What if someone wants a new currency?

Ted · Jun 21, 2016

akphidelt2007 said: ↑

There's pretty much no one, except for someone like you, claiming the EU is doing well, lol. Do you understand now?
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I did not claim they are doing well with 0-1% growth nor that we are doing well with 1-2% growth. Making sense now?

Robert · Jun 21, 2016

Worgl, like many other European towns and cities, was hit hard by the Great Depression. There was mass unemployment; four of the five local factories had closed, and the people were starving in the streets. Nobody had any money to buy anything. One of the features of an economic depression is that there is not enough money in circulation to ensure that people can meet their basic needs, and in the 1930s, the shortage of currency in many countries of the world became catastrophic.

The mayor of Worgl, together with local businessmen, decided to try to break this economic impasse by creating their own local currency. They printed and issued 60,000 Austrian shillings worth of local currency. These shillings could only be spent in Worgl, so they remained in the local community and were exchanged over and over again.

The positive impact was immediate and surprising to everyone. In only six weeks, unemployment disappeared, all the factories had reopened and everyone had food. For the inhabitants of Worgl, the economic depression was gone. This dramatic transformation became known as the “miracle of Worgl.” Surrounding towns, inspired by the success of Worgl, immediately started printing their own local currencies.

Sadly, the miracle did not last long. When the Austrian Central Bank heard about Worgl’s local currency, they initiated legal proceedings against the mayor and local businessmen. According to Austrian banking law, it was illegal for anyone except the Austrian Central Bank to issue money. The bank won the court case, and the mayor was ordered to shut down the local currency, which he did, under threat of imprisonment. The town then returned to the devastating economic depression of the 1930s, with all the human pain and suffering associated with this catastrophe. Factories closed, and once again, the people starved.

Alternative Currency in the U.S.

Irving Fisher, an American professor of economics at Yale University, visited Worgl before the local currency was suppressed and witnessed the ‘miracle’ firsthand. When he returned to the United States, Fisher spread the word by traveling and lecturing across the country, advocating the use of the Worgl ‘scrip’ everywhere. Inspired by his vision, hundreds of communities began issuing their own currency, and by 1934 there were over 1,000 local communities using ‘scrip’ throughout the U.S.

Every one of these communities experienced a tremendous rejuvenation of their local economies. They thrived while others suffered. Fisher then met with President Franklin D. Roosevelt, proposing the implementation of government-sanctioned local ‘scrip’ in every community in America. When FDR consulted with his top financial advisors and bankers, however, he was advised to shut all the ‘scrip’ systems down, which he did. Instead, he borrowed large amounts of money from bankers, at interest, and used it to pay for the Reconstruction Finance Corporation and the other work-creation projects, which collectively came to be known as the ‘New Deal.’ So ended the last widespread use of a local currency within the U.S.
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I am pretty certain that Milton Friedman spoke of this in his book known as Money mischief.

Friedman makes clear once and for all that no one is immune from monetary economics-that is, from the effects of its theory and its practices. He demonstrates through historical events the mischief that can result from misunderstanding the monetary system. Index.
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Amity Shlaes also discussed it in her also great book, the Forgotten Man.

https://images-na.ssl-images-amazon.com/images/I/51-QICX4liL._AC_US160_.jpg

In The Forgotten Man, Amity Shlaes, one of the nation's most-respected economic commentators, offers a striking reinterpretation of the Great Depression. She traces the mounting agony of the New Dealers and the moving stories of individual citizens who through their brave perseverance helped establish the steadfast character we recognize as American today.
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Ted · Jun 22, 2016

A new currency is only needed if a country thinks it will enable them to do a better job controlling inflation and deflation. Generally Republicans want this while Democrats want easy money for welfare programs and for repaying debt for less and less real money.

DennisTate · Jun 10, 2017

The Big Buddha said: ↑

hi there,

im Chris from germany, so please excuse any grammitcal mistakes i make

what im interested in is, what would happen (and how would it happen) if someone wants a new currency forany country?
how is it count?

what if we europeans would throw the euro away and (in germany) we would bring in, again, the german mark!? 1:1

how do the currency rates develop? ( for expample: 1 $ = 1,41 or the other way... )

can somebody explain that to me?? how is the difference between them rise to 1 $ = 1,5 ??? i have an idea but first i want to hear it from another person....

so, please explain it to me thanks!
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One way to make a new currency more marketable would be to
link it to a Unified Theory of Modern World Problems!

http://www.politicalforum.com/index...tia-israel-and-jordan.506627/#post-1067598747

FrankCapua · Jun 10, 2017

unrealist42 said: ↑

I do not know why you would want to abandon the Euro. It was orginally issued at 1Euro to $1US, dropped to $0.80 but recovered, gained 40% in a decade and is now, even with the problems with the PIIGS, maintaining its worth in the world.

The last thing Germany wants to do is have its own currency. It would appreciate so much so fast that German exports would be priced out. It is only the Euro that allows the German economy to mantain its economic position. Bailing out Greece is a small price to pay for that.
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This absolutely true. Germany is trapped into supporting the more profligate EU countries.

Britain was wise to keep their own currency.

Drago · Jun 15, 2017

plenty of cryptocurrency out there, look into it.

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