Conspiracy Nation -- Vol. 3 Num. 39

("Quid coniuratio est?")

Mexican Peso Fall Hurts You

By Martin Mann
[From The Spotlight, January 9, 1995]

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Before beginning, here is an excerpt from a previously posted "Conspiracy for the Day -- Special Edition" which went out on or about November 4, 1993.

Lisa Fuentes, American University professor C-Span II, Broadcast 10/30/93 (Taped 10/26/93)


And most troublesome is the fact that, most likely, with most certainty, after the NAFTA treaty is passed -- if it passes, and I'm crossing my fingers that it doesn't -- Mexico is probably going to implement a peso devaluation. The peso is, you know, seriously overvalued. This is, you know, one of the issues that most people want to brush under the table and not discuss at public hearings. But you know, the peso has been overvalued for a number of years and now it's getting to the point where there is not much flexibility about the issue. A devaluation is imminent. And what happens in connection to that? Well, the United States is not going to be able to sell exports to Mexico.


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[And now, from The Spotlight, January 9, 1995:]

A shadowy consortium of Wall Street insiders and foreign speculators, with private links to the highest levels of the White House and Federal Reserve System, is skimming "billions, most probably tens of billions of dollars" in windfall profits from the collapse of the Mexican peso and other recent convulsions of the financial markets, economic analysts say.

American taxpayers, still unaware that a stunning $9 billion of their money went down the drain during Christmas week as the Clinton administration tried (and failed) to bail out the sinking Mexican peso, now face losses "worse than the bloodletting of the savings and loan scandals," warned Dr. Aldo Milinkovich, a former U.S. Treasury economist who is now a corporate strategist in New York.

Some $6 billion of the hurried handout was disguised as a so- called "currency swap" between the Federal Reserve and the Mexican central bank. In addition, Fed Chairman Alan Greenspan quietly ordered an additional $3 billion made available as an "emergency stabilization fund" in order to save, not just the Mexican payments system, but the controversial North American Free Trade Agreement (NAFTA), adopted barely a year ago, and now in dire peril.

The expensive effort to halt the Mexican economy's nose-dive didn't work. "The opponents and critics of NAFTA [among whom this paper played a leading role] are now vindicated," admitted Dr. Emiliano Manelli, a UN economist specializing in Latin American studies.

With the peso having lost almost half its value during the last nine days of December, and still falling, "dirt cheap" Mexican goods will soon begin to flood the wide-open U.S. market -- precisely the sort of calamity the promoters of NAFTA, led by Bill Clinton, swore would never happen, these sources warned.

But for an inner circle of well-connected financiers and currency manipulators with behind-the-scenes access to confidential economic information, the money market upheavals of recent months represent "the biggest get-rich-quick bonanza anyone can remember," says another respected financial analyst who, having left Wall Street's leading statistical service this year to join a major investment bank, asked not to be quoted by name.

"Just as predicted, this fraudulent free trade pact will end up hurting the workers, taxpayers and savings depositors of both the U.S. and Mexico," concluded Dr. Manelli.

The ancient Romans asked: Cui bono? That is, who profits? Who gets the tax dollars? Not the peasants on either side of the border. Your tax dollars went to bail out the major investors; those with the greatest "exposure" when the peso tumbled, to wit: Citicorp, BankAmerica, Chase Manhattan Corp., Chemical Banking Corp., NationsBank Corp. and Bank of Boston Corp.

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Coming to you from Illinois -- "The Land of Skolnick"