Thursday, January 29, 2015

Reintroduce Money In Mexico

There is a billionaire in Mexico who made his money creating radios for sale, Hugo Salinas Price.  He went on to do a turn as president.  I don't quite agree with everything, but it is so far along the right path it would "get there." Here is the project of a remarkable man:

Proposal to introduce "Ounce Silver Libertad" the monetary system.

GENERAL INFORMATION

Objectives
  • Start the process of monetary independence against the dollar.
  • Prepare the impending economic meltdown US
  • Put in the hands of people a solid and indevaluable currency.
Mexico does not have its own currency
  • Weight is a derivative of the dollar.
  • Worth weight based on the dollar amount not enough reservas.Si
  • dollars in reserve, the weight value plummets.
The lack of a currency itself requires us to:
  • Export to obtain dollars.
  • Into debt to obtain dollars.
  • Depend on the income of dollars.
  • Sell ​​the country, in exchange for papers.
With an ounce of silver "Libertad", the population:
  • Would preserve the purchasing power of their savings.
  • Would have an immune currency crisis or errors.
  • Would have greater confidence in the future.
  • Feel a renewed national pride.
How to start the process of introducing silver coin?
  • Gradually.
  • In parallel with the current trustee weight.
  • No cause economic dislocations.
Why the "Libertad", and not "weight silver"?
  • Historically, it has not worked. Examples:
  • The weight of silver from the 50's.
  • The "silver Morelos" of $ 100 pesos JLP.
  • Coins with Silver presidency of CSG.
Why the "weight silver" does not work?
  • Because engraved with a nominal value.
  • When the price of silver increases or no devaluation, the silver content exceeds the face value of the coin. Then:
  • Negative incurred wedged señoraje and stops.
  • It melts, as people prefer to take their metal content.
  • Stops flowing; only preserves numismatic interest.
Benefits of currency without par value
  • This currency rises in value as the price of silver or devaluations.
  • Therefore: His señoraje is always positive.
  • Remains indefinitely in circulation, without melting.
The coin he intends to use already exists:
  • Is Ounce Silver Libertad, no par value, minted by the Mint of Mexico.
  • Contains one troy ounce of pure silver.
  • It is legal tender, according to Art. 2 Bis of the current monetary law.
Currently, why ounce Freedom is not used as currency in everyday use and is not widely used as a means of saving?
  • The population does not know what is legal tender.
  • There is general and compulsory value.
  • Your quote changes daily, even lower.
  • Discount charged on repurchase.
The proposal of the Association:
  • To recognize the silver ounce "Libertad" character of legal tender and integrated to all circulating coins.
  • That their releasing power equals its "formal equivalence in pesos".
  • That this "equivalence weights" is determined by the Banco de Mexico and adjusted periodically according to the increase in the international price of fine metal content of the coin.
  • The value of equivalence is integrated, taking into account: 1) The international price of an ounce of silver, plus: 2) the cost of minting, plus: 3) an additional ten percent seigniorage.
  • So once the latter method, the following can not be reduced.
  • That equivalence is I rounded to multiples of five dollars.
  • An ounce is placed and received the same value of formal equivalence.
  • These provisions govern exclusively for Freedom silver coin denomination of an ounce, and not for other similar coins.
These provisions would allow:
  • At the macroeconomic level, laying the foundations for progressive monetary independence.
  • Using an ounce in trade, for having an equivalence defined and known weights.
  • Your hoarding for saving purposes, a perfectly determinable equity in pesos by the holder at any time.
  • His stay in circulation, thanks to its float.
  • A seigniorage always positive in favor of the Bank of Mexico.
Other important benefits
  • Giving people encouraging news.
  • Having a national project to promote political unity.
  • Encourage people's confidence in their institutions.

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