Most Under-Reported International Story? -- Mexico On The Cusp -- February 12, 2019

Again, a huge "thank you" to a reader for suggesting (subliminally, it turns out) to go down this rabbit hole.

A recurrent theme on the blog is the trouble Saudi Arabia is in.

However, it appears I may have missed an even bigger story.

Mexico.

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:

One year:

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

Tea leaves:

• 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