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This is why it weakened today.....the new CDMX airport was rejected in a referendum.   

https://www.reuters.com/article/mexico-airport-peso/mexicos-peso-falls-to-4-month-low-after-vote-to-cancel-new-airport-idUSL2N1X90NB

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The peso was trading down at 19.6767 to the dollar, down 1.66 percent in early Monday morning trade, recovering some of its earlier losses when it fell over 2 percent to its worst level since July 3.

Called a “public consultation,” the vote was nonbinding, but leftist Lopez Obrador, who had called for the referendum and was against the new airport, has pledged to respect the result.

 

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The problem that is difficult for a proto-Marxist such as Lopez Obrador to understand is that several billions of “dollars” have already been spent on supplies, studies, legal work, land acquisition et al. We’ve heard reports that as much as $10 billion shall be lost but we find that very, very hard to believe if the projected cost was $13 billion. However, as we all know,

that $13 billion, by the time the airport would have been finished would have escalated to $20 or $25 or even $30 billions of dollars. Nonetheless, the Peso and the Mexican stock market plunged on this news, with the markets suddenly fearful that Lopez Obrador really is the doctrinaire Leftist we always thought him to be.

Currently bid 20.08, ask 20.11 (commentary from Dennis Gartman)

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Does anyone here actually believe that the $10 billion or whatever the actual amount was was spent entirely on airport construction?  If you do, I have a bridge in Brooklyn to sell you.  Peña is filling his pockets with every centavo possible before midnight on November 30.  He said, "Consulta or no consulta, the work won't stop until I'm out of office."  Transition yes, cooperation no.  Peña Nieto is the most corrupt president Mexico has ever had, WAY over and above his mentor and puppeteer Carlos Salinas de Gortari.

Yes, the NAIM (Texcoco-based airport) was canceled.  The project was moved to a Mexican air base in Santa Lucía and will go forward.

Proto-Marxist por favor!  I am still laughing.  I recommend that you who believe he is a proto-Marxist go read Franklin Delano Roosevelt's campaign platforms.  Obrador is a Social Democrat and his platform is very similar to the New Deal. 

I am proud to say that I voted with the nearly 70% who voted to stop the Texcoco airport.  

 

PRI Ofrenda 2018.jpg

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This rather reminds me of the Denver airport debacle.  How can these things cost so much?  🤑

Hey if AMLO gets rid of daylight savings time he's my guy.  :)

How much better would it be to spend all this money on roads, sewers and other infrastructure that helps the economy grow?  Since we've lived here the "free" road system has gone steadily downhill, no place more than right here in Jalisco.

Still, I wonder about a decision making process that is determined by one million local voters in a country of 130 million.  Seems to me if the entire country is paying for it, the entire country should have been voting on it. 

Still what's done is done.  Now let's see if Slim and the other fat cats want it bad enough to pay for it.

Seems a little strange to single this project out while at the same time coming up with this tourist train boondoggle.  BTW I see the Toluca train has also turned into a money pit.  Sometimes I think these politicians confuse trains with brains.  :)

 

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From Mexico News Daily (you get 10 free articles per month):

https://mexiconewsdaily.com/news/business-slams-airport-decision/

Seems to me if the private sector wants to finish the thing and pay for it they should be allowed to do so.  Maybe when it is their money all the grandiose and ridiculous architecture will disappear.

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17 hours ago, utilitus said:

This is what to expect from now on until 5 years pass. Poor Mexico. It was doing so well.

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14 hours ago, ibbocat said:

The design spec for an air force base are a very long way from the requirement of an international airport.

If this is an example for decision making for the next 6 years it will not be a change for the better.

Making Mexico a 2nd. World country again is a huge step backwards. Why anyone would support this type of move is beyond me. The huge asset for the Mexican government and money maker for the next 50 or more years this airport would be is apparent to educated Mexicans.

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Fitch specifically cited the airport decision and concerns about the future of energy reform in their rating change.  Canceling this project based on an obviously non representative plebiscite is hardly an example of rational decision making.  Read this Jreboll:

https://www.reuters.com/article/us-mexico-airport/mexican-president-elect-pulls-plug-on-new-airport-peso-sinks-idUSKCN1N30EE

 

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When AMLO won the elections there were those that were saying the peso would drop to 25:1 to the dollar. The dollar index was rising and about a dozen countries’ currency started to suffer, among those was China, India, SAfrica, Turkey, Brazil, Argentina and others. Then dollar index started to fall and the peso regained its value. The peso’s value does not operate in a vacuum. There are factors that affect it such as price of oil and and to a certain extent politics but not nearly as much as the value of the dollar. Pundits always have an agenda. Beware

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