What's Driving the Currency-Wars?
Posted: 11-23-2011 02:09 AM
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/ Topic > What's Driving the Currency-Wars? / 22 Nov 2011 /
/ Newsgroups > alt.politics.economics , ab.politics /
/ E-mail > [email protected] / Fantastic Forum > USA > Economy /
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] economist asks: So what's driving these so-called "Currency-Wars" anyway?
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Listen, money does not really have the power to do anything, let alone motivate anyone; money is merely the means of measuring value-transactions. Rather, it is the necessity for money, and also the love of money, that motivate people to their economic actions. Money - mainly paper (currency) and plastic money (credit cards, etc) - is basically nothing more than a promise (a promise to pay in the future). But the problem is that sometimes these promises have value, and sometimes they don't. It's the problem that empowered the financial meltdown a few years ago, and it's the same problem whether we're speaking of government promises (currencies and bonds), bank loans, or debt (national, corporate, and personal consumer debt). Credit (ie. all credit) is, therefore, inherently risky. So how can any given bank, financial institution, or nation identify both the good promises and the empty ones? Whose paper money actually has real value backing it up, and whose doesn't?
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Sometimes the matter rests entirely with the quality of the nation in question, and the nature of its government; being as it (supposedly) is, a sovereign state. If the nation (with both its political and economic system) has "value" (ie. tangible qualities), then its bonds and currency can be trusted to pay in the future. But how do you measure quality on a national and global basis? Can the markets do it? No. Can the investors and market-players do it? Again, no. And what about the not-so-civilized nations? How do you measure quality there? Very carefully, I should think. Well, one obvious element of national quality is the nature of its international relations, both economic and political, including its approach and attitude toward other nations, and the various leagues and unions of other nations. But what about the criminal nations? Can their money be trusted to retain value in the long run? These are the questions that will hang over the entire world during the current and upcoming "currency wars" that will be vital to the decades-long struggle to create a global civilization that has some small measure of stability and economic health ...
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-- a concerned citizen of the world - cybrwurm ;>
x
/ Topic > What's Driving the Currency-Wars? / 22 Nov 2011 /
/ Newsgroups > alt.politics.economics , ab.politics /
/ E-mail > [email protected] / Fantastic Forum > USA > Economy /
.
] economist asks: So what's driving these so-called "Currency-Wars" anyway?
.
Listen, money does not really have the power to do anything, let alone motivate anyone; money is merely the means of measuring value-transactions. Rather, it is the necessity for money, and also the love of money, that motivate people to their economic actions. Money - mainly paper (currency) and plastic money (credit cards, etc) - is basically nothing more than a promise (a promise to pay in the future). But the problem is that sometimes these promises have value, and sometimes they don't. It's the problem that empowered the financial meltdown a few years ago, and it's the same problem whether we're speaking of government promises (currencies and bonds), bank loans, or debt (national, corporate, and personal consumer debt). Credit (ie. all credit) is, therefore, inherently risky. So how can any given bank, financial institution, or nation identify both the good promises and the empty ones? Whose paper money actually has real value backing it up, and whose doesn't?
.
Sometimes the matter rests entirely with the quality of the nation in question, and the nature of its government; being as it (supposedly) is, a sovereign state. If the nation (with both its political and economic system) has "value" (ie. tangible qualities), then its bonds and currency can be trusted to pay in the future. But how do you measure quality on a national and global basis? Can the markets do it? No. Can the investors and market-players do it? Again, no. And what about the not-so-civilized nations? How do you measure quality there? Very carefully, I should think. Well, one obvious element of national quality is the nature of its international relations, both economic and political, including its approach and attitude toward other nations, and the various leagues and unions of other nations. But what about the criminal nations? Can their money be trusted to retain value in the long run? These are the questions that will hang over the entire world during the current and upcoming "currency wars" that will be vital to the decades-long struggle to create a global civilization that has some small measure of stability and economic health ...
.
-- a concerned citizen of the world - cybrwurm ;>
x