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THE US DOLLAR -global currency needed!





Jaan
The world will only benefit from a global currency, and the economies can only rise.

Seriously, why haven't we done it yet?

the US dollar is at an all time low, and since I'm in Australia for a year, it means i've lost alot of money.

I hope there is a global currency, it will clear things up everywhere.
Coclus
I mean the dollar is pretty much the world wide currency already.. I don't think it s ever REALLY gonna happen, but Europe and the Euro are a nice try right?
bogger
Global currencies can't work Smile

"Many economists argue that a single global currency is unworkable given the vastly different national political and economic systems in existence."

http://en.wikipedia.org/wiki/World_currency#Arguments_against_a_single_global_currency

Aside from that, I'd rather not have the cost of a coke bottle dependant on how many cars you buy.
LumberJack
Global currencies won't work and is a horrible idea. I would rather bring back the gold standard rather than a global currency. Americans need to suck it up and elect a new president if they want their dollar to be worth something... maybe finish your war on terror. Can't have it both ways Wink
bogger
don't mention the war, and please give reasons instead of just your opinion.
There isn't enough gold for gold standard.
Jaan
But you do know how unfair this is for Australians, right? Distance tyranny or watchamacall it. Here electronics are TWICE or higher the price of the U.S. here a SINGLE cheeseburger costs $2. In the U.S. a DOUBLE cheeseburger costs $1!!! Checked today, the Australian dollar is worth 83c, US. So work it out. Any way you look at it in the US it is way cheaper. I guess it's just what distance does to you. Luckily in 7 weeks I am going back to cheap Canada. So, I am holding off on all my electronics purchases. However Australia's beach vibe and culture do make up for a lot of it. The prices are still insane though.
bogger
higher taxes are the root of the problem.

Think of it this way, the money you spend on day to day goods is being spent on giving you free health care and a competent education system, which the USA lacks
ThePolemistis
bogger wrote:
Global currencies can't work Smile

"Many economists argue that a single global currency is unworkable given the vastly different national political and economic systems in existence."

http://en.wikipedia.org/wiki/World_currency#Arguments_against_a_single_global_currency

Aside from that, I'd rather not have the cost of a coke bottle dependant on how many cars you buy.


They said it wouldn't work for the Euro... but look at its state now.,... the Euro is one of the worlds stable and strong currencies.

I know East Asian countries wanna also create a single currency(e.g. malaysia, singapore, china, taiwan etc),not sure about Japan cus the way it may pan out with their closest allie, USA. ALso the oil producing countries wanna create a single dinar, which would be feasible given that their rates are pegged towards dollar, and virtually same anyways. However, the arab countries unfortuanetly cannot think on their own two feet, and they hate each other too much,,, so it probably wont work.

Regarding a world currency, my only criticism is when there exists a war. I think it would be a step towards creating global peace and much better than organisations like the United Nations who in my view are United Nothing.
LumberJack
Use some sort of standard then. Gold/oil Gold/Silver. Etc. You want to make inflation a thing of the past, standardize. Global currencies as stated, will not work. Hybrid bundles are definitely possible. Although, a country such as the United States would not be able to have a 1 to 1 ratio, no one said it would be required. Maybe a 0.5 to 1 ratio.

The reason for US dollar fluctuations is investor confidence, based on a variety of reasons. The US housing market, the trade deficit, the amount of credit that Americans are burdening themselves with, the WAR that is currently going on. These all and much more play a part in investor jitters that cause them to buy up, or flood the market with currency. So, if you like, you can hold onto the US dollars you have if you can afford to and wait for their economy to pick up again, or you can sell it, and try to anticipate which currency

Other arguments against a global currency include:

First, it would not benefit all countries, for some it will stagnate their economies, others in will accelerate. How will you be able to convince a country to stagnate itself? Politically impossible.

Second, a global currency would not be able to account for economic realities throughout the world. It would polarize lots of regions because a country would not be able to cool down an economy with it's interest rates, and vice versa. Definitely, not a better solution.
Hogwarts
Jaan wrote:
But you do know how unfair this is for Australians, right? Distance tyranny or watchamacall it. Here electronics are TWICE or higher the price of the U.S. here a SINGLE cheeseburger costs $2. In the U.S. a DOUBLE cheeseburger costs $1!!! Checked today, the Australian dollar is worth 83c, US. So work it out. Any way you look at it in the US it is way cheaper. I guess it's just what distance does to you. Luckily in 7 weeks I am going back to cheap Canada. So, I am holding off on all my electronics purchases. However Australia's beach vibe and culture do make up for a lot of it. The prices are still insane though.

bogger wrote:
higher taxes are the root of the problem.

Think of it this way, the money you spend on day to day goods is being spent on giving you free health care and a competent education system, which the USA lacks

Bogger raises a decent point - In Australia we have excellent healthcare and a much better education system (Even though my family shells out about $1500 per term to send me to school... Although that's to be expected - It's a private one). This effectively means that all is equal - Because America has lower taxes but far more expensive healthcare and education.

A world currency could never work while there are countries (Perhaps if all was united as one, it could work) because of the different economical structures throughout the world.

And by the way, you can get some goods cheaper in America then Australia - And vice versa.. . In America there's a bigger market for take-out, therefore the companies can bulk-buy the products needed for the food and get it cheaper - And there's the case of "Supply and demand". Anyway, I'm an Australian and ate my first McDonalds hamburger in well over a year on Saturday (Although don't think of me as too lage an example).
bangala
I think we are already very close to a Global Currency. Presently, there are several economical blocks that are already creating their own currencies. With globalization linking the whole world, a limited number of global currencies will dominate the whole global economy and ultimately one or two of them will act like the global one. Presently, the Euro is slowly dominating old Europe (mainly Europe, Africa, and the Middle East), while the US Dollar is gradually becoming limited to the New world (mainly North America).
bogger
Hogwarts wrote:
Bogger raises a decent point


thank you.

ThePolemistis wrote:
They said it wouldn't work for the Euro... but look at its state now.,... the Euro is one of the worlds stable and strong currencies.


Alas, you'd be wrong, the Euro is far from stable, inflation differs by 6% among different regions of the euro Zone.

And Italy is on the brink of quitting the Euro zone, because of the pressure of an inability to devalue it's currency, stable my arse.

And the UN does a lot of work, it may fail on the big things, but it does very well at the small things (see link:)

http://www.economist.com/opinion/displayStory.cfm?Story_ID=E1_RQJNQGQ
(requires an economist subscription)

@lumberjack : the gold standard was disposed of for a good reason, there isn't enough gold to cover all the money. And oil as a standard would be stupid, we wouldn't be able to use oil as fuel then...
Soltair
A common currency on an international basis would be a true disaster for poorer countries, where economical troubles would soon pop out, while giving even more power to developed countries. The world does not need this for now.
starfish2007
if bnot a global currency why not have a currency for diferent groups of countrys or contenents so if it would be one currency for every contenent then if you lived in say north amarica you could go to any country within that contenents and not have to worie about diferent currency you could use the currency you are used to
bogger
Euro zone has problems...

Ireland is losing competitiveness rapidly because of our inability to devalue, and our economy is overheating because of an inability to set interest rates

Believe me, inter-governmental currencies are very hard, the Euro is amazing in that it's lasted so long
Kitten Kong
It is foolish to allow our lives to circle around monetary wealth, I support the trade of bananas, they are healthy and attractive, you will always look good with a big banana in your pocket.
ironsun
On March, 1972 the dollar was trading at 2.67 dollars per British pound. It rosed to 1.05 dollars per pound on February, 1985. Since then it declined to 2.00 per pound on February, 1991, September, 1992 and again on April of 2007.

I see more decline for the dollar but we are no way near the low of '72. I am not sure the dollar is going away even with all this amero talk going around.

I believe we should base currencies on something: gold, silver, iron, land, bananas, etc.
Mannix
Why, so we can all be subject to one world government? One agency to corrupt? Nothing to balance them? Geez. No, no "one world currency", please. The best that could usher would be a brief world peace followed by either civil war or global slavery.
palavra
http://onlinejournal.com/artman/publish/article_2616.shtml

Quote:
The US dollar is still officially the world's reserve currency, but it cannot purchase the services of Brazilian super model Gisele Bundchen. Gisele required the $30 million she earned during the first half of this year to be paid in euros.

Gisele is not alone in her forecast of the dollar's fate. The First Post (UK) reports that Jim Rogers, a former partner of billionaire George Soros, is selling his home and all possessions in order to convert all his wealth into Chinese yuan.
LumberJack
American Peso?
johnBdoe
And the middle east is talking about ditching the dollar in oil trading due to its recent free fall. If that is the case, I believe east asian countries will follow suit. Will this cause the value of the dollar to fall even further? I don't think so due to the enormous size of the US economy.
LumberJack
If Oil countries ditch the US dollar, it would devastate the US economy to the point of no return. Consider North America, screwed.
ajm71
hmmm...one global currency? Biblically speaking....bad idea.
4x4all
I think we should go back to use gold as the medium of change. Or at least use currency that backed by gold. I fully agree with the re-implementation of dinar either dinar coin or e-dinar.
La_ruso
if you have a global currency it means that everyone is tied in the same financial system. You cant have that....... there would be no benchmarking of countries.

You got taken for a ride and was wreckless with investing and therefore paid the piper. If your wondering why all the economies are going down the drain, answer is debt was sold on and the banks got screwed and therefore they are refraining from lending our any liquid currency so currency is now expensive to obtain and trade is even more difficult to engage in.

Good news is what you lost, someone else gained. In a recession the joy of the redistribution of wealth comes into affect.

Ciao
DreamWorld
A global currency is not a good thing! America is already trying to control Europe (look at Iraq and i bet it will happen to Iran too..) I am again's globalization cause it usually end in a world war... America is in recesion and it's a very good thing, it should stay that way for a long long time...maybe this will make them learn... Twisted Evil
profbis
The cost of living in different country is different. So it might create some problem. If it was a good idea, economists and policy makes in IMF would have thought about it a long time ago. he ha ha ha ha ha.
daimei
A global currency would be amount to a socialist or communist regime where everything is "equally" shared. The dollar loss is due to to its economic problems, so same logic as its problems should not be "shared" by other countries........IMO....
Snizneth
The one world currency would be a scary thing. I'm scared enough that the Fed has enough power to crush the world's economy and it only prints dollars. Let alone having some sort of oversight to control inflation. Right now, the Fed doesn't even have to release how much money it puts in the money supply. Yikes.
pikappaalpha
A global currency can only spell bad things. What would be after it? one GLOBAL country? in which one ruler ruled the whole world literally. There are too many things we dont know about in the government as it is. The people of the United States for too long have remained calm and quite about its governments actions and motives. It was once said by our founding father ben franklin that a revolution needed to happen every fifty years to keep the government from becoming corrupt. Guess when our last revolution was??? 1776. "A government should fear its people"
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