Article: World moving towards new monetary system: Zoellick

EtienneK said:
Why? I don't get it? Gold is so useless??
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Currency is also useless, just pieces of paper and cheap metals.

People give it a value, so it has a value. That's just how the world works.

If I believe my ox is worth x amount of grain, then it means I will exchange my ox for that amount of grain. Same goes for gold cause everyone perceives it to have value, it does. So I will be just as willing to swap my ox for y amount of gold. Since I can now use my y amount of gold to buy x amount of grain again. Currency makes sense since it's easier to store and always exchangeable for tangible goods. Be it gold, dollars, rands etc...

It's actually quite interesting how paper currency came into being as for a very long time gold used to be the currency of choice.
 
EtienneK said:
Why? I don't get it? Gold is so useless??
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Its used in so many products being one of the few nonreactive metals (to oxidization) , its extremely mailable and a transition metal. Chances are your mobo has a lot of gold in it.
 
EtienneK said:
Why? I don't get it? Gold is so useless??
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For a fairly long period of time, currencies were fixed to the gold standard. It is only since the Bretton-Woods system in 1945 that exchange rates, as we know it today, came into force. You could exchange your currency for bars of gold :)
 
Fader4 said:
if you think gold is "useless".... you really dont get it.
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well it really is, more than 90% of the worlds gold is used for reserve, if it's not reserve then it's jewelry, only a small percentage is used for electronics(alternatives are being found too) and med tech.

I say forget all this hype, and simply create a monetary system that is not allowed to create new money, issue the same globally, a global currency.

China and Russia already want to do this, we've only got to wait until a US president is ready too.
 
I can work with a one world currency. Will make ordering stuff online easier.
 
The disaster of the Euro (other countries bailing out Greece and Greece unable to use monetary policy to help their economy ) should put that idea of one world currency to rest ;)
 
Chris said:
The disaster of the Euro (other countries bailing out Greece and Greece unable to use monetary policy to help their economy ) should put that idea of one world currency to rest ;)
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Not really.

Euro is a great currency if you can afford it. Not all of us have an Alex Jones perspective like you do ;)
 
Chris said:
The disaster of the Euro (other countries bailing out Greece and Greece unable to use monetary policy to help their economy ) should put that idea of one world currency to rest ;)
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So Greece should just be allowed to make unlimited dept and then just have it be erased by printing new cash? No, the world should become more responsible, from this it will become more functional and stable too, it is better than pushing the blame to everyone else. We need a truely global currency, or at least a UN(or similar organization) one. It needs to comprise of more than 50% of the worlds trade, so that it would be central and people will all rely on it. I think that a good place to go to to start such a currency would be the credit card companies, Master-Card, Visa, AM etc.. we could make it simmilar to say the points you recieve at Clicks, a secondary currency, issued by UN(wide international corporation)/a global(not national government) corporation, only that people would need to purchase them out of their own and so that eventually it would be adopted as the norm.
 
Both of you are completely ignoring the fact that countries have different economic cycles at different times.

If Greece were by itself, they could devalue their currency in order to increase exports and hopefully repay their debts. But because they are in a common currency area they can't do that and have relied on Germany and France to bail them out. It is quite amusing to see that Greece cooked the books in order to be let into the Euro and yet they have not been kicked out.

A common currency would ONLY work if the countries followed very similar economic cycles and had the same "structure".
 
Chris said:
Both of you are completely ignoring the fact that countries have different economic cycles at different times.

If Greece were by itself, they could devalue their currency in order to increase exports and hopefully repay their debts. But because they are in a common currency area they can't do that and have relied on Germany and France to bail them out. It is quite amusing to see that Greece cooked the books in order to be let into the Euro and yet they have not been kicked out.

A common currency would ONLY work if the countries followed very similar economic cycles and had the same "structure".
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lol
 
extract from article...The global economy is moving towards a new monetary system with gold emerging as a preferred alternative to existing assets, World Bank president Robert Zoellick said Wednesday...
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I dont get it how is this "new" - did we not have something like that with the gold standard and other derivatives of that system?
 
Chris said:
Both of you are completely ignoring the fact that countries have different economic cycles at different times.
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Not our fault! Try complaining to this to the bank when you can't repay your loan..

If Greece were by itself, they could devalue their currency in order to increase exports and hopefully :erm: repay their debts. But because they are in a common currency area they can't do that and have relied on Germany and France to bail them out. It is quite amusing to see that Greece cooked the books in order to be let into the Euro and yet they have not been kicked out.
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What this simply does is say that the government will sacrifice the hard work of some to repay the depts and irresponsibilities of others. Why should all my money in my bank account be devalued just because Joe next door didn't plan to pay his mortgage? This is no better than a subliminal form of socialism and theft. As I said, people should become more responsible and this would lead the world to improve immune system and become more stable this way.

..Good one :)
 
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Chris said:
Both of you are completely ignoring the fact that countries have different economic cycles at different times.

If Greece were by itself, they could devalue their currency in order to increase exports and hopefully repay their debts. But because they are in a common currency area they can't do that and have relied on Germany and France to bail them out. It is quite amusing to see that Greece cooked the books in order to be let into the Euro and yet they have not been kicked out.

A common currency would ONLY work if the countries followed very similar economic cycles and had the same "structure".
Click to expand...

This sir is a non-argument. Nearly all modern day currencies evolved from the conglomeration of smaller region/state/province/whatever currencies. Economies on the east and west side of the US are vastly different and have different economic cycles at different times, yet use the same currency.

I fail to see how the Euro is a disaster? It's still an infant and Greece is paying for it's ill-discipline which is exactly the way it should be.. not like the US which continues to artificially prop up it's currency.

A one world paperless currency is inevitable.. the real question is, how do we stop unconscious types from manipulating it for their own ends.

http://en.wikipedia.org/wiki/Paper_money
 
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