In God we Trust, our currency is another matter
Since we’ve been talking a bit about currencies, it’s interesting to recall old-fashioned notions of the gold standard and the 1 billion mark note seen in Weimar Germany during the 1920s. In an interesting post, the FT’s Undercover Economist reminds us that a currency only has value as long as those who desire goods think it does. If the consumer doesn’t trust modern currencies to deliver value then they likely won’t, which is a bit of a downer given the state of the dollar these days.
The inspiration for the post? A new 10 million dollar note issued in Zimbabwe, which is worth less than US $4 (or a little over 2.5 Euros).
image from financial sense
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2 opinions for In God we Trust, our currency is another matter
Anne Wayman
Jan 22, 2008 at 10:24 am
not so sure the gold standard should be an old fashioned idea… but you know what? TPTB have yet to call and ask my opinion.
Chris
Jan 27, 2008 at 9:05 am
One wonders if they won’t think about that call a little harder during the coming months and years …
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