If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(ABC 27)   The latest threat to the global economy is...(spins wheel)...world currencies   (abc27.com) divider line 14
    More: Interesting, global economy, eu states, Bank of Japan, Spin Wheel, global currency, WHTM, exchange rates, consumer confidence  
•       •       •

920 clicks; posted to Business » on 16 Feb 2013 at 7:18 PM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



14 Comments   (+0 »)
   
View Voting Results: Smartest and Funniest

Archived thread
 
2013-02-16 05:24:03 PM
Well then. one world currency will fix that problem
 
2013-02-16 07:22:32 PM
I guess we should congratulate this local ABC news affiliate, which has just discovered what the world's major economies have been doing for several years already (or decades, if you're China or Japan).
 
2013-02-16 07:32:23 PM

cretinbob: Well then. one world currency will fix that problem


We lose global currency status we are well and truly farked. That said, focusing on one currency would work great until your first real financial disaster... at which point it would become a complete disaster. We need to move further away from any one currency's influence of the markets, not towards.

The issue isn't with too many world currencies. In fact multiple currencies are a good thing, it alleviates the impact to other currencies when there is a regional/national market destabilization somewhere. (rather someone sneeze on their own little pie rather than sneezing on the big pie we all have to share)

The real issue is that the big boy modern nations should know better than to keep their banks from violating the basic rules of markets.. but apparently those in charge of keeping them in line are more interested in cashing in and ignoring the problems than they are with maintaining the integrity of the system (and by extension, the nation)

Politicians like to talk about the free market a lot, but the fact is we don't have anything resembling that. And that is what the article is addressing. We are permitting our financial institutions to use currencies in a manner they aren't intended... which along with breaking other rules of capitalism, undermines the validity and integrity of the entire system.
 
2013-02-16 08:33:47 PM
This is why the US debt level hardly matters. We are economically stable compared to other countries, so much so that the US Treasury can get away with charging people for parking their money by paying below-inflation interest rates on T-bills. Why/ Because despite the rhetoric we aren't likely to devalue our currency, so we are basically making money off of issuing debt at this point and have been for a while. We're refinancing debt that costs us money into debt that makes us money.

This also makes us a more attractive place to do business in general.

It also reinforces the dollar as the default currency for commodities etc.
 
2013-02-16 08:36:07 PM
DOWN WITH THE EURO, THE AMERO AND THE OBAMO
 
2013-02-16 09:36:12 PM
Obviously Bitcointm is the way forward!
 
2013-02-16 10:57:32 PM

Pants full of macaroni!!: DOWN WITH THE EURO, THE AMERO AND THE OBAMO


I haven't heard of the Obamo, does it come with fries?
 
2013-02-17 02:13:16 AM

DarkSoulNoHope: Pants full of macaroni!!: DOWN WITH THE EURO, THE AMERO AND THE OBAMO

I haven't heard of the Obamo, does it come with fries?


Nope, Friend chicken, watermelon and solcialized medecine, but you lose your guns, and have to convert to islam.

Oh comes with a biscuit too.
 
2013-02-17 02:46:09 AM

Lith: DarkSoulNoHope: Pants full of macaroni!!: DOWN WITH THE EURO, THE AMERO AND THE OBAMO

I haven't heard of the Obamo, does it come with fries?

Nope, Friend chicken, watermelon and solcialized medecine, but you lose your guns, and have to convert to islam.

Oh comes with a biscuit too.


Well, I'll take the socialized medicine, but converting to Islam is a toughy. Still can't eat bacon but at least I can go after a cheeseburger now! :)
 
2013-02-17 04:55:40 AM
The US has been using Dollar hegemony for almost 70 years. As long as the US Dollar is the most important reserve currency the other countries can play arbitrage games and it won't make too much of a difference, they'll still be putting their reserves into US Treasuries and we'll be benefiting from it.
 
2013-02-17 10:17:49 AM
What do you think "quantitative easing" means?  It means "devaluing the dollar to screw over everyone else", is what it means.
 
2013-02-17 03:54:28 PM

Adolf Oliver Nipples: The US has been using Dollar hegemony for almost 70 years. As long as the US Dollar is the most important reserve currency the other countries can play arbitrage games and it won't make too much of a difference, they'll still be putting their reserves into US Treasuries and we'll be benefiting from it.


Yes, *now* the dollar is the world's reserve currency, but that isn't going to last forever. Nothing does.    At various times in history, the denarii, the lira, the pound, and the franc were the premier currency of the world.  No more.  As Marcus Aurelius mentioned, QE is essentially a method for devaluing the dollar.  One of the reason's for the dollar being the world's currency is for most of that 70 years is the U.S. government believed in protecting the value of the dollar. Apparently that sentiment has fallen by the wayside, and likely so too will the dollar's status as the world's reserve currency.
 
2013-02-17 04:20:33 PM

Pumpernickel bread: Adolf Oliver Nipples: The US has been using Dollar hegemony for almost 70 years. As long as the US Dollar is the most important reserve currency the other countries can play arbitrage games and it won't make too much of a difference, they'll still be putting their reserves into US Treasuries and we'll be benefiting from it.

Yes, *now* the dollar is the world's reserve currency, but that isn't going to last forever. Nothing does.    At various times in history, the denarii, the lira, the pound, and the franc were the premier currency of the world.  No more.  As Marcus Aurelius mentioned, QE is essentially a method for devaluing the dollar.  One of the reason's for the dollar being the world's currency is for most of that 70 years is the U.S. government believed in protecting the value of the dollar. Apparently that sentiment has fallen by the wayside, and likely so too will the dollar's status as the world's reserve currency.


That said, the US created the rules, fixed the game, and then closed the book on it. The single largest customer base in the world is the US. The single largest economy? The US. When the US defaults, what are they going to do, call in their markers on their customers?

The rest of the world will move Heaven and Earth to prop up the US economy because by signing on to Dollar hegemony they've committed to a suicide pact, and while everybody will suffer the US will suffer the least. We'll fall from steak to hamburger while developing Asian countries will be utterly devastated economically.

It's really a shame, but it's true. The Dollar will continue to be the world's dominant reserve currency until such time as the US collapses politically, it is invaded and defeated, or the global economy collapses, in which case it becomes the reserve currency again as it recovers. There really is no competition.
 
2013-02-18 06:33:56 AM

Marcus Aurelius: What do you think "quantitative easing" means?  It means "devaluing the dollar to screw over everyone else", is what it means.


...and yet the people at the Fed and Ben Bernanke still thinks it is a good idea.
 
Displayed 14 of 14 comments

View Voting Results: Smartest and Funniest


This thread is archived, and closed to new comments.

Continue Farking
Submit a Link »






Report