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What currencies can be chosen other than USD or Euro? All of the rest have no long-term performance record to draw from, or are based on a single country's cur
by jleyank 17y ago
What currencies can be chosen other than USD or Euro? All of the rest have no long-term performance record to draw from, or are based on a single country's current activity. To avoid single-country currency manipulations, choose the Euro. I don't think the US Govt has repudiated any debt to date, which gives large-scale investors some comfort (although this is backwards- not forward-looking).
However, the customer base tends to be in USD or Euro (particularly the former). Thus, there is an argument for dealing in USD so as to sell to those dealing in USD.
- sho 17y agoWell, the most obvious candidate is either SDRs, or some new basket currency: http://en.wikipedia.org/wiki/Special_Drawing_Rights http://en.wikipedia.org/wiki/Special_Drawing_Rights
- gasull 17y agoYou can also use gold, a basket of commodities, or a mixed basket of commodities and currencies.
- sho 17y agoHm, I don't think gold is a very good option. It's not evenly distributed, for one - why should Australia be able to dig up gold but Japan cannot? And the resources put into mining something for its arbitrary value would be better used elsewhere. And let's not even mention technological development - nanotech could turn the whole idea gold has any special value at all on its head. It's fine for personal use but I think the time has long passed where we should be basing whole international currency systems on supplies of an arbitrary metal, or any other physical commodity. There's nothing gold can do that, say, cryptographically signed certificates cannot. The security council, or similar, could sign the certs. Or just use SDRs or similar, which are only one step removed anyway.
- deleted 17y ago[deleted]