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 Replies: 53 / Views: 3,852 |
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Pillar of the Community
Canada
1723 Posts |
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If, for example, silver were to be mined and adopted as currency in Mexico, many people from America would fully exploit this and turn in their hyperinflated dollars to Mexico and bring pesos back home with them. As some point the currencies will stop trading, Didn't this happen in Australia or something? Cant remember where I heard it where they created a coin with a denomination less than the melt value of the coin. People obviously just hoarded the coin and it never properly circulated. Basically the same thing take your strong dollar and buy the silver of a weaker currency.  But then again , hes talking about world wide gold standard and that gold being measured in US dollars. Edited by samsnate
08/26/2012 11:11 pm
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Pillar of the Community
Canada
1411 Posts |
Yes, it did happen in Australia. The 1966 50c piece had more silver in it than it's face value.
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Pillar of the Community
Canada
1723 Posts |
haha, wonder if I heard it from you. Hard to keep trck on which forum I get my intel from.  Edited by samsnate
08/26/2012 11:20 pm
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Pillar of the Community
Canada
1411 Posts |
You definantly didn't learn it from me as I just learned about it last night when looking at Aussie circulation silver coins melt value.
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Pillar of the Community
Canada
1723 Posts |
Haha, its like it was fate... you needed to learn that yesterday to confirm for me today!  |
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Valued Member
Canada
491 Posts |
@Samsnate Watch this and head over to their website. http://www.youtube.com/user/TheUnit...feature=mheeI haven't seen any news in a while in regards to this project and how many inroads they are making but check out which mints across the world that they are currently affiliated with. The silence from them at the moment only indicates to me that they are in the process of negotiating and waiting for regulations to be implemented. It could be a long time before anything concrete happens but I am not going to say that this is definitely going to be implemented. It will not be a US dollar denominated currency but a stand alone currency with no single Soveriegn state affiliation. |
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Pillar of the Community
Canada
1723 Posts |
Or they are too busy trying to stop the current system from crumbling from beneith them. I get that there is talk, and prototypes and ideas, I just think that there are so many factors to consider for the WORLD to truly make it work. Maybe it will one day, just dont think in my lifetime (Where it actually works)
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Bedrock of the Community
13014 Posts |
Theres a good chance you could see a civil war part 2 in the USA if people were told their economic future was now in the hands of every other country on earth like that.
Id suspect theres been talk a currency like that since at least the mid 1990s.
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Pillar of the Community
United States
5862 Posts |
Not to get this discussion too far off track, but there's one thing I've always been a bit confused about...
People talk about gold-based currency as being backed by something "real" as if fiat currency were backed by nothing whatsoever. Is that really true, though? I always thought that a fiat currency was backed by the strength of the nation as a whole, including all resources, the work force, the strength of the army, the amount of goods produced, the overall health of the economy, etc. This is why the U.S. dollar is still considered strong today compared to the fiat currency of many other nations; instead of just being backed by gold, the U.S. dollar is backed by everything possessed/produced by the country.
Is there anything whatsoever to this, or am I just pipe dreaming here?
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Bedrock of the Community
13014 Posts |
Thats very true about being backed by the strength of a nation. I cant speak for what others are thinking but to me the difference is that with a hard pm backing theres a limited supply of money you can spend before you inflate your currency a lot. In theory that would lead to more sound spending and not running up huge debts. Backing by the strength of a nation basically means you can print off as much money as you want and manipulate it as long as you are considered strong.
The other thing would be if your currency crashed with a real physical backing you could theoretically rebuild off that. If your strength based money collapses your SOL.
That said I dont think the gold standard is a great idea but I do like the idea of the spending limit/restraint it would bring
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Pillar of the Community
United States
5837 Posts |
The US is on a trust credit cards system, and if you trust that our government can repay it, just read what majority of the nation average family total properties worth against their total debts.
We borrow and spend more than what most users can repay! and when it default to those users can't repay, there goes the interest rates.
For the obvious reason that's why Gold is the prefer backing, it may not be the best solution, but almost all nations demand it.
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Pillar of the Community
Canada
3692 Posts |
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I always thought that a fiat currency was backed by the strength of the nation as a whole, including all resources, the work force, the strength of the army, the amount of goods produced, the overall health of the economy, etc. This is why the U.S. dollar is still considered strong today compared to the fiat currency of many other nations; instead of just being backed by gold, the U.S. dollar is backed by everything possessed/produced by the country. If based on military strength, I think that the strongest currencies would be US, China, Russia, Israel, Brazil.... but this is not the case. Health: it should be US, Canada, and European countries, but this is also not the case. The healthcare systems have many flaws. I think it has to do with how healthcare is distributed, and even Canada has problems with inequality (New Brunswick). It should be decided on a high standard of living, correct? Well people on welfare have a pretty high standard of living, in my opinion. I live in an area where there are many many people on disability, welfare, subsidized housing, refugees, new immigrants, and overall just MOOCHING off the government and /most/ of them give NOTHING back (many do work but they are overpowered by the lazy one). If our currency is to be decided on this factor, then I would say that our currency is pretty weak. I'm not saying they're a drain on society, but our dollars can be better spent, for SURE, OR there should be a program where they can redeem themselves by volunteering for good causes and basically help sustain the system they prop up but there's no reciprocal action returned by these people. I know many people who do not work but have better a standard of living than I. Putting us on a gold standard would just destroy the nation's savings by selling our stacks to others to cover their butts. We would have to drop their care for that to happen, in my opinion, and it's just an opinion, don't read too deep into what I say. People should just stand up and work. Money shouldn't be an object of luxury, it should be used as a humanitarian resource wherein everybody pitches in for good causes. Edited by Libertad
08/27/2012 5:04 pm
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Pillar of the Community
Canada
1723 Posts |
Quote:
People talk about gold-based currency as being backed by something "real" as if fiat currency were backed by nothing whatsoever. Is that really true, though? I always thought that a fiat currency was backed by the strength of the nation as a whole, including all resources, the work force, the strength of the army, the amount of goods produced, the overall health of the economy, etc. You are correct that this what fiat is backed by.... the problem is when the country spends X% more than what the country can produce with exports , tourism, investments etc. Its all the extra money that is backed by nothing. Thats why debt is measured by each countries GDP? The amount of dollars they need to pay vs the amount they bring in...in essence its money that can not or will not be paid back. Hence why the printing press keeps running, creating more money to service a nations debt to other nations but that dollar amount is added to overall debt of the country who produces it. This is where inflation comes into play and and dollar devaluation. Who really thinks that a system that invests in debt will work? Hope I explained well enough. Not really good at it! :-) |
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Bedrock of the Community
13014 Posts |
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Who really thinks that a system that invests in debt will work? It can work, but it requires those in charge to make sound fiscal decisions. Unfortunately right now it seems the way to win elections is just promise a bunch of things we could never afford and kick the problem off down the road or just put it off until theres no choice but to deal with it |
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Pillar of the Community
United States
4008 Posts |
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For all our sakes I truly hope not. Havent we learned that global currencies are a terrible idea from the Euro Probably not. Learning from the mistakes of others does not seem to be a human strong suit. IMHO, the only way that a 1-world currency will work is if it is issued by a 1-world government. This would be similar to the 50 US states using a single currency but over the whole world. Humanity is not yet ready to accept this and may not be for hundreds of years, if ever. Imagine a much different scenario in the far future, say 1,000 or more years from now. Humanity discovers a FTL star drive that can take us to any place in the galaxy in just weeks or months. We discover thousands of planets that do not contain intelligent life but that have conditions that support human life. This would allow every group to colonize their own world so they would start out with a single government speaking for everyone on that planet. A single currency would seem quite natural to them, just as would a single language, culture, etc. |
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Posted 08/26/2012 11:11 pm
