What are the reasons to be opposed to a one-world currency?

[Dumpster Slut]

What would be the negative effects of this? I'm curious.

[HAS]

It's about time we take these towel-head bastards and throw 'em out of the damn country!

[supperrfreek]

The battle for control of this currency would be incredible. Plus nobody would be able to decide how much it should be worth.

[face_smack360]

The stock markets would crash, currency trading is very profitable.

[patton]

Well I think the biggest opposition to a world currency in America is that it could ultimately cause the collapse of the US economy.
Right now, the US is 10 trillion dollars in debt, and the largest foreign holder of the US debt is China. Right now, the US dollar is the international reserve currency, which means China has an incentive to hold our currency and keep our economy stable. But if the international reserve currency is switched to some worthless currency created by the IMF, such as the one China already proposed, then China (and other countries) would no longer have any reason to hold our bonds and keep our economy stable.
The dollar tanks, hyperinflation occurs and we get the same types of things that we had in the weimar republic.

[nshanin]

we get the same types of things that we had in the weimar republic.

The good old days where 20% of the population was affiliated with the Communists.

[Vargus]

Well I think the biggest opposition to a world currency in America is that it could ultimately cause the collapse of the US economy.
Right now, the US is 10 trillion dollars in debt, and the largest foreign holder of the US debt is China. Right now, the US dollar is the international reserve currency, which means China has an incentive to hold our currency and keep our economy stable. But if the international reserve currency is switched to some worthless currency created by the IMF, such as the one China already proposed, then China (and other countries) would no longer have any reason to hold our bonds and keep our economy stable.
The dollar tanks, hyperinflation occurs and we get the same types of things that we had in the weimar republic.

Japan is only a few points behind China. No one talks about it because China is the new Soviet Union boogyman.

But I seriously doubt that we will have anything like the Weimar Republic. If shit goes south like that, we will have no choice but to buckle down and immediately stop borrowing. If anything we will have a major economic slump.

Besides, money is just a a goddamn piece of paper (to quote a famous president). It represents nothing but a bunch of people working for an economy.

[el drewto]

I thought Japan was dumping that shit as fast as they can, at least according to a news article on here where some Japanese were caught on the swiss border with a fuck load of currency bonds.

Then again, that story was so long ago, I probably am skewing certain facts.

[HAS]

It's about time we take these towel-head bastards and throw 'em out of the damn country!

This.

[superspeedz]

What would be the negative effects of this? I'm curious.

The currency would not crash (as it would be literally impossible to do so, where else will you take your money), however it would still be subject to inflationary and deflationary problems both of which can fuck things up.

[Joe Camel]

What would be the negative effects of this? I'm curious.

Because it says in the bible when we have a one world currency the end is near.

And all the other reasons, I just know the Christians would hate this.

[SawdustInBloom]

My guess…nothing much will happen. And the doomsday daydreamers will find something new to look forward to dreading.

[Slapshot]

It wouldn't be legal tender under the US constitution.

[Irukanji]

Why would i want to go to a third world country and have to pay .000001 cent to buy something? Besides, we already have a fuck ton of notes and coins, it isnt exactly cheap to remove all the currency in circulation and replace it with new stuff.

[Vargus]

Because it says in the bible when we have a one world currency the end is near.

And all the other reasons, I just know the Christians would hate this.

Pretty much. Of course, I'd also be willing to bet that a one-world currency is only slightly closer than total nuclear war. Whether or not the Communist comes back is another subject.

[Dumpster Slut]

i should have made my point clearer, what if we had a currency shared among the G8 members, or some other organizational country list that actually had a legitimate economy and some potential for growth

[Joe Camel]

Whoever controls that one currency would control the world.

[Manifesto]

:picard:

[Joe Camel]

:picard:

Not trying to be a smart ass, but why the picard?

[The Jitterskull]

One world currency means one bank is going to control most of the world. Technically we're already under an Illuminati based state thanks to the apathy of most people-- but one world currency would just bring us closer to something worse.

Money is quite evil. Indeed.

[drBOX]

One world currency means one bank is going to control most of the world.

This. The reason I oppose a one world currency is because I don't want a one world fiat currency. The dollar is currently the world's reserve currency, that may change to another country's currency- or something new altogether.

The dollar has it's basis in nothing more than 'the full faith and credit of the united states government'. It used to be gold based, but that connection was cut by Richard Nixon. (you could have your dollars redeemed in gold - which has inherent value)

Any new one-world currency will almost certainly be a fiat currency. Fiat currency is bad because it isn't based in value. A fiat currency can certainly retain value, stay stable, and be practically as good as gold, but normally it gets printed allowing government to overspend and overextend. It distorts the free-market - inflates the value of the money making it worth less. Inflation squeezes the middle and lower class transferring wealth to those with access to the printed money.

I wouldn't be opposed to it if it were metal or commodity based, and stayed that way

[Animal Farm Pig]

Under a single world currency, individual governments would lose the ability to influence their own economies through monetary policy. More localized monetary policies tailored to each country might lead to greater efficiencies than a global monetary policy.

[crazzyass]

Any one currency economy that is fiat will have no measure of value.

[KyleKyle Bensen]

Everything listed before this is a damn good reason. Another would be the whole end times deal. All I'm saying is that we do not need another one checked off for now. You never know it could hold some water.

[crazzyass]

This. The reason I oppose a one world currency is because I don't want a one world fiat currency. The dollar is currently the world's reserve currency, that may change to another country's currency- or something new altogether.

The dollar has it's basis in nothing more than 'the full faith and credit of the united states government'. It used to be gold based, but that connection was cut by Richard Nixon. (you could have your dollars redeemed in gold - which has inherent value)

Any new one-world currency will almost certainly be a fiat currency. Fiat currency is bad because it isn't based in value. A fiat currency can certainly retain value, stay stable, and be practically as good as gold, but normally it gets printed allowing government to overspend and overextend. It distorts the free-market - inflates the value of the money making it worth less. Inflation squeezes the middle and lower class transferring wealth to those with access to the printed money.

I wouldn't be opposed to it if it were metal or commodity based, and stayed that way

Well goddamn. Consider my previous post to be the Cliffnote's version. Good post, sir!

[puzld]

One world currency means one bank is going to control most of the world.

Yup.

While we now have the privately owned Federal Reserve bank, at least our people in Congress can grill Bernanke (although he doesn't have to answer everything). Imagine how things would be if the Chairman of this world bank were sitting in Europe somewhere.

Also with a one world currency, we would continue to have inflation as we do with our current fiat currency.

[puzld]

Besides, money is just a a goddamn piece of paper (to quote a famous president). It represents nothing but a bunch of people working for an economy.

Are you sure of that?

"Give me control of a nation's money and I care not who makes the laws."

--Mayer Amschel Rothschild


By the way, I believe that G.W., Bush said the same thing about the U.S. Constitution. (Just a goddamn piece of paper).

[Dichromate]

What I love about this subject is how so many people who would be violently opposed to a single world currency are themselves in favor of the universal use of the gold standard, which is for all intents and purposes the same fucking thing.


Actual reasons why it’s a bad idea:
Firstly, it means subjecting the globe to a single monetary authority. There’s enough controversy within the EU about outsourcing monetary policy. It would be basically impossible to have every country in the world agree to hand over the control of monetary policy.

Second issue, and probably the bigger one – where presently we see currency fluctuations, and where previously we’d see occasional revaluations, under a single currency we’d see adjustments to the price level.
This same issue pops up through the use of a gold standard too.
Instead of the currency of a country or region appreciating or depreciating relative to other countries, you’re seeing that happen to the price level. The costs involved in that, particularly if there is a fairly high level of debt present, can be quite severe.

[Dichromate]

Well I think the biggest opposition to a world currency in America is that it could ultimately cause the collapse of the US economy.
Right now, the US is 10 trillion dollars in debt, and the largest foreign holder of the US debt is China. Right now, the US dollar is the international reserve currency, which means China has an incentive to hold our currency and keep our economy stable. But if the international reserve currency is switched to some worthless currency created by the IMF, such as the one China already proposed, then China (and other countries) would no longer have any reason to hold our bonds and keep our economy stable.
The dollar tanks, hyperinflation occurs and we get the same types of things that we had in the weimar republic.

I think it's pretty funny for you to call an IMF created currency worthless when the logical point of reference for the comment is the US dollar.

[KingOfIreland]

The reason each country has its own currency is that it needs to conduct it's own monetary policy specific to the needs of the particular country. and given that worldwide there is much diversity among living conditions and macroeconommic factors between countries, one cannot taylor a "one-fits-all" policy. that is the reason why newly enetred states in the EU do not adopt the euro yet. they have to reach convergence (similar levels of inflation, deficit etc).

And BTW, China has not proposed a single global currency, it has proposed a different currency for the reserves held by banks. big difference

[patton]

I think it's pretty funny for you to call an IMF created currency worthless when the logical point of reference for the comment is the US dollar.

The dollar is the strongest international reserve currency. I know it's value has gone down considerably lately but if you look at things as a whole it's still pretty valuable.

A currency created by the IMF would first of all not be legal tender under the US constitution, meaning it wouldn't be used in the US which would severely hurt its worth. And what would it be backed by? It'd be as much of a fiat currency as the dollar is, and to make it worse it wouldn't have the economy of one nation behind it.
The US dollar will remain strong because the US economy will remain strong... hopefully

[superspeedz]

ITT: People who don't know economics, banking, or anything.

[nshanin]

ITT: People who don't know economics, banking, or anything.

You came in just in time!

[Major General Franklin Kirby]

ITT: People who don't know economics, banking, or anything.

LOL currymunchers always think they know it al in regards to finance/economics. Please do explain mr smarty pants.

[superspeedz]

You came in just in time!

Pick up a textbook on monetary economics.
In reality a world currency would subject everyone to the whims of one central bank in terms of inflationary/deflationary controls.

Secondly, you would have no other hedge, as many people go to the us dollar as a "trusted" currency, which would raise the relative value of assets, metals, etc,

Thirdly, Depending on who is setting monetary policy and fiscal policy this could help some countries and hurt others, as prices would vary internationally you would have problems in poor african countries (people would be literally trading half a cent) and the extremely wealthy countries.

********** ALSO************
**FIAT CURRENCIES ARE THE BEST, AS THEY ARE NOT SUBJECT TO THE SAME DEMAND SHOCKS AS COMMODITY OR ASSET BACKED CURRENCIES ARE AND THEY DON'T CAUSE THE VALUES OF THOSE COMMODITIES TO FLUCTUATE WITH THEM****

I had to star that as many of you in this thread don't seem to get that, there are also several mathematical proofs about the non-volatility (lower inflation/deflationary shocks)of fiat currencies, over asset backed ones, (assuming a decent central bank, historical data seems to prove this also if you omit failed states).

[nshanin]

^ And he spoke like a dazed undergraduate who had only himself learned the subject a few days ago.

[superspeedz]

^ And he spoke like a dazed undergraduate who had only himself learned the subject a few days ago.

pshh, i'm actually an ma student in economics (i've completed the ma level theory (micro, macro, financial, econometrics) and i'll be doing the doctoral level theory in september.


DAZED UNDERGRADUATE MY ASS

[nshanin]

pshh, i'm actually an ma student in economics (i've completed the ma level theory (micro, macro, financial, econometrics) and i'll be doing the doctoral level theory in september.


DAZED UNDERGRADUATE MY ASS

Alright, I'll take that back.

He spoke like a cocky, arrogant graduate student who felt the need to insult everyone and bring up nothing that had not already been mentioned (though he would have known this had he read the thread). Better?

[Vargus]

One world currency means one bank is going to control most of the world. Technically we're already under an Illuminati based state thanks to the apathy of most people-- but one world currency would just bring us closer to something worse.

Money is quite evil. Indeed.

Communism then?
(you could have your dollars redeemed in gold - which has inherent value)

No it doesn't. Gold's value is entirely subjective, just like the US' good faith. Steel and aluminum is more useful to me than gold. I can make things out of those, but gold just sits there on a table because it is useless.

By the way, I believe that G.W., Bush said the same thing about the U.S. Constitution. (Just a goddamn piece of paper).

That's what I was referencing. :p

[driveby]

I suppose we're all avoiding the obvious armageddon thing here?

[SexyWoodenSpoon]

The economy would collapse.