With the US dollar at real risk of collapse, through the failure of repeated governments to curtail spending and with deficits up to $1 trillion annually, and the other major global reserve currency also at risk of collapse, and with China pushing for a move towards using the yuan.... They have however also previously suggested a move towards a one world currency, as have Russia, would the world become an easier, more open and much less scary place if we had a one world currency? Who would lose out from that?
The only people that want that are people that want to destroy America like George Doris! These evil people are working toward this end..like Obama and the democrats!
Ryan, I think it would hurt the US and China at the moment. The US is in a tight spot. The only thing we have going for us is the fact that our currency is the worlds currency for trading and high finance. Take that away and we crumble. We crumble and our debt defaults...
I would add that China purposely ties its currency to the dollar in order to manipulate its value. Keeping it lower ensures that their exports will keep flowing and fuel their economy.
By purposely manipulating their currency, China has effectively slowed down the global economy.
Besides, the US and the Euro-zone prefer a weaker currency right now because it helps rein in budget deficits. Think about it, we're paying back debt at a little over 75% of its original value. That is good for the country but not so good for wage earners as we are getting less for our money too. However, a weaker currency also boosts exports and helps stimulate the economy and creates jobs so that we can have more wage earners.
I would guess that the US will see at least 2 more quarters of the US dollars quantitative easing and then we will see a hike in interest rates around the 3rd quarter along with an even bigger boost in consumer credit lending by banks.
The UN seems to think that a one world currency would help stability and minimise the risk of economies running large deficits.
The villians of James Bond movies would be the greatest beneficiaries of a single world currency.
A world currency would require a world government to regulate it. When a government does not have control of its currency, it becomes irrelevent and its citizens get economly exploited by mutinational businesses. Sort of like how America and it's semi-private Federal Reserve bank leaves Americans subject to exploitation by foreign busnesses and Swiss banks. They can borrow enough money from the Fed to pay America to fight thier wars for them, for example.
For more examples, look what happened to Iceland when it was in the process of trying to adopt the Euro, as well as all those other countries that were late to the party of adopting the Euro. If England switched over to the Euro now, the Queen would end up living in a dumpster.
Anyway, economies have to run deficits. That is how the money supply is expanded to accomodate economic growth.
The Icelandic banking crisis did not occur as a result of an attempt to join the Euro, at that stage they had merely conducted an opinion poll which showed that 53% were in favour of joining the single currency. The collapse of the krona resulted in massive slides against the Euro, the pound and the dollar, and it was not until after the collapse of their banking system and the IMF bailout that they started the process of applying to join the EU in July 2009 (long after their currency collapsed). They are expected to join at some stage in 2012, subject to a referendum, and the Euro will do a lot for Icelandic international trade.
One size does not fit all - Ireland and Greece would be in much better economic shape now if they hadn't adopted the euro
yeh, the single currency thing isn't working out too well in Europe. America should probably be thinking of going the other way if anything, and having different currencies in each state.
I would argue that Ireland and Portugal have lost competitiveness as a result of joining the Euro, to Germany to be precise, but Greece failed because their highly incompetent internal systems dictated so. Their equally incompetent politicians, responsible for their incompetent systems, also breached an agreement that each country would limit their annual budget deficits and subsequently hid their debt. So Greece doesn't get any sympathy from me, they were willing to allow themselves to be carried by other states.
I should probably point out at this stage, seeing as I didn't make this the slightest bit clear, I am in no way supportive of a one world currency or the Euro. I believe that each country should have their own currency, and subsequently full control over that currency and the ability to seek to devalue their currency to attract trade, I have never been a supporter of the idea of a United Europe other than for freedom of travel for leisure purposes and informal military alliance. I include the numerous countries which exclusively use the American dollar in that statement too, such as Panama.I also prefered the pre-EU passport stamps that we used to be able to collect.
I believe that the return to individual currencies in Europe could potentially resurrect the whole of Europe, as evidence shows that trade was more bouyant between eurozone countries pre-euro, and could in fact subsequently become the savior of the wider global economy. Personally I don't see why Americans and the British look upon the failing Euro as a crisis and instead see it as an opportunity to take rich pickings.
What about the other currency in the UK commenly known as the Giro?
different currencies are a pain in the b*** You are constantly losing on bank charges for foreign transfers, and on top of that you lose on currency exchange rates
by tony07248 years ago
They want to propose this at the United Nations per the Drudge Report
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