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March 09, 2009

I find it curious that almost without exception mainstream reporting on Mexico is exclusively a drug war story and never about the generally collapsing Mexican economy along with its oil resources. It's like they haven't even noticed the oil angle. It's all about militarizing the border. For example, THIS is just out,

In Mexico's drug wars, fears of a U.S. front
Violence that has killed thousands is beginning to cross border, officials say
By Alex Johnson
Reporter | msnbc.com | updated 1 hour, 30 minutes ago
With U.S. forces fighting two wars abroad, the nation's top military officer made an important visit last week to forestall a third. He went to Mexico. ...
Excellent commentary and analysis that fills in some of the gaps may be found in a new post at The Oil Drum:

Mexico: A Collapse Update
Posted by jeffvail on March 8, 2009 - 11:59am
It's been difficult to read a paper or watch the news recently without hearing about the growing troubles in Mexico. The US military?s Joint Forces Command issued their Joint Operating Environment 2008 report recently that listed Mexico and Pakistan as the most likely states to collapse in the immediate future (PDF, see p.35 for analysis of Mexico). Even 60 minutes ran a segment about the rising drug violence.

Of course, readers are probably already aware that a root cause of the problems in Mexico is the precipitous decline of Mexican oil production and an even faster decline in the level of oil exports. Add to that declining remittance incomes being sent home by migrant workers in America, declining tourist revenues, and lower revenue per barrel of oil exported, and the Mexican state is experiencing a severe financial crunch. ...

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