Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (36418)	7/3/1999 3:30:00 PM
From: Jim S	Read Replies (1) \| Respond to of 116759

Zeev, I appreciate your patience with me here, but I'm still struggling with what you say. ...a balance between money available and goods available. If that money is "tied" (via a legal exchange rate as it used to be in the "good old days") to gold, you would have to have the growth rate of gold match that of the required money in circulation, that is "a straight jacket" that the world economy does not need... Ok, so instead of being tied to a fixed exchange rate of gold (or other limited asset), currencies are now fixed to a floating exchange rate of other currencies. Your example therefore requires that the total of the 'foreign' currencies must grow equal to the 'home' currency, or else the 'home' currency will become relatively stronger, right? Wouldn't the same thing work with some sort of standardized revaluation of a "hard" currency? Thus, the relative value (inflation or deflation) of a currency would be set and predictable, not subject to whim or crisis. For example, if Greenspan were to have a stroke, I'd bet that the US$ would take a huge hit; but why? Is it suddenly worth less? Some may think its future value would be less, but that wouldn't happen if there were some sort of peg to mark the dollar to. Instead, our dollar IS the peg, and a crisis could destabilize things worldwide. Again, I apologize for being hardheaded, but I really am trying to understand the different positions on this subject. Thanks again, jim

To: Zeev Hed who wrote (36418)	7/4/1999 9:10:00 AM
From: lorne	Read Replies (1) \| Respond to of 116759

Hello Zeev. In all these interesting post about currencies there is no mention of the power or control of the worlds people by whichever country controls the worlds reserve currency. At the moment it appears that the USA is that country and with all the statements coming from countries in the far east like China that are fed up with world domination by the US$ I can't see how a currency backed only by a goverment will be accepted by the whole world. Seems to me that there has to be some sort of standard that would be accepted by all of the world countries. Will the tactics of the USA led IMF ( the break em buy em squad ) eventually be accepted by the world. Money is loaned to countries if they agree to IMF rules this is power and control. I just think there has to be a way for the worlds peoples to store their value that does not require them to give up their sovereignty. Any thoughts ? Lorne