It turns out that its not just Americans that are concerned about the value, or lack of value, in paper money. Around the globe, silver is known as money, and some of the world’s denizens are wondering why silver isn’t brought back as a currency.
Congressman Ron Paul of Texas has been very outspoken on what happens when there is no hard metal backing paper money. Money becomes easy to print, and inflation spirals out of control.
How is a silver coin or bar better? Just ask someone from Mexico about businessman Hugo Salinas Price, who has been pushing to return silver to its glory as currency. He argued in 2009 that a silver coin is an “irresistible urge” to personal savings. A full eighty-one percent of Mexicans would like silver money versus the peso. Some Mexicans say that they drop a peso and don’t pick it up, but they would never drop a silver coin and leave it there.
Mr. Salinas makes a convincing argument that silver currency would lead to less debt – and thus less consumption. And Americans can relate to the need for less consumption now more than ever. With a runaway deficit and epic interest after years of over-consuming, the dollar is devaluing. And ironically, where are scared investors running to? Precious metals.
The argument that Mr. Salinas makes is not just to back currency with stores of precious metals, but to literally return to their use in an everyday way. Have less digital money and credit cards, he says, and go back to the tangible stuff, if you want real prosperity to return. This is the sticky point in the argument, because abstract credit cards are not as beautiful as silver, but they are definitely more convenient. And he does make an argument that silver can be used parallel to paper money, but that paper money alone is doomed to fail. Silver that is valued based on its weight and purity is a currency with real teeth and merit.
But isn’t forgoing convenience a fair trade-off for economic prosperity? Ah, that is the crux of the matter. Because if you were forced to count out silver before each purchase, wouldn’t you think harder about your needs verses your wants? And if you don’t have the money, you can’t spend it. Savings would not be imaginary – it would be tangible and exciting again.
It may take time to return to a precious metals standard for currency, but better now than before more catastrophic inflation ensues.
