A recurrent theme on the blog is the trouble Saudi Arabia is in.
However, it appears I may have missed an even bigger story.
See this post for background, and here.
So, let's check Mexico's foreign exchange reserves, link here.
First, the one year graphic:
Now, the five-year graphic:
And, finally, the "max" data available:
Let's look at the one-year chart for Saudi Arabia:
From my perspective:
- Saudi Arabia is starting to get control of their fiscal situation based on the one-year graphic
- Mexico was in great shape until very, very recently
- Mexico's five-graph is scary, but the one-year graph is even scarier
- Saudi is in a better position to shore up its economic situation -- for any number of resaons
- Mexico's situation is likely to get much, much worse
- this was exactly the wrong time for Mexico to elect a leftist president
- there was probably a reason that a leftist was elected president of Mexico, and it's reflected in the one-year graphic