DailyDirt: In Money, We Trust (Sometimes)

from the urls-we-dig-up dept

Money is an interesting concept. Government institutions create a supply of money and try to control the value of it within some acceptable ranges. But when the value of money goes out of control, the solutions for getting it stabilized seem a bit illogical. Still, if you can get enough people to switch their faith from one money to another, it seems to work. Here are a few more stories on the topic of money and currency.

As always, StumbleUpon can also recommend some good Techdirt articles, too.

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Comments on “DailyDirt: In Money, We Trust (Sometimes)”

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Anonymous Coward says:

L'affaire DSK

Last year, the IMF’s Dominique Strauss-Kahn proposed an alternative to the dollar in central banks’ foreign currency reserves.

?What Really Happened to Strauss-Kahn?? by Edward Jay Epstein, The New York Review of Books:

May 14, 2011, was a horrendous day for Dominique Strauss-Kahn, then head of the International Monetary Fund and leading contender to unseat Nicolas Sarkozy as president of France in the April 2012 elections. Waking up in the presidential suite of the Sofitel New York hotel that morning, he was supposed to be soon enroute to Paris and then to Berlin where he had a meeting the following day with German Chancellor Angela Merkel. He could not have known that by late afternoon he would, instead, be imprisoned in New York on a charge of sexual assault. He would then be indicted by a grand jury on seven counts of attempted rape, sexual assault, and unlawful imprisonment, placed under house arrest for over a month, and, two weeks before all the charges were dismissed by the prosecutor on August 23, 2011, sued for sexual abuse by the alleged victim.


(Source picked more at less at random from the top Google results….)

HRHaig (profile) says:

A new economic stimulus strategy?

I had an interesting conversation a few weeks ago about the “tax the rich” initiatives that were going around. One suggestion about how to get the money hoarders to spend and stimulate the economy was to simply print more money and devalue their stash. This would discourage people from stockpiling money in their bank accounts unnecessarily. I’m sure it’s not as simple as that, but an interesting idea none-the-less!

LDoBe (profile) says:

Re: A new economic stimulus strategy?

I’m pretty sure that devaluing the dollar would penalize the poorest segments of the population first. If you think about it marginally, then someone who makes, say, $100 a month experiences a much harsher effect from their $100 reducing in value by $0.01 per dollar than a millionaire who makes $300 million a year.

It would be cutting off your nose, to spite your face. While the poor may lose less money in absolute terms, their real wealth will suffer astronomically compared to the richest people. Is it worth taking money away from the most impoverished?

Economies require at least one relatively stable element to trade on. If the currency becomes too unstable, nobody will want to use it because the fair value of exchanges for goods and services can’t be determined accurately (or in the case of hyperinflation, the value of currency isn’t even able to be approximately determined)

Anonymous Coward says:

If any country wants to stop using a currency they can do what Brazil did.

Create a virtual currency(URV) and after a while switch to it.

Brazil changed its currency from Real (R?is, 1790?1942) to Cruzeiro (1942?1967) to Cruzeiro (novo, 1967?1986) to Cruzado (1986?1989) to Cruzado novo (1989?1990) to Cruzeiro (1990?1993) to Cruzeiro real (1993?1994) to Real (1994?present).


NPR – How Fake Money Saved Brazil

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