I live in the big beautiful blue state. Prices are so high here ...

A strong economy is a blessing and a curse. Prices in general are high in California because the economy is so strong. With regard to oil and gasoline, part of the problem is the geography and air quality. No responsible person would want to return to the 1960's and 1970's smog years. However, that only adds about $0.10 to $0.25 per gallon depending upon where you are in the state. The most salient issue is the inesapable, first-semester Economics class concept of supply and demand. Anyone who has ever driven on the freeways of Los Angeles would be overwhelmed trying to estimate the immense amount of gasoline that Californians must burn every day. Compounding upon that, we have a culture of Not-In-My-Backyard when it comes to building new petroleum infrastructure. And to add insult to injury, the price of land in California is yet another headwind for companies considering investing.

With regard to the current governor, he certainly wasn't my first choice. At first, his "Golden Boy" persona turned me off. However, he has risen to take on the Orange Mussolini while many other politicos cower in fear. For that, I am eternally grateful. Now, does he have a chance to become President? (This assumes that there are any further elections. That is a shaky assumption unless ICE is brought under control.) I don't think so. The middle of the country hates California. The circular firing squad Democrats need to elevate someone from the Midwest or South or many one of the rugged Western states. Mark Kelly, anyone?

With regard to the strength of the United States dollar, personally, I have been bemoaning the fact that the dollar has been too strong for too many years. The effects of currency fluctuations are often subtle and difficult to predict. This we do know: A lower U.S. dollar will make the goods and services from the United States more competitive. At the same time, those of us who bring our dollars aboard will see lower purchasing power. A dramatic drop of the U.S. dollar against the Mexican peso such as Rob is proposing would almost certainly affect many potential ex-pat immigrants' decisions whether to relocate to Mexico versus other locations. I have visited Mexico when the peso was 10 to 1 dollar and when it was 20 to 1 dollar. I will continue to do so at either exchange rate, Lord willin' and the creek don't rise. Or as the Mexicans say, "primero Dios."

I first visited Mexico in December 1982. At that time, lodging prices, along with hotel restaurant meals, were registered with the federal government in pesos.

While I was visiting there was a serious peso devaluation. There was an “official” exchange rate, but pesos and dollars were being exchanged, literally “on the street” at very different rates. Mexicans wanted to get their hands on dollars to preserve purchasing power.

Because the prices were registered and approved by authorities in pesos, those prices dropped drastically during my weeks in Mexico. I’m going by memory, but I think that by the time I checked out of my 4-5 star hotel in Acapulco I paid US$17/night based on the exchange rate I was getting on the street.

Subsequently, the Mexican government changed the system for registering approved prices and set them in USD.

Lodging that was not for the international travel market did not need to register prices.

Of course, we gringos can check in at hotels and expect to pay peso prices in pesos.

I buy bananas at a fruiteria near the mercado. They are more expensive than when I buy bananas at a grocery store in British Columbia. Huh?

In November-December I was in Sam’s Club and Mexican strawberries were the equivalent of just over C$10 for a two pound container. I wondered how expensive they would be when I was in Canada later in December. They were C$10 for a two pound container. Double huh?

I’m not much for eating snack foods, but I noticed that Doritos are higher priced.

A rotisserie chicken was more at Sam’s Club than at Costco Canada, as was a hotdog with refresco.

Gasoline is significantly more expensive expensive at C$1.95/litre. When I left BC it was C$1.45 or sometimes less.

I remember a tad under $9 around 2003/2004.

Yes, I pulled up a log-term chart and the time period I was referring to was 2000-2002. At 18 to the dollar, we are at full cost as to prices at home on a whole. No where near close to the value in the 2001 range.

It's all Trump's fault!

Oh ya, I remember 12.5 to the dollar. However, Margaritas were 30 pesos and day fishing trips were $80-100usd. This place will be a ghost town if the Peso goes to 12.5

No, you're not recalling correctly. From 1954 until 1981 the peso was 12.50 to the dollar. For 20 pesos I could get a torta, a licuado and a couple of refrescos or a cerveza. Used to last me most of the day.

Since last year, the dollar is down around 16% vs. the peso. In more concrete terms the room that cost around $146 last year will cost around $170 now. When we were there in early December we noticed that restaurant prices were in general equivalent to what we pay at home. While it won’t change our plans, I suspect there are those who, given the relatively high cost of flying to Zihuatanejo, will seek less expensive vacations.

Fortunately for travelers from abroad, there are many lodgings that charge in dollars, so the lodging owners aren't realizing the benefit of the rising peso. Can't say I didn't try to tell them.

Clouds moved in early today, getting denser and denser all morning. In the afternoon while many locals were enjoying their traditional siesta, we heard a loud KA-BOOM. I thought the hillside must be exploding until I looked outside just in time for a bright flash and another KEERACK-BOOM. Soon after the smell of rain arrived, and shortly after that a nice little downpour hit our part of downtown Zihuatanejo. The rain didn't last long enough to cool down all the excess cement our town is increasingly drowning under, so it just got steamy and even more humid. But hopefully it washed away some of the urine from all the drunks and visitors who can't find or can't afford the pay-to-use public bathrooms. What a welcome relief. No forecast I saw had predicted rain for us. C'est la vie, say the old folks. It goes to show you never can tell!

I saw a woman on the beach with her two chihuahuas tough it out, getting drenched by the rain. Eventually she went in the water to wash all the wet sand off. I felt bad for the dogs.

A waterspout was reported this afternoon in front of Playa Linda.

The peso continues gaining ground against a falling dollar. At the rate things are going, we might be back to the old 12.50 x dollar soon. Old timers will remember those days.

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Una neblina sale de La Ropa hacia el mar por la costa de Las Gatas en la bahía de Zihuatanejo durante el amanecer.