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	<title>Comments on: U.S. Military Report Warns &#8220;Sudden Collapse&#8221; of Mexico Is Possible</title>
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		<title>By: jak</title>
		<link>http://cryptogon.com/?p=6251&#038;cpage=1#comment-15244</link>
		<dc:creator>jak</dc:creator>
		<pubDate>Thu, 15 Jan 2009 07:27:57 +0000</pubDate>
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		<description>Back in the middle of 2007 theoildrum had an article on this topic: http://www.theoildrum.com/node/2752 (also http://www.jeffvail.net/labels/Mexico.html). He sees oil revenues/production as central to providing stability to Mexico and shows data on the decline of PEMEX/Cantrell. From the article:

&quot;Collapsing oil production decreases available revenues to reinvest in exploration and delays bringing new fields to production. The comparative success of Mexicans outside of Mexico drives further emigration. Failure of the Mexican government to provide for its people drives more economic activity to the black market, erodes the tax base, and makes taxes more difficult to justify at election time. And failure of the government to provide for fundamental security compels the population to turn to primary loyalties for protection—corrupt local governments, criminal organizations, etc. These factors in combination erode the foundation of the rule of law and the viability of Mexico’s infrastructure network, which in turn puts the brake on foreign investment, tourism, and the ability of legitimate businesses to produce and export goods and services from within Mexico.&quot;

Couple other thoughts: 1) the recent collapse in oil prices is probably not helping things. 2) I wonder if refugees/etc could be the reason (or perhaps one of many) for the new detention camps on US soil.</description>
		<content:encoded><![CDATA[<p>Back in the middle of 2007 theoildrum had an article on this topic: <a href="http://www.theoildrum.com/node/2752" rel="nofollow">http://www.theoildrum.com/node/2752</a> (also <a href="http://www.jeffvail.net/labels/Mexico.html)" rel="nofollow">http://www.jeffvail.net/labels/Mexico.html)</a>. He sees oil revenues/production as central to providing stability to Mexico and shows data on the decline of PEMEX/Cantrell. From the article:</p>
<p>&#8220;Collapsing oil production decreases available revenues to reinvest in exploration and delays bringing new fields to production. The comparative success of Mexicans outside of Mexico drives further emigration. Failure of the Mexican government to provide for its people drives more economic activity to the black market, erodes the tax base, and makes taxes more difficult to justify at election time. And failure of the government to provide for fundamental security compels the population to turn to primary loyalties for protection—corrupt local governments, criminal organizations, etc. These factors in combination erode the foundation of the rule of law and the viability of Mexico’s infrastructure network, which in turn puts the brake on foreign investment, tourism, and the ability of legitimate businesses to produce and export goods and services from within Mexico.&#8221;</p>
<p>Couple other thoughts: 1) the recent collapse in oil prices is probably not helping things. 2) I wonder if refugees/etc could be the reason (or perhaps one of many) for the new detention camps on US soil.</p>
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