by mannfm11 » Sun May 06, 2012 4:44 am
John, I think Greece would have problems defaulting and abandoning the Euro. It wouldn't be so bad domestically, but to conduct trade, they need a tradable currency. Oil and other fuel could disappear from the scene without credit.
In fact the whole world is playing games with currencies, instead of taking credit losses and closing banks. I believe that if they blow up these currencies, they will never get them back together without going back to a gold standard. The standard will be gold, not currency either, as there won't be any trust in paper or socialist leaning governments. None of these currencies would have ever floated without Breton Woods and the promise of gold payment in international trade. Debts took the place of gold as collateral, but it appears they don't intend to pay the debts, but print money. Toilet paper is worth more than debt money that is printed to pay off debts or devalue debts. Once no one wants another countries currency, it will be worthless and too rough to use for toilet paper.
John, I think Greece would have problems defaulting and abandoning the Euro. It wouldn't be so bad domestically, but to conduct trade, they need a tradable currency. Oil and other fuel could disappear from the scene without credit.
In fact the whole world is playing games with currencies, instead of taking credit losses and closing banks. I believe that if they blow up these currencies, they will never get them back together without going back to a gold standard. The standard will be gold, not currency either, as there won't be any trust in paper or socialist leaning governments. None of these currencies would have ever floated without Breton Woods and the promise of gold payment in international trade. Debts took the place of gold as collateral, but it appears they don't intend to pay the debts, but print money. Toilet paper is worth more than debt money that is printed to pay off debts or devalue debts. Once no one wants another countries currency, it will be worthless and too rough to use for toilet paper.