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	<title>Comments on: Paper Money Is Not Wealth</title>
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	<link>http://www.dailyreckoning.com.au/paper-money/2007/03/16/</link>
	<description>An independent perspective on the Australian and global investment markets</description>
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		<title>By: Hugo Estrada</title>
		<link>http://www.dailyreckoning.com.au/paper-money/2007/03/16/comment-page-1/#comment-1808</link>
		<dc:creator>Hugo Estrada</dc:creator>
		<pubDate>Fri, 16 Mar 2007 13:57:11 +0000</pubDate>
		<guid isPermaLink="false">http://www.dailyreckoning.com.au/paper-money/2007/03/16/#comment-1808</guid>
		<description>Today, the Mexican economy is a monopolist capitalist one. 

This quote from Forbes describes the situation:

&quot;As the best-known patriarch among the ruling families that dominate the Mexican economy, he draws the most fire for the distinctly Mexican form of crony capitalism that pervades the national economy. The cement industry is largely controlled by one player--Cemex  (nyse: CX -  news  -  people )--and its billionaire chief, Lorenzo Zambrano. Mexico has two national television networks, run by the country&#039;s ruling elite--TV Azteca, run by Ricardo Salinas Pliego; and Grupo Televisa  (nyse: TV -  news  -  people ), controlled by Emilio Azcárraga Jean, favorite son of the Azcárraga clan. Even tortillas are a monopoly market, controlled by the González Barrera family&#039;s Gruma, which has a 71% share of sales. In January people protested in the streets of Mexico City after tortilla prices doubled&quot;

http://members.forbes.com/global/2007/0326/070.html

There are practically no entitlement programs left in Mexico. The tortilla subsidy stopped in 1999. There is no welfare system. There is no universal health insurance program.

Forbes says that one single company controls 71% of the tortilla market. What we are seeing here is a monopoly exercising its scarcity power.

Mexico, in many ways, has a more aggressive capitalistic system than the U.S. And it is in shambles as a result of it and its crony links between business and government.</description>
		<content:encoded><![CDATA[<p>Today, the Mexican economy is a monopolist capitalist one. </p>
<p>This quote from Forbes describes the situation:</p>
<p>"As the best-known patriarch among the ruling families that dominate the Mexican economy, he draws the most fire for the distinctly Mexican form of crony capitalism that pervades the national economy. The cement industry is largely controlled by one player--Cemex  (nyse: CX -  news  -  people )--and its billionaire chief, Lorenzo Zambrano. Mexico has two national television networks, run by the country's ruling elite--TV Azteca, run by Ricardo Salinas Pliego; and Grupo Televisa  (nyse: TV -  news  -  people ), controlled by Emilio Azcárraga Jean, favorite son of the Azcárraga clan. Even tortillas are a monopoly market, controlled by the González Barrera family's Gruma, which has a 71% share of sales. In January people protested in the streets of Mexico City after tortilla prices doubled"</p>
<p><a href="http://members.forbes.com/global/2007/0326/070.html" rel="nofollow">http://members.forbes.com/global/2007/0326/070.html</a></p>
<p>There are practically no entitlement programs left in Mexico. The tortilla subsidy stopped in 1999. There is no welfare system. There is no universal health insurance program.</p>
<p>Forbes says that one single company controls 71% of the tortilla market. What we are seeing here is a monopoly exercising its scarcity power.</p>
<p>Mexico, in many ways, has a more aggressive capitalistic system than the U.S. And it is in shambles as a result of it and its crony links between business and government.</p>
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