Silver and the Great Future of Mexico

by Hugo Salinas Price, Plata: Your Excellency, Ambassador Edward Malayan; Doctor Vladimir Shamakhov, Director of the Northwest Institute of Management of Russian Presidential Academy, members of the Honorable Diplomatic Corps here present, and esteemed audience:

I am greatly privileged to be with all of your today, here in the Embassy of the Russian Federation in Mexico.

My special thanks for His Excellency, Ambassador Edward Malayan, who has become a very special friend. I thank him for his interest in my ideas regarding a silver coin, and especially for his support for my two visits to his great country, in the course of which I was able to talk with personalities of the Russian Academy of Sciences, the Central Bank of Russia, and the University of Moscow, as well as with various intellectuals and monetary analysts in Moscow and St. Petersburg. Your Excellency, many thanks for your friendship and assistance!

I received a specially warm welcome in St. Petersburg, on the part of the authorities, the academics, and the students of the Northwest Institute of Administration of the Presidential Academy of Russia, and I was able to present my proposal for the creation of a Russian Silver Ruble. I wish to thank once again, the Director of the Northwest Institute of Management of Russian Presidential Academy, Doctor Vladimir Shamakhov, who is with us today, for his hospitality in that historic city and for coming to Mexico, to be with us for this event.

In Russia I met Dmitriy Balkovskiy, editor in chief of the website Golden Front, who had been following my ideas for several years on the Internet. He was kind enough to translate into Russian my essay titled “The Silver Coin for Russia”, and that work has proved very useful in making the proposal available to his countrymen. Doctor Balkovskiy, thank you for your support and for being with us this evening! In St. Petersburg I also met two very intelligent and capable young men, who were able to provide me with important academic contacts, and who are here this evening: Alexei Vovenda and Peter Koryagin. Peter is indeed highly educated and a piano virtuoso; tomorrow we shall enjoy a concert with some of his beautiful musical compositions.

My Russian friends, I bid you a warm welcome to Mexico!

In your presence, I wish to express my deep thanks for the honor conferred upon me by the Northwest Institute of Management of Russian Presidential Academy, through its Director, Doctor Shamakhov, on the occasion of my being named Honorary Professor of this very prestigious institution, devoted to the promotion of the best ideas for Russia, as this gathering has for its title. The distinction granted to me, inspires me to honor this noble institution and to proceed with the work I have selected for myself. As many of you know, I have devoted a part of my business life and my intellectual attention to the analysis and promotion of economic values that further the material advancement of society, and among these I consider as primordial the human right to accumulate savings, at least in part, in real money of gold or silver.

True freedom and genuine economic progress are only possible with real money of gold and silver, under the sanction of government and with its approval.

Today, our world is deprived of real money, and I think this is a very real tragedy. However, I also think that this situation will have to reverse itself, and for this reason I have devoted recent years to the promotion of a silver coin as money in parallel with paper substitutes, through a simple measure adapted to present conditions. I carried out this promotion first in Mexico, and then in other countries of the world where the idea generated interest and where I was invited to explain the monetization of silver.

Thus, the real political possibility of once again being able to use true silver money, through the mechanism I have proposed, has awakened hope and attention in Institutions and citizens of Mexico, Peru, Guatemala, Venezuela, Spain, Greece, United Kingdom, Canada, USA, Malaysia, and now Russia, as evinced by the title which is so generously being conferred upon me, and which I consider as a privilege.

In return for this distinction, and as a first contribution to the intellectual debate in the Institute, I shall have the opportunity to present for your consideration an essay with the title “Silver and the Great Future of Mexico”, and to listen to your opinions with regard to it, as well as other proposals on the part of other guests, who will enrich this seminar. I am convinced that in the course of these events we shall arrive at important conclusions and new ideas with which to confront the uncertainty, the intellectual confusion and the economic anomalies which are affecting our civilization.

As always, I thank my Mexican friends and colleagues for being here, for having shared together this crusade for silver and for their suggestions, which have contributed to my thesis. And I thank as well, and very specially, my dear family, of whom I am so proud. Thank you all for your steady support to this work which encourages me each day, to leave behind me a lasting legacy. Once again, my thanks to our excellent host and organizer of this event, His Excellency, Ambassador Edward Malayan, and to Doctor Vladimir Shamakhov for the distinction granted to me by the Northwest Institute of Management of Russian Presidential Academy.

I hope this gathering produces favorable results for our two great nations, Russia and Mexico, for whom I wish great joy and prosperity.

Silver and the Great Future of Mexico The end of the world's present monetary system is already taking place. The clearest symptom is the frantic bellicosity of the US, propelled by the perception on the part of those who run the US, that the US is losing influence in the world, and that their deep-seated objective for control of the whole world is slipping out of their hands. The end of the dollar as the basis of the international monetary system means the end of the US as we have known it.

We shall not bother to discuss the future of the American dollar as the world's currency. We take it as a fact, that the American monetary unit is nearing the end of its time-line, at least in terms of being the world's money, if not as a money limited in use to the territory of the US.

China and Russia are accumulating important quantities of gold. China is the world's largest producer of gold, and it does not sell one gram of its production on the world markets: it hoards it all, because China understands that the world's present monetary system is on its way out.

The burial of the present monetary system may begin in slow stages, as Russia and China together begin to sell their products to the world, in exchange for gold. At this time, we don't know how the transition to gold as the world's money is going to take place. Perhaps it will begin when the Euroasian Bloc attributes a much higher price to gold, as compared with its present price; or perhaps it will begin with gold denominated in terms of its present price. But whatever technique is used, the price of gold will have to register a dramatic rise, towards a figure at least ten times its present price, and possibly much higher. Actually –and this is rather hard to imagine at this time– it will not be so much a case of a rising dollar price of gold, since these two powers will have discarded the dollar, but rather that the quantity of gold that Russia and China will demand in exchange for their exports will be falling to small fractions of what they would demand today. Expressed in a different fashion, closer to reality, it will be the purchasing power of gold that will rise to a much higher level than it enjoys at present.

The stabilization of the purchasing power of gold will take place as trade imbalances around the world are eliminated: both trade deficits and trade surpluses will shrink to merely transitory phases among the nations of the world.

Thus, the return to a world that recovers commercial balance between nations will not be the work of the Pax Americana, that imposes it's fiat currency, but rather the work of the Pax Euroasiatica, that will offer, free of impositions, the spontaneous adhesion of the world to gold as its money, as it has been throughout History.

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