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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (109292)	12/29/2014 8:49:59 AM
From: Metacomet	2 Recommendations Recommended By 3bar Elroy Jetson Read Replies (2) \| Respond to of 217822

The USD you hold in your hand is a misrepresentation of reality All fiat money is a proxy for value Money was invented to facilitate value exchange as an alternative to the barter system, which has a few drawbacks amongst several billion people with hundreds of countries and languages I am not aware that the US, a relatively young country, set out to dominate the world fiat currency market Having gained that position, primarily as a result of the growth of the internal economy, based on a number of factors including vast natural resources and an innovating population that leads the world in science and industry, and consumption of goods and services, the outcome is not surprising The world likes selling to the US.. We pay our bills, a valued trait to those who have something to sell.. Given the inherent advantage of a fiat system over a barter system, a uniform unit of exchange is an obvious artifact of international commerce That unit of exchange will of course fluctuate in absolute value relative to the commodities for which it is proxy ..but if there is to be a commerce facilitating single standard of recognized currency, which there will be, I do not think there is anything that begins to challenge the USD as a universally accepted unit of value Tribes may well trade amongst themselves for different trinkets in 2s, 3s or even 5s..but that approaches the ceiling In the world, all countries who wish to trade will sooner or later encounter the necessity to deal with international standards of value, they will have to accept whatever is the recognized exchange medium, at whatever value it currently commands In addition to the imputed value of the medium as a composite of the goods and services it represents, the reserve currency will need the added artifact of being backed by an economy that can, and has historically, honored any and all claims for payment I take your point that with the upheaval in the commodities markets in the value underpinnings of the reserve currency, which is the USD, will be subject to some realignments ..but to suggest that these fluctuations in themselves will somehow cause the world to abandon the concept of a reserve currency simply does not follow ..and if there is going to a reserve currency as we know it, the universal trade unit, I cannot imagine what that might be that is going to supplant the US dollar in terms of universal acceptance Acceptance being the operative word Certainly not in my lifetime.. I know there is a lot of jealousy over that fact ..but when you are simply the biggest, strongest, best looking kid on the block, with the fastest car and prettiest women, ya get to call your shots Life ain't fair