Apr 15 2009
How an International Currency Would Change the Lives of Ordinary People
A comment from the OnceandFutureFarmer from this network asked how having an international currency would affect the average Joe. Along with that, he commented that the Forex would go away.
Actually, the Forex is one device that could honestly make this whole idea of an international currency move quite slowly. Any time there is money to be made, someone will protest losing that money making chance. But an international currency would render the Forex obsolete. Just remember, not all countries will get on board right away, and the Forex investing could get quite volatile while that transformation takes place. If it takes place at all.
The other thing that would happen is that travel between countries would get easier. No more figuring out how much something would cost when paying for a dinner in a foreign land. Also, trade would be easier as far as paying bills.
All of that sounds great, but there will be a period of financial instability that will occur before everything will become stable. For one thing, some countries will see their currency drop in value, such as the dollar. While all of this happening, the price of gold will skyrocket. One financial guru, Larry Edelson, has said that gold will rise to unprecedented heights.
The impact of this on business will be quite interesting. Af first glance, it might seem that businesses would have no reason to take their companies overseas to find cheaper labor. However, countries like China and Viet Nam will still probably have a cheaper work force right now no matter what changes happen in the currency.
One thing that would happen is the currency we are using now will become collector’s items. Consider keeping an eye open for small face bills that still might be in the general population now, and throwing them in your safety deposit box. But perhaps it would be wise to keep a close watch on an international currency as well, because each country, too, would be getting new money as well. It would be a collector’s dream come true.
It’s unlikely an international currency will happen any time soon. Imagine trying to get fifty states to agree on any one thing? Now try to get hundreds of countries to agree on something as important as money. But if a global recession gets bad enough, anything is possible. In the meantime, keep an eye on it, and remember the collector’s market.
