Mexican billionaire and retail magnate Hugo Salinas Price is a big proponent of using silver as money in Mexico. Salinas Price explains, “The idea is not to go back to a silver standard, but to create a parallel currency which would be a monetized silver coin. It would not bear a stamped value. It would be a plain silver coin with a quoted value given to it. This value would be adjusted upward with a fall in the value of the peso or a rise with the price of silver.”
Salinas Price pushed ideas similar to this in the past. This idea is being talked about again in the Mexican legislature, but there is no guarantee it will become a reality. Why silver coins for the Mexican people? Salinas Price says, “All material progress comes from saving, not from spending. You have to save first, and from savings comes investment, and from investment comes jobs and income for a better way of life. Savings are the primary source of prosperity.”
It may get to be impossible to save in paper currency soon. Salinas Price reminds us that there are trillions and trillions of dollars in bonds hanging over the head of everyone on the planet. When those bonds start liquidating, it’s going to rain inflationary money. Salinas Price goes on to say, “All those clouds overhead are denominated in hundreds of trillions of dollars of debt hovering above the world. It’s like a dark cloud. There comes a point when that wants to become liquidated. Bonds are presented for liquidation and turned into cash. That’s when the trouble is going to start. When they are liquidated, we are going to have a Noah’s Flood of cash. With all this debt turned into cash, we are going to be wading in money.”
Could a Fed rate hike start the bond market to liquidate? Salinas Price contends, “Apocalypse is upon us . . . this boom in stocks is about to collapse. The total debt when Reagan came into office was $391 billion. Now, it’s $20 trillion. Something has got to give. When interest rates start to go up, as they might on March 15th, we are going to see liquidation. People are going to say bonds are falling in value because interest rates are going up, I think I want to sell my bonds. . . . I also think the stock market is going to collapse, a big collapse is coming. I also think gold is being hammered in preparation for what’s going to happen. I think it has been taken down, so, when it starts to go up, it will go up from a lower level.”
So, will we get hyperinflation? Salinas Price says, “I don’t know if it’s going to happen right now, but something is going to happen with this huge amount of debt. It just can’t go on, and how is it going to end? It’s going to end badly. A lot of wealth is going to disappear. . . . I think, in the U.S. on March 15th, all hell is going to break loose because the U.S. will reach its debt limit.”
Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.