Hello all!!!! First off I would like to thank you for taking the time to read what I have to say. As an economist at heart I will try to bring touch on everything from politics, lifestyles, video games, music, food, culture, anything and everything and put it into an economic context that will be easy to understand. The purpose of this blog is not to undermine society, but to bring into light some ideas, concepts, and lifestyles from every aspect a person has to offer. These post will not just be from my point of view, but I will often take polls online to get the publics opinion. As the title says, we are a Globalized Market (meaning we are the market), and we are more connected than ever.
Not to long ago, I stumbled upon an exciting piece of literature that was passed down to me by a communications person. The article had two main points 1.) a secret world called silk road where you can buy anything!!!!!!!!! 2.) the currency it used was called bit coin which was an online currency that was valued by the MARKET. The way bit coin works is simple, you take your own currency you have (the dollar) ask for a deposit slip and simply write the place it will go to (Mt. Gox for example, which is an online exchanger). The currency you had is then transformed into bit coins which are stored on your online wallet that is able to purchase anything on silk road. Now this is where things get a little tricky. Bit Coin is a DE-CENTRALIZED currency, meaning it is not ran by the federal reserve or the International Monetary Fund. In other words, the government can not print as many bit coins as they like which would cause inflation to settle in (making a big mac priced at $5 to $10). The thought of this idea is purely insane. by 2013, bit coin will have reached its maximum amount of bit coins it can produce and no more will be available. Now this is totally flipped in the way we do things in America. The Federal Reserve has the power to print off dollars whenever they like making the value of our currency decrease. Although Uncle Ben has spent his whole life studying the great depression and see's this as a good idea, some people beg to differ (story to come at another time). What would happen if we took that same concept and put a limit on the amount of dollars that was floating around the world? some guesses would be, the US would not be able to pay its debts, and some people would be left out of a check (unemployment insurance, Social Security etc....). What if putting a limit on the amount of money floating around is the solution? similar to the allowance your parents would give you. Surely this would make people spend within their means and not to over spend purely because the excess money would not exist! When we examine Bit Coin, it is an Asset that is treated as a currency on the online world. 1 currency to rule the world. I had asked people their opinions on a single world currency and I was quite surprised on some of their responses
Homie 1- "Countries would fight over what kind of symbol to put on the currency. One thing it will do is make foreign trade easier but more expensive"
Homie 2- "NO. Not feasible. Look at the Eurozone its falling apart already. Can you imagine a central bank THAT big?"
Homie 3- That is the day the world will know PEACE...
Homie 4- everyone would have the opportunity to start over new, no one more rich or powerful than the other. It WOULD NOT be fair though, to those who have worked for a long time to get where they are now...
In all honesty I feel that we already do live in a one currency world. If you were to look at the stock market and look at the value of gold, oil, cotton, sugar etc... everything is priced in dollars. For germany to buy oil from Saudi Arabia, they would have to take their currency, exchange it for dollars, and purchase the oil. In my eyes the dollar is the one world currency.
I am always open for feedback!!! feel free to drop a comment!!
Y= The Don
