mexican economy
For the fourth time in the past 20 years, the Mexican economy is in financial distress, largely because of bad monetary policies pursued by Mexican officials. The United States has responded in all four instances by lending money to the Mexican government as a short-term palliative. The cumulative result is a set of perverse incentives for Mexican officials and foreign investors that ensures the "crisis"
will reappear on an even larger scale. In addition, the use …
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…long run. The new world order is one of market solutions, not government intrusion. To foster such outcomes the United States should pass legislation that eliminates the Treasury's ability to make foreign loans (through the ESF)
and that removes the ability of the Federal Reserve (through swap lines) to extend credit to foreign central banks directly or indirectly by funding the ESF. Congress should also withdraw its support for the IMF and the World Bank.
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