Meanwhile in Mexico, “silver produced in Mexico should stay in Mexico and be used to strengthen the savings of the Mexican people”…
(Silver Doctors Editors) Mexico is talkin’ plata again!
The Silver-Backed Mexican Peso that is!
Meet Fernandez Norona:
He’s a federal politician in Mexico.
He would be comparable to a Federal Congressman in the United States, and this month he’s been fighting the good fight for silver!
With so much going on in the world, you know, like narrowly averting WWIII and now hunkering down for Black Plague 2.0, it’s understandable we missed this one from just days ago down in Mexico.
For the background, from Hugo Salinas Price’s Plata.com.mx (translated by Google, bold added for emphasis):
Finally, the proposal that Mexico “monetize” silver, a resource of which our country is a world leader and whose value over time is more stable, has reached the Congress of the Union, after years in which economists and experts had insisted about the topic.
And a few days ago, two deputies presented an initiative for silver to be considered a legal tender in Mexico.
Lawmakers Gerardo Fernández Noroña and Ulises García Soto stated in the lower house that the ounce of Libertad silver and its fractions enjoy this monetary classification, that is, that you can pay with them, or generate a monetary saving with ounces of silver.
Mexico is the main producer of silver globally, in 2016 189 million 500,000 ounces were made, deputies stressed. However, the most recent data for 2018, and according to The Silver Institute, Mexico’s silver production is 196.6 million ounces.
On average, 850,000 ounces Liberty are minted annually, which means that only 0.4% of the silver produced is minted.
According to the Mining Chamber, about 90% of the silver leaves the country as an export as raw material.
With this, Mexicans could use silver, in addition to paying, as a refuge from national and international crises and volatility, lawmakers said.
Historically, silver has proven to be a good means of preserving value over time.
According to the initiative, the obstacles currently faced by savers in ounces of Libertad silver, derived from the omissions of article 2. Bis of the Monetary Law, are:
a) In fact, the population cannot acquire an ounce of Libertad silver at the price determined by the Bank of Mexico, as established by the Law. Each commercial distributor places the currency at a different and arbitrary price.
b) The distributors charge a discount on the operations of buying and selling the currency, which reduces its effectiveness as a savings instrument by causing a loss to its holder.
c) Currently, the value of the ounce of Libertad silver rises and falls according to the movement of the price of silver in international markets, which can cause losses to the holder in the short term, even when the trend of long silver term is indisputably to preserve or increase its value with respect to weight.
Monetizing silver would strengthen the Mexican peso: Noroña
Giving legal course to the ounce of silver in Mexico would help strengthen the peso and give more returns and certainty to the savings of Mexicans.
The reform that adds article 2 of the Monetary Law so that the ounce of silver liberty and its fractions enjoy legal tender for the amount corresponding to its official value in pesos, will be submitted to analysis in the Open Parliament in order to enrich it with the proposals of experts in finance and economics, I anticipate the federal petista deputy Gerardo Fernández Noroña.
In an interview with El Horizonte, he said that now that “there is no longer a subordination of the Bank of Mexico with the International Monetary Fund, it is necessary to take measures to strengthen the peso, save people and our economy.”
Fernández Noroña pointed out that, with this measure, Mexicans will not only be able to save with the support of the nominal value of the ounce of silver freedom that would mean net returns, but that they would no longer be at the expense of the swings of the speculative markets and the commissions that Account management applies banking institutions.
He explained that, according to the initiative, the Bank of Mexico would define the value of the ounce of silver according to the international price, in addition to that it could be used as an exchange currency in all types of establishments, which would mean strengthening the weight and giving Mexicans increases certainty in saving.
In addition, he said, we will be proposing that the ounce be accepted at the opening of savings accounts without any commission, as is the case with accounts in dollars and other currencies.
The legislator emphasized that the initiative is widely viable because Mexico occupies the first place worldwide as a silver producer that is an advantage that must be used to strengthen savings and the national economy.
He indicated that the initiative presented last week was already turned over to the Treasury and Public Credit Commission to which he requested to call an Open Parliament so that experts in economics and finance present their views and the reform already enriched, can be approved by the full before next April 30.
Here’s Norona’s petition before Congress from earlier this month (given on Feb 5th before Congress, it’s in Spanish):
- Silver produced in Mexico should say in Mexico and be used to strengthen Mexicans’ savings.
- There is currently no real way for people to save as currency in a bank devalues over time.
- Silver is a store of value over time, and a way Mexicans can save their cold hard cash.
- Silver coins should be a consistent, regular instrument in used in the market economy.
- The coins should have a fixed value and be able to circulate freely in the economy.
- No modern currency, including the US dollar, is backed by anything.
- We can back the Mexican Peso with silver to the benefit of all of Mexico.
- It wouldn’t just benefit Mexican savers, but the country in general.
- We would have strong money made out of a precious metal.
- We have been trying to do this for a very long time, and it always gets killed by the by the monetary authorities.
- Sometimes it’s the Bank of Mexico, sometimes our efforts are killed by the Finance Commission.
- Hugo Salinas Price has been fighting for this for years, and he is right.
- This would be a great move for Mexican Independence and Sovereignty.
- We ask you to finally approve this initiative so Mexicans can save in silver.
It’s rare to see a politician fighting for Savers and encouraging more savings, much less to see one fighting the good fight for silver.