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Why a One World Currency is Inevitable

The world is being forced to a point of having to implement a one world currency.  At a minimum a one world currency among the major economies.  There are several reasons that taken together will show that this move is becoming inevitable.

1. The world economies are all linked together now.  None can stand alone whatsoever.  The idea of individual currencies is fading.
2. Interest rates are too low and push away capital.  The continued pushing of interest rates down have caused deflationary effects to emerge.  This is primarily through the work of the US Fed.  The lower the interest rate, the less capital means less investment.
3. Due to deflation, the world economy is poised to decline 2% in 2009, this is unheard of since World War 2.  Certain sectors will have greater contractions.  There is a drastically slowing of world economy afoot.
4. As world interest rates are synchronized to zero, this effectively creates a one world currency regime and the US dollar will be the facilitator of this process, even if itself is replaced in the end.
5. Look for competitive currency devaluations and probably trade wars.  As new financial crisis begin to emerge, some one-world currency will be moved in to fix the controversies.

(for the entire article by Christopher Laird, see http://financialsense.com/fsu/editorials/laird/2009/0729.html)

August 3, 2009 - Posted by Bill Wyler | Economy