El Gitano Peñasco, "The Peñasco Gypsy"
Along with many other people, back around 2005 I, too, posted on various PP blogs predicting that the ‘pump and dump’ gang who continued touting that there was no end to the rise of property prices in Puerto Peñasco were flat out wrong, if not being willfully deceitful.
Peñasco, like so many other places, took a big hit once the real global economy reared its ugly face. At the recent G20 summit there was the usual glad-handing about how ‘they’ saved the world from a depression, but just in the Southwestern USA and Mexico countless numbers of once hard working people are still unemployed (aka: in a ‘depression’) and now we have two more locomotives barreling down the track that may once again affect us all, including businesses and people in PP.
One of those trains is the predicted pending collapse in the United States of mortgages on commercial properties, which some insiders claim will make the recent housing crash seem like child’s play. The other steam engine rolling our way, according to some in the precious metals markets, is double digit inflation.
I’m not quite sure (yet) about the commercial properties (mortgages) forecast but I do believe that inflation in the US and Mexico (elsewhere, too), in the real world of day to day living expenses is near to, if not already in, the low double digit numbers and I fear prices will continue to increase at such a level that Peñasco may see a downturn in either the number of visitors or their daily expenditures and possibly both!
Maybe I’m all wet, but if you follow the gold market (as an inflation indicator) and realize that as recently as the year 2000 the metal was trading around the $290-$320 *USD per ounce and that on September 16th 2009 the precious metal tagged the $1,020.00 per ounce line, well, that just might validate my concerns about how La Tormenta de la Inflación may influence traveling and spending habits to and in Puerto Peñasco.
Email me: El Gitano Penasco