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Mexican Historical Bonds...The Other History Of Mexico

A while ago, one of our members asked the community about Mexican Historical Bonds (see link and my post....http://seekingalpha.com/instablog/890682-vroblesb/152361-mexican-bonds-1899-1904-1913-pink-blue-parrots), and it got me going.

So, I have decided to feed this community with historical insight about Mexico's other history, you see, for every issue in life there is a symmetric balance, in other words, two equally weighted sides of a story, in this case Mexican History.

So, there is the official story, the one that has been perpetuated in books, films and the like, and then, there is another, a one (by the way a most true one) written secret foreign debt contracts, coups d'etat, and openly disavowed debt commitments, some of them lasting until today.

Caveat Emptor.- This and the following posts, are intended to entertain, amuse and hopefully shed some light into this issue and other future issues. I do not intend to rewrite Mexican History or to embarrass the global academic community. This insight, is the result of my experience as an investment banker, and should be taken "as is", it may be biased, flawed and all...

Having said that, here we go...

The Mexican foreign debt soap opera started around when the first President of independent Mexico, a gentleman and a general by the name of Jose Miguel Ramón Adaucto Fernández y Félix, better known in history books as Guadalupe Victoria (namesake taken from Our Lady of Guadalupe and Victoria -Victory-, hereinafter President Victoria), asked his newly appointed and most expensive advisors, about how to replenish the so empty national coffers; due to the fact that the Spaniards left nothing in cash, cash equivalents, or anything resembling money in the local coffers, or as we say in Mexico "they left not even water for the bantam of Christ's Passion"..., when they fled Mexico.

So, these financial wizards (later on will be shown that they were indeed wizards), came up with three alternatives a) rise the tax burdens on the inhabitants of the new republic, b) sell land; an alternative that one magnificent scoundrel took later on and c) contract foreign debt.....

In the next post..."The first investment bankers of Mexico"..Stay tuned...

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.