Global Currency: Good or Bad Idea?

Alex

Every now and then, there are calls for an international currency to diversify the current global currency system that is dominated by the US dollar. The current economic crisis has got Russia and China pushing for the concept, which was discussed at the G8 summit in Italy:

The Russian leader proudly displayed the coin, which bears the English words "United Future World Currency", to journalists after the summit wrapped up in the quake-hit Italian town of L'Aquila.

Medvedev said that although the coin, which resembled a euro and featured the image of five leaves, was just a gift given to leaders it showed that people were beginning to think seriously about a new global currency.

"In all likelihood something similar could appear and it could be held in your hand and used as a means of payment," he told reporters. "This is the international currency."

http://www.canada.com/news/Medvedev%2Bsees%2Bsingle%2Bcurrency%2Bdream%2Bcoin%2Bgift/1778961/story.html (Photo: Alexander Nemenov, AFP/Getty Images)

Do you think it's a good idea to have a global currency? Why or why not?


Comments (47)

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Newest 5 Comments

A return to the gold standard probably would be a good thing, but it would mean that the federal government would have an excuse to round up the gold again.
Absolute power corrupts absolutely. Trusting the Federal Reserve not to inflate is not exactly rational.
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Also, a return to the gold standard would be a very bad idea. It sounds great at first because there is at least something tangible to back the currency, and makes it difficult to increase the money supply (which hyperinflation is caused by an increase in the money supply). But the value of gold fluctuates too.

Also, if we returned to a gold standard, it would allow gold hoarders to manipulate the money supply. That's not just in the US, but around the world. Do you want the Chinese to hoard gold and disrupt our economy?

It is better that we put the trust in central bankers and expect them to responsibly discharge their EXPLICIT duty of maintaining the stability of a fiat money supply.
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Bad idea. It would lead to massive inflation around the world.

For example, when Italy went from the Lira to the Euro, it caused massive inflation. The Euro was worth a lot more than the Lira and when the switch was made, the price of a good that cost 3 Lira, now cost 3 Euros. The cost of living went extremely high in a country that was already expensive to live in.

Also, it would increase the buying power of China drastically. If the Yuan was replaced with this new global currency, their wealth would increase at least 3 fold. Of course, it would be cost-prohibitive to import Chinese goods, but it would still be a massive gain for China, and a massive loss for the US.
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We need to go back to the gold standard, wherein there is something of worth backing our money. As long as the system is a credit based system, it doesn't matter if there are 5,000 different currencies in this country, there will still be problems with manufactured inflation. The current system is too easily manipulated.
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This is an absolutely horrible idea! In fact the current dollar model is a fractured system. When they got rid of the gold standard in 1913 they essentially empowered a Central Bank, ie the Federal Reserve, to control the worth of money, by controlling the amount of money that is in the system. The creation of a global currency would simply take it one step further wherein the central bank would control money around the entire world and not just the US.

This is not an issue of left or right! People from both sides of the spectrum are warning of the detriments of this type of system to the freedoms and liberties of the people.

Anyone who supports this type of system essentially believes that a small group of people should dominate over the rest. That is in essence fascism.
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This question has actually already been answered in "The Ultimate Book of Notes and Queries" by Joseph Harker. It's an extract of all the best questions asked of the guardian newspaper. I don't remember the answer exactly, but basically you would have to be super-humanly fat to have any protection.
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Actually their experiment is not very valid, and I consider it quite a waste of time for them.

Of course, for rifle bullets, feet and feet of fat would be necessary. However, for small arms (pistols and revolvers), the experiment is invalid, because:

- most pistol bullets aren't as heavy as the ball bearing they used. Ball bearings are usually made of steel. Bullets are lead, antimony and, sometimes copper. A steel ball bearing of the same size of a bullet is usually heavier than the bullet.

- The 9mm Luger is a fast cartridge, but doesn't come close to 500 m/s (usually, 350 m/s for a 124 gr bullet)

- Most people are shot by small arms, not rifles, so, an appropriate experiment would be to use a common gun, like a 9mm or even a .38 Spl, which I know for fact than can be stopped by fat. Even a heavy leather jacket will slow a .38 Spl down enough to lower its damage to a minimum.

- A hollow point bullet, which expands on hitting soft targets, will deaccelerate considerably when traveling through the medium.

- Even when a bullet can be stopped by fat, what is most damaging is not the perfuration made, it's also the effect of the thermostatic shock that damages internal organs.

- AFAIK, only muzzle loading guns use round (as in "round ball") bullets, but then, their speed is very limited, they are made of lead, and their surface is not near as finished as a ball bearing.
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I'm with Simon on this one; the amount of fat required to stop a bullet depends on lots of variables that they really didn't cover very well. Interesting premise, but projectile shape, weight, muzzle velocity and distance to target would all play into the equation.

Pretty safe to say that being shot is bad. Being fat is bad too. Avoid both to live a long life.
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