Wednesday, May 26, 2010
The Daily Bell is pleased to present an exclusive interview with Hugo Salinas-Price (left).
Introduction: Hugo Salinas Price, 75, is a successful, retired businessman who lives in Mexico. He has been a follower of the Austrian School of Economics since his youth. He has written three books in Spanish on how and why silver should be instituted as money in Mexico, in parallel with paper money, and numerous related articles in English and Spanish, posted at his website. His organization, the Mexican Civic Association Pro Silver, is actively lobbying the Mexican Congress to approve legislation, which will institute the pure silver "Libertad" ounce as money.
Daily Bell: What is your campaign in Mexico for sound financial policy?
Hugo Salinas-Price: I actually avoid discussing "sound financial policy" because one can argue about that till the cows come home. During the last fifteen years I have devoted my efforts to one single aim, and that is to achieve the monetization of a silver ounce coin currently minted by our Central Bank. This coin has no engraved monetary value and is called the "Libertad" coin; it can very easily be turned into a monetary coin, that is to say, a coin with a monetary value. As such, anyone owning such a coin could, if he or she wished, be able to pay any bill or debt denominated in Mexican pesos. (more)
Panic among investors has pushed the euro and pound to oversold levels, says Philip Manduca, head of investment for The ECU Group currency managers in London.
With the euro having dropped to a four-year low beneath $1.23, that area is a good spot to buy the currency, he says.
“The news is overblown to the downside,” Manduca said.
“We don’t think that the euro is going to fall apart. The political will in Europe remains paramount and is being discounted by foreign exchange operators,” he told Bloomberg. (more)
We are not dealing with a narrowly defined economic crisis or recession. The global financial architecture sustains strategic and national security objectives. In turn, the U.S.-NATO military agenda serves to endorse a powerful business elite which relentlessly overshadows and undermines the functions of civilian government. (more)
As you can see, the Volatility Index is now above the levels it hit during the Bear Stearns collapse, Fannie & Freddie’s Fall, and Morgan Stanley’s wobble. It is near levels reached during the Asian Contagion, LTCM, and 9/11. The VIX remains far below the Lehman/AIG collapse.
Silver remains the preserve of relatively few contrarian investors. The media and financial press rarely covers it, and yet it is in the intermediate stage of a bull market that may rival that of the 1970s.
The primary reason for this is the continuing and increasing global macroeconomic, currency and geopolitical risks; silver’s historic role as money and a store of value; its declining and very small supply; significant industrial demand and - perhaps most importantly - significant and increasing investment demand. (more)
Governments around the world have attempted to replace the real economy of value produced with a financial model based on credit growth and speculation. They have failed, and their constructs are imploding before our eyes.
I am going to cover a lot of ground here so load up on your stimulus of choice (ginseng, coffee, lime juice, etc.) and stay sharp. (more)