Mexican Congress Debates Monetization Of The "Libertad" Silver Ounce

rollingthunder (60)in #steemsilvergold • 7 years ago (edited)

Per Zerohedge article Authored by Mike Shedlock via MishTalk.com.

http://www.zerohedge.com/news/2017-09-15/mexican-congress-debates-monetization-libertad-silver-ounce

Guillermo Barba shares his post on a debate in the Mexican Congress to monetize the ‘Libertad’ silver ounce coin.

The central feature of the proposal is that the Central Bank of Mexico (Banxico) shall determine a value in pesos for the “Libertad” silver ounce; and that this value shall be slightly higher (by a percentage that would be defined in the corresponding Law) than the price of silver in the international market, in order to provide Banxico with an assured profit in minting and placing these coins in monetary circulation.

Today, for example, at the present rate of exchange and the present price of silver, the Mexican silver ounce is worth $320 pesos. Now suppose the Proposal requires an overprice of 10%. In that case, Banxico’s monetary quote for the “Libertad” silver ounce would be for $352 pesos.

Most of those old silver coins, once their content was worth more than the peso stamped value on their faces, ended up in the refineries. The holders of the coins sold their coins at a profit, for their silver content.

This won’t happen with the “Libertad” silver ounce, whose value will be adjusted upward, and benefit the saver, who will thus retain his purchasing power no matter what may happen with inflation. Thanks to owning silver “Libertad” ounces, the public’s savings will float on the ocean of currency through the years.

Interesting development. Another step closer to where Mexico will be a rich country, eventually, the Mexican nationals will want to return to Mexico and leave the debt ridden USSA.

Keep stacking. Go get you some.