With all the talk from world leaders about global governance and a world currency is the end of the forex market coming?
LoL. No. Never. I know there’s some…especially a longer standing member here that swears there will be one currency, it’ll never happen. A countries currency and its worth compared to others is what values a country. Remove its currency and you remove the value.
Look at the Euro. Even with all the countries together it still suffers problems and not all European countries want to be apart of it.
Maybe you’d get a US/Canada/Mexico currency but having some kind of overall one that ends forex…not in our lifetime.
My view is that there is already a ‘global’ currency. It’s called, ‘currency.’ The creation of a NEW currency in which many nations participate in the establishment of, could help ail some of the instability worries many are expressing. This would by no means eliminate the currencies the nations already use. I think the public at large hears talk of this & envisions what currently is occupying their wallets will change. I’m more anticipating a global currency which is held moreso by governments & businesses for purpose of international trade. This could eliminate much of the analysis necessary & pitfalls caused by price volatility which is completely unrelated to their industry. Who would participate in the creation of this type of currency, I think, is the key to understanding how it will affect the markets as we know them.
If anything, it could be a HUGE opportunity for those of us who understand the dynamics of the currency market .vs. Joe Schmoe…
As always though, those participants who are more stable upon inception of said currency obviously should have more ‘buying power’ & thus a lot of the instability essentially gets ‘priced in’ to the value. If the new currency is supposed to be more stable for interchanging, wouldn’t those that hold more of it still have the upper hand that was present prior to the creation?
I’d love feedback on this as I’m going way out on a speculative limb here…
A bad idea, but that doesn’t mean it won’t happen…
I think this goes along with some folks at the top that have their eyes on the goal of world government, erasing all borders, etc. IMHO, it is not a good idea because it’s premis rests on the idea that one size fits all, and goes against the common sense of not putting all your eggs in one basket, please pardon my cliches.
I’m willing to bet that anyone trading forex (with the exception of someone working as a monkey-wrench from the inside), does not think this is a good idea, hence why we move our money into different sides of different pairs based on the fact that countries are in a state of economic flux in relation to one another, and that they ought to be based on conditions at the time. We merely go along for the ride and seek to profit as a result of the flux.
If we did have one currency, who would manage it, the UN? Please those folks could mess up a sandwhich…
I think there is to be some changes… but there will be a forex market, I feel it would be difficult to make one world currency
I have to agree.
On the contrary, financial uncertainties lead investors into taking refuge in forex, benefiting from short-term returns and total liquidity…
I agree as well.
I’d like for someone to present an actual ECONOMIC reason, which includes detailed descriptions of those parties who’ll benefit & those that will suffer and why, for the complete elimination of any & all currency exchange. Not just another conspiracy theory flavored, paranoid rant with the only reasons given being things along the lines of “world-domination” & “controlling the masses.”
Honestly, don’t most characters in these theories ALREADY HAVE “world domination” & “control” by the sheer size of some of the fortunes out there?
Why would they throw out, pretty much, the primary source of their already existing power?
It’s like a star athlete trying to change the rules of her game which brought her fortune & fame, in order to achieve fortune & fame…
Doesn’t make sense to me.
Am I missing some elephant in the room?
A reason to keep separate currencies is that some nations use currency manipulation to control other nations… they will not want to relinquish that power.
(<--------- has checked for elephants lurking…)
lol - think about all the stuff countries don’t agree on. This will simply never happen because you cannot get all countries in the world to agree on one thing. The Euro worked for countries simply because the EEC existed before and I guess to some extent you could take about the WTO but FX is as essential to some countries’ sovereignty as is territory.
At the absolute ideological you might get a 5 continent currency but…meh…you won’t be alive if that ever happens.
The global governence talk is merely political wishwash. Sure they are doing something to resolve the banking situation but the banks would have probably done that themselves after this anyway.
That is so true: currency manipulation is sth bigger countries use and there is no way in hell they�ll lose their power over others, and as SanMiguel�s comment, that is also a fact. The world would be treated as a unit money wise and as I already say, bigger economies won�t want to lose their status.
when a world currency will come i’ll be too old to continue trading
Honestly I can believe that us, people who live studying the market, are discussing the possible existence of a world currency. It would mean the whole world, Africa+USA+Korea+Cuba and so on�agreeing on economy.
I don�t think it will happen�