The Peso keeps sliding which is stoking inflation. The Mexican Central Bank has doubled interest rates in the past year to stem capital outflow. Compliments of non-stop Twitter rhetoric, Mexico's economy is imploding. Various economic forecasts predict either minimal growth or a recession this year. However, interest rates usually operate with a multi-month economic lag, so these rate increases could tip the scales to recession.
Mexico is caught in the death spiral of higher rates and lower currency:
Peso (red) with interest rates (black):
"NAFTA is the worst trade deal ever"
Get a fucking brain, you dunce
The trade deficit with Mexico is lower than China, Germany, and Japan:
And NAFTA is by far the most important trade relationship for U.S. GDP:
The TrumpPlosion trade caught a short-covering bid today. Which means it will resume imploding tomorrow.
Joined by Oil which just backtested its trend-line:
