Mexico: “Welcome” to Socialism

I write these lines with deep sadness and concern: the worst of the predictions we made about what Lopez Obrador’s (AMLO) ascent to power would bring, are being proven to be true.

The shortage (yes, shortage!) of fuel has begun in Mexico, and AMLO has only been in power for little over a month! We can consider this shortage to be the first major economic crisis of his period. Unfortunately, it’s just the beginning.

The President and energy authorities are saying that “the fuel supply is sufficient)” at Pemex. It might be the case. The point here, is that it may be that the company is not the one suffering the shortage of fuel, but rather, the consumers, and in a growing number of states.

These problems in supply are not due to “panic purchases” generated by “a black campaign on social media” -as the Secretary of Energy, Rocio Nahle says-, but it is due to the fact that the government (AMLO) has decided to stop pumping fuel through its pipelines. Pemex is now distributing gasoline and diesel by truck!

They don’t care that this method of distribution is much more expensive and absolutely insufficient.

Secretary Nahle said last night in a radio interview that “all the fuel trucks” of the country “are already working for Pemex, distributing fuel”.

If so, then the problem will become much more serious in a matter of weeks, because even though “all” fuel trucks would be “already working”, the shortage is still unsolved in states such as Michoacan, Queretaro, Jalisco, Guanajuato and others.

Last Tuesday, the shortage reached Mexico City. At this pace, the supply problem will become nationwide. It seems that this will be the case… and much worse.

Yesterday morning, AMLO has insisted that they will not open the pipelines as long as “huachicoleros” (fuel thieves) steal fuel.




All right. The problem here is that this anticipates that the shortage could last months or even YEARS.

It is a serious mistake to assume that the current measures will “end” the theft of fuel.

Not a single “huachicolero” has been arrested so far. AMLO has not even announced any massive strategy or campaign to close illegal taps.

That is to say: AMLO does not even consider solving the problem of theft in the pipelines, he’d rather opt for an archaic, more expensive, inefficient, slow and insufficient national distribution system by fuel trucks.

In the meantime, citizens will continue unfairly paying for a crisis they didn’t create nor deserve. Meanwhile, “huachicoleros” will expand their illicit activities.

The diagnosis of the absence of a rule of law in full force, is more than known. That is the underlying problem in Mexico: impunity.

The government should NOT be dedicated to finding out the “best” way to distribute fuel, but to ensure the safety of the inhabitants, the integrity of their property and compliance with contracts.

None of that is being done. On the contrary!




The authority is the first to breach contracts – that is the case of the now-cancelled six-billion-dollar New Airport (NAIM), for example- it has the “blind eye” with the corruption of previous governments; does not go after the criminals who steal gasoline; and will make the failed strategy of militarization of the country official and will raise it to a constitutional rank.

Meanwhile, in economic matters, AMLO plans to decide on more economic issues daily, just as Nicolas Maduro is doing in Venezuela.

AMLO already doubled the minimum wage on the Mexican side of the US border. He wants to stop importing oil and gasoline from America, no matter the cost; he wants to decide what, how and how much, can or should be imported of products like corn, which is seen by him as a purely “Mexican product” that should not be bought abroad.

Long story short, AMLO is an economic ignoramus.

Mexico, “welcome” to socialism, where the rulers decide instead of citizens what’s “the best” for them; where politicians see subsects instead of free individuals who decide for themselves.

The economic winter reached Mexico. Venezuela, here we go!

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