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1. Our Wealthy Neighbor

 
The United States is neighbor to one of the wealthiest countries in the world. No, I am not referring to Canada. I am referring to Mexico.
 
Mexico is in an enviable geographical position. It is located in the Northern Hemisphere where, due to its benign ecosystem, most of the world’s population resides. Part of Mexico is located in a subtropical zone, just below the temperate zone. Part of it intrudes into the Tropic of Cancer. Snowstorms and their destructive power do not plague Mexico, other than in some limited parts of Northern Mexico. Tornadoes are practically unknown. There are some tropical storms; however, they are generally limited to the areas jutting into the Caribbean. In short, God placed Mexico in a climatological zone destined for paradise.
 
The country has extensive littoral access to two oceans: the Atlantic and the Pacific. This means unrestricted access to the wealth provided by the seas, and to world trade.
 
Look at a global representation of our world and compare. There is no other country in the world with such a climatically favorable location.

NATURAL RESOURCES

Crude Oil
 

Mexico is one of the largest exporters of crude oil to the United States. According to the U.S. Energy Information Administration, the top four source countries of U.S. petroleum imports to the United States in 2014 were:

Canada
37%
Saudi Arabia
13%
Mexico
9%
Venezuela
9%

 
The same source informs us that the United States has imported an average of 450,000 thousand barrels of crude oil from Mexico, per year, within the last ten years.
 
The total value of exports of crude oil from Mexico in 2014, in dollars, was $42,183,788,000.
(See: Other Exports, below).
 
Oil production, refining and distribution in Mexico have been "nationalized". This is an euphemism for "confiscated and monopolized". PEMEX (Petróleos Mexicanos) owns and controls all the oil resources in Mexico. Who owns PEMEX? The Mexican government. Consequently, politicians control all the funds obtained from oil exports.
 
Where is the money? Obviously, it is not being filtered to the famished masses.
Silver
 
The website: http://www.worldstopexports.com/silver-exports-country/3241, provides us with the following list.
 
Top Silver Exporting Countries – 2014:

  Country  U.S. Dollars  World exports
 1. Hong Kong  3 billion  12.6%
 2. Mexico  2.3 billion  9.7%
 3. United Kingdom  2 billion  8.4%
 4. South Korea  1.8 billion  7.8%
 5. Germany  1.7 billion  7.4%
 6. Canada  1.5 billion  6.4%
 7. Switzerland  1.4 billion  5.8%
 8. United States  1.3 billion  5.5%
 9. Japan  1.3 billion  5.4%
 10. Poland  882.9 million  3.8%
 11. China  846.6 million  3.6%
Gold
 
The website: http://www.worldstopexports.com/gold-exports-country/3212 shows the top fifteen gold exporting countries.
 
Top Gold Exporting Countries – 2014

 Country   U.S. Dollars   World Exports
 1. Switzerland
 74.1 billion  24.4%
 2. Hong Kong
 50 billion  16.4%
 3. United Kingdom
 37.6 billion  12.4%
 4. United States
 21 billion  6.9%
 5. Canada
 15 billion  4.9%
 6. United Arab Emirates
 13.1 billion  4.3%
 7. Australia
 12 billion  4.0%
 8. Peru
 5.6 billion  1.9%
 9. Germany
 5.5 billion  1.8%
 10. South Africa
 4.7 billion  1.6%
 11. Mexico
 4.7 billion  1.5%
 12. Japan
 4.4 billion  1.4%
 13. Italy
 3.8 billion  1.2%
 14. Turkey
 3.2 billion  1.1%
 15. Russia
 3 billion  1.0%
Other exports
 
The website http://www.worldstopexports.com/mexicos-top-exports/2636 shows the following top ten export product groups representing the highest dollar value in Mexican global shipments during 2014. This also shows the percentage share each export category represents in terms of Mexico’s overall exports.
 
Mexico’s Most Valuable Top Ten Exports – 2014

 Product  U.S. Dollars  Percentage
 1. Vehicles
 85,955,743,000  21.6%
 2. Electronic equipment
 80,023,663,000  20.1%
 3. Machines, engines, pumps
 60,326,694,000  15.2%
 4. Oil
 42,183,788,000  10.6%
 5. Medical, technical equipment
 14,382,872,000  3.6%
 6. Furniture, lighting, signs
 9,668,281,000  2.4%
 7. Plastics
 8,628,111,000  2.2%
 8.Gems, precious metals, coins
 7,847,592,000  2.0%
 9. Iron or steel products
 6,109,254,000  1.5%
 10. Vegetables
 5,497,363,000  1.3%

 
The website: http://www.worldstopexports.com/car-exports-country/3202 provides us with a list of the top fifteen auto exporting countries in 2014, as follows:
 
Top Auto Exporting Countries – 2014

 Country  U.S. Dollars  Percentage
 Germany
 160.1 billion  22.9%
 Japan
 88.7 billion  12.7%
 United States
 61.7 billion  8.8%
 Canada
 44.9 billion  6.4%
 South Korea
 44.8 billion  6.4%
 United Kingdom
 42.4 billion  6.1%
 Mexico
 32.4 billion  4.6%
 Spain
 31.9 billion  4.6%
 Belgium
 30.3 billion  4.3%
 France
 19.2 billion  2.7%
 Czech Republic
 17.8 billion  2.5%
 Slovakia
 15 billion  2.1%
 Italy
 11.6 billion  1.7%
 Hungary
 11 billion  1.6%
 Turkey
 7.3 billion  1.0%

 
Italy is in 13th place in this list with total world exports of 1.7%, only 1/3 of Mexico’s.
 
Mexico does not have an automaker identified with the country. Yet every large, recognized car manufacturer in the world has plants in Mexico, including Nissan, Honda, Volkswagen, Mazda, Ford, General Motors, Chrysler, Daimler, BMW, Volvo and Mercedes-Benz. These are not just assembly plants; Mexico actually manufactures the parts in Mexico.
 
There are three reasons for this phenomenon: Cheap labor, the steady dollar-based Mexican currency, and extremely liberal free trade agreements concocted by Mexico.
 
According to Forbes Magazine, throughout the 2000’s Mexico continued to pursue free trade agreements, and now has a total of 44 free trade agreements with countries around the world, including major economic players such as the EU, Japan and China. "I can export duty free to North America, South America, Europe and Japan,” Thomas Karig, Vice President of Corporate Affairs for Volkswagen of Mexico, told Forbes. "There’s not another country in the world where you can do that."
 
Mexico exports eighty percent of the cars they build to other countries, about two-thirds of them to the United States. (September 8, 2014, issue of Forbes).

GROSS NATIONAL PRODUCT

 
Gross National Product (GNP) is the total value of products and services produced by a nation in a particular year. GNP is a measure of the wealth of a nation, but is not the wealth of its people. To know that, we must consider the size of the population and the wealth distribution to its citizens.
 
The World Bank is an international organization "working for a world free of poverty". The World Bank classifies a country as "High Income", "Upper Middle Income", "Middle Income", or "Low Income".
 
The World Bank classifies Mexico as "Upper Middle Income", not "Middle Income", or "Low Income". Mexico is not a poor country; on the contrary, it is a wealthy country.
(http://data.worldbank.org/country/mexico)
 
What is more important in every country is not what wealth and income the country produces, but how the country distributes its wealth among its residents. For that, we need to view the distribution of wealth among the several layers of society.
 
I have selected certain countries, and compiled a chart from statistics provided by the World Bank, showing wealth distributions per percentages of population. The year selected is 2012 because this year had the more complete data. (http://wdi.worldbank.org/table/2.9)

 Country  Highest 20%  Second 20%  Lowest 10%
 United States
 46.4%  10.3%  1.7%
 Mexico
 54.1%  8.8%  1.9%
 Argentina
 47.2%  9.8%  1.6%
 China
 47.1%  9.7%  1.7%
 Spain
 41.8%  11.9%  1.7%
 United Kingdom
 40.1%  12.3%  2.9%
 Colombia
 58.0%  7.3%  1.1%

 
The statistics presented by the World Bank indicate that in Mexico the top 20% of earners in the population hold more than 54% of the wealth in the country. These statistics also show that in the United States the lowest 10% of earners hold only 1.7% of the wealth.
 
To grasp what this means, we need to take other factors into consideration. The United States is a highly socialized country with substantial transfers from the wealthy and upper-middle class to the poor. These transfers take the form of Medical Welfare, tax credits, socialized insurance, Rental Assistance Programs, Supplemental Nutrition Assistance programs, and various other assistance programs.
 
Millions and millions of the poor in the United States are immigrants from Mexico. Mexico is relieved of millions of poor by sending them to the United States.
 
Mexico does not have any assistance programs for its citizens, in spite of its wealth. In Mexico, the citizens are on their own. They do not expect any help from its government, nor will receive it.
THE WORLD'S RICHEST MEN:
 
Carlos Slim Helu, a Mexican, has been in a neck-to-neck race with Bill Gates, an American, for the spot as the world’s richest man for a few years.

   2010  2011  2012  2013  2014  2015
 Richest  Slim  Slim  Slim  Slim  Gates  Gates
 2nd richest  Gates  Gates  Gates  Gates  Slim  Slim

 
How can a country, where the majority of its citizens live in dreadful poverty, whose citizens die by the thousands in desperate attempts to cross to the United States furtively, have the richest, or second richest, man in the world? The reason is that poverty is a great contributor to that wealth. The greater the poverty in Mexico, the greater the increment to the wealth of Carlos Slim Helu. I shall explain this seemly outrageous statement in later chapters of this book.

SUMMARY:

• CRUDE OIL: Mexico was the third largest exporter of crude oil to the United States from 2012 through 2014. The oil company in Mexico is owned by the government, that is, the wealth derived from crude oil is controlled by politicians.
• SILVER: Mexico was the second largest exporter of silver in the world in 2014.
• GOLD: Mexico was the eleventh largest exporter of gold in the world in 2014.
• AUTOS: Mexico was the seventh largest exporter of cars in the world in 2014.
• WEALTH STATUS: The World Bank classifies Mexico as "Upper Middle Income", not "Middle Income", or "Low Income". Mexico is not a poor country; on the contrary, it is a wealthy country.
• WEALTH DISTRIBUTION: 20% of the population in Mexico holds 54.1% of the wealth.
• WEALTH ACCUMULATION: From 2010 through 2013 the richest man in the world was a Mexican citizen.
 
One statistical element is not available because it is difficult to quantify is the following:
One of the most important exports that Mexico has is poverty. The oligarchy that controls Mexico deliberately creates poverty, because poverty is a great source of its wealth. The middle class is virtually nonexistent. The oligarchy refuses to allow the creation of a strong middle class and intentionally creates impoverished conditions that will force its desperate poor to leave Mexico for the United States because, for this oligarchy, there is profit in poverty!
 
The following chapters will support this statement.