Hugo Salinas Price
Who he is: Hugo Salinas Price is the founder of Mexico's Elektra retail chain. His son, Ricardo Salinas Pliego, now runs the company. Elektra began as a workshop assembling electronic appliances for the Salinas Y Rochas chain, a small regional retailer of appliances. Elektra then set up a direct sales operation offering appliances on installments.
Hugo Salinas Price currently is retired from retailing and focuses on being a proponent of a sound financial policy for Mexico. Salinas Price is also president of the Mexican Civic Association Pro Silver, A.C.
Background: Hugo Salinas Price, born in 1934, is a successful, retired businessman who lives in Mexico. Salinas Price has been a follower of the Austrian School of Economics since his youth. Salinas Price 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.
Salinas Price's organization, the Mexican Civic Association Pro Silver, is actively lobbying the Mexican Congress to approve legislation to institute the pure silver "Libertad" ounce as money.
Hugo Salinas Price has focused on reintroducing silver into the Mexican economy with great energy over the past 15 years. Salinas Price's aim is to achieve the monetization of a silver ounce coin currently minted by the Mexican 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. The monetary value of this coin would be slightly higher than its bullion value; the monetary value would not fluctuate according to the price of the silver ounce, but its monetary value would be raised if the bullion price of silver rose and closed in on the monetary value.
The Central Bank would give the coin its monetary value, according to a formula in the proposed legislation. If the price of silver fell to $1 dollar an ounce, the monetary value of the coin would remain where it was last pegged. (But Salinas Price says it would still be better money than any paper or digital money in the world.)
On the other hand, if silver should go to $50 dollars an ounce, this coin would remain in circulation, useable as money, because then its monetary value would be about $57 dollars, and stay there until a further rise in the value of bullion silver. The monetized silver ounce would be an excellent refuge for savings and would attract them irresistibly.
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