Hillary Clinton Goes Down – Mexico Currency Goes Haywire
There were talks about Trump’s assassination. And there were talks about “dragging and drugging” Clinton to the finish line – by hook or by crook. It doesn’t matter if Hillary Clinton collapses and dies, as long as she wins the November Presidential Election. Vice President Tim Kaine can take over as the new president representing the Democratic Party.
Before Donald Trump could be assassinated, however, Hillary Clinton’s 911 drama where she was basically dragged and thrown into the back seat of a van (or rather a black-painted ambulance) after developing what many believe to be a seizure – most likely due to Parkinson’s – one country has started going bonkers.
Economists have long said that when the United States catches a cold, Mexico gets pneumonia. But when Hillary Clinton catches pneumonia (as her camp would like the people to believe) on that faithful day on September 11, Mexico’s currency – Peso – gets something worse ever since.
Judging by the fantastic tumbling of Mexican peso against the US dollar, the currency market doesn’t think Clinton’s pneumonia is the only infection she caught on 9/11. Common sense is telling currency traders and speculators that Clinton is a walking time bomb simply because Donald Trump’s rating continues climbing since Hillary’s 9/11 collapse.
The Mexican currency has reached the psychological barrier of 20 pesos per dollar. On September 16, it went up as much as 19.78 pesos to a US dollar. According to Banamex, one of Mexico’s largest banks – “The possibility that Donald Trump could win the November 8 elections has made financial markets nervous and that has been especially reflected in the Mexican peso.”
Newspaper columnist Carlos Loret de Mola wrote in the newspaper El Universal – “Speculation broke out against the Mexican currency last week due to the poor health of the Democratic candidate, Hillary Clinton.” Essentially, Clinton’s collapse on 9/11 has convinced the financial market that the chance of her losing the race to the White House is real.
As an economic powerhouse who buys about 80% of Mexico’s exports, it’s not hard to understand why Trump’s current skyrocketing rating is spooking the Mexican peso. Besides accusing Mexicans as rapists, drug dealers and criminals in the U.S., Trump has been critical of Mexico’s trade agreements that give it access to the U.S. market.
Trump has consistently calls to renegotiate terms of the North American Free Trade Agreement, which he says has benefited Mexico to the detriment of the U.S. Trump’s visit to Mexico late last month to meet with Mexican President Enrique Peña Nieto didn’t change the Republican nominee’s stand. His plan to build a wall on the U.S.-Mexican border to keep out illegal immigrants also remains.
Although Mexico’s Treasury Department declined to comment on whether the U.S. campaign has affected the country’s currency, the financial markets know the country will be badly affected if Trump wins. The department attributed the peso’s decline mainly to concerns about a possible interest rate hike in the United States and the drop in oil prices.
The currency has dropped almost 17% in value last year alone. With the Mexico Peso down 14.5% this year, it could easily breach the 20 pesos to a dollar even before the November 2016 U.S. Presidential General Election, if Trump’s rating continues going north. So, there’s a new financial indicator which connects Donald Trump with Mexico Peso.
If you want to know how Donald Trump is doing, all you need to do is check the Mexican peso. There’s no need to check the boring and complicated poll ratings. And if Trump really want to put money where his mouth is, the Mexico Peso could crash and cause a huge panic resulting in the “currency devaluation” – again.
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from FinanceTwitter http://www.financetwitter.com/2016/09/hillary-clinton-goes-down-mexico-currency-goes-haywire.html
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