Fitch Downgrades Mexico to One Step Above Junk, Plus Trump Lies of the Day


Fitch downgraded Mexico to BBB, one step above junk. In related news regarding Mexico, let's investigate Trump lies.

Please consider In Double Whammy, Fitch Downgrades Mexico and Moody's Lowers Outlook.

Cutting Mexico’s rating to BBB, nearing junk status, Fitch said the financial woes of state oil company Pemex were taking a toll on the nation’s prospects.

Fitch said mounting trade tensions influenced its view, according to a statement issued shortly after the end of a meeting in the White House in which Mexican officials tried to stave off tariffs U.S. President Donald Trump has vowed to impose next week.

Following a surge in mostly Central American migrants arriving at the U.S. border, Trump threatened blanket tariffs on Mexican imports if it did not do more to stem the flow.

“Growth continues to underperform, and downside risks are magnified by threats by U.S. President Trump,” Fitch said.

The latest moves by the ratings agencies on Mexico’s sovereign rating could also ratchet up pressure on the oil company’s own rating, which is teetering on the brink being downgraded from investment grade.

One Step Above Junk

Don't Exactly Count on Trump

I believe he means one step above Junk.

Just Like the Wall

Who cares, it will pay for itself.

Mexico Peso vs US Dollar

Up is down in this view.

Today's 1.5% move does not even register on a long-term chart.

Since mid-2008, the Peso has declined (19.59-9.85) / 19.59 = 49.7%.

If Mexico defaults or devalues the peso, it will sink much further.

Trump won't exactly like that as it will make Mexican exports to the US much cheaper.

Trump Bullsheet

The higher the tariffs go, the more US customers will pay.


Such is the bragging of a complete economic illiterate.

By the way, what the heck happened to the idea that Mexico would pay for the wall?

Lie of the Day

Please note Senate Republicans Warn White House Against Mexico Tariffs

Republican senators sent the White House a sharp message on Tuesday, warning that they were almost uniformly opposed to President Trump’s plans to impose tariffs on Mexican imports, just hours after the president said lawmakers would be “foolish” to try to stop him.

Politico reports Republicans threaten revolt, may block Trump's Mexico tariffs.

At a closed-door lunch Tuesday, two Trump administration officials laid out the president’s view: There is a crisis at the border and Mexico needs to stem the surge of migrants to avoid the new levies.

Senate Majority Leader Mitch McConnell (R-Ky.) told reporters the party spent “almost our entire lunch” going back and forth with the administration and warned afterward “there is not much support in my conference for tariffs, that's for sure.”

Summing up the mood of the lunch, Sen. James Lankford (R-Okla.) said, according to sources familiar with the matter: The administration "is trying to use tariffs to solve every problem but HIV and climate change.”

In March, 12 Republicans moved to reject Trump’s emergency declaration on the southern border, eight short of a veto-proof majority. But given the strong free-trade inclinations of the Senate GOP, the president could face a far larger condemnation if he ends up moving forward on the tariffs.

Sen. Ron Johnson (R-Wis.) told the administration officials that they could not count on the same level of support this time, according to two sources familiar with the meeting.

Increasingly Preposterous Lies Over Time

Trump actually had the gall to Tweet "Republicans support the President on Tariffs with Mexico all the way."

Trump's lies get more and more preposterous over time.

Mike "Mish" Shedlock

Comments (22)
No. 1-10

Fitch downgrades Mexico to BBB? Weren't they the agency that rated Chicago's bonds AAA in 2017? I think the rating agencies may need a rating agency or maybe a political rating system.


The high prices wont last because demand destruction will occur via job losses first. We are at a tipping point folks. The markets may not react well to layoffs.


If President Trump is reelected 2020 then S&P and Moodys will downgrade China to one level below junk. Rightly so. China should have signed the trade agreement rather than pursue a war with USA.

China has more hell to pay than loss of credit, failed banks, 200 million unemployed, famine, revolution, and embargo. Think sword of Damoclese.

Aside from that the inflated US university system should not expect 300 thousand Chinese students to return and pay out of state tuition next year.

Round and round the mulberry bush the monkey chased the weasel. The monkey thought 'twas all in fun. Pop! goes the weasel.


The Donald may not be that great economically, but I'll still take him over the globalist Killary. Tariffs should be been set up in 1999 instead of NAFTA being signed by Bubba, not to mention repeal of Glass-Steagal in 1999.


This is an immigration war, plain and simple. There are basically two sides: those who want more illegal immigration or those who don't. I know which side I'm on in this war. Personally, I'd like to see Trump completely close the border with Mexico. Mexico is already a fully blown socialist state which is transmogrifying into a total Marxist state. So, let's decouple from Mexico - here and now. NAFTA was a failure. And we don't need tens of millions of low skilled Peronists flooding into our country to mow our lawns or wash the dishes, either. The fat-assed Americans and their fat-assed kids need to quit stuffing their faces with fast carbs and get out and mow the lawn and get some physical exercise...

Speaking of exercise, Americans should be rallied to help report and round up 40 million illegal Invaders who need to be sent back home. Period. No ifs, ands or buts....

Whatever it takes, Mr. President. Tarrif the shit out of Mexico and trigger the shit out of your enemies, Mr. President. Trump 2020!


Was taking you seriously until I noticed you quote the NYTimes and Politico.


Weaponizing the Dollar-centric (for now) global financial system will eventually turn out to have been a very bad idea.


Get in compliance or be downgraded. Oh well, at least I see some effort on Mexicos part recently to halt future democrat voters.


Irrational exuberance has its limits ,a tsunami of defaults is on the horizon...


The decline of the Peso against the US Dollar, like most other currencies, has been declining long before Trump's tariffs, which means their issues are not tariffs, but debt, big govt, and corruption.

If the corporations that would be impacted don't like the tariffs, I suggest they call CONgress and the Mexican govt and tell them to find the money to build the wall and stop the flow of ILLEGALS (I'm sure you never thought this could've been the strategy all along).

Since you have been a "never Trumper" from the beginning, I must ask - what do you think comes after Trump? There is no doubt that this is when the SHTF, as no sane Patriot that is qualified will want to step into the establishment's hornet nest, which means only an establishment hack will be left, and the Patriots/Trump supporters will not accept this Death March to Bataan.

When the alternative is so much worse, why are you such a Trump basher, without proposing any REALISTIC solutions yourself?

Global Economics