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standard 1-ounce pure silver coin

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    Another nail in the coffin for the great USD?

    Latin American Parliamentarians are enthusiastic about introducing a pure silver coin for common regional use as money.

    Sao Paolo, Brazil, November 25, 2005 -- The proposal to monetize a standard 1-ounce pure silver coin by means of a quote issued by each national central bank in terms of each country’s currency and with similar seigniorage has crossed Mexico's border and has been well received by Latin American legislators.

    The proposal to turn the Mexican “Libertad” 1-ounce silver coin into a coin of common use has arrived before the full Latin American Parliament here. This organization was founded in 1964 and is composed of delegates from the national congresses in Latin America. It is devoted to regional integration.

    Congressmen from Mexico's three main political parties explained the benefits of this citizen proposal, which supersedes political differences and is being considered by Mexico's lower house of Congress, the Deputies Chamber, and proposed the adoption of the silver ounce as a common currency for Latin America. The coin would bear different national symbols in each country.

    Mexican Congressman Fernando Guzmán said the silver coin could become the “glue” for a monetary unification of Latin America, following the example of the euro in Europe. “The silver coin is the adhesive, the glue, that we require for a strong, regional monetary unification,” Guzman said in his speech.

    Guzmán, from the PAN party, and his fellow Mexican congressmen, Benito Chávez of the PRI party and Rafael Candelas of the PRD party, showed their colleagues from 22 countries how the Mexican proposal could provide a basis for a model of regional integration.

    According to the proposal, each country would coin its own silver ounce with the same purity and weight. The coin would be assigned each day a value in each national currency by the national currency's central bank, with a uniform seigniorage, but the assigned value would not be engraved on the coin, so that the coin's value in each national currency might vary. The only difference between the coins in each country would be the national symbols engraved on them.

    The Mexican legislators explained that since the silver ounce coin would not have an engraved nominal value, its quoted value would rise with the price of silver but the central banks would never assign it a lower currency value than any value previously assigned to it. This guarantee against a lower currency value is an indispensable feature for a silver coin to be used as money, since, if the coin's intrinsic silver value is ever greater than the coin's quoted currency value, it would be withdrawn from circulation and hoarded or melted into bullion.

    The Mexican legislators stressed the silver coin's great attraction for popular savings and the insurance the coin would give ordinary families against currency devaluation in monetary crisis, which have been common in Latin America.

    From the political point of view, the Mexican congressmen argued that the silver ounce would favor social cohesion and reinforce the confidence in Latin American governments.

    Each Latin American Parliamentarian received from the Mexican delegation a 1-ounce silver “Libertad” as a gift, and this may have won sympathy for the project, since after several decades of suffering the absence of real money, Latin American leaders were able to feel once again the weight of a silver coin in their own hands.

    Brazilian Congresswoman Veronica C. said: “This is an important proposal that Mexico is presenting and we must take it to our own countries to see if there is a possibility of establishing the same coin. The benefits are manifold. This is a coin with a real value and not a symbolic value, which is important.”

    Jorge Possi, an Uruguayan congressman, commented: “This is a good way for the majority classes. … If this works it could protect people from the cycles of the economy, from devaluations, and other problems that Mexico and other countries have had."

    Armin Diez, an Uruguayan congressman, pointed out the benefits of “stability, the backing that the national economy itself will have," adding, "I think it is most interesting. It is an alternative that each country may choose to copy."

    Thus the Latin American legislators agreed that the proposal for a silver coin represents a safe and trustworthy alternative for the people of their respective countries.
 
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