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The main export of the U.S.,
is paper. It’s very fine stuff, made by a famous papermaker.
Last June, the U.S.
again exported an important amount of this paper, as they have been doing
every month for many years. It appears that this year, exports of paper may
amount to $400 billion, perhaps more. The paper is very valuable;
June’s exports amounted to only about 392 cubic yards in volume, but
worth about $30 billion.
This paper is exported in small rectangles. Each one is engraved and
says: “One Hundred Dollars”. A cubic yard holds about 765,000
pieces.
So, June’s export of paper of 392 cubic yards amounted to about
$30 billion.
The whole world loves these pretty papers, so they have been going up
in value.
The U.S.
exchanges these papers for cheap goods all over the world. Every time the
papers go up in value, the U.S.
gets more stuff in exchange. The U.S. doesn’t have to worry
about exporting other stuff; if they want more foreign goods, they just
export more paper.
Argentine has a Currency Board, so their money is really these pieces
of paper. To buy things outside Argentine, they have to use the papers
exported by the U.S.
to their country; but of course, when they buy things, quantities of papers
leave Argentine and business falls off. Unemployment spreads as the economy
contracts.
Argentine cannot export papers like the U.S. – it doesn’t
have the paper concession – it has to export things; and since it is using a currency that is going up in value
on world markets, well, of course Argentine costs go up, too, with regard to
people who would like to buy stuff from Argentine. This is an uncomfortable
position for the Argentinians. They have to lower
prices, lower costs, lower wages, fire workers, or close down businesses.
But, the Americans are having a great time! A wonderful thing it is,
to export engraved paper. There
seems to be no end to the world’s desire to own these engraved bits of
paper. In the meantime, the Argentinians are having second thoughts about using U.S.
papers as their money.
Those who dream of dolarizing
Mexico, please take note!
By :
Hugo Salinas Price
President, Mexican Civic
Association Pro Silver
www.plata.com.mx/plata/
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