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Comment: 'Peso' means 'piece' as it was one of eight pieces of a Spanish

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'Peso' means 'piece' as it was one of eight pieces of a Spanish


Remember the phrase "2 bits, 4 bits, 6 bits, a dollar?"

A 'bit' in this context was 1/8 of a dollar, so named because the Real had grooves punched into it to form wedges. The wedges could be 'bitten off' to break the coin into fractional currency.

The Peso was valued at one of these bits or pieces. It was 1/8 of a Spanish Real, or as known in the British Colonies, which later became the united States of America — the Spanish Milled Dollar, after which our unit of currency, the dollar was established by law to be equal in weight and fineness to.

Many do not know that the U.S. did not invent the dollar. It adopted it because it was the most widely used currency already in circulation at the time the nation was formed.

Many do also not know that a dollar is not some abstract unit of account. It IS a specific amount of a certain fineness of silver, that weight and fineness, initially, was by law to be the same as that of the Spanish Milled Dollar or Real.

(not coincidentally, the Brazillian Real is also based off of this older currency)

The Peso, being 1/8 of a Real, was thus also 1/8 of a Dollar, which is why the exchange rate between the Peso and USD stayed around 8:1 for most of both nation's history. (It is currently nearly 13:1, though that is a recent slump)

It would be an awesome feat to pull off if Mexico can manage to at least peg the now abstract 'peso' to silver and maybe one day return it to parity with the original Peso it started with.

Now if only the U.S. could do the same with the Dollar? Perhaps this move by Mexico will put pressure on the U.S. to do so, or it will convince the new GOP administration due to take office in 2017 to invade Mexico under other pretenses to thwart them from making this move, just like they did with Iraq when Saddam announced he was going to sell oil for gold, and why our previous and present administrations make so much noise about Iran as they want to establish an Iranian gold currency.