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Is this stuff still going on in the world? I thought that such rules died with the fall of east European regimes around 1990. Well, I'm glad I can open a saving

by jan_g 14y ago

Is this stuff still going on in the world? I thought that such rules died with the fall of east European regimes around 1990. Well, I'm glad I can open a savings account in all major world currencies (at the moment, following currencies are possible at my bank: CHF, GBP, USD, AUD, CAD, DKK, NOK, SEK, JPY and of course EUR, which is official currency). More, it's possible to mix different currencies in one account.

gaius 14y ago
The North Koreans did something similar a couple of years ago: http://news.bbc.co.uk/1/hi/8394987.stm http://news.bbc.co.uk/1/hi/8394987.stm
digitalengineer 14y ago
Correct, and all those currencies float. Guess in what direction? Down. Have a look at 'Currency Wars' and see how all country's drive down the value of their currency in order to export more easily. As they do, paying off debt becomes easier. However, for people that actually save money (or who are on fixed income like pensioners) it means their purchasing power becomes much smaller. Link to Currency Wars: http://www.amazon.com/Currency-Wars-Making-Global-Portfolio/dp/1591844495 http://www.amazon.com/Currency-Wars-Making-Global-Portfolio/...
- jan_g 14y ago
  The problem is always this: what can I buy with the money I have? If all major currencies (including home currency) float down, then I don't lose very much. However, if my home currency loses 10% or more per month relative to other currencies, then I would very much like to have access to foreign currency. This was true 30 years ago in my country and this is probably true in Argentina today.
  - kokey 14y ago
    The problem with them all moving down is that it affects the value of your savings. At the same time the fact that they are all moving down is supposed to make investing them in things that creates or retains value more attractive.
  - ef4 14y ago
    "If all major currencies (including home currency) float down, then I don't lose very much." That's not true -- they're all floating down relative to actual goods and services. Coordinated devaluation prevents massive capital flight from country to country, but only by making things suck equally everywhere.
    - jan_g 14y ago
      Yes, I understand that. But the process is slow. Hyperinflation in some countries was/is much, much worse than regular inflation in developed countries.

by jan_g 14y ago

gaius 14y ago

The North Koreans did something similar a couple of years ago: http://news.bbc.co.uk/1/hi/8394987.stm http://news.bbc.co.uk/1/hi/8394987.stm

digitalengineer 14y ago

Correct, and all those currencies float. Guess in what direction? Down. Have a look at 'Currency Wars' and see how all country's drive down the value of their currency in order to export more easily. As they do, paying off debt becomes easier. However, for people that actually save money (or who are on fixed income like pensioners) it means their purchasing power becomes much smaller. Link to Currency Wars: http://www.amazon.com/Currency-Wars-Making-Global-Portfolio/dp/1591844495 http://www.amazon.com/Currency-Wars-Making-Global-Portfolio/...

jan_g 14y ago
The problem is always this: what can I buy with the money I have? If all major currencies (including home currency) float down, then I don't lose very much. However, if my home currency loses 10% or more per month relative to other currencies, then I would very much like to have access to foreign currency. This was true 30 years ago in my country and this is probably true in Argentina today.
- kokey 14y ago
  The problem with them all moving down is that it affects the value of your savings. At the same time the fact that they are all moving down is supposed to make investing them in things that creates or retains value more attractive.
- ef4 14y ago
  "If all major currencies (including home currency) float down, then I don't lose very much." That's not true -- they're all floating down relative to actual goods and services. Coordinated devaluation prevents massive capital flight from country to country, but only by making things suck equally everywhere.
  - jan_g 14y ago
    Yes, I understand that. But the process is slow. Hyperinflation in some countries was/is much, much worse than regular inflation in developed countries.