Wednesday, August 31, 2016

Hugo Salinas Price:
The Night That Is Upon Us 
& the Dawn of a New Era
Hugo Salinas Price speech presented at the inaugural ceremony of the Fourth Convention of the Association of Mining Engineers, held in the city of Durango, State of Durango, Mexico, on August 25, 2016 .. he emphasizes the folly of taking an approach to economic forecasting models based on the "scientific method" - "The central problem of our times is that official economists attempt to apply the 'Scientific Method' when designing economic policies for governments, and this method is not applicable to human activity. The 'Scientific Method' cannot be applied to social concerns, because physical matter and human beings behave in totally different ways. Matter cannot choose, and human beings do choose their behavior. So, while action applied to matter produces predictable results, action applied to human beings must consider the fact that human beings choose, they do have options, and thus their behavior cannot be predicted successfully, cannot be quantified nor expressed correctly in equations. The world's economists ignore this fundamental fact, and so they formulate economic plans for the State that always turn out as counter-productive, because their plans produce results that are always quite the opposite of what they expected." .. sees an eventual financial shock coming to the world .. the hope for the world: "A government that collects low taxes; a government that operates under a budget, without borrowing to increase its expenditures; a government that does not burden the population with excessive regulations; free trade; solid currency; legal safeguards for private property; public works of infrastructure limited to a government budget. Such was the policy, generally speaking, of our President Gustavo Diaz Ordaz (1964-1970). When his term in office ended, Mexico's foreign debt was: $4 billion dollars, and our Central Bank, Banco de Mexico, held that amount in cash on its Balance Sheet."
LINK HERE to the speech

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