LyrArc Article Gist
Studies by Mexico's Interior Ministry show that 62% of the $23 billion in remittances to Mexico by Mexicans living in the U.S. go to the lower middle class. As migration to the U.S. diminishes to zero Mexicans who are illegal aliens in the U.S. are returning to Mexico as small entrepreneurs using earnigs made in the U.S.. This offers them a chance for upward mobility and a return to families that they never had in the U.S., and is aiding the growth of a Mexican middle class. About 12 million Mexicans, or 15% of Mexico's labor force lives legally or illegally in the U.S., according to the Pew Hispanic Center. Experts say that in the first 3-5 years remittances go to help their families, after 7 years the money goes into savings and investment fueling growth of small towns such as Santa Maria in Mexico. About half of Mexico's 112 million people have family living in the U.S., which is having an influence on atttitudes and ways of thinking of the lower middle class that emigrated to the U.S.and is now returning to the country. Other factors are reinforcing the trends such as the lower price of consumer goods with the entry of retailers such as Wal-Mart and Costco into Mexico. Nestle, P&G, and Unilever, all sell at low price points in Mexico. The government's effort to setup a basic safety net subsidizing schooling, health care and food has also helped in this direction. Rapid change in demographics in all of Latin America, including Mexico with a shift to smaller families is creating new opportunities to invest in children for better educational opportunities and working lives....

LyrArc Article Gist
The situation in Tampico, Mexico, with corruption, crime and dangers to public safety, show the problems Mexico is still grappling with to ensure a rule-of-law state right next to the U.S. The paradox is that of a breakdown in public safety with Calderon's war against drug gangs undermined by corrupt police and local government, and the continued foreign investment in the country. DuPont is investing $500 million in a new plant near the port of Tampico and South Korea's steel manufacturer POSCO is planning a $300 million investment to double production in this area.

LyrArc Article Gist
Mexico is close to becoming the U.S.'s largest trading partner. Trade increased by 17% between Mexico and the U.S. to $461 billion in 2011, compared to $502 billion in trade between the U.S. and China.

LyrArc Article Gist
Comments in an interview by the World Bank's new chief economist Kaushik Basu on problems for global job creation. He served as chief economic advisor to the Indian government for the last 3 years. He talks of the drying up of trade credit with the eurozone crisis that is hurting exports of developing countries. Basu also emphasizes the importance of addressing the unemployment problems in developed countries. The World Bank's annual development report shows 200 million people unemployed and seeking work globally. And 620 million youth-many of them women- are neither working or looking for work. He is on leave from Cornell University.

LyrArc Article Gist
Speaking at the Economc Club of Indiana, U.S. Federal Reserve chairman Bernanke, says responsibility for fiscal policy lies fully on Congress and the administration. Monetary easing through QE I,II and III, which reduces the borrowing costs of the U.S. government by keeping interest rates low, cannot be seen as taking pressure off Congress and the administration, as critics claim. He countered criticism by saying: "Suppose notwithstanding our legal mandate, the Federal Reserve were to raise interest rates for the purpose of making it more expensive for the government to borrow. Such an action would substantially increase the deficit, not only because of higher interest rates, but also because the weaker recovery that would result from premature monetary tightening would further widen the gap between spening and revenues." Lawmakers would be no more inclined to come up with a program to reduce the deficit in this situation argues Bernanke. This statement of Bernake only reaffirms that low interest rates are an important goal here in the U.S.,- just as they are for France and other countries in Europe that are faced with tackling large debt and deficits- and are part of the overall solution for the government to manage its finances....

LyrArc Article Gist
Nissan's plans for a low price Datsun model for emerging market countries. The basic model would be at the $3000 price point.

LyrArc Article Gist
Because of the slowdown in emerging market countries the effects of QE III will be smaller compared to QE II. QE III will not have the same negative effects of expanding a bubble coming from QE II say experts.

LyrArc Article Gist
Sony is setting aggressive goals for its medical business by targeting sales of 200 billion yen ($2.6 billion) by 2020. The Olympus joint venture with Sony is expected to make up about one third of the sales. Olympus has a 70% share of the endoscopes market. Sony is planning on sales of 50 billion yen for its medical monitors, printers and other equipment by March 2015. With its recent investment of 50 billion yen in the joint venture Sony now has a 11% stake in Olympus, making it the largest shareholder. Olympus will use half of the capital injection to develop better medical devices and the rest to setup training centers in emerging markets and cover costs.