Is it time for a duel currency?
With the uncertainty created by the fact that the pound in our pockets is in fact an international pound which can be manipulated on the world money markets where it can rise and fall on the whims of the currency speculators. Not knowing what the pound is going to be worth next year, next week or even the next day is not the way a company can plan ahead and certainly not a country.
Let the international pound stay in place where speculators can attack it at will but introduce an internal pound printed by the government which CAN NOT be traded outside the country.
The way this would work is the government would set up a buying and selling agency (for want of a better description) Our factories would run at full capacity and surpluses (products which we have over produced and can not be sold on the home markets) would be sold on the world markets for what ever the government can get for them. Payment for these goods would be by the international pound so that the international pound would always have value. The government would also act as a buying in agency for all raw materials needed for industry using the international pound to purchase such raw materials.
Now the above throws up lot of questions and I will be happy to answer all of them as I have given the matter some thought over the years. If a government can print its own money then it can do amazing things limited only by manpower and available such raw materials.
Duel currency?
Pistols at dawn is it then?
Longjohn
I kind of understand where you are coming from but I think we're at a point this would be to complicated to do. What I'd be more into the idea of is the idea that we could have rival currencies printed by private banks. At first the idea would to most be unpalatable as bankers are seen as the cause of the mess we are in. I'm not a great expert on this but I've recently been looking at Adam Smith and apparently 300 years ago this was quite common and the system regulated it's self through competition. If a bank in charge of printing a currency started adopting bad monitory policy they'd find they're customers would go else where.
The road to hell is paved in good intention.
I was hoping you would say just what would be too complicated so I could answer your question. I think having a different currency from every bank would certainly be too complicated and I am not really sure how this would help matters. No offence.
The problem with any fiat currency is that it can be created at will and gets devalued. The best solution is to go back to gold standard. It worked perfectly well for thousands of years. Ron Paul is proposing we go back. The only reason the west doesn't want to do this is because we don't own any of the stuff! Brown sold our for record lows.
I would given the choice go back to the gold standard.Originally Posted by ChrisV
The road to hell is paved in good intention.
This is the point it's so complicated unless I want to leave you a post as long as a book I could not even attempt to even get started.
The road to hell is paved in good intention.
You can make one point at a time perhaps such as what does one do about foreign owned companies. They would have to trade using the internal pound regardless if they want to or not. I could go on but I think you get the picture. I know what you are saying about the Gold standard and you do have a point and I have an interesting book called "War on Gold by Antony c. Sutton." Perhaps you can find a copy, but what I have in mind is a situation where, as I have said, bits of paper with ink on them printed by the Government can build roads, hospitals - indeed there is only one limit, how much man power you have and raw materials. I wonder how many nurses we could train by cutting down one tree and a few buckets of ink? Remember, the real value of paper money is the heat you can get out of it when it is burnt on a cold day so the value of money is meaningless but we have given it value by demanding that it is used to pay our taxes..............and so on.
Last edited by longjohn; 13-01-2012 at 08:53 PM.
Inflation can be controlled by a prices and incomes policy set in stone.
That would have been the last thing i'd have asked.You can make one point at a time perhaps such as what does one do about foreign owned companies.
My personal felling is a country like Britain that is low on natural resources needs to have an international currency. An internal currency in a financial and service sector in my opinion would not work or if it did would have no serious benefit. The value to the pound is mainly formed through trade with other nations on the global stage not with in our own country so I just don't see the point.
The road to hell is paved in good intention.
Posting Permissions
Reply With Quote
Bookmarks