This could be interesting for silver even if they just attempted to do it. http://freedomoutpost.com/2014/07/m...th-silver-would-unleash-a-global-power-shift/
It does make sense... I mean people keep complaining that "ohh we cant use backed gold currency because gold would be 1 million an ounce blahblah" well why not back it up with silver, something we have a lot of and it's cheap right now
Those complaints are nothingsayers because if golds price would reach 1 million then some other product that costs now $1300 will also be 1000000/1300=roughly 770 times more. Why? Because anything else is $ for nothing, and there are enough hands out there taking it. Oh, and yes, if we act on everything that is claimed as possible then I think it will come at such a possible cost too haha. If I compare the precious metals dealers advertisements on their sites and in their 'newsletters', it's like the price didn't change. The suggestions they gave at the current $20 level, are the very same as those they gave at $40. Some weeks ago it was all negative suggestions, upto the point that I even created a topic asking the silverthumbsdown club to leave. Then price shot up $3. And now its all consolidation and positivity. Heh!
BREAKING NEWS Mexican Silver Coins Are Worth Their Weight in Silver SOURCE: http://www.silver-coin-investor.com/Mexican-silver-coins.html LOL Click the "source" link at the bottom of the OP article..it is a link to a different site, but the same exact article!
doesnt make sense to do this, every country in the world is racing to the bottom with their currency, if you backed it with something like silver it might hold up better and if it does do that everything from your country suddenly becomes expensive to export. So i'm guessing the only countries able to do this are ones that have things noone can do without, like lots of oil agricult. land. If Russia did it it could make a dent(in the current financial system) especially if China also did it. If it did get of the ground other countries would start looking at whether its worth it too. But it wont come that. China and others want to grow if you want to grow and only limited supply of whatever you backed your currency with you limit the growth.
Despite all the blue underlined words that suggest sources, including the literal 'Source' one below, couldn't find any as such so far. We know what is talked about here don't we? A silver backed currency is no silver standard yet (that would require redeemability in silver by any holder of the currency) but a stockpile maintained, and held, as couple the currencies value to a much more scarce / harder to produce asset.
Makes great sense long term to back your currency. Short term there will be repercussions. As stated above your exports become very expensive. And this directly conflicts with the current global propaganda. With tppa and the us/euro version being ushered in such a move would be very dangerous to the powers behind this. Any country prepared to have a crack would need to be self sufficient in energy and food. there would need to be a charismatic leader and carefully prepared public opinion against corporate American geopolitics and some form of defense against probable American invasion. Functional nuclear weapons program or nuclear capable ally. My pick right now would be Cuba. With their markets opening up recently. A population already entrenched in self sufficiently and resisting corporate America. Their exports are viewed as premium products. Agriculturally the vast majority of production is organic. They export luxury items like rum and cigars well respected for quality and commanding large premiums due to decades of sanctions. Couple this with last weeks announcement that Russia has forgiven some $32b of debt effectively wiping 90% off their national debt. Russia has also agreed to invest big time in harvesting Cuban oil. This places Cuba in an ideal situation to attack the current economic situation, Russia gets to play back up and profit massively through such an attempt without the risk of backing their own rubles. From there they can position themselves to learn the lessons by proxy and when the time comes enter the new economic paradigm on their own terms.
From what I understand Fidel is ill but his younger brother Raul has been running the country since 2006. Was re elected in 2013 and has announced he will step down in 2018 after this his 2nd 5 year term. Since assuming the presidency Raul has made some 300 policy changes opening up their economy towards foreign trade. Much of these following a similar path to Chinese reforms. Now some 80% of Cuban officials were not born when fidel assumed power in the revolution. What better way for Raul to pass the torch to this next generation than stage an economic revolution.
That is not true. Gold was 300 in year 2000 yet when it climbed to 1800 in 2011 nothing went expensive.. nothing changed.. sure things got a bit more expensive.. food, bill's but that's just general inflation problems. If Gold went up to 1 million things would not go close to that price because the amount of rioting there will be from sheep's will destroy a country. A million dollar ounce of gold would be awesome however gold will have a new status as maybe a rare metal. There are diamonds out there especially the Pink diamond worth 33 million buck's depending on size.. so who are we to say that gold cant reach 33 million an ounce.. it could be rare just as that diamond..
What is not true? Houses doubled in price here. Bread doubled in price here. Cable tv tripled in price here. Water (city) doubled in price since 2007. Electricity doubled, except for last year, in runup to elections, when policians 'froze' the price. Election passed, and 2 weeks ago the prediction is next year +25%. USB sticks got cheaper. Which part do USB sticks represent in the total purchases of people? Gold 4 folded. On the other hand, it lagged on general price risings during the couple decades earlier. Thanks to central banks. Gold can reach 33 million bucks, but other prices will have reached that same level / amount zeros then. For the mentioned reason. Because profit is grabbed, and because money dynamically seeks the most lagging product in the inflation trend. What is ahead at time A for period B, will lag at time X for period Y. Because every stockpiled ounce, will be sold again, to undo the price trend it caused. Not really rocket science, yet some seem to stubbornly ignore that.
I visit Cuba for a couple of weeks each year. I am not aware Cuba has any form of oil resource. Venezuela exports oil to Cuba in exchange for medical doctors and 'security advisers'. The major roads (think 1 lane each way) are in pretty good shape - probably because the most common form of transport is bicycle, followed by light-medium truck which serves as taxi/bus. When the USSR and ComEcon in collapsed 1991 the Cuban GDP imploded by @ 35%. Very friendly people, at least to Canucks like myself. They are not so much 'resisting' corporate America as the US has embargoed Cuba. Mexico also forgave $480M of debt - because they know there is no prospect of it ever being repaid. Putin likely wants to annoy the US.
I highly doubt Mexico will make such a move....they have no good reason to do so, that I'm aware of. .
A government that makes it harder for itself to create more fiatmoney? Heh. If there would be any effort to back whatever with silver, it would be rather people on markets, than government. They didn't get rid of asset backed monetary standards for no reason.
Btw this is how a peso backed with silver looks like: This is the future people! Oh wait. It's 1915 not 2015.
Aren't libertads legal tender for silver spot? Seems to me the easiest move would be for Mexico to increase mintages and decrease physical pesos. This with a view to convert the peso to a fixed fraction of a libertad would be my approach.
