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Should the dollar standard be replaced with a new world currency? If so, should there also be a central international bank? What are the advantages and disadvantages of a new monetary system?
The obvious answer is “no”. Look at the problems with the Euro.
In order to have a world currency, the entire world would have to base the currency on the same standard. Right now, there are probably 60 different currency standards. Who would chose?
Second, do you think North Korea would share this standard with, for example, South Korea and the USA? Probably not. But what we do if we had a one world currency and some rogue dictator (and there are many) simply opted to cook the books in order to improve their nations’ value? Would we then need “one world accountants”?
What about countries that still barter? There are still plenty of those around.
No, it’s not going to happen in our life time and I doubt it will ever happen except in science fiction novels.
Should the dollar standard be replaced with a new world currency? If so, should there also be a central international bank? What are the advantages and disadvantages of a new monetary system?
NO.
There is no advantage in a central international bank or a new monetary system. The day we go there as Americans....is they day we might as well fold up our last flag.
Yes
Just because America recently invaded Iraq because Saddam Hussein had refused to sell Iraqi oil for American $.
In 1944 during the Bretton Woods conference America was able to cash their victory in WWII in the claim that all the money in the world should be covered by the US $ and not gold*.
Sure the Americans promised that the US $ could always be traded back into gold, but at the end of the '60s and the beginning of the early '70s America needed a huge amount of money to finance their war against Vietnam so Nixon ( aka Tricky Dick) broke that promise so America could print as much US $ as it wanted.
And nowadays the price of oil is coupled to the US $ which perfectly explains why America invaded Iraq, because they refused the US $ as currency.
Who are the Americans gonna invade next?
Iran?
Russia? Simply because they refuse to sell their oil for US $?
Quote:
* White managed to ensure the US had special veto powers over any major decision made by the IMF or the World Bank, meaning effectively that their "conditionalities" in the way of strict institutional reforms are never imposed. Furthermore, the IMF insists that the foreign exchange reserves maintained by other nations are held in the form of dollars, so no matter how much debt the US accumulates, its economy will not collapse.
if we ever again are going to have a decent money system, it will not come from government, rather it will be issued by private enterprise, because providing the public with good money which it can trust and use can not only be an extremely profitable business; it imposes on the issuer a discipline to which the government has never been and cannot be subject....the monopoly of government issuing money has not only deprived us of good money but has also deprived us of the only process by which we can find out what would be good money.
It would be awesome, however at the moment impossible.
I also do not really see any problems with the Euro other than those that existed pre-Euro. It has made it a lot cheaper to travel within Europe and helped to stablize a lot of different countries' currencies. It has also made borrowing and creating securities easier and has provided more liquidity to European banks, governments, investors etc.
The world however, lacks the funadamental conditions required for a single currency. As such while it would be nice to have that kind of liquidity and securitization power it will never happen. Too many countries do not have there %&^$ togeather and I would not trust them to either set monetary policy or abide by the mandatory borrowing limits required for a world currency scheme to work.
Should the dollar standard be replaced with a new world currency? If so, should there also be a central international bank? What are the advantages and disadvantages of a new monetary system?
No!
Whatever the imagined advantages the real disadvantage is we lose control of ourselves that way.
I'd prefer we back away from globalization.
Whatever the imagined advantages the real disadvantage is we lose control of ourselves that way.
Your national debt already has proven that the US has no (self)control.
Originally Posted by floridasandy
Quote:
it imposes on the issuer a discipline to which the government has never been and cannot be subject....the monopoly of government issuing money has not only deprived us of good money but has also deprived us of the only process by which we can find out what would be good money.
So you believe that your government has caused the global credit crisis instead of the bank presidents who've acted like the gangstah rapper 50 “It’s your birthday” Cent* (read: greedy irresponsible kids) in a candy shop?
The current credit crisis is a direct result of how America handles ( or rather doesn't) its economical debt.
Whenever America finds itself short of money they simply produce more which causes inflation to their US $.
Quote:
* "Candy Shop"
(feat. Olivia)
[Intro: 50 Cent]
Yeah...
Uh huh
So seductive
[Chorus: 50 Cent & Olivia]
[50 Cent]
I'll take you to the candy shop
I'll let you lick the lollipop
Go 'head girl, don't you stop
Keep going 'til you hit the spot (woah)
[Olivia]
I'll take you to the candy shop
Boy one taste of what I got
I'll have you spending all you got
Keep going 'til you hit the spot (woah)
One currency means that all gains will be centralized and the whole world will eventually return to the feudal system. Look at the damage the Federal Reserve has done to the dollar. That would be what happens to the whole world. In a world of finite resources we need commodity-based localized monetary systems. Global would be a disaster.
One currency means that all gains will be centralized and the whole world will eventually return to the feudal system. Look at the damage the Federal Reserve has done to the dollar. That would be what happens to the whole world. In a world of finite resources we need commodity-based localized monetary systems. Global would be a disaster.
What are you talking about? Feudalism is the result of decentralization . In feudalism, a country is a patchwork of many small private land holders and their tenants, in which, there is a weak central government, limited trade, and a need for self-sufficency of a manor (feudal estate). Secondly with one currency how will gains be centralized? There would be a single central bank, but there would be no centralization of wealth other than those that happen outside a normal capitialist model. Additionally lets look at what the federal reserve has done for the dollar. Since its establishment in 1913 the federal reserve has stablized the fluctuations in the value of the dollar, which resulted in the panics of the late 19th century and has made it a world class currency in the 20th century. I would say the fed has done pretty good. Additionally the number of currencies has nothing to do with how finite reasources are distributed, that is the law of supply and demand which is pretty much a constant no matter what anyone does.
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Yes
aka Tricky Dick) broke that promise so America could print as much US $ as it wanted.
Who are the Americans gonna invade next?
Simply because they refuse to sell their oil for US $?
or rather doesn't) its economical debt. 
Feudalism is the result of decentralization 
. In feudalism, a country is a patchwork of many small private land holders and their tenants, in which, there is a weak central government, limited trade, and a need for self-sufficency of a manor (feudal estate). Secondly with one currency how will gains be centralized? There would be a single central bank, but there would be no centralization of wealth other than those that happen outside a normal capitialist model. Additionally lets look at what the federal reserve has done for the dollar. Since its establishment in 1913 the federal reserve has stablized the fluctuations in the value of the dollar, which resulted in the panics of the late 19th century and has made it a world class currency in the 20th century. I would say the fed has done pretty good. Additionally the number of currencies has nothing to do with how finite reasources are distributed, that is the law of supply and demand
