 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.
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
email: plata@plata.com.mx
website: http://www.plata.com.mx
321gold Ltd
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