Silver Dirham/Currency For Iran - Hugo Salinas

. Interview with Hugo Salinas Price. Founder of the Mexican Civic Association Pro Silver, Mexico City, Mexico. November 7, 2007.

Mr. Salinas Price, why do you think it is important to monetize the silver one ounce coin in Mexico?

The monetary history of the 20th Century has been a history of increasing disorder and improvisation in the monetary affairs of the world. The disorder has come to the point where the world no longer uses real money in its transactions. Consequently, the mass of people in Mexico do not have a satisfactory and trustworthy means for creating personal savings. The silver ounce, converted into money, would be an excellent medium for personal savings.

Furthermore, we are witnessing the development of a worldwide problem: the inability of States to pay the pensions they promised to pay. Mexico is not alone in facing the problem: the financial inability to deliver the promised pensions to retirees. It is therefore urgent for the population to exert itself to the utmost in providing personal savings for retirement, and saving the monetized silver ounce would be the best means to do this. The monetized silver ounce could not be devalued.

Mr. Salinas, why are you so interested in talking to the leadership in Iran, regarding the monetization of silver in the Islamic Republic of Iran?

In my view, Iran’s unique circumstances provide several reasons which coincide to make the monetization of silver an attractive and feasible measure for the leadership of Iran.

The religious reason. The monetized silver coin could be the dirham of 3 grams pure silver (plus .28 grams of copper to provide hardness). This is the silver coin prescribed by Islamic sharia. It is entirely fitting —or even religiously indispensable — for an Islamic Republic to provide such currency for its people. This coin might, alternatively, be named the Silver Rial.

The reason of sovereignty. The Islamic Republic of Iran is truly sovereign because it is not under the control of International Bankers who are in turn, under Zionist control. Iran has the independence indispensable for taking an action that is contrary to the wishes and objectives of Zionism. Iran has a strong government based on 1. a religious foundation, 2. a highly motivated military and 3. it only lacks a sovereign monetary foundation based on real, tangible money of intrinsic worth. The introduction of the silver dirham, to circulate in parallel with the fiduciary rial, is the first step in a process of fundamental development which can take a generation to achieve.

In my humble opinion, a monetary system based upon money which has no real existence is probably incompatible with the precepts of Islam regarding justice.

The social reason. Iran is facing a threat of war on the part of the U.K/USA/Israel axis. The leadership must prepare for such war always hoping the threat does not materialize.

An excellent way to prepare the solidarity of the population with its government, is for the government to carry out a measure most unusual in our times: to provide the population with a means of saving (which is also money) by creating a monetized silver coin, the dirham. The striking difference between the policy of the Iranian government, in enacting such a benevolent and humane measure, and the worn out and unworkable policy of its adversaries who only issue worthless paper or digital money, is certain to create an unbreakable solidarity between people and government in Iran.

A tranquil and confident population, enjoying a means of savings which is reliable because it cannot be devalued, is a necessary base for a stable government. This means of savings will exist in parallel with the Iranian rial, which is at present — due to international blockage — inflating away the savings of the Iranian people, especially affecting the most humble.

The centre of gravity reason: As long as the Iranian rial is inflating, a condition which must continue for an indefinite period ahead, there is a permanent temptation for Iranian people to protect themselves from this inflation by acquiring foreign currencies such as the euro or even the dollar. If the Iranian currency itself includes a monetized silver coin, provided in abundance by the government and Central Bank, the centre of gravity is retained in Iran itself. The urgent need for protection against inflation, is readily available within the country; there is no need for accumulation of foreign currencies.

The political reason: The monetized silver dirham, in potential use as money and in actual use for savings which are not subject to devaluation will, internally, have a cohesive effect. Party divisions which will arise in other spheres of political life, will be non-existent as regards the silver dirham; all parties will support this measure. This I can predict, based on our experience in Mexico, where members of all parties are in favor of the monetization of our silver ounce, the “Libertad” coin. Our committee in Congress, working for the monetization of the silver ounce, includes members of all the different parties who are unanimous in supporting this measure. (The only opposition comes from the leaders of some parties who wish to ingratiate themselves with the Central Bank, which responds to the Federal Reserve and is thus adamantly opposed to the monetization of silver.)

Externally, as regards its neighbors, the influence of the silver dirham will inexorably extend itself into the neighboring countries. The populations of the neighboring countries will be eager to acquire the silver dirham for their savings. This will reinforce trade with these countries and with growing trade between Iran and its neighbors, the political influence of Iran in the region will only grow. The dollar and the euro will be less desirable than the silver dirham, because the quality of the silver dirham is superior to those currencies.

It has been a lamentable fact that the USA has utilized its position, as purveyor of the reserve currency of the world, as a political weapon not less important that its military power. Opposing and neutralizing the political influence of the dollar (and now the euro) would be the silver dirham, superior in quality to both of these currencies which have no physical, tangible content. Politically, therefore, the monetized silver dirham is just as important as the military power, while requiring 1. less expenditure and 2. deriving permanent benefits for the population which are not provided by military expenditures, which are completely sterile and unproductive.

The economic reason: An economy built upon money which has no intrinsic value is an unstable economy. This is a curse which hangs upon the whole world, now entering upon a grave and prolonged crisis which cannot be resolved except through painful readjustments.

Stability can only be built upon real money. The introduction of the monetized silver dirham is only the first step in the direction of stability. But the economy will begin to reap benefits immediately.

The monetized silver dirham is a step towards reality as the basis for human interaction. The process of providing this real money to the population of Iran will take a generation, as it is gradually placed in circulation in parallel with the fiduciary rial.