Zero interest rates in the U.S. are pushing down the value of the U.S. dollar against every world currency.
These days, though, sterling is a bit-player in the complex world currency puzzle.
In Mundell's writings about a one-world currency, there's a strong preference for a Greenspan-style monetary policy, where price stability is the only goal.
This overall world currency devaluation situation could be an underlying bullish factor for the precious metals down the road, due to the inflationary implications.
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The traditional dollar-based world currency system is now close to breaking point and the chances that it will come crashing down by 2016 are probably higher than fifty-fifty.
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In the past 30 years, China has grown to be the second largest economy in the world and now has the critical economic mass to support a world currency.
This is likely to start weighing more heavily against the dollar next year, especially when the launch of the euro in January offers the markets a new rival world currency.
Those buying and holding gold see the recent political bickering in the U.S. and European Union, unstable currency markets and flagging world economies as pointing them directly to what they perceive as the ultimate world currency: gold.
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"Not only has time marched on in real estate markets, but the position of the U.S. dollar as the world currency has weakened significantly against the Sterling and Euro as well, " says Ian Payne, senior vice president and managing director for Europe, Middle East, Africa and Asia Pacific for Realogy (nyse: H - news - people ) global relocation firm Cartus.
The governor of China's central bank called for a new world reserve currency to replace the dollar , which he suggested could be issued by the IMF.
For many, it's now only a matter of time before the Chinese currency displaces the dollar as the world's reserve currency - or at least becomes a major secondary reserve currency like, er, the euro or the yen.
Stability, acceptability and anonymity are all reasons why the U.S. dollar has become the world's currency of choice.
But even if it could usurp the dollar's role as the world's currency, it will not replicate the American set-up.
But few things are straightforward in the world of international currency.
And the pace of sales is likely to be dictated largely by movements on the world's currency markets to bring in foreign currency at the best rate possible.
Futures markets determine foreign exchange rates, and in a world of gyrating currency values there are serious questions about whether they are the best way to determine the relative value of dollars, euros and yen.
Money was never intended to act as a form of identity tracking or payments restriction and this is why the option for anonymous and untraceable transactions is so vital as society moves to a world of digital currency.
But the fickle nature of commodity trading has derailed yield-hungry ambitions across the currency world leaving a question mark above the rationale or at least the desire among central bankers to shift policy in order to address temporary price spikes.
Second, by endorsing a rise in the Chinese currency relative to the dollar, the president and those who support this policy put at risk the vast soft power and competitive advantage the U.S. enjoys by providing Asia and the rest of the world a reliable currency for engaging in trade in goods and financial instruments.
What Asia does to cope with the giant waves of world capital, from currency controls to curbs on hedge funds, could influence the rest of the capitalist world.
The Terras would trade in every currency in the world on world markets, and payment due could then be in the Terra value of each currency.
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The rise of such a currency should be a major boost to global economic growth and prosperity, empowering the world economy to trade in currency not subject to inflation, devaluations, and variation in real market value.
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The goal: to make the complex world of trading foreign currency accessible to the masses.
So in a cooperative G20 kind of world, devaluing your currency to keep your exports cheap is a no-no.
The dollar is there, it will continue to be the world's dominant currency.
"Information is the world's new currency, and high-profile data leaks have become much more of a driver of IT spending, " he says.
It is the world's key currency and the only true international money.
The real problem is that the currency of world power has changed.
Normally, a weak economy and lower interest rates than the rest of the developed world would mean its currency was unpopular with investors.
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