The value of the U.S. dollar’s a matter of opinion.

[Supposn]

The reputation of any currency is a matter of opinion.

The value of a currency, (similar to many goods) is somewhat dependent upon buyers’ opinions; we’re uncomfortable considering the extent of subjectivity that’s factored into the value of any currency.

If those who pretend to manage governments’ currencies honestly consider the consequences of panic, they must often suffer and are awaken from their nightmares.

Panic is powerful force; a currency can power dive driven by panic. Fearing the repercussions due to legislators’ publicly considering default of U.S. debts is not a foolish consideration.

Brazil’s experience demonstrates the great extent of opinions effect upon currencies values. It’s a remarkable story.

How Fake Money Saved Brazil : Planet Money : NPR
or Google: npr, how fake money saved brazil

Respectfully, Supposn

 

[Mr. H.]

I'm not well versed on this particular subject, but I do know this ain't Brazil.

 

[Mad Scientist]

So we're supposed to believe and NPR propaganda piece that that QE II and maybe QE III (Fiat Money) is good for us huh? It's only good for the Bankers.

 

[sparky]

Gresham's law - Wikipedia, the free encyclopedia

it fits......

 

[editec]

What were Brazils import/export numbers at the time?

What was the national debt?

How about the debtload of the average citizen?

Those things are going to matter a lot to really understand why this worked.

If Brazil's balance of trade was positive, then I can see how this might work since their devalued currency wasn't expected to buy a whole lot of foreign made goods.

Cause let's face it, you may be able to convince the producers in Brazil that the REAL is real, but could you convince foreign trade partners?

I don't think so.

Maybe I'm missing something, but I suspect that the USA is not in the position to pull this off because of our trade imbalance.

 

[Norman]

The reputation of any currency is a matter of opinion.

The value of a currency, (similar to many goods) is somewhat dependent upon buyers’ opinions; we’re uncomfortable considering the extent of subjectivity that’s factored into the value of any currency.

If those who pretend to manage governments’ currencies honestly consider the consequences of panic, they must often suffer and are awaken from their nightmares.

Panic is powerful force; a currency can power dive driven by panic. Fearing the repercussions due to legislators’ publicly considering default of U.S. debts is not a foolish consideration.

Brazil’s experience demonstrates the great extent of opinions effect upon currencies values. It’s a remarkable story.

How Fake Money Saved Brazil : Planet Money : NPR
or Google: npr, how fake money saved brazil

Respectfully, Supposn

And exactly what value ISN'T a matter of opinion?

 

[Toro]

The reputation of any currency is a matter of opinion.

The value of a currency, (similar to many goods) is somewhat dependent upon buyers’ opinions; we’re uncomfortable considering the extent of subjectivity that’s factored into the value of any currency.

If those who pretend to manage governments’ currencies honestly consider the consequences of panic, they must often suffer and are awaken from their nightmares.

Panic is powerful force; a currency can power dive driven by panic. Fearing the repercussions due to legislators’ publicly considering default of U.S. debts is not a foolish consideration.

Brazil’s experience demonstrates the great extent of opinions effect upon currencies values. It’s a remarkable story.

How Fake Money Saved Brazil : Planet Money : NPR
or Google: npr, how fake money saved brazil

Respectfully, Supposn

All value is a matter of opinion.

That's what makes markets so great.

 

[Supposn]

Gresham's law - Wikipedia, the free encyclopedia
it fits......

Sparky, Gesham’s Law doesn’t apply in this case. The government did not replace or discontinue using their currency.
Respectfully, Supposn

 

[Supposn]

Restoring public confidence

Mr. H, Mad Scientist & Editec:
According to the article some of the prior government administrations implemented the conventional austerity measures to halt their currency’s inflation.

All of those prior administrations could not slow down their currency’s rate of inflation.

What Brazil did in 1992-93 was create an imaginary currency they described as a Brazilian “Real”. I’m haven’t read what they pegged that imaginary currency to. Possibly it was pegged to the value of the U.S. dollar or to the value of gold?

Each day the media reported upon the government’s announcement of the current “exchange rate” between Brazilian’s actual currency and the imaginary “Real”. Good news or bad, the announced rate was an "honest" rate.

The population continued to receive their pay and spend their actual Brazilian currency. The point was to restore the population’s confidence in their actual currency.

I’m sure that this would not have succeeded if they did not also continue implementing the conventional austerity measures.

Respectfully, Supposn

 

[Wiseacre]

I think the notion that the value of the dollar is a matter of opinion is nonsense. Go to the supermarket and buy the same stuff you bought a year or two years ago and tell me the value of the dollar isn't less than it used to be. When you have to pay $50 instead of $40, that ain't no opinion.

 

[KissMy]

Brazil’s experience demonstrates the great extent of opinions effect upon currencies values. It’s a remarkable story.

How Fake Money Saved Brazil : Planet Money : NPR
or Google: npr, how fake money saved brazil

Respectfully, Supposn

The USA, IMF & World Bank forgave most of Brazil's debts by trading them for Brazil's Amazon Rain Forest rights. Some of the loans were exchanged for equity stakes in Brazilian businesses. In reality it's called forcing Brazil to back all of it's loans by putting up their huge Amazon Rain Forest & businesses as collateral.

Who is going to forgive the USA's debts & what do we have to trade them for it?

 

[KissMy]

Gold has been money longer than any other. Gold has been highly valued since prehistoric times. Egyptian hieroglyphs from as early as 2600 BC describe gold. Gold has represented wealth & power even before 1600BC Moses & the "Golden Calf". Gold is mentioned frequently in the Old Testament, starting with Genesis 2:11 at Havilah and is included with the gifts of the magi in the first chapters of Matthew New Testament. The Book of Revelation 21:21 describes the city of New Jerusalem as being "made of pure gold".

Gold has been coined as money at least as far back as 700BC. Gold is, has been & will always be money. Belief & faith in gold as money has been solid for thousands of years. Suckers were conned into trading Gold for Federal Reserve Notes 40+ years ago & now the veil is being pulled back exposing the con.

 

[editec]

Gold has perceieved value under most circumstances.

But let me pose this hypothetical question to you.

You are hopelessly adrift a lifeboat with one other person.

He has gold.

You have food and water.

Who is richer?

Him or you?

Value is ALWAYS relative to need, folks.

Gold is USUALLY something with value.

But if you're laoded down with gold, while swmming great distance and you're running out of steam to get to the other side?

Guess what?

Gold not only doesn't have any asset value to you, it is a liability.

FYI the longer-used single currency in this nation?

Tobacco, not gold.

 

[Mad Scientist]

Restoring public confidence

Mr. H, Mad Scientist & Editec:
According to the article some of the prior government administrations implemented the conventional austerity measures to halt their currency’s inflation.

All of those prior administrations could not slow down their currency’s rate of inflation.

What Brazil did in 1992-93 was create an imaginary currency they described as a Brazilian “Real”. I’m haven’t read what they pegged that imaginary currency to. Possibly it was pegged to the value of the U.S. dollar or to the value of gold?

Each day the media reported upon the government’s announcement of the current “exchange rate” between Brazilian’s actual currency and the imaginary “Real”. Good news or bad, the announced rate was an "honest" rate.

The population continued to receive their pay and spend their actual Brazilian currency. The point was to restore the population’s confidence in their actual currency.

I’m sure that this would not have succeeded if they did not also continue implementing the conventional austerity measures.

Respectfully, Supposn

Brazil has a National Bank but it's not run by offshore banking interests like our Federal Reserve is so it's run in a manner that's beneficial to Brazilians not the bankers.

Big difference.

"Austerity" means cutting services and raising taxes so the money can be sent to the same bankers that created the situation. I won't fall for it.

 

[ROBESPIERRE]

Gresham's law - Wikipedia, the free encyclopedia

it fits......

The link here is of historical value, but times have changed since Gresham & Copernicus.

Commodity Backed Currancy saw it last days in the crash of 1929.

Capitalism had to be re-invented after WW2.

We now have Keynesian Debt Backed Currancy. Basing the value of money, (capital), on commodities such as Gold & Silver or Manufactured goods etc. etc. was the old system which required "Ballance of Payments" between nations. This cumbersome system was not only slow; it was subject to abuse by insiders and eventually led to the crash of '29.

Today, all wealth is based on, and backed by, debt. And debt itself is the new universal commodity. We witnessed recently how this system too was subjected to abuse and resulted in the Derivitaves Crash. Derivatives: Investments which derive their value based upon how much is owed to them, or how much debt is backing them.

The US Dollar has the whole US Economy, (and US Military), backing it. It is still the worlds number one reserve currancy. Many foreign currancies base their value on the US Dollar.

The currant isse with the Almighty Dollar is not only the recent economic contraction, (since Oct 2008), but the ongoing, out-of-control spending by the US Government on very expensive war ventures. There is still no problem as long as the US Government can make a profit out of its war invesments. A currancy as strong and and well backed as the US Dollar has emense elasticity, (CREDIT), but even a strong rubber band will reach its limit of stretch, (and therefore must be able to grow). This is the present situation: The Dollar is finally reaching its credibility limits. Inflation will ensue, and everyone will pay together. (Remember the double-digit inflation of the 1970s ? . . . A lost war in Vietnam was to thank).

Americans better start finding new sources of wealth and industry which can create more credit for its economy and backing for its currancy. Simple as that.

Monopolizing the entire mineral wealth of IRAQ would be a great starter . . . . . .

 

[editec]

Suspension of gold (for international balance of payments didn't end (this latest round) until about 72.

But nations suspended, or when on or off the gold standard as needed, too.

It's is mistake to generalize given that the world's governments did not all act in unison regarding the gold standard.

 

[KissMy]

Gold has perceieved value under most circumstances.

But let me pose this hypothetical question to you.

You are hopelessly adrift a lifeboat with one other person.

He has gold.

You have food and water.

Who is richer?

Him or you?

Value is ALWAYS relative to need, folks.

Gold is USUALLY something with value.

But if you're laoded down with gold, while swmming great distance and you're running out of steam to get to the other side?

Guess what?

Gold not only doesn't have any asset value to you, it is a liability.

FYI the longer-used single currency in this nation?

Tobacco, not gold.

How about living in reality?

We are hopelessly adrift on a planet of 7 billion hungry & thirsty people holding ever devaluing Federal Reserve Notes (FRN) currency. We all need Food, Water & Fuel. We all want the finer things. Now you currently have more Food, Water & Fuel than you could possibly consume before it all goes bad. You don't know what next year or any future will bring. Two hungry families offer to take your surplus Food, Water & Fuel in return for taking care of your future wants & needs. One offers you a Federal Reserve Promissory Note & the other offers you solid gold. Which one gets the Food, Water & Fuel.