Mexico sinking further

Seeking alpha had an interesting post that discusses not only falling oil production in Mexico, but the increase in drug trafficking and related crime there. The crime seems to be pretty horrific, especially up near the US border, with many daylight gunfights and killings of police. As government revenue drops further with declining oil revenues, it can only get worse.

There are two pressing issues that are putting intolerable stresses on the Mexican economy and society; the first is the huge escalation in drug related violence and corruption, as US support for the Colombian war on drugs has displaced Cartel activity into Mexico, now the primary base for cocaine shipments in the region. The revenues involved are estimated by the DEA to have reached over $40bn a year (or about 25% of all official exports), financing very effective private armies, and rampant high level corruption.