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| Thread: Debaters' Guild I - World Currency |  This thread is pages long: 1 2 3 · NEXT» |
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mvassilev
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posted February 06, 2009 12:30 AM |
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Debaters' Guild I - World Currency
May the first of the debates begin!
Should there be a world currency? [I'll post my arguments later. You guys can start.]
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friendofgunnar
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posted February 06, 2009 02:54 AM |
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air, because everybody has to breath air.
oh wait, this is the osm.
who gets to print this money?
is there a "world reserve"?
or a gold/silver/platinum standard?
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mvassilev
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posted February 06, 2009 04:05 AM |
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All right, then, my arguments. First, I am opposed to a commodity (gold/silver/etc.) standard for reasons I have outlined in the Federal Reserve thread. Rather than reinvent the wheel, I will copy them:Quote:
It may not be practical to carry large amounts of gold around, and even a relatively small amount may attract thieves, banks may then issue promissory notes: "I swear on demand to present the bearer x amount of gold." Such notes are more easily transportable, but present their own problem: the bank has the gold, and knows that it is unlikely that all of its depositors would come and claim their reserves at once, so it begins to lend out more notes than it has, which creates inflation and the danger of a bank collapse. This practice is known as fractional-reserve banking. It can either be regulated or outlawed, but both require government intervention, which is hardly free. Gold advocates seem to think that the gold standard worked pretty well. People who lived under it may disagree: discontent with it lead to William Jennings Bryan's candidacy and his famous "Cross of Gold" speech...
A full-reserve gold standard has a problem beyond that of enforcing it: recessions would still happen, because inflation is only one cause of a recession. Technological shifts can also cause recession when the new technology is expected to bring greater returns than it actually does. (Dot-com bubble, for instance.) And, under a full-reserve gold standard, there is no one to counter the deflationary spiral.
Now, as for a world fiat currency. It would centralize monetary policy - which could be good or bad. On one hand, it could prevent such catastrophes as Zimbabwean hyperinflation from happening anywhere. On the other hand, it might cause Zimbabwean hyperinflation to happen everywhere. It would average things out. So we can't really say that it would be better or worse in that regard.
But I support it. Why? Because, certeris paribus, it would abolish excessively high exchange rates, thus easing international trade (note that both capitalists and socialists could view this as a good idea). Some countries' currency exchange rates are higher than they should be - and a world currency would abolish that problem.
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JollyJoker
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posted February 06, 2009 06:58 AM |
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What's there to debate?
I wonder if anyone can come up with a good point against it.
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vahleeb
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posted February 06, 2009 07:41 AM |
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I would change the title of the debate to "Can There Be a World Currency?". The fact that there should be one I think is indisputable. But whether or nor one can be implemented, that leaves a lot of room for debate.
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Moonlith
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posted February 06, 2009 01:09 PM |
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Quote:
What's there to debate?
I wonder if anyone can come up with a good point against it.
Because it would totally destroy the difference in prices and loans between first world and third world countries, which inevitably would cost us our luxury and prosperity because let's face it, our profits are totally dependant on third world exploitation 
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vahleeb
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posted February 06, 2009 01:24 PM |
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Quote:
Because it would totally destroy the difference in prices and loans between first world and third world countries, which inevitably would cost us our luxury and prosperity because let's face it, our profits are totally dependant on third world exploitation
That's a reason why it can't be implemented not why it shouldn't. Theoretically, all of our social ideals and freedom speak point towards single currency, global government and a (star of sarcasm) brotherhood of mankind. Star trek anyone? (end of sarcasm)
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angelito
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posted February 06, 2009 01:34 PM |
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Quote:
Quote:
What's there to debate?
I wonder if anyone can come up with a good point against it.
Because it would totally destroy the difference in prices and loans between first world and third world countries,..
I don't think this would be the result. Just check all the EURO countries. There are countries who are still named "poor" or at least below average of western european standards. But although those countries have the EURO as currency now, I still don't see any bad impact on my life here in germany. Only because a man in (e.g.) Poland earns Euros instead of Zlotys won't effect my life standard, AS LONG AS there will be only ONE central place where this currency is controlled/produced etc...
If the proportion between the value of the loan of a german worker and a polish worker was (fictional) 3:1 when they had different currency, why do you think it will turn 1:1 only because they have the same currency?
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JollyJoker
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posted February 06, 2009 01:39 PM |
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Quote:
Quote:
What's there to debate?
I wonder if anyone can come up with a good point against it.
Because it would totally destroy the difference in prices and loans between first world and third world countries, which inevitably would cost us our luxury and prosperity because let's face it, our profits are totally dependant on third world exploitation
As it destroyed the difference in prices and loans within the Euro zone? And what exactly do you mean with "OUR" profits? You can't mean mine, actually, and I don't know about yours.
Seriously, do you really think it would make a difference? They'd calculate the exchange rate of a country like Mali or Bukina Faso something like 1 WC would be worth something like 987654.321 of the local currency, so that the whole country would have a cash flow of something worth the jackpot in the lottery - a couple dozen units give or take - and that was that.
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antipaladin
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posted February 06, 2009 01:49 PM |
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there should be,but then the minimal wage should be the same too,so we going to have a problam,because laws are differnt.
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Moonlith
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posted February 06, 2009 02:16 PM |
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Exactly. No more exploitation of underpaid third world employees = instant rise in prices = whiny ass first world population
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mvassilev
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posted February 06, 2009 02:29 PM |
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It wouldn't destroy the difference in prices. Prices vary across the US and the Eurozone, and they all use the same currency.
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Moonlith
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posted February 06, 2009 02:32 PM |
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You were going to finish with "... which to any sane person is totally rediculous...." right ?
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mvassilev
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posted February 06, 2009 02:41 PM |
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JollyJoker
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posted February 06, 2009 02:48 PM |
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Money is just money. Whether it's called Euro or Dollar ir Zloty or Coconuts is irrelevant. Borders are relevant. Tarriffs. Different tax rates.
For different prices, I mean.
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Moonlith
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posted February 06, 2009 02:59 PM |
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Edited by Moonlith at 14:59, 06 Feb 2009.
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Quote:
How's that ridiculous?
Quote:
You were going to finish with "... which to any sane person is totally rediculous...." right ?
Or maybe it's just me, maybe I'm the ignorant noob with a totally corrupted sense of conscience and intuition.
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baklava
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posted February 06, 2009 04:05 PM |
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If all of the world uses one same currency, then how does inflation work?
Theoretically, I mean.
Would it carry more risk and make it easier for global economic crises to happen, like this one?
I really don't know much about economics, nor do I think that this is the most important issue on the planet, so I'm just asking out of curiosity.
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TheDeath
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posted February 06, 2009 04:34 PM |
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Quote:
Money is just money. Whether it's called Euro or Dollar ir Zloty or Coconuts is irrelevant. Borders are relevant. Tarriffs. Different tax rates.
For different prices, I mean.
You seem to miss out on inflation though. If the currency is global it would expand to all countries. I'm not even sure if it would be even practical, may lead to a world crisis.
It's like language: "dialects" will come up (Romanian Euro, Chinese Euro, American Euro, Japanese Euro, Arabic Euro, etc... supposing "euro" is the international currency ), because of local inflation -- that is, unless you want one of the countries' inflation to expand into the entire world which is impractical.
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xerox
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posted February 06, 2009 04:54 PM |
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Yes but it would never work.
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del_diablo
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posted February 06, 2009 06:56 PM |
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Quote:
Would it carry more risk and make it easier for global economic crises to happen, like this one?
Tecnicaly: With 1 currency inflation itself is impossible so long its flat.
What it could be like: The difference in payout could still be the same unless the earths minimum wage become the same. Ignoring the time it would take before the stabilisation, after everybody would get about the same from everywhere. The difference in payout would exists deping on job and region.
And for inflations: Where the flux does the money go? Its basicaly that the wheel of money slows down its flow alot. With alot less flow the jobs needing the flow goes down and it continues in a circle affecting the area its in. Moneys value itself cannot go down in any form, simply because of the amount of currencys we have.
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