The Chain of Dominoes

Mexico and Latin America are resource-rich countries that are dependent on being able to export raw materials and tropical foodstuffs. As world economies are in cyclical decline, the impact is magnified in these economies. Honduras has no bond market, Guatemala is caught without political structures and the violence of El Salavador continues. All these problems radiate in to Mexico and then to the United States. Here is an example in a news report from Reuters:

Last month, El Salvador recorded the highest number of murders since its 12-year-long civil war ended in 1992 as violence between street gangs grew more deadly. The National Forensics Institute said Wednesday that there were 911 homicides in August, making it the deadliest month in nearly a quarter of a century. From January to August, El Salvador recorded 4,246 homicides, an average of 17.5 a day, and up 67 percent over the same eight-month period in 2014. Violence has risen steadily in El Salvador since a 2012 truce between the country’s main gangs fell apart last year. The police estimate that 80 percent of the homicides are related to gang purges and the settling of scores.