How screwed is Mexico?

Intense fighting has erupted in the Mexican city of Culiacán, where masked gunmen threw up burning barricades and traded gunfire with security forces after authorities arrested one of the sons of the jailed former leader of the Sinaloa drug cartel Joaquín “El Chapo” Guzmán.
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However, the patrol was quickly overpowered by cartel gunmen, and the decision was taken to withdraw to protect the lives of the National Guard and restore calm in the city, where gangsters had set up roadblocks and were unleashing heavy automatic gunfire, Durazo said.
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“The decision was taken to retreat from the house, without Guzman to try to avoid more violence in the area and preserve the lives of our personnel and recover calm in the city,” Durazo said.

Miguel notes
By this decision, the President recognizes that the state of Sinaloa is in total ownership of Chapo Jr. and the Cartel and they are incapable to remove them.  Mexico is not being held hostage by the Cartels: they were bought by them. Elected Government is just but a fake veneer of legality to still show an image of “stability” to the world.

If nothing changes, I give it about a decade before we have our first Narco Regime with a Capo openly being the Head of State and the rest of the Cartels with a piece of the country. Just like Lucky Luciano did creating The Commission but write large and in full disclosure.