Prior to his retirement some years ago, Hugo Salinas-Price was a highly successful [billionaire] businessman in Mexico.
"Suppose Mexico were to monetize the one ounce "Libertad" coin: millions of Americans would wish to own these coins, because of their quality and because they are MONEY. So would all of Central and South America. The reason that Mexican paper pesos are not desired around the world is because of their lack of quality. The US dollar is thought to have quality, and thus it has dominated the world, but it is becoming evident that the dollar has no quality at all.
The monetized Mexican one ounce coin will be accepted as money all over the world at exchange houses. At some point, some central banks will be retaining these coins in reserves instead of dollars, because they will be acceptable all over the world. Mexico may or may not decide to monetize silver, because no doubt the imperialistic US would not exactly love to have Mexico do this. Our central bank has opposed monetization in spite of all the support expressed for the measure in our Congress, because it is afraid of the Fed.
However, some Islamic countries are thinking about gold and silver: President Mohammad Mahathir, years ago, attempted to introduce silver dirhams and gold dinars into the Malaysian economy, but he failed, because he did not apply the necessary technique to the silver dirham. Now, the Islamics are well aware of the method necessary to introduce silver dirhams into circulation along with paper money, and the use of silver and gold as money, one should note, is a religious obligation for Islam. And the Islamics certainly do not care what the US thinks of the measure, they have all been suffering enormously from US military intervention for many years. So, if Mexico fails to monetize the silver coin, someone else is going to do it. It is inevitable.
HSP: I see no fundamental reason why silver cannot support international trade; it did at one time, and can do it again: it is a question of a natural rise in the price of silver to reflect the tremendous depreciation of paper currencies that has taken place through the years. But we must remember that international trade has to be self-liquidating: exports are collected in the form of imports, and imports are paid for with exports.
It seems to me that present-day Banking has given Capitalism a very, very bad name. Capitalism is a system which can function optimally in favor of all people, but it requires certain things: one of them is sound money, physical money of silver or gold, or both. The world at present is suffering from a world banking system - certainly not worthy of being called ‘Capitalist’ - that impoverishes those outside it, and enriches those inside it, because the bankers, having first access to money WHICH THEY CREATE OUT OF NOTHING are able to acquire important productive assets, and thus progressively amass more and more wealth, whereas the public is impoverished because the paper money it receives is invested in government-regulated, retail vehicles that constantly lose purchasing power.
No amount of silver (or gold) would be sufficient to allow chronically UNBALANCED trade. So this brings with it, the revival of JOBS. Jobs growth has become so scarce in the West because all that the East exports can be paid with dollars or euros, whose supply is inexhaustible. Eastern exports have removed millions upon millions of Western jobs and hundreds of industries, because those incoming goods can be paid with unlimited amounts of fiat paper money.
I cannot see how any Western industrial economy can survive in the long-term, under the paper money system. Europe is gravely affected by the loss of industries and jobs, and only a return to gold can bring them back.
Jobs will NOT return until TRADE IS BALANCED and trade will not be balanced until silver and/or gold is made the international means of payment - paper unacceptable."
I try to present the views of people who give some contrarian analysis to what you hear from the mainstream media. The man is a billionaire and he is speaking out against a manipulative banking system from which he obviously can benefit, so I give him some credence.
It's a somewhat long interview, but what he is proposing is an antidote to the manipulation of economies by banksters. If you look at history, prior to the USD as a reserve currency, international trade was conducted in gold. If a German company bought something from the US. for example, they paid in gold, not marks. The idea that there is not enough gold/silver in the world is fallacious. There just is not enough at current prices--which are artificial and do not accurately represent supply and demand.
With regards to wars being necessary to eradicate the fiat monetary system--he discusses that as a real possibility.