What would be the advantages to having a single global currency? Some say that it would eliminate inflation and make international business transactions smoother. Others propose that a global currency would be impossible to implement due to political and economic differences, or that it would concentrate too much power in the hands of too few people.
In a sense, we already have a world currency- the US dollar. It has been the world’s reserve currency since the Bretton Woods agreement in 1944. The dollar was backed by gold, and could be exchanged at a standard rate of $35 per ounce of gold. This worked for a while, till the late 1960’s. Gold reserves began to run low in the US since the dollar was being inflated slowly. In 1971 President Nixon pulled the plug and the dollar was no longer redeemable in gold. Since then the dollar has been inflated quite a bit further. This is, in effect, stealing wealth from all nations that have their reserves in US dollars.
In March 2009, Russia and China called for a moving away of the dollar, and the need for a new reserve currency. This is because the dollar is in the hands of the few (The Federal Reserve, and to a lesser degree, Washington) and is being used to take advantage of many. Part of the reason why the US has such a high standard of living, and is able to constantly import more than it exports, is because we have been able to inflate the dollar to make up the difference. However, the route this will lead to is not pretty. Hyperinflation will eventually result from this.
The same thing can happen with a single global currency. It might start off fine, and perhaps it would be backed by some commodity, like gold. However, overtime it would revert back to a fiat currency that is only backed by confidence in the institution that produces it. This world currency could be inflated and slowly steal away most of the world’s wealth.
So, could a single world currency work? Yes and no- it could eventually be established but it would be to no one’s benefit- except to those who control the currency.
It is never a good idea to assign people with so much power over the planet. Mayer Amschel Rothschild once said “Give me control of a nation’s money and I care not who makes her laws.” A single world currency is the stepping stone to a single world government.
Another problem with having a single world currency is the fact that it would be a monopoly, and there would be no other currency to switch to when something goes wrong. In addition, it pokes a finger at our national sovereignty. We should never support the idea of a single world reserve currency, workable or not- it will only trap the global population under the control of the few.