http://www.latimes.com/business/la-f...home-headlines

Mexico, the world's No. 5 producer of oil, depends on it to fund 40% of its federal budget. Officials last year siphoned $54 billion from the state petroleum monopoly Pemex to finance public spending. High oil prices have resulted in tax windfalls over the last couple years but economists warn of a pending shortfall.

The nation's major oil field, Cantarell, is declining rapidly because of age. Production is down nearly 15% through the first 10 months of the year — more than twice the rate of decline predicted by Pemex officials last year. The company's worst-case projections show production plummeting to about 520,000 barrels a day by the end of 2008 — a nearly 70% freefall from October's average output of 1.65 million barrels a day.

Calderon's predecessor Vicente Fox tried to lessen Mexico's dependence on oil revenue by expanding Mexico's value-added tax, which functions like a national sales tax, to food and medicine. That proposal was rejected by Congress and got Fox branded an enemy of the poor.

This is really bad news folks. 40% of the Mexican government's rev. comes from that oil. There is some speculation on other forums that Mexico could be a net importer by 2009-2010. That could mean a collapse of the government and a wave of illegal immigration like we have not seen yet. Of course this can all be fixed by a tax on soda right.

The wall may not be enough. I'm starting to think the FEMA camps are really for what they claim. "A massive wave of immigration".

Plus, most of that exported oil comes to....us.