One World Currency

[the iron horse]

Nobel-prize winner backs world currency | The Australian

 

[the iron horse]

Correction:

One World Currency

 

[Irvine511]

 

[coemgen]

It's just a matter of time. It's the beginning of the end, people.

 

[deep]

One thing we are all learning, is that all our economies are interdependent.

I am not sure how this would play out.
Would governments be able to increase their own money supply?

 

[melon]

Hah...will never happen. Considering how currency works on scarcity and relative value to other currencies, etc (a huge oversimplification, I know), why in the world would a rich country like the U.S. want to share a currency with, say, Zimbabwe, which has no fiscal discipline whatsoever? And, considering all the money made in foreign exchange markets, why would we want to eliminate it?

I just cannot realistically fathom how a single, global world currency would come together, considering how not even the Eurozone is not looking all that cohesive these days.

 

[AliEnvy]

I just cannot realistically fathom how a single, global world currency would come together, considering how not even the Eurozone is not looking all that cohesive these days.

Agreed. One world currency would need one world government and one banking system. How exactly would that happen?

Although as this global economic crisis deepens and we further understand just how interdependent we really are, we may see nationalistic protectionism wane in some regions leading to further regional consolidation.

 

[coemgen]

I'm sure nobody thought we'd see the Euro either. It may not be as strong, but it's still there. We'll come out of this current crap we're in, but I have no doubt there will come a time that a similar situation will push us all to more of a single currency. It may not include the whole world, but it will keep inching toward that.

 

[melon]

I'm sure nobody thought we'd see the Euro either. It may not be as strong, but it's still there. We'll come out of this current crap we're in, but I have no doubt there will come a time that a similar situation will push us all to more of a single currency. It may not include the whole world, but it will keep inching toward that.

I do see a push for more regional currencies, because many individual nations just will never have the stability and clout as, say, the USD or the Euro. But a global currency just doesn't add up. It's like handing everyone a million dollars and then saying that "everyone" is rich...except, at that point, a million dollars becomes worthless. The inherent value of a currency is almost dependent on the devaluation of others, it seems. Even gold...what is it really, aside from a shiny metal? Value is dependent on perceived scarcity, and a global currency seems to eliminate scarcity, thus eliminating value, thus eliminating the need for currency altogether.

 

[coemgen]

There are some who think we already have a global currency — credit.

 

[diamond]

I do see a push for more regional currencies, because many individual nations just will never have the stability and clout as, say, the USD or the Euro....altogether.

 

[BVS]

I've always found the religious apocalyptic fear of this type of movement scarier than the movement itself.

 

[Zoomerang96]

I've always found the religious apocalyptic fear of this type of movement scarier than the movement itself.

well to be fair, it DOES say it in the book of revelation, does it not?

 

[BVS]

I'm more scared of the 7 headed monster...

 

[Kieran McConville]

Gold's value may be based on scarcity now, but I think its value began as it was a. yes shiny and, well 'gold', b. an incorruptable metal (does not rust), and so I suppose a good store of value. Hence the gold in gold coins. Ok, guys, I'm here all week.

One world currency, if such a thing came about, would follow one world government, not lead it. I think in the course of a couple of centuries, one world government is a real possibility. It's reasonably logical to expect political institutions to attempt to scale larger than the matters to be governed. In much the same way as England isn't an existing political entity in 2008, and that the EU exists at all.

 

[vaz02]

I'm more scared of the 7 headed monster...

What do you suggest i get her for Mothers Day ?

 

[financeguy]

I just cannot realistically fathom how a single, global world currency would come together, considering how not even the Eurozone is not looking all that cohesive these days.

Indeed.

On top of all this, a fiscal crisis is building. Italian and Greek public debt is close to 100pc of GDP. The markets fear that these governments, along with those of Ireland and Austria, could be forced to default. After all, even before this crisis began, in several cases, government debt levels were at the very limits of acceptability. Now governments face not only the normal fiscal costs of recession but also expensive bank bailouts or nationalisations.

Given all this, it is hardly surprising that there has been talk of one or other member countries leaving the euro. The customary riposte is "how would a country like Italy manage outside the euro?" But I wish someone would tell me how a country like Italy will manage inside the euro.

http://www.telegraph.co.uk/finance/...e-escaped-the-budding-euro-zone-disaster.html

 

[Zoomerang96]

if they do end up defaulting, so what?

i just think of argentina from a few decades ago... defaulting on their payments did wonders for that country.

 

[financeguy]

if they do end up defaulting, so what?

i just think of argentina from a few decades ago... defaulting on their payments did wonders for that country.

Hmmm. Only after a lot of hardship.

 

[Pearl]

One World Currency?

China’s central bank on Monday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the International Monetary Fund.

In an essay posted on the People’s Bank of China’s website, Zhou Xiaochuan, the central bank’s governor, said the goal would be to create a reserve currency “that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies”.

FT.com / Asia-Pacific - China calls for new reserve currency

I've been hearing talks about a single world currency, so I googled it and came across this article.

The new U.S. administration is not too crazy about it, but China is pushing for it, so is Russia:

Zhou's comments followed remarks by Russia last week which said it would put forward a proposal at a meeting of the Group of 20 in London on April 2 for the creation of a new global reserve currency.

Russia said its proposal had broad support among other key emerging market economies including Brazil, India, China, South Korea and South Africa.

http://www.reuters.com/article/usDollarRpt/idUSN2434732920090325

What do you think? Is it best to have a single global currency to solve the world's economic problems?

 

[Hobo13]

I don't know a whole lot about finance, but it sounds like somebody has us in their crosshairs.

 

[purpleoscar]

A one world currency will mean a world government. Some questions:

- What happens if one country has high interest rates and another doesn't? How do we match the money supply to worldwide production?

- If the world government screws up where is a competitive currency to hedge with?

 

[BVS]

A one world currency will mean a world government.

Well, not exactly... but this is a good example of why this won't happen. at least anytime soon.

 

[mobvok]

Zhou's comments followed remarks by Russia last week which said it would put forward a proposal at a meeting of the Group of 20 in London on April 2 for the creation of a new global reserve currency.

for the creation of a new global reserve currency.

for the creation of a new global reserve currency

reserve currency

"reserve" is a very important word. The dollar is currently the world's most used reserve currency, under this silly idea that means the dollar is currently the One World Currency.

 

[Kieran McConville]

No you're wrong movok, it's one world currency and teh MARK OF THE BEAST! Black UN helicopters are coming to enslave your children to the Anti-christ (you'll know him because he will be a charming man who talks about peace).

 

[deep]

"reserve" is a very important word. The dollar is currently the world's most used reserve currency, under this silly idea that means the dollar is currently the One World Currency.

you are right


we live in a one world currency right now

call it reserve, if you like

but why is it reasonable for the U S dollar to dictate or control exchange rates?


I don't know if it is possible to have a "bread basket" tied to a few currencies. would that be better?

 

[financeguy]

Bono has stigmata, guys. STIGMATA.

 

[mobvok]

you are right


we live in a one world currency right now

call it reserve, if you like

but why is it reasonable for the U S dollar to dictate or control exchange rates?

I don't know if it is possible to have a "bread basket" tied to a few currencies. would that be better?

My understanding (maybe wrong) is that in commodities for example if Minor Country A wants to buy oil, they can either use their native currency and incur a transaction fee from the supplier for the conversion, or they can use their stores of Big Currency like the US Dollar or Euro which the supplier is more likely to take direct payment for without the fee. So Minor Country A builds a stockpile of US Dollars for this sort of action. The choice of US money is the preference of the seller, which is related to their biggest buyer- which is usually the US or EU. Other countries prefer the dollar through our actions, America doesn't directly control use of the dollar as a reserve.

I think the bread basket does exist, those are the Special Drawing Rights. Special Drawing Rights - Wikipedia, the free encyclopedia

 

[purpleoscar]

- What happens if one country has high interest inflation rates and another doesn't? How do we match the money supply to worldwide production?

Also a competition of currencies allows for enough variety of results so economists can see which methods work better.

 

[Bonoa]

*sigh*....And I thought the Euro sucked BIG time!

Now The Netherlands have to put MORE money into other countries than the ones in the EU!
I'll never retire!