if you are travelling outside you exchange prior to leaving. It wouldnt do anything to the billions already in circulation outside.
putting a currency on a peg is exactly the same as taking it off obama has the same authority as nixon had and more.
point out the post where I said the USD couldnt travel?
if you are travelling outside you exchange prior to leaving. It wouldnt do anything to the billions already in circulation outside.
putting a currency on a peg is exactly the same as taking it off obama has the same authority as nixon had and more. Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free American and do not reflect the opinions of any person or company that I have had professional relations with in the past 55 years. meep
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How would this work?
I want to buy 10M barrels of oil from Saudi Arabia. I have $750M in cash in the bank in the US.
Whoops. Oil is priced in dollars. My dollars can't leave the US under the Boxley Plan. Now what? Tell me how I would pay for the oil I want that is priced in dollars. Waiting with baited breath, I remain, Scott. |
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its a dollar transaction end to end
you wire it to the saudis just like now
if the saudis wanted to be paid in euro's they would get the pegged rate. Dollar transactions are just that. Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free American and do not reflect the opinions of any person or company that I have had professional relations with in the past 55 years. meep
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Last post on this topic (I hope).
You can't have it both ways.
You're wanting to peg the dollar the way the Chinese peg the yuan/RMB or Euro or Yap or unicorn horns. The Chinese can do that because they control the amount of currency that can leave the country and the exchange of yuan/RMB for hard currency. if the saudis wanted to be paid in euro's they would get the pegged rate. What does that mean? I am sending money (assuming it can leave the country), in dollars, to them for the oil. They "would get the pegged rate" from whom? If they wanted Euros, they would have asked for Euros. Lets say they do want Euros. For my $750M I could get 561M Euros on the open market today. You're proposing that my $750M buy 493M (-12%) Euros, from somewhere, thanks to the Boxley Plan peg. Why would I want to do that again? I wouldn't unless there was no choice. A peg only works when there's something standing behind the currency that serves as the ultimate arbiter of its value. In the gold-standard days, it was the US government saying, "bring me 35 pieces of paper and I'll give you a shiny metal token". Now, the dollar is the only currency that can be used to buy Treasuries and invest in the US economy. A peg doesn't work for a floating reserve currency. For the n-th time: The cat is out of the bag - we aren't going back to fixed exchange rates. "But we could..." No, we can't. There's not enough money to do so. Also, too: http://www.pkarchive...lobal/canada.html Here's what the world looked like in 1960: Almost all countries had fixed exchange rates with their currencies pegged to the U.S. dollar. International movements of capital were sharply limited, partly by government regulations, partly by the memory of defaults and expropriations in the '30s. And most economists who thought about the international monetary system took it for granted, explicitly or implicitly, that this was the way things would continue to work for the foreseeable future. Prove me wrong. Give me some links. I've had my say on this topic, I think. Cheers, Scott. |
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heh
Mundell was born in my hometown.
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It's nice that some are reading this thread closely ;-)
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