Mexico Secures Energy Future: Nationalizes Oil, then Lithium. Mexico Signals Silver Will Be Next.
President Obrador's Plebian Populism secured his political future now he must deliver. His Secretary of Environment is VERY SERIOUS ABOUT A WATER FIRST, NO MINING POSITION. Mexico's in a WATER CRISIS.
Andrés Manuel López Obrador & Plebeian Populism
Takeaways
Context - Just a short year ago, Reuters reported that Mexican President Andres Manuel Lopez Obrador signed a decree handing over responsibility for lithium reserves to the energy ministry after nationalizing lithium deposits in April 2022
During an event in Sonora, Lopez Obrador signed the decree that ordered the energy ministry "to take the actions necessary to carry out the nationalization process. Let's make the nation own this strategic mineral," Lopez Obrador said during the event.
At this point in the story, we ask our readers to understand that Silver is more strategic and critical to Mexico's Energy Future than Lithium, so the rest ties these themes together.
Andrés Manuel López Obrador formed his own party to secure the Mexican Presidency.
His coalition includes villagers (who need the water), environmentalists, activists, campesinos, Partido Verde (green party) laborers, and farmers (who need the water)
This grassroots coalition is the first significant shift towards the left in over 3 decades.
He appointed María Luisa Albores González as his Secretary of the Environment and Natural Resources - SEMARNAT.
María Luisa Albores González biography reads being a peasant and of indigenous origin, she owes her rise to power to the peasants and grassroots environmental activists who launched her career.
President Andrés Manuel López Obrador has vowed to secure Mexico's Energy Future. Sources are listed below.
Mexico's oil is already Nationalized.
Lithium is Nationalized.
We are reporting that Silver could be next (through the law of logic and history)
Primarily because if this is President Obrador's campaign promise and policy priorities and he is successful, it all comes down to the fact that there is no more critical mineral than Silver as it relates to Energy and Future Energy.
This would solidify his Legislative Priorities and political promises (to the coalition he answers to) and satisfy his mandate to Secure Mexico's Energy Future.
Throughout history, dependent nations have often figured out ways "to get out under the thumb" of those they perceive as holding them back.
And with Mexico being the World's #1 Silver producer and the USA being 79% reliant on importing Silver, there would be no better strategy for Mexico than to begin wanting to "Spread their own wings" and act swiftly towards doing everything possible to give it a go on their own.
We are not reporting that Mexico is nationalizing Silver tomorrow we are saying to read the tea leaves and they are moving in a direction of Securing their Energy Future and that Silver is the #1 mineral associated with Future Energy
After PDAC we will publish part II of this story.
SilverCrest Metals has sent out marketing material that they think the best practice is to “hold their metal” not selling their silver under today’s environment
SilverCrest Metals believes “Hold your Gold” or “Never Surrender Your Silver” is like “eating your own cooking” compared to surrendering Silver that gets destroyed by inflation, interest rates, geopolitical risk and banking systemic risk. Moreover who wants to sell in an environment when AISC costs are much higher than spot?
SilverCrest Metals is not a sponsor of The Silver Institute, another very smart decision because we have reporting that after their 2024 World Silver Survey that they will disappear from the scene just as mysteriously as they arrived on the seen.
Remember, no one asked for their bogus and “scammy” World Silver Survey. It was created using the playbook of Edward Bernays who used “councils” propaganda and “institutes” as cover to serve the interests of the US Government and likewise silver stackers will be happy to see their deceitful practices leave the industry.
History has a way of removing the rat that acts as an informant. This is similar to the “jailhouse justice” dynamic whereby once “a snitch” is identified things end poorly or unfortunately for the informant.
Disclaimer - we are not advocating jailhouse justice just using metaphors to describe how Silver Institute’s deceptive practices of encouraging derivative trading creating downward pressure has had irreversible harm on the Silver Industry and the ALL SILVER MINER AND SILVER INVESTORS.
Chris Ritchie, The CEO of SilverCrest Metals (in holding with diamond hands versus selling with weaker hands) is making an excellent and strategic decision. Considering our reporting below and the fact that Q4 AISC costs from Pan American Silver were north of $26.50 (meaning that companies like Pan American, SilverCorp, Vizsla Silver, Fresnillo, Los Gatos, MAG plus others are hemorrhaging billions collectively.)
Editors Note - The fact that The Silver Institute "claims" to represent the interest of these Mexican Mining operations is getting into "red flag territory." It should be a concern to these Mexican Mines, especially knowing that if our reporting is correct, all the facts supporting the Silver Institute's intentional acts in creating downward pressure on Pricing, well then this just means that the hemorrhaging is not just only under the Silver Institute's watch and failed leadership. But also their fault.
Plebian Populism, Farmers, Peasants, Laborers, Activists and Environmentalists March for Water & Nationalized Energy:
Andrés Manuel López Obrador (AMLO) has been associated with a form of populism known as "plebeian populism," which emphasizes the empowerment of marginalized social groups. Here are the key details regarding AMLO's use of the term "plebs" in his campaign branding and his political approach:
The concept of plebeian populism traces back to Ancient Rome, where the plebs constituted a distinct group from the nobility. In modern terms, it refers to a form of populism that focuses on representing and advocating for the interests of common people, including informal workers, unions, urban organizations, indigenous peoples, and middle-income sectors
AMLO's Political Roots: AMLO's political career has roots in supporting traditional sectors favored by state paternalism before 1982. He aimed to rehabilitate politically and integrate these sectors that were affected by economic changes when oil prices plummeted and public sector cuts began. His focus on rehabilitating state-owned companies like Petróleos Mexicanos (Pemex) reflects his commitment to supporting marginalized groups
Campaign Branding:
During his campaigns, AMLO built a coalition that included various social groups such as campesinos, agricultores, trabajadores, unions, and the Partido Verde (Green Party). His message resonated with these groups by promising to address their needs and concerns
AMLO's style of clientelism differs from traditional approaches. He places the people above institutions and aims to establish direct connections with beneficiaries without relying on institutional mediations. This approach strengthens his position as a social leader rather than reinforcing party structures through clientelism.
Criticisms and Challenges:
AMLO's populist style has led to tensions with established institutions. His emphasis on direct appeals to the people and criticism of bureaucratic apparatuses has raised concerns about his approach to governance and institutional integrity
AMLO has faced allegations related to campaign financing, including reports of drug traffickers contributing to his presidential campaigns. These allegations have been met with strong denials from AMLO and criticisms of the media reporting on these issues
AMLO's plebeian populism reflects a political strategy focused on representing marginalized groups and challenging traditional power structures in Mexico. His approach aims to empower common people and address social inequalities through direct engagement with beneficiaries.
Andrés Manuel López Obrador (AMLO) rose to power in Mexico through a combination of political strategies and promises aimed at empowering marginalized groups and addressing social issues. Here are the key details on how AMLO built a coalition and his approach to governance:
Rise to Power
AMLO won the Mexican presidential election in July 2018, marking the first time a leftist politician had been elected in Mexico in three decades[2].
Support Base
AMLO garnered significant support from various groups, including campesinos (peasants), agricultores (farmers), trabajadores (workers), unions, and the Partido Verde (Green Party). His campaign focused on empowering the underprivileged, alleviating poverty, and combating corruption
Policy Agenda
AMLO's policy agenda included initiatives to tackle poverty, inequality, violence, and corruption. He aimed to bridge the gap between different socio-economic segments of the population and improve infrastructure in underdeveloped regions like southern Mexico
Populist Style and Challenges:
Populist Style - AMLO's governance style is characterized by populism, focusing on direct appeals to the people and promises of social reforms. He emphasized economic nationalism, social spending, and anti-corruption measures
Challenges: One of the challenges for AMLO lies in his approach to institutions. Similar to Argentina’s new president Javier , he has shown skepticism towards established institutions and prefers ruling through individual power rather than traditional bureaucratic processes. This attitude raises concerns about institutional integrity and the rule of law
Coalition Building:
Despite initial opposition from Mexican business elites during his campaign, AMLO worked towards collaboration with them after his election. He engaged with businesses and top elites to implement policies without causing a large budget deficit.
AMLO's coalition included members accused of corruption, raising questions about his ability to combat corruption effectively while recovering stolen funds.
In summary, AMLO's rise to power in Mexico was marked by a populist approach focused on addressing social inequalities, empowering marginalized groups, and combating corruption. His governance style and policy agenda have aimed at bringing about significant social and economic reforms in Mexico.
Andrés Manuel López Obrador (AMLO) has made nationalizing energy a key component of his strategy to secure Mexico's energy future, particularly focusing on oil and lithium resources. Here are the details regarding AMLO's approach to nationalizing energy and its implications for Mexico's energy sector:
Nationalizing Energy a Key Component to Mexico’s Strategy to Secure Mexico’s Energy Future
Andrés Manuel López Obrador (AMLO): Silver is the #1 Critical Mineral for ALL FUTURE ENERGY
Historical Context: Mexico has a history of state control over its energy sector, with significant reforms enacted in the past to allow private investment in the industry. However, AMLO's administration has moved towards reasserting state control over energy resources, reversing some of the reforms that encouraged private investment
Oil Sector: AMLO's policies have included measures to centralize government control over the energy sector, particularly focusing on the oil industry. This shift towards state control has raised concerns about the impact on international investors and the potential consequences for Mexico's economy
Lithium Reserves: AMLO has also targeted Mexico's lithium reserves, aiming to nationalize them and mandate state ownership of lithium extraction. This move could limit private sector involvement in lithium mining and hinder Mexico's ability to benefit from the growing demand for lithium in various industries
Meet the Woman who has the Power for Granting Mining María Luisa Albores González with deep rooted passion and loyalties towards the very people that helped her rise to power. The campesinos and farmworkers and people are saying “Water First, No More Mining, No More Fracking”
La nueva Secretaria del Medio Ambiente
(Secretary of the Environment)
María Luisa Albores González, appointed as the Secretary of the Environment and Natural Resources (SEMARNAT) by President Andrés Manuel López Obrador in September 2020, has a background that reflects her peasant origins and commitment to environmental and indigenous causes. Here are the key details about her background, focus on campesinos, environmental initiatives, and policy positions:
Background and Peasant Origins:
Peasant Origin: María Luisa Albores González hails from a peasant background, which has influenced her perspective on environmental issues and social justice. Her upbringing in rural Mexico likely shapes her approach to policies that impact campesinos and indigenous communities
Indigenous Loyalties: Albores González's indigenous loyalties are rooted in her understanding of the challenges faced by indigenous populations in Mexico. This perspective likely informs her advocacy for environmental protection and sustainable development practices that respect indigenous rights
Environmental Initiatives and Policy Positions:
Water First: Albores González has emphasized the importance of prioritizing water resources in Mexico's environmental agenda. This focus underscores her commitment to safeguarding water quality, ensuring access to clean water for all, and promoting sustainable water management practices
Ban on Fracking: As Secretary of SEMARNAT, Albores González has called for a ban on fracking, aligning with efforts to protect the environment from the potential risks associated with hydraulic fracturing activities. This stance reflects her commitment to sustainable energy practices and environmental conservation
Ban on Open-Pit Mining: Albores González has advocated for a ban on open-pit mining, recognizing the environmental impact of this mining method on ecosystems, water resources, and local communities. Her position reflects a commitment to responsible mining practices and environmental protection
Role of the Secretary of Natural Resources and Secretary of The Environment.
The Secretary of Environment and Natural Resources in Mexico is responsible for overseeing policies related to environmental protection, natural resource management, biodiversity conservation, climate change mitigation, and sustainable development. The role involves developing strategies to promote environmental sustainability and ensure the responsible use of natural resources
María Luisa Albores González was appointed as Secretary of SEMARNAT in September 2020 by President López Obrador. Her appointment signaled a focus on environmental issues, social justice, and sustainable development within the Mexican government
María Luisa Albores González's appointment as Secretary of SEMARNAT underlines her dedication to championing environmental causes, advocating for marginalized groups like campesinos and indigenous communities, and promoting sustainable resource management practices in Mexico. Her peasant origins and indigenous loyalties shape her approach to policy-making and highlight her commitment to environmental conservation and social equity.
Citations:
https://weadapt.org/organisation/semarnat-0/
https://www.wikiwand.com/en/Secretariat_of_Environment_and_Natural_Resources_%28Mexico%29
https://www.sia-toolbox.de/partners/secretaria-de-medio-ambiente-y-recursos-naturales-semarnat
https://journals.sagepub.com/doi/10.1177/1095796019894574
https://en.wikipedia.org/wiki/Mar%C3%ADa_Luisa_Albores
https://www.forbes.com/sites/davidblackmon/2021/10/28/mexico-moves-to-re-nationalize-energy-markets--a-return-to-1938/?sh=58dcd8796345
https://www.cfr.org/article/amlos-lithium-grab-and-war-green-energy-will-hurt-north-america
https://www.brookings.edu/articles/amlo-reverses-positive-trends-in-mexicos-energy-industry/
https://www.wilsoncenter.org/article/mexico-institute-experts-comment-amlos-proposed-reforms
https://www.nytimes.com/2022/08/17/world/americas/mexico-president-renewable-energy.html
https://journals.sagepub.com/doi/10.1177/1095796019894574
https://www.brookings.edu/articles/andres-manuel-lopez-obrador-and-a-new-era-of-politics-in-mexico/
https://scholarsarchive.library.albany.edu/cgi/viewcontent.cgi?article=1015&context=lacs_honors
https://en.wikipedia.org/wiki/Andr%C3%A9s_Manuel_L%C3%B3pez_Obrador
https://www.britannica.com/biography/Andres-Manuel-Lopez-Obrador
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