Mexico’s president, Enrique Peña Nieto, came under great pressure from domestic forces to forgo his NAFTA meeting with Trump.
Nieto gave in and cancelled the meeting. As a result, the peso is falling like a skydiver who refuses to open his parachute, via Business Insider.
The difference, just between 8:50 am and 11:57 am (Eastern Standard Time), is staggering. The peso dropped by 1.2 percent in just that short period of time.
Keep in mind that the peso has been plummeting out of the airplane ever since Donald Trump was elected.
It’s crazy, but Donald Trump has actually maneuvered it so that agreeing to finance the wall is Mexico’s parachute.
Consider this tweet sent out by Trump just hours before Nieto cancelled the meeting, “The U.S. has a 60 billion dollar trade deficit with Mexico.”
“It has been a one-sided deal from the beginning of NAFTA with massive numbers of jobs and companies lost. If Mexico is unwilling to pay for the badly needed wall, then it would be better to cancel the upcoming meeting.”
Domestic critics of Enrique Nieto’s policies seemed to jump on the idea, urging Nieto to cancel the meeting. Previously, Nieto has said, “I regret and reject the decision of the U.S. to build the wall.”
His statement was televised, and his people were not about to let him forget it. Perhaps the smart thing to do would have been to insist on negotiating with Donald Trump, but Nieto did not swallow his pride in time. Now, it looks like the leader’s decision will cost his economy considerable strength.
Sean Spicer, Trump’s press secretary, told reporters, “We’ll look for a date to schedule something in the future. We will keep the lines of communication open,” via Fox News.
Nieto will still be coming to the bargaining table — he’ll just be a little closer to the ground and a little more prepared to open that parachute. What a genius move on Trump’s part!
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