Mexico flirts with economic suicide: The Wall Street Journal

The arrival of Andrés Manuel López Obrador The President of Mexico has triggered the worst fears of financial badysts, while Tabasco politician is being pursued by the shadow of populist leaders like Hugo Chavez.

In the first months of his administration, none of the most pessimistic predictions about the Mexican economy were made. The peso is back against the dollar, inflation remains stable in general and foreign investment has not declined, on the contrary it has increased in the first quarter of the year. Last Friday, a tariff agreement on metals paved the way for the ratification of the T-MEC.

However, there are signs that keep alerts from different international entities. A government capable of canceling an international airport under construction and betting much of the economic growth on popular programs, which will cost billions of treasure pesos, it does not stop causing resentment.

The ideological baggage of the people who sought the advice of the government is worrying. The architect of the Argentine economic debacle for example.

An article by Mary Anastasia O & # 39; Grady for Wall Street Journal, reported the presence in Mexico of Axel Kicillof, former finance minister of the former president of Argentina, Cristina Kirchner.

"While working in the Kirchner government, he was known (for Kicillof) for his anti-market activism of the extreme left and the ardent critics who fostered the envy and hatred of the Argentineans"O. Grady said.

López Obrador has also been accused of polarizing Mexican society. Nowadays, it is common to hear these words on the street and in political debates "chairo" or "fifí", to distinguish between the followers of the economic policy of the president and the opponents.

Mr. Kicillof gave a speech entitled "How to deal with neoliberalism and not die in this attempt: Argentina, Mexico and the new conservative wave in Latin America", at the National University of Mexico , but he also called two powerful Mexican Senators from the party Morena del López Obrador and met with government officials", noted WSJ.

According to the American newspaper, it is not a good sign that the inhabitants of López Obrador have received Kicillof. Markets and major trading partners such as the United States and Canada must be concerned if the man responsible for the exponential rise in inflation in Argentina advises Mexican economists.

"For a government that says it wants to show good faith, the visit to Kicillof seems to be a senseless and self-inflicted wound"

"It's hard to believe that it was a bad step."

López Obrador presented his national development plan a few weeks ago. The document, which must be essentially a strategic and technical project, has become a manifesto with unspecified chapters, and no concrete means of action such as: "For the good of all, first the poor"

There are various measures and forecasts regarding the cost of AMLO social programs, including scholarships and universal pensions. The most conservative calculations estimate it in the 1.5% of GDP, according to the Mexican Institute of Finance (IMEF).

"The symbolism included in Kicillof's visit is not lost for investors, they know that Mexico has been striving to modernize for a quarter of a century and has made significant progress. Kirchernismo would make it back as with Argentina", says WSJ.

Morena, the party that has appointed López Obrador as president, has powerful supporters of leftist governments in the region. There have been few examples of sympathy for Nicolás Maduro's regime, which has the government refused to ignore what most states in Latin America have done.

"Only the extravagant left of Mexico can see in the legacy of Mr. Kicillof's unlimited populism a successbecause it has expanded social programs irresponsibly. Mr Kicillof was part of a disastrous program in Argentina that had accumulated huge budget deficits, lobbied the central bank for it to print money and destroy it. the investment profile of the country. Mr Kicillof preached against property rights and welcomed the break-up of debt and the confiscation of foreign badets. Local entrepreneurs were not out of reach: Ms. Kirchner nationalized private pension accounts in Argentine banks, "added WSJ.

Markets are not foreign to political winks, however weak they may be. In Argentina, the announcement that Cristina Fernández de Kirchner will participate in the next elections, had an immediate response of the bags.

"If foreign investors were reluctant to spend money in Argentina until after the October elections, the ratification of the candidacy of Cristina Fernández de Kirchner to the presidency with Alberto Fernández in the lead will further prolong the agony of the country. arrival of a "rain of dollars" as Mauricio Macri dreamed for the country ", writes Martín Dinatale in Infobae.

In Mexico, banks and foreign investors have expressed the desire to continue eagerly to participate in the rest of the year, but the uncertainties and doubts surrounding López Obrador instead of appeasing are enlightened by visits such as Kicillof.