Originally posted by hoochymama
Totalviligance, you really need to do your research on the Federal Reserve and get a new education on what really they are all about. Printing money
out of thin air is not a good thing.
Are we again going to embrace the Bretton Woods Agreement again? And if so, if we end up in a problem
like in 1971, where the world was siphoning off US gold reserves, are we just going to sit back and embrace the economic collapse?
And should other countries embrace this system? What if Pakistan's currency were fixed instead of floating? Right now, people would be losing faith
in Pakistan's currency and the market would be resistant to it. This exact thing happened during the Asian Fiscal Crisis; there was such volatility
with regards to the currency that they were being abused by currency speculators.
Furthermore, there is evidence that a fixed exchange rate actually leads to black market currency trading. Is that a desirable result?
A floating currency rate is generally a good thing, but there are times when having a commodities standard and going on a fixed rate may be
preferable. Maybe right now is one of those times, but in general I am more inclined to trust currency values to the free market system. These
questions are so freaking complicated, and subject to so many variables, that we can't impose one system without any possibility of future change if
necessary.
[edit on 11/7/2007 by Togetic]