in the next few months??  Good question.

…click on the above link to read the rest of the article…

In Late Thriller, OPEC Production Cut Deal Collapses After Mexico Gives Crown Prince The Finger

In Late Thriller, OPEC Production Cut Deal Collapses After Mexico Gives Crown Prince The Finger

Earlier today we reported that following a dramatic objection to the OPEC+ production cut which was agreed upon by Russia and Saudi Arabia (but few other OPEC members), Mexico had initially threatened to quit OPEC as it refused to comply with the imposed 23% cut forced on all members, but less than an hour later the southern US neighbor reportedly had changed its mind as Reuters reported that Mexico had in fact agreed to the OPEC+ production cut deal after all.

Well, scratch all that because it appears the Reuters “news” was fake, sourced from some conflicted Saudi minister who wanted to put Mexico in a position where it had no choice but to accept the reality that had been imposed upon it. Unfortunately for the Saudis, this “plan” was laughable and late on Thursday, Mexico logged off the OPEC+ alliance’s videoconference emergency meeting after nine hours of talks Thursday, without agreeing to the landmark 10 million b/d production cut accord that members were hoping could stem a bruising rout in oil prices caused by the coronavirus pandemic and send the price of oil surging, S&P Global Platts reported, whose sources we can now confirm are far more credible than those of Reuters.

The rest of the coalition, led by Saudi Arabia and Russia, were in discussions over how to proceed, with many ministers angry over the potential blow-up of the deal.  The coalition will likely try to convince Mexico again Friday at a G20 energy ministerial that was originally scheduled to seek the participation of the US, Canada, Brazil and other key producers outside of OPEC+ to join its efforts.

…click on the above link to read the rest of the article…

GLOBAL SILVER SUPPLY COLLAPSE ON ITS WAY: Mexico mining suspension to hit silver supply

GLOBAL SILVER SUPPLY COLLAPSE ON ITS WAY: Mexico mining suspension to hit silver supply

Due to Mexico’s Ministry of Health issuing an Executive Order for the immediate suspension of non-essential activities until April 30th, the mining industry in the country has now come to an abrupt halt.  The mining industry was hoping for an exemption to the Executive Order, but was not granted one.  So, companies are now suspending production and putting their mines on care and maintenance.

According to the article on the Mining Journal website, Mexico mining suspension to hit silver supply:

Under the government decree, non-essential activities are to be suspended immediately until April 30.

The decision is expected to have a significant impact on the supply of silver at a time when demand for silver coins is high. Mexico is the world’s largest silver producer at some 23% of world production and produced more than 200 million ounces in 2019, up from 196.6 million ounces in 2018.

With Mexico shutting down its mines, including the continued closure of Peru’s Mining Industry announced on March 15th, nearly 40% of global silver production is offline. Peru’s government stated that the national quarantine would last 15 days.  However, we have passed that point, and there is no announcement of a return back to work.

Here are the top ten silver producing countries in the world in 2018:

In 2018, Mexico and Peru accounted for 342 million oz of silver production.  If mines in Mexico and Peru remain shut down for a month, that will cut silver production by 28 million oz.  So, each month that Mexico and Peru are offline, would reduce silver mine supply by 28 million oz.  However, I believe we are going to see more countries shut down their mines for an extended period as the global contagion continues to spread.

…click on the above link to read the rest of the article…

THE MASSIVE 46 STORY TALL STRUCTURE: The Penasquito Mine Tailings Dam

THE MASSIVE 46 STORY TALL STRUCTURE: The Penasquito Mine Tailings Dam

The colossal Penasquito Mine’s tailings dam will reach a stunning height of a 46 story skyscraper over the next decade.  That is, if the mine reopens and is allowed to continue business as usual.  Newmont-Goldcorp suspended operations at Mexico’s second largest silver mine on April 29th, due to a blockade stemming from issues with the local community in regards to water supply concerns and problems with a trucking contractor.

Last year, the Penasquito Mine produced 272,000 oz of gold and over 18 million oz of silver.  However, it plans on producing over 5 million oz of gold and 400+ million oz of silver over the next decade.

After I published my article, MORE TROUBLE IN MEXICO: Second Largest Silver Mine Suspended Operations, I did some research on Penasquito’s tailings dam, and when I saw a photo of the dam, I was literally shocked by its massive size.  I never really gave it much thought about where all the waste ended up after the processing of ore was finished.  It’s a typical problem we all deal with today, OUT OF SIGHT, OUT OF MIND.

Let me start by saying that the tailings dam is so large; it surpasses the size of the Penasquito open-pit mine itself. For clarification, the tailings dam (or ponds) are used to store the processed waste slurry after the metals have been extracted.  Here is a layout of the Penasquito Mining Operation:

(image courtesy of Goldcorp 2018 Tailings & Mine Waste Conference PDF report)

As you can see, the tailings dam is 4 kilometers long compared to the Penasquito open-pit mine, which is about half its size.  However, this layout doesn’t give the epic scale of the tailings dam justice.  According to the images in Goldcorp’s 2018 Tailings & Mine Waste Conference PDF, and data from the company’s Feb 2019 Penasquito Mine Tour Presentation, the tailings dam is currently 85 meters tall, or nearly 280 feet in height:

 …click on the above link to read the rest of the article…

Olduvai IV: Courage
Click on image to read excerpts

Olduvai II: Exodus
Click on image to purchase

Click on image to purchase @ FriesenPress