Zach+R.

=Leader of feared Mexican cartel gets 17 years=
 * || [[image:http://media3.washingtonpost.com/wp-dyn/content/photo/2010/02/05/PH2010020500697.jpg width="228" height="344" align="bottom" caption="FILE - This 2005 file photo provided the Mexican Federal Police shows Miguel Angel Caro Quintero, 46, a Mexican drug kingpin who led a fearsome cartel for more than a decade. He was sentenced Thursday, Feb. 4, 2010, to 17 years in prison by a U.S. District Judge in Denver for trafficking drugs across the U.S.-Mexico border. Caro Quintero pleaded guilty last fall to one count of racketeering in Colorado and one count of conspiracy to distribute marijuana in Arizona. (AP Photo/Federal Police, File)" link="javascript:void(popitup('http://www.washingtonpost.com/wp-dyn/content/photo/2010/02/05/PH2010020500699.html',650,850))"]]==Home==

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Bloomberg =Mexico May Keep Rate at 4.5% to Help Foster Economic Recovery= February 19, 2010, 02:10 AM EST By Jens Erik Gould Feb. 19 (Bloomberg) -- Mexico’s central bank will probably keep its benchmark interest rate unchanged today on the view that a recovering economy isn’t fueling inflation and increases in state-controlled prices and taxes aren’t causing second-round effects. Banco de Mexico’s five-member board, led by Governor Agustin Carstens, will keep its overnight rate at 4.5 percent for a sixth meeting, according to all 12 economists surveyed by Bloomberg. Policy makers paused in August after cutting the benchmark interest rate by 3.75 percentage points last year. The central bank won’t raise rates unless it sees signs that gasoline and cooking gas price increases are pushing up the costs of other goods, or until the economy strengthens further and causes demand-side inflationary pressures, said Sergio Luna, director of economic studies at Citigroup’s Inc.’s Banamex unit. “We don’t expect any surprises,” Luna said in a telephone interview from Mexico City. “It’s so far so good on second- round effects, although they could show up in the future.” Consumer prices rose 4.46 percent in January from a year earlier, within the central bank’s annual inflation forecast of 4.25 percent to 4.75 percent in the first quarter. The bank forecasts annual inflation will climb to as high as 5 percent in the second quarter and 5.25 percent in the third and fourth quarters. The government began raising prices of gasoline and cooking gas in December, and implemented tax increases in January that include a 1 percentage point higher sales tax.

Inflation Expectations

The bank will keep rates unchanged because inflation expectations haven’t deteriorated and there isn’t evidence of second-round effects, said Jimena Zuniga, an economist at Barclays Capital in New York. Carstens said Feb. 15 that the central bank won’t counteract inflationary pressures in the short-term because medium-term inflation expectations remain well-anchored. Economists forecasted in January that consumer prices would rise 4.58 percent in the next 12 months, down from a forecast of 5.04 percent in December, according to a monthly central bank survey of economists released Feb. 2. Annual inflation will be 3.67 percent between 2011 and 2014, the survey said. Policy makers will also hold borrowing costs because the economy remains below its potential even as it has rebounded, which keeps inflation in check, Zuniga said. “We’re not looking for a change in the rate,” Zuniga said in a telephone interview. “The fact that the economy is recovering but is still at a low level is a powerful argument, in the central bank’s view, for a declining inflation trend.”

Second-Round Effects

Carstens said in a Jan. 28 interview that the temporary pass-through impact of price and tax increases should peak in April or May, after which policy makers will be able to better gauge whether the increases are having second-round effects. Demand-side inflationary pressures may not appear until next year, he said. The government forecasts the economy will expand 3.9 percent this year amid signs of recovering domestic demand and export growth. The central bank says the economy probably shrank about 7 percent last year amid the global financial crisis, the worst slump since 1932. Mexico’s peso has strengthened 1.7 percent this year to 12.8737 per dollar yesterday. The yield on Mexico’s 10 percent peso bond that matures in 2024 has fallen 34 basis points, or 0.34 percentage point, this year to 7.93 percent yesterday. The central bank said last month that it will be on the lookout for broader price increases stemming from the increase in costs for state-controlled goods. “The changes in costs may also deteriorate medium and long- term expectations, which would put additional pressure on the inflation rate,” the bank said in a Jan. 15 statement. “These second-round effects could put the objective of price stability at risk.” The bank will next raise borrowing costs by 0.25 percentage point in July, according to the median forecast of economists in a Feb. 4 Banamex survey. This article is basically about Mexico raising gas prices about 5%.Also the bank rate is staying at 4.5. I believe that they should lower the prices. The people of Mexico should protest against this because its wrong and they prices are high. ||

By P. SOLOMON BANDA The Associated Press Friday, February 5, 2010; 5:15 AM Summary- Miguel Angel Caro Quintero was a Mexican man who has been smuggling drugs across the border and hadn't got count for years. He left 42,000 dollars in a hotel room in Boulder, Colo which was the money he made smuggle the illegal drugs like marijuana. Miguel Angel Caro Quintero got 17 years in prison.

I believe that he deserve the years he got in prison. He that you should never do the things he did.

I believe that he should of done this and now one should do illegal things.