Armstrong Economics Blog/Corruption
Re-Posted Mar 14, 2017 by Martin Armstrong
QUESTION: Hugo Salinas Price raised the introduction of silver as a duel currency in Mexico. The 1 ounce coin with no number of pesos listed on it (possible no date either) would be a dual currency. The value, like gold and silver bullion, would be listed each day so everyone would know the value. If the paper peso decreased in value, the value of the silver coin would rise, as it would be worth more paper pesos. The government should not be allowed to control its value. Is there any value to this?
ANSWER: Today, everything floats with the exception of a few governments who foolishly attempt to create pegs. You can buy silver or gold and it fluctuates every day. So the government issuing no denominated gold or silver coins that still fluctuate would not really do much. The question is not the question of government trying to control a currency, the question is socialism that is the justification to spend money. This is why the gold standard collapsed. They attempted to fix the price of gold at $35 under Bretton Woods but they did not restrict the spending. Bretton Woods broke down the same as the futile attempt of Switzerland attempting to peg the franc to the euro.
Everything is in a state of flux. We cannot create a fixed currency when you do not create political reform and end the government spending and borrowing. The historical problem has NEVER been what we use for money be it gold, paper, or sea shells. The problem lies with those who try to rule the world. We seriously need to reform the system, not what we call money. Just look at the resistance to Trump simply trying to reform a very small part (since he too does not grasp this problem). They will not let him reform anything, so there is no hope of ever solving our problem. This is why I say we must crash and burn. There is no way to prevent what is coming. So let’s just prepare the best we can.