Is the fiat monetary experiment finished? Whether central bankers, financial institutions and politicians like to admit it or not, eventually fiat money will meet its demise because it’s an unsustainable system that is based on debt on debt. It’s unclear as to what will succeed this volatile system we have in place today, but one country may be getting off the fiat train and heading to precious metals soon.
Mexico, a nation that has been marred with violence, poverty, corruption, political instability and an unstable peso, may be mulling an initiative that would see the country undergo a series of dramatic monetary changes, including backing the national currency with silver.
According to a report by Future Money Trends, financial leaders and public officials are looking at different ways to not only improve the nation’s economic, fiscal and monetary structure, but also perform an enormous global power shift. Analysts say that the news is being downplayed much in the same way that other states are trying to divert away from the toxic greenback.
The Mexican peso remains one of the weakest currencies in the world so imagine what a silver peso would mean to a country that has suffered for decades from crime and a very low standard of living. The publication wrote: “It’s unavoidable. History repeats itself, especially when it’s exactly the same economic situation.”
Despite the fact that the mainstream media and global leaders are dismissing the possibility, influential and affluent individuals are urging the Mexican government to abandon the fiat currency in favor of a silver standard, which could very well serve as a tremendous boon for precious metals and disrupt the international financial system.
The important question to ask is: will central banks or the United States government even permit such a possibility? Governments all over the world have tried to depend less on the U.S. dollar and avert dollar-reserve requirements in recent years, such as Russia, China, Middle Eastern nations and other countries, but look at their relations now. They’re pretty much sour.
The Inquisitor summed up such a move:
“If it does go through, this could be the reason for a shift in the balance of world power. Before you know it, people in the United States will ‘jump the border’ to Mexico for a better life.”
This sounds great but the idea suffers from the perennial tendency of governments (like the USA) to change their mind further on up the road when it is in the interests of new lawmakers to do so. Sure everyone would like to replace the reserve currency with a trustworthy alternative to paper or electrons. Sadly, all the alternatives proffered by various governments suffer from a lack of confidence in any government.
Countries that try to back their currencies with gold or silver do not get treated well, just take a look at Libya for example.