Hugo Salinas Price

GoldMoney founder James Turk interviews Hugo Salinas Price, president of the Mexican Civic Association for Silver, about silver’s potential to return as money and about sound money generally in a 22-minute video

News from the Galaxy

It has been revealed to me that there is life on a planet within our Galaxy. Among the living creatures on this planet are humanoids – that is, beings that bear a great similarity to humans on this Earth, but who do not appear to be intelligent, as we humans are, but rather sub-human in their reasoning faculties.
These humanoids are at present quite busy building large structures such as bridges and tall buildings with concrete, which they invented many years ago, but without the use of reinforcing bars, or rebars, as we call them.

Of course, since we are intelligent, we know what has to be the result of their efforts: continual collapses which cause these poor humanoids great grief and disappointment.

It appears that in the remote past these creatures did use rebars in concrete constructions, but an influential politician whose name is recorded in their history as “Nicson” finally decided that concrete did not require rebars to give it tensile strength, and therefore banned their use.

At the present time their media of communication are filled with discussions on how to prevent concrete structures from collapsing, with consequent disruption of life. The situation is very distressing.
Some commentators in the editorial pages of the well-regarded newspaper “Cement Times” recommend closer supervision of the building of concrete structures; others recommend more transparency regarding building methods, while some recommend that buildings be constructed in such a way as to prop each other up, to avoid collapse. In the meantime, no formula has been found to remedy this plague of collapsing buildings.

A very few of these humanoids are mentioning the fact that when rebars were used, long before Nicson, buildings did not collapse. Scarcely any attention is given to these “rebar bugs”, as they are derisively referred to by the élite of the inhabitants, who are venerated as well-informed and expert authorities in the matter. The rebar-bugs have a spokesman who goes by the name of “Paulum”, but they seem to be fighting a losing battle against the sub-human intelligence of the majority and those wielding political power.

Rebars are regarded by the cement manufacturers’ representatives as old-fashioned and unnecessary, and in fact, as “barbarous relics”; they allege that reverting to use of rebars would hamper the economy, because it would slow down the building industry, which is thriving because buildings are collapsing daily and of course, have to be rebuilt. Besides, they argue that rebars are “too scarce”.

Indeed, it might be suspected that the “Federal Cement Manufacturers’ Association” has an interest in retaining the present mode of rebar-less construction. Their disdain for rebars speaks louder than words of their sub-human nature, for by the simple expedient of allowing the use of rebars, which they have banned completely, they would find an undoubtely efficacious remedy to the parlous situation which prevails on their planet. However, it is apparent that there is no wish to accept the application of this remedial measure on the part of the Federal Cement Manufacturers’ Association, or the “Fed” as they call it.

Such is the travail now prevailing amongst the humanoids of that remote planet. There is nothing to be done; they must be allowed to suffer. Perhaps they may, in the course of millenia, eventually acquire human intelligence.
It’s time to end World War II
Hugo Salinas Price
Oct 29, 2009
The shooting, the bombing and the killing of World War II stopped in August of 1945, and the War was formally over.
The United States and Britain knew the War was won, in 1944.
At that time, a Conference was called among the 44 Allied Powers, to determine the nature of the world’s monetary and financial system after the fighting was over. It was held at Bretton Woods, New Hampshire, USA, in July of 1944.
As a result of the Conference, a set of Agreements were signed.
The most important of all the agreements was the one that established that gold should be the money to be used to settle all trade deficits between nations, but in lieu of gold, dollars could be used to settle these deficits; at the option of all Central Banks, these banks could demand gold from the United States Treasury at a redemption rate of $35 dollars for each ounce demanded.
Thus, the United States could pay for its trade deficits either in gold or in dollars. No other nation was allowed to pay for its trade deficits in its own currency; for all other nations, settlement of trade deficits had to be done with gold or with dollars previously acquired in the course of trade with the U.S. or with other nations who had dollars. In other words, dollars – and only dollars – were as good as gold.
General de Gaulle (President of France, 1959 – 1969) has been quoted as saying that this was “an exorbitant privilege”. And so it was, a privilege of the victor in World War II.
Under the rules of war, a country at war may loot and plunder its enemy, if it can do so. Booty has always been a great incentive to get soldiers to fight, and World War II was no exception. When a war is over the looting and plunder stops and nations renew commercial relations, exchanging their goods in peaceful international trade.
In forcing on the Bretton Woods Agreements the acceptance of the dollar as a means of settling international debts, along with gold, the US established the will of a victorious power to continue to loot and plunder the whole world.
Formally, World War II was over. But in fact, World War II was not only not over, but the US had implicitly declared war on the whole rest of the world by imposing the dollar as a means of settling trade deficits, along with gold.
By running huge trade deficits which arose out of its expansion of credit and consequent money-printing, the US was able to leverage its gold holdings and send abroad masses of dollars to pay for imports. The exporting countries received dollars – not gold – for their export surpluses to the US. The dollars began to pile up in foreign Central Banks as “Reserves”. The exporting countries, not being nuclear powers, were afraid to demand gold in payment of their export surpluses, since such a request would very probably irritate the great power, and nobody wanted to offend the USA.
All this export of dollars in payment of trade deficits finally moved General de Gaulle to demand gold for dollars held by the Banque de France. This annoyed the US government and shortly thereafter, not coincidentally, there was an outbreak of rioting in France which threatened to unseat President de Gaulle, who had offended the US by simply asking for France’s gold.
The US, by means of the “dollar as good as gold” provision of the Bretton Woods Agreements, has been looting and plundering the rest of the world, non-stop, since the end of World War II. Very subtly, based on Bretton Woods, the US has continued to act as the triumphant victor in a war; it has never since the end of World War II ” [reassumed] among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature’s God entitle” it, as expressed in the Declaration of Independence, 1776.
The US has not assumed an equal station among the powers of the earth, since World War II came to a formal end. It has continued to impose its Imperial Will upon the rest of the world, as vassal states, and has been duly exacting tribute from the rest of the world, by means of its paying its trade deficits with dollars, which are nothing at all since 1971. The US did not truly “normalize” relations, neither with the Axis powers when World War II was declared formally over, nor with the rest of the world.
Commerce is an eminently peaceful activity. The seller forces no one to buy; the buyer forces no one to sell. The means of payment of commerce, since written history began, has been either goods for goods, i.e., barter, or goods for gold – a perfected form of barter. Silver has also worked well, as a means of payment of commerce. But anything else, any innovation, anything decreed to be a means of payment by anybody whatsoever, cannot be anything but an imposition, a violation of the rules of commerce.
The present ruinous condition of the world’s finances and its lopsided industrial development has not yet corrected itself. If anything, we are in the “eye of the hurricane” for the moment.
If all governments in the world were to collapse, commerce would not disappear; it would arise out of the disorder, and its money would be gold or silver, or both. Gold and silver are the natural means of payment for humans. Such is the intellectual decline in the world, that those in power have forgotten this; they and their paid lackeys in the financial press and financial media are dreaming when they think that they can come up with some effective but artificial, fiat means of payment, decreed by some governmental body. Any such fiat means of payment will inevitably preserve privileges for some, and impose burdens on others. Commerce cannot thrive under those conditions; it will go into permanent decline, along with our industrial civilization.
“Regionalizing” fiat currencies will only have the result of pitting region against region – as illustrated in Orwell’s “1984”. This is the fallacy underlying all talk about a “multi-polar world” while ignoring the need for a neutral, real and time-tested medium for exchange of goods.
The world’s principal powers should convene and come to an agreement for the establishment of the world’s monetary and financial system on the basis of gold as the exclusive medium for settlement of international trade deficits – a neutral, real and objective medium for commerce and finance.
If the governments of individual nations want to allow their banking systems to diddle with fractional banking and inflation, it is their right to do so. But when it comes to settling accounts with other nations, they must come up with the required gold.
Only then will we be able to say that World War II has ended.
27 Oct, 2009
Hugo Salinas Price
Asociación Cívica Mexicana Pro Plata, A.C.
Mexico City
Hugo Salinas Price, president of the Mexican Civic Association for Silver, was interviewed for about 20 minutes Friday by Eric King of King World News.
They discuss the trauma of currency devaluation, the use of the U.S. dollar as a system of imperial taxation on the world, and the necessity of a means of real settlement of international trade, the dollar not really being one, since so many dollars are used only to purchase more U.S. government debt, which leaves open the obligation to pay. They also talked about Salinas Price’s plan for remonetizing silver in Mexico, the land of silver.

Causes and effects

Hugo Salinas Price
Jul 18, 2009

Let us imagine that in August of 1971 the governments of the world decreed that as of that date all vehicles of the world should run on water rather than on gasoline. Within 48 hours, at the most, all vehicular traffic in the world would have ceased.

The cause – an absurd decree – would have produced disastrous effects immediately.

In human affairs, which are much more complex, it generally happens that bad decisions do not produce all their bad effects immediately, but only in the course of time.

Today the world is struggling with an unprecedented economic collapse, caused by a mistaken decision taken almost 38 years ago.

The distance of 38 years in time, in a world which is undergoing change at such a rapid pace as ours, is a great distance. Those who can remember the bad decision of August 15, 1971, and who can recall how the world worked before that date, are today at least 63 years of age. They are already either retired or about to retire from active life.

For men who are active today, 1971 is a date that is beyond the horizon of their interest. For those men, what they have seen in their lives seems to them completely normal; they think that life has always been as they have known it. Why should it not continue to be so?

Perhaps this is the reason that all we read in magazines and newspapers and all that we see on TV never mentions the mistaken decision taken on August 15, 1971. Both those who govern and those who are governed cannot establish an intellectual link between a cause,which happened either before they were born or when they were still wearing short pants, and an effect, the present global economic disaster.

What happened on that fateful day?

What happened was the equivalent of decreeing that cars should run on water: for the first time in history, the whole world began using fictitious money, papers that simulated real money. This happened when President Nixon of the United States decreed that as of that date, the dollar – the central currency of the world on which rested all the other currencies – ceased to be redeemable through the delivery of one ounce of gold for each $35 dollars which central banks of the world might present for collection in gold.

The effect of this event has taken 38 years to be felt in all its enormity.

Nature does not care if human beings think or do not think. Nature does not care if humans take note of causes and effects, or if they ignore them. Nature does not care if they are wise or foolish: Nature is pitiless about collecting its due. If you do not sow, you will go hungry. Academic discussions do not influence the inexorable operation of the Laws of Nature.

Cars do not run on water, they run on gasoline. Economies – civilizations themselves – cannot function on simulated money, money that is fraudulent, fictitious and imaginary (in the case of bank money).

Tacitus, the Roman historian, wrote: “The man who is ignorant of that which happened before he was born will always remain a boy.”

Only boys, and nothing more, are the great pundits of economics, the great directors of national economies, the great presidents and prime ministers of the Powers, who cannot or will not recognize that everything that has been built in the world since 1971 has had as a foundation nothing more than quicksand.

As long as the use of real money – either gold, or both gold and silver money – is not reestablished in the world, the civilization which we have known is in danger of disappearing.

At the recent meeting of the Heads of State of the “Group of Eight” (G-8) the President of Russia, Dmitry Medvedev, presented a coin which he said was to be the new international currency. He is in the photo below. Note that he is holding a gold coin.

Russia's President, Dmitry Medvedev, pulled the world's new currency from his pocket at the meeting of G8 leaders in the Italian city of Aquila.. The coin, which was minted in Belgium, was presented to all the G8 leaders attending the summit and bears the words 'unity in diversity.

Therefore we have hope that at last, a true Statesman will take the historic decision to reinstate gold as money. The adjustment of the world to this measure will be painful, but the return to real money is indispensable if our world is to endure.

The alternative is too terrible to contemplate

July 2009
Hugo Salinas Price, President
Asociación Cívica Mexicana Pro Plata, A.C.
Mexico City

Hugo Salinas Price, president of the Mexican Civic Association for Silver and the world’s foremost advocate of restoring silver’s role as a circulating currency, addressed GATA’s recent conference in Washington by video. His address, “Dorothy’s Silver Slippers,” detailed his proposal for the issuance of a circulating silver ounce coin for Mexico — a coin that, not being imprinted with any particular peso value, would never be at risk of withdrawal from circulation because its melt value had come to exceed its face value.

Salinas Price’s address to the GATA conference is 23 minutes long and you can find it here:
Hugo Salinas Price: Dorothy's silver slippers…

by Hugo Salinas Price
President, Mexican Civic Association Pro Silver
September 21, 2007

Turmoil prevails. Lots of writing on financial and economic themes by worried people. All about “money”.

What no one mentions is that what the world is using as money in these times, is not really money at all. What is called money today is only a means of exchange, and the transfer of this so-called “money” does not constitute payment. “Money” today, is NOT a means of payment, which is one of the essential functions of money.

Money has been defined as having three functions:

1. A means of exchange.

2. A means of payment.

3. A store of value.

Of these three functions, only ONE remains: a means of exchange.

Today’s money is not a means of payment; ever since mankind used barter – before money existed – there did exist payment: each trader handed over something in exchange for something. That was PAYMENT. Payment is the delivery of some thing, in exchange for some thing.

Today, handing over a dollar, or a yen, or a euro – whatever – is not handing over something, nor even a claim on some thing. Therefore, handing over a dollar – or any so-called money today – is not really payment. It is not the delivery of any thing, nor of a claim on any thing. We are not “paying” in truth, because we do not deliver any thing. We do not use money, only a means of exchange.

World central bank reserves are neither a thing nor a claim on anything at all. Therefore, they are not a store of value; the falling exchange value of the dollar is a verification of this: that no money today can be a store of value. A non-thing cannot store value.

The Central Bankers of the world do not know what to do about their ever-increasing reserves; if any of them thought five minutes about money, they would understand that they are being very silly and playing games. If the CB reserves were gold – as they used to be – there would be no worry at all. Because gold is a tangible thing, but a dollar or a pound or a euro or a yen, or any other “monetary unit” is not a thing, it is only an abstract unit, a number.

Christian Noyer, on the ECB economic council and head of the Banque de France, does well to advise against “excessive accumulation of reserves”! Of course, it is always adviseable not to accumulate too much of nothing. “You got plenty o’nuthin’ “, Christi ole boy! (And nuthin’s plenty for you?)

Big shots and prestigious writers are talking and talking, and worrying and writing about “money”, when what we are using all over the world, is not money! The best and brightest brains WILL NOT see that the world is not using money at all.

This blindness that prevails in the world is of vast philosophical importance. We are living in a deluded world and the outcome of this delusion is going to be nothing less than apocalyptic in its overwhelming, destructive consequences for mankind.

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