UN wants new global currency to replace dollar

[SirJosephPorter]

IMO, it doesn't matter if we have national currencies or just one global currency. Eventually currency will be a embedded microchip anyway. That's far worse any day.:-|

Why is that worse, alley? This ‘currency on microchip’ idea is not really all that exotic, we already have that. It is called a credit or a debit card.

Credit cards are now converting from a stripe to a microchip, in Europe they did that years ago. What is the problem with that?

 

[SirJosephPorter]

There is absolutely no correlation between a world currency and inflation. Just as it's possible for a national currency to be maitained either responsibly or irresponsibly, so the same would apply to a world currency. The only difference being that with a world currency, establishing and maintaining stability would be easier than a national one owing to the elimination of currency specuation and other currency trading. Even without specuation, just the normal trading alone makes the world's currencies increasingly difficult to maintain.

World currency has other advantages as well. Trade becomes much easier, tourism becomes easier. Commerce will flow much more freely. And of course we will get rid of currency trading.

And we did have a world currency of sorts at one time, it was US dollar. But it is quite possible that now Euro will replace the dollar. Euro has a much better claim to be the world currency. US dollar is used by only a handful of countries (besides USA); Euro is used by a number of countries.

 

[ironsides]

What does this have to do with protecting make-work jobs for currency traders?

Everything

 

[Machjo]

Looks like things are heating up:

World to America: We Want Our Gold Back | Columns | theTrumpet.com by the Philadelphia Church of God

 

[Machjo]

Bear in mind though that if the US dollar crashes, the US might suffer inflationary pressures, but Canada will suffer recessionary ones. After all, if the US dollar falls, Americans won't be able to afford Canadian products anymore, and Canadian businesses will feel the pinch. Add to that that US products would be dirt cheap for Canadians all of a sudden. We'd both suffer big time.

 

[ironsides]

This could be a problem, the dollar is not backed by anything except a promise to pay. What ever that may be.

How many think that investing in gold now that it is over $1,000 would still be a good investment?

 

[petros]

How many think that investing in gold now that it is over $1,000 would still be a good investment?

Hmmmmmm make believe paper money or gold? Wow. What a tough choice.

There is still room to get in on silver. You can make 30% by C-mas on it if you have the balls.

 

[ironsides]

Is that a challenge?? Seriously, doesn't sound like a bad idea.

 

[petros]

You have nothing to lose except paper.

 

[SirJosephPorter]

Bear in mind though that if the US dollar crashes, the US might suffer inflationary pressures, but Canada will suffer recessionary ones. After all, if the US dollar falls, Americans won't be able to afford Canadian products anymore, and Canadian businesses will feel the pinch. Add to that that US products would be dirt cheap for Canadians all of a sudden. We'd both suffer big time.

I don’t see US dollar crashing, Machjo, it will be a gradual process. At one point, British pound reigned supreme. But the pound was not replaced by the dollar overnight, it happened gradually.

Same way, dollar may be replaced gradually, in small steps. I don’t see the dollar crashing.

 

[Machjo]

I don’t see US dollar crashing, Machjo, it will be a gradual process. At one point, British pound reigned supreme. But the pound was not replaced by the dollar overnight, it happened gradually.

Same way, dollar may be replaced gradually, in small steps. I don’t see the dollar crashing.

Een a gradual shift would mean long-term inflationary pressures for the US and long-term recessionary pressures for Canada. I suppose the good news for the US is they'll be out of recession and stay out of one for a while. And I guess the good news for Canadians, or at least those who have a job, will be dropping prices for US products. Not good for Canadian jobs though.

 

[dumpthemonarchy]

I don’t see US dollar crashing, Machjo, it will be a gradual process. At one point, British pound reigned supreme. But the pound was not replaced by the dollar overnight, it happened gradually.

Same way, dollar may be replaced gradually, in small steps. I don’t see the dollar crashing.

Crashing, such a harsh word. Although, we are now on internet time, which means things are supposed to happen a little faster than the old old days when the old boys club ran everything and events occurred in the fullness of time-they say.

Nowadays investors are skittish, they can move their money easily. The old, real, empire is gone. Cash may be king, but I would buy gold if I had the money.

 

[L Gilbert]

I think a global currency is fine but it doesn't need to replace the dollar. It could be used as well as the dollar. But for international dealings it would be used. Inside any participating country, both the global and the domestic could be used. We already have little handheld gadgets that can translate currency exchange and if not, one can access the net to do it from a handheld doodad.

 

[SirJosephPorter]

Een a gradual shift would mean long-term inflationary pressures for the US and long-term recessionary pressures for Canada. I suppose the good news for the US is they'll be out of recession and stay out of one for a while. And I guess the good news for Canadians, or at least those who have a job, will be dropping prices for US products. Not good for Canadian jobs though.

As long as the currency drop (or the rise) occurs slowly it does not generate inflationary pressures. Canadian dollar dropped form more than 1 US dollar down to 60 cents, but it happened over many years. There were no inflationary pressures.

Now it is up from 60 cents to 93 cents. But we are not reaping any benefits in terms of lower prices. As long as any movement is slow enough, the economy adjusts to that. If it happened overnight, there could be problems.

 

[ironsides]

UN wants new global currency to replace dollar - Telegraph

It's about time the UN realized that we can't run a world economy without a world currency.

They didn't say it quite that way.

http://www.un.org/esa/policy/wess/wesp2008files/es_eng.pdf

 

[ironsides]

As long as the currency drop (or the rise) occurs slowly it does not generate inflationary pressures. Canadian dollar dropped form more than 1 US dollar down to 60 cents, but it happened over many years. There were no inflationary pressures.

Now it is up from 60 cents to 93 cents. But we are not reaping any benefits in terms of lower prices. As long as any movement is slow enough, the economy adjusts to that. If it happened overnight, there could be problems.

Very well put

 

[YukonJack]

Like I said before: if this pathetic collection of free-loaders want to make it without the US $, let them try.

But first, find another home. The most just act in human history in the last hundred years would be to evict the United Nations from American soil.

Nothing could infect and pollute America more than the presence of such as Zimbabwe, Nigeria, Iran, Venezuela, Cuba and Lybia, just to mention a few, that hide under the diplomatic immunity, while killing innocent passers-by with their reckless driving, and rip off merchants with their worthless credit credit cards.

 

[Machjo]

As long as the currency drop (or the rise) occurs slowly it does not generate inflationary pressures. Canadian dollar dropped form more than 1 US dollar down to 60 cents, but it happened over many years. There were no inflationary pressures.

Now it is up from 60 cents to 93 cents. But we are not reaping any benefits in terms of lower prices. As long as any movement is slow enough, the economy adjusts to that. If it happened overnight, there could be problems.

Not ture. The only difference is that a quick shift would apply a sudden and extreme pressure on the currencies, whereas a slow shift would apply a gradual and moderate pressure over a longer period of time. Whether prices change suddenly over a short period or slowly over a long period, it comes out to the same effect in the long run.

 

[Machjo]

They didn't say it quite that way.

http://www.un.org/esa/policy/wess/wesp2008files/es_eng.pdf

Thanks for the link. Though even this would be an improvement:

"Over time, more fundamental reforms of the current international reserve system will be needed to prevent the current constellation of imbalances from re-emerging. A more immediate reform would be to promote an officially backed multi-currency reserve system. A well-designed multilateral financial system should create equal conditions for all parties and avoid unfair competition as well as an asymmetric burden-sharing of exchange-rate adjustments. It should also help to increase stability in the international
financial system by reducing the likelihood of a crisis scenario where capital flight out of the major single reserve currency causes potentially far-reaching repercussions throughout the global economy."​

 

[Machjo]

Like I said before: if this pathetic collection of free-loaders want to make it without the US $, let them try.

But first, find another home. The most just act in human history in the last hundred years would be to evict the United Nations from American soil.

Nothing could infect and pollute America more than the presence of such as Zimbabwe, Nigeria, Iran, Venezuela, Cuba and Lybia, just to mention a few, that hide under the diplomatic immunity, while killing innocent passers-by with their reckless driving, and rip off merchants with their worthless credit credit cards.

Right now the US Federal Government ows the world lots of money. If the world dumped the US dollar, the US economy (and Canada's) would be in for a very bumpy ride. Seeing that much of US wealth is borrowed money, it might not be wise for the US government to bite the hands that feed it around the world, unless it does want to precipitate a sudden decline. Just skim though the likn Ironsides provided. It seems the UN itself acknowledges the current instability of the US dollar. It's in everyone's best interest to ensure a soft and not hard landing.