Re: Long article on the dollar -- but worth reading


"Harlow Wilcox" <Harcox_Willow@xxxxxxxxxxxxx> wrote in message
news:cZadnQymFfaFz2beRVn-vw@xxxxxxxxxxxxxxx
Glenn wrote:

On Tue, 21 Feb 2006 02:30:46 -0600, Harlow Wilcox wrote:

All forms of money are merely a convenient metaphor. We are on our way
towards a cashless society, and, barring a world-wide total collapse of
modern society, I don't think it makes one bit of difference. I always
get a giggle out of trying to visualize someone breaking off a chunk of
a gold bar to trade for a loaf of bread.


What we search for isn't single valued, such as reserve notes, accounting
values, or stocks, but something that we can easily trade but won't lose
value. For a long period of history, gold did just that. Now, what we
need instead of national currency is world currency. We pick a mix of
commodities that will track global inflation, have the UN issue the notes
according to the wealth of each nation and then do away with national
currencies. It solves our problems with greedy bankers, brokers and
politicians.

An interesting idea, worthy of thought. I still have trouble visualizing
the concept of what happens if the world's economic system heads south,
though. How will Joe Sixpack trade his basket of commodities for a loaf of
bread, after the fall? Most important, who does he collect his basket of
commodities from?

Isn't this what we do basically? There is the International Bank of
Settlement, the much maligned IMF, banking heads in the major nations,
negotiations back and forth, all on what my exchange medium, your exchange
medium, and his/her exchange medium are worth at the moment.

There are also currency markets that act like enforcers on the central
banks. If the Finnish markka is a little off, or the British pound, there
will be somebody like Soros to take advantage of the central bank's wishful
thinking, and force the particular currency back into line.

Hap


.

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