Forum Post: Would a dual currency help?
Posted 11 years ago on July 18, 2012, 9:15 a.m. EST by harry2
(113)
This content is user submitted and not an official statement
Dual currency:
A) National currency that could be evaluated based on the local markets and cost? B) Export Currency to evaluate fair trade for goods?
would this be more just?
There is nothing wrong with the currency we currently hold. The operational realities for our currency are described under MMT, not by the Austrian school, Chicago monetarists, Keynesians, or neo-Keynesians.
You can't expect to conduct a baseball game using the rules for football. The game changed 40 years ago, time to use the right rule book.
http://neweconomicperspectives.org/2012/05/playing-monopolis-monopoly-an-inquiry-into-why-we-are-making-ourselves-so-miserable.html
http://www.nextnewdeal.net/deficits-do-matter-not-way-you-think
http://www.nextnewdeal.net/rediscovering-government/message-world-leaders-ignore-financial-markets
Interesting resource. But rules change, even the NBA changed there rules. In financial Politics we changed the rules as well - see stimules packages and preventing bankruptcy... Greece, Spain and Euro, Trade deficits with China... and a record 16Trillion is that 50" per citizen?
So before you pay student Loan, the loans of your parents, the Mortgage, you need to pay 50" of the national dept?
I really don't see a way out without putting the majority into bankruptcy.
Greece, Spain, the problems in the EU stem specifically from each nation not having their own currency. Because of this their budgets do have to balance as our state budgets would have to.
The macroeconomics at the Federal level for our system is quite different.... apples and oranges to Europe. Debt in a fiat system is different than debt as perceived by classical economists who still have notions of commodity backed currency clouding their thinking.
The value of our money is determined by GDP, employment, and underemployment... our productivity. We can go quite far with targeted Federal spending without bankrupting ourselves or creating hyperinflation. In 1945, Federal spending was at 125% GDP WITH 100% employment, and we recovered in 1946 when spending levels decreased dramatically without the hyperinflation that was predicted.
I would look through more resources as your view of debt like many is based on how household budgets operate, not macroeconomics.
Still by all means Europe's GDP and PPP is not worst then in the US. If fact there are no more independent Economies in my view.
The 1945 situation if any is not comparable to today, because never in history was the per person dept as high as it is now, we also did not use credit cards to manipulate wealth.
As in Europe the budgets needed to be self restricted and balanced, by high penalties
We still don't use credit cards to manipulate wealth. Money is not wealth.
The EU states do not issue their own currency, so yes many need tighter restrictions, but at the same time more spending stimulus from the central bank. We are not in the same category as we issue our own currency and our debt is 95% payable in US dollars.
Globalism despite the rumors to the contrary is not complete.... and we are damn lucky its not.
Nope
Lets see if the Europeans will install it. Probably the only way out for Greece and Spain...
You should concern yourself with wealth, not the tokens that represent it in trade.
For more on dysfunctional economy and culture see: How Does That Work? https://www.createspace.com/3852916
yes we could trade gold and silver instead of the bogus bank debt notes
We did that in 1836 under Andrew Jackson. That didn't work out well.
Maybe now at 16 Trillion, we can't start saving.
In Land development I made the experience that when ever money got short the development failed. Anyone that could add financial resources sure ended up successfully.
The hole we created is a lot deeper than 16 Trillion.... 16 Trillion covers Wall Streets contribution.... US consumer debt is another 3 trillion on top of this... we have a ways to go and it looks like only the top got the stimulus they needed. US consumers and households are on their own.
Only if one of them was an online, virtual currency.
Why not Export trade currency? That hold an International value on labor cost and material cost.
and National cost for national trade and production. So you don't pay trade deficits with national budgets? Since every industry nation is in the red - and the consumer may pay the bill in all future. Does not look much as a way out. Especially because the current generation did not cause the dilemma.
Online currency yes - this may be the only way we purchase goods future?
You can do with one currency, but if charge a fee on holding on to money then trade balances will go neutral. An example of how this can be done you can find here:
http://www.naturalmoney.org/teslaconference.html