Mexican Federal Government Actively Debating The MONETIZATION OF SILVER
SilverDoctors.com
September 15, 2017
At the federal level in Mexico, silver is on the table again, and now the fight is on! This would have an effect so far beyond a higher silver price that silver monetization would disrupt the very foundation of money itself. This would not be a state here and a state there like in the US, we’re talking the entire country…
by Guillermo Barba translated via plata.com.mx
A translation of a report on a debate in the Mexican Congress, published by Economist Guillermo Barba on his website: http://pilotzinoticias.com/guillermo-barba/onza-plata-ahorro-los-mexicanos
On September 13th I participated in the Forum for “The Promotion of Savings by Mexicans” organized by the group “Legislators in Favor of Savings by the People” who are members of the Chamber of Deputies (i.e. “Congressmen”) in the Mexican Federal Congress; the group is led by Congressman Francisco Javier Pinto. The fact that this meeting took place at the seat of one the Legislative Houses of the Mexican Republic is extraordinary news, because there are few things so important for the development of the national economy and the economy of Mexican families, as savings.
According to the poll taken by the “National Poll Regarding Financial Participation in 2015”, 32% of the population saves informally, that is to say, by “stuffing money under the mattress” and other invented measures, and only 15% saves in a formal manner, for example, by depositing money in a bank account, or by purchasing Government Treasury Certificates (“CETES”) or by voluntary contributions to their official retirement account (“AFORES”).
These options are preferable than just saving pesos, though they are not winners, nor do they allow Mexicans to retain the purchasing power of their savings: they are only alternatives that provide less loss of purchasing power.
It is just for this reason that it is imperative to go further. At the Forum we insisted on the proposal to give a stable value to the Mexican silver coin. I’ll explain in few words.
The central feature of the proposal is that the Central Bank of Mexico (Banxico) shall determine a value in pesos for the “Libertad” silver ounce; and that this value shall be slightly higher (by a percentage that would be defined in the corresponding Law) than the price of silver in the international market, in order to provide Banxico with an assured profit in minting and placing these coins in monetary circulation.
The Rest…HERE
