Could The Whole World Use Just One Currency?
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- čas přidán 2. 06. 2024
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Our world is home to over 190 countries using 180 currencies to trade, invest, and collect taxes. The global economy is complex at the best of times and the foreign exchange, or forex market only looks to add an additional layer of confusion and complexity.
So this begs the question could the world adopt a single universal currency?
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I see you all are on your new world order shxt today, huh?
Facebook will control it
Anthropologists and archaeologists are still looking for the fabled "Land of Barter".
What about a % tax where the % of the money that people have is used by the government to spend on infrastructure. Do u think this will prevent people from hoarding money?
I'VE BEEN WAITING FOR THE CURRENCY VIDEO FOREVER YESSSS.
If there is a single currency, it better be called Credits
That should go without saying
Or "G.O.L.D" it stands for
Global Operations Love Demons
Credits will do fine.
@@greenoftreeblackofblue6625 Global Open Lowest Denominator for the Plebs...
Nah vbucks is better
if we all get to use only one currency I suggest we pick Zimbabwean dollar. Everyone gets to be a billionaire!
Considering 1000 trillion (1 quadrillion) was worth 4 USD at the time that is a terrible idea.
Here’s what you do. Sketch Robert Mugabes face on a Post-It note, write ONE TRILLION DOLLARS and there you go.
Granted, it’s worth four times as much as the One Trillion Dollar Note.
"if everybody's super, no one will be" -buddy from incredibles
H
@@craigcarter400 ty
"its hard to store wealth in goats" ahh, darnit , now i know what ive been doing wrong all along. thanks
It's hard to eat gold also.
Fellas. We can solve both problems.
Powdered and dried cheese, and canned meat.
@@oldgus01 Lol, although, what's dried cheese?
@@bingybingy2592 usually dehydrated for preservation, then powdered for easy reconstitution with water/adding flavor.
Store in an airtight, waterfree, and deoxygenated container, it will last a crazy-long time.
Obviously there are canned cheeses or shelf-stable cheese spreads that can last decades, but if you want centuries? Make it a dry good.
Goats are like a hybrid of latinum and radioisotopes. One needs proper packaging for storage and ease of regular exchange, the other decays over time, but has the possibility to create lesser isotopes that also decay over time.
@@oldgus01 Hi
Never heard of dehydrated cheese before, learn something new every day
Thanks
How about this lol
czcams.com/video/Hz1JWzyvv8A/video.html
"Watch how grandpa collapses a galactic government by changing a 1 to a 0."
I know it was a joke but they’d recognize it as an error cause why would it all of a sudden go to 0 of itself?
@@cookiecakeeater6340 ask the creator of Rick and morty
@@cookiecakeeater6340 money can go into the negative. So hypothetically it's possible.
@@Purpless_ON money cannot be worth a negative amount.
@@cookiecakeeater6340 well
EE: 'It's hard to store wealth in goats'
goats: [munching paper and textile euro and US banknotes] 'om nom nom'
Historically most people traded in cattle and grain instead of direct barter.
The goats don't store it though. They're more like currency converters, ie they convert money to manure. 😄
@@jeremybird5739 My uncle had to register his dog and the government functionary asked him what breed his dog was. My uncle replies "Turner Brown".
FUN FACT: I remember when Italy went from Lire to Euro. Just for a better explanation, Lire were counted by the 1000, which means that we had 1000, 5000, 10,000 Lire notes ect.. 1 Euro was valued at almost 2000 Lire, the smallest coin was 100 Lire and was worth almost nothing.
When Euro was introduced, many people didn't know how to adapt, (or count) so for something that costed 5000 Lire, the price was changed to 5 Euro (almost twice as much). That was super common to see, and I clearly remember at the end of the first month, when everybody was getting their first pay-check, those money were obviously correctly exchanged, which felt like everyone's salary was cut in a half.
It also meant that, even though their net worth didn't change, the number of Billionaire in Italy dropped considerably.
Thanks for reading! 😊
Thomas Pegoraro *Lira
The same happend in Germany 1 Euro was 1.955 Deutsche Mark. While the people earned the same amount as before (just divided by 1.955) the Shops etc. used it as an opportunity for a price increase. So people felt like their spending power cut into half. And the politicans shrug their shoulders like nobody could anticipate this from happening.
I always thought Italians just used miniature pizza's as their coins
@jeremy Lyons also they shouldve just patented it like france does with champagne. Then no one could make it but them
No no its not like that , Italy was still using traditional lira a bit like Japan with the yen and France in the 60's or something they never got to modernising their currency by shaving a couple of zeros . For instance 1 french franc was worth 200 lira but in reality it's 1 franc=2 lira you get the jist ?
When I was in Singapore in November, 1 Canadian Dollar was about 1.005 Singapore Dollars (or vice versa, can't exactly remember). It was great not to have to do mental gymnastics when figuring out how much stuff cost.
sure, until the Canadians intentionally devalue their dollar. In my 25 years to traveling there on and off again, the US dollar has gone from a little over 1 Canadian dollar to 1.4 Canadian dollars. It's a way they get rid of government debt, BTW. In comparison to the Singapore dollar, in the last 10 years, the Canadian dollar has ranged from 1.28 SGD to 0.99 SGD. That's a 30% difference.
@@aeroeng22 Not exactly, they do it to increase exports to the US and attract US businesses to set up factories in Canada. It has nothing to do with debt. Canadian Debt is in Canadian dollars and taxes are also paid in Canadian dollars how does changed the exchange rate help them in any way. The real reason they are doing it is to steal American Jobs, knowing the Americans will blame always it on Mexico and China
@@FakeSchrodingersCat Cry about it.
@@bored_person1640 aww someone has no knowledge on economics so randomly tells people to cry on topics they are not part of so cute
@@kyarumomochi5146 do you like your ego?
"Its hard to store wealth in goats." Would be good on a t-shirt.
I already patented it so just be careful what you do....
would have made a good remainer campaign shirt. oh well.
Actually, it is not that hard. You leave your money close to the goats and they will eat it. Then when you want it, you just.... Well, you know
"divide the goat into thirties - that just wouldn't do"
butchers: am I a joke to you
Hard to keep the 29/30 part left of goat alive though
@@vengefulspirit99 The 29/30 parts can be traded for other things. Pretty sure the herder needs more than just bread to survive.
@@mirzaahmed6589 That is not the point.
Ancient society already know how to preserve meat. So they could exchange only part of the meat, and store the rest for later.
Exactly.fractioning cattle is a thing. Its called food. Leather. Medicine.
Suggestions for future videos:
* Economics of Slavery
* Economics of the Apocalypse
The economics of slavery isn't that hard. Its not much difference from the economics of farm animals like plowhorses and oxen: As long as the work you get out of the "livestock" is greater than the cost to purchase and maintain them, you get richer.
Of course "maintaining" people tends to be costlier than animals since people tend to have social and emotional needs that animals (particularly the type of animals we use for farming) tend to be less interested in, and people also have a capacity to organize and rebel if the oppression gets too bad, which animals rarely manage to accomplish. The other side of that coin of course is that people can also do a significantly larger amount of jobs than animals, so there's a balance to be had there (as there usually is in any economic theory.)
And obviously, I'm completely ignoring the morality of slavery here. That's a whole other problem, but it doesn't really affect the economics of the practice.
altrag you’re missing the important point. Slavery impoverishes and limits the economy. Besides the slave holding class and associated businesses like merchant ships everyone else would be worse off. Slave holders would have incentives to buying more slaves and land to fuel the good the slave holder is trying to make or grow. Additionally, the influx in “free labor” in many sectors would greatly lower wages. Lower wages would mean lower taxes collected at the state and federal level. The country would have worse infrastructure and schools which would produce lower educated workers that can’t find lower skilled jobs because of slavery. It’s a self defeating cycle and it’s why (I’m not getting into a civil war debate) the Confederacy of America had a significantly worse infrastructure, banking, industry, shipping, and education system compared to the Union.
@@gologotha7922 this is the right answer ^
@@gologotha7922 Excellent points, but a lot of that also applies to industrialisation and automation.
Economics of Slavery is Capitalism.
The main thing preventing me from shopping online in most other countries is the not the difference in currency. Its the tax barriers and the hassle of declaring those taxes and so on. Paying in another currency is really a small hindrance compared to the import taxes that are not worth dealing with just to be a few items.
Really flattered that my local Citi branch at 13:50 is featured in like half of these videos
your local citi bank has some fine looking girls
Im living under your floor boards
bUt wHaT aBoUt OnE CoiN?!?!1
There you go, I did it so you won't need to!
Please do a video about Chile's economy!
Wow, so a universal currency will end up working like gold in the 20th century.
@@GabrielFerreira-ue8hs Estaría genial !
Had an argument with a guy on Reddit a month ago on this very topic, On r/bitcoin subreddit.
My point was wealthy individuals and institutions will have monopoly over the 💰.
The limited supply was the entire point of bitcoin. Credit is useful, but ultimately uncontrollable long term. No credit system > crony credit system.
Regarding small communal villages being great, one important reason why: they don't have to rely on barter. Because everyone knows everyone else, they can use reputation and favors as their medium of exchange.
This is in fact how humans evolved, to live in communities. Barter is a relatively recent invention that is only necessary when trading with someone you don't know and don't expect to have an ongoing social relationship with them and all of their friends and family.
i wonder if money evolved out of that as a method of social exchange so that the "village" could encompass more than those one has daily contact with.
Well said
Exact while bartering did happen sometimes, most people completely overlook "credit" in small communitys which was pretty common
Yes and a favor is a nice way of saying debt.
Debt existed before money.
Money is just accounting.
Does this mean that Ebay is a means of knowing how good a supplier is by the time the vendor has been a member and what their history is?
Hey EE! Would you be interested in making a video about corruption in general? Types of corruption, how it affects economy and business, how governments can fight widespread corruption, some historical moves that greatly reduced corruption, some that tried but failed miserably and so on...
I think that would be very intereting as it is tightly connected to economics, a constant topic in the news of all (free) countries and yet we never hear how to effectively fight it. Cheers!
I wouldn't want that personally, I think it would be out of scope. There are other channels that are more versed on government and social psychology - I just don't think economics is the right lense to look at corruption with.
@@zacharymitchell8546 But corruption is a good lens to look at economics with.
Pity tje economics of global corruotion destroys more kf globsl south while enriching those holding the corruoted wealrh of these nations in ghier private secrect bsnks,( no facta no fiu) yes gjink credit suiise eu usa arabs singapore etc.
Transparency intl deals with glibsl corruption but not from an economic persoective.
Anticcruprion me
I came for the title, but got a refresher on Foreign Exchange! Amazing job, everyone! Thank you!
It already exists its called Toyota honda civics.
It is called libra
@@jai-kk5uu f off with FB shill money.
Toyonda Corovics
@@jai-kk5uu libra isn't a real cryptocurrency. It's just called itself a crypto while most of us know it isn't decentralized.
@@vincenttjia Crypto currencies don't have to be decentralized. If anything Libra is like a fiat currency where FB takes the place of the state. It's a bit of a joke now, but just wait until Amazon decides to step into the currency game. And no, I don't think this is a good idea.
This might be a weird question, but would it be possible to explore how some of the other "multinational currencies" like the Central African Franc and East Carribean Dollar, and how/whether they're different to the Euro in any fundamental ways?
I'm well aware they're not as widely used or accepted as the Euro, but they seem on a very surface level understanding to be similiar "projects" with regards to currency.
Enjoyed the video btw, as always. Thanks for continuing to release these so regularly.
Those currencies were really setup by former colonial powers like France and the Netherlands as a way to ensure the continued reliance of their former colonies on the colonial power. The CFP France and Caribbean Guilder would be tied to the currency of the fotmer colonial power through fixed conversion rates, thus locking these newly independent nations into the economic system of the old empires. Quite clever actually.
The British also did this, though not as overt with the now defunct Sterling Zone that existed for many years after the British Empire fell.
They have the same problems, Senegal was complaining about a devaluation that France did, that benefited Ivory Coast, almost wiped out their industry
Caspian Report made a video about a year ago on the Central and West African Francs, and their effects on the countries involved - czcams.com/video/42_-ALNwpUo/video.html
@economicsexplained
@@mlc4495 The Caribbean Guilder is different from the Eastern Caribbean Dollar. The EC Dollar is used by OECS countries which are all former British colonies. However the EC is pegged at a fixed exchange rate with the US Dollar, so any fluctuations of the US$ are matched in the EC$.
The Greece Germany roommate analogy fails on several key points:
1. Greece didn't _just_ happen to lose their job. They had been living above their means for decades, which then all came crashing down when they lost their job.
2. Greece didn't spend most of their money on communal expenses with Germany. They spent it on internal expenses in Greece(bloated public sector, extremely generous pensions, etc) in order for successive governments to get reelected.
3. When Germany(through the Troika) did force Greece to adjust their spending to their earning and sell the TV(publicly owned ports, etc), the opposition to this from Greece was massive enough to propel previously unheard of Syriza into government by promising an end to austerity.
Yeah, it was disgusting how Greece absolutely-stubbornly-repeatedly refused, wait, just could not consider spending less and kept expecting bailouts as if that was the natural order of things.
But then, they lied their way into EU budget compliance in the first place, how likely were they to behave ?
ocadioan greece is a rich country. a homogenized superimposed money system destroys this richness. the euro needs to end, it destroys local and national cultural diversity. this is valid for every country in the euro zone. they either let go of the currency, or face cultural annihilation. the migration pact will do the rest. for real diversity to flourish, strong borders and isolationism are required. the EU is a devilish destroyer of diversity, and their racist programme of importing and race mixing indigenous populations is beyond nazi scum level.
@@naturecollision gee...talk about a conspiracy theorist level to the max.
ocadioan what’s often not mentioned is Germany’s surpluses are the inverse of other nations deficits. Germany feels morally superior to countries like Greece, but it was these deficit regions that sucked up German exports. The main failure of the euro, and there were many was not to create an automatic surplus recycling mechanism. The Germans had the euro forced upon them by the French, who feared a reunified Germany dominating the continent. Without a tightly knit federation to spread the surpluses, Europe is destined for decades of misery.
No, Germany lent Greece and Italy huge amounts of money to hide the diverging exchange rates in order to join the currencies and pretend they weren't breaking the rules precisely because doing so gave their industries an advantage when exporting. Italian and Greek governments went along with it because they saw their borrowing cost coming down to be able to share their currency with Germany, allowing tax cuts for the rich without affecting services for the rest of the population until it would be too late for them to do anything about it. The idea that it was the Greek people's fault is just what you're told because it makes you be okay with what was done to them, when before the Euro, they actually had the highest savings of any people in the future EZ.
Great video!
Congratulations on 500k subscribers, well deserved!
There's a lot of debate on whether barter systems actually ever existed. You're absolutely correct that bartering is a very inconvenient system, which is probably why they never existed. It seems that most non-currency based economies were actually gift economies. Could you do a video on gift economies?
bartering wasn't really that effective when your warriors could just kill all the neighbors for a big payout. that's my guess.
Hi Aadit, how’s D+H going? ;)
@@A22by7 Hey Ananth, fancy seeing you here. D+H is kind of boring at the moment because of the lockdown, and because I'm mostly fixing live issues and writing RCAs. How are you doing?
In this story there’s never the question of time. Why would someone have to pay back immediately? Credit exists today why wouldn’t it have existed before? But it never seems to be included when discussing barter.
They existed in special circumstances where gold or currency existed, where people knew and understood the existence of money but did not have access to it. Prisons for example have people using cigarettes to trade for other things but this is in a context where people know about money but don't have access to it.
I'm Canadian and I'm used to my currency basically being Northern Pesos. If you're Canadian and you got a job in the US, you're making a giant bonus due to the conversion alone. For some reason employers will pay same in the Canada and US; an engineer could make 60k CAD in Canada and have the same job where he/she makes 60k USD in the States, that's 80k CAD!
I've heard of this before, although the exchange rates were closer. On the other side, back about 1973 my parents and I drove to Canada on vacation (from the US), and when we paid US$10 for a meal, we were asked for an additional quarter because the Canadian dollar was worth almost US $1.30 at the time
That is why so many Canadian professionals go to the U.S. to work. Salaries are higher in numerical amount, beyond just the exchange rate (e.g. $60000 CAD vs. $80000 US), plus taxes are lower and everything (except medical care) is cheaper. Canada pays more for minimum-wage jobs.
Canadian Manufacturers prefer a weaker CAD to the USD. It makes them more attractive to U.S. contracts. The same goes for the Tourist industry.
Love your work, liked and subscribed.
Well done mate, nice editing. Definitely subbed 👍
You touched on "friction", i.e. the transaction cost of dealing with more than one currency. In the digital age, I think the trend is definitely towards reducing friction, which means dealing with multiple currencies will be less and less of a hassle over time. This, combined with the "How do you agree on who controls it?" problem, practically guarantees the cost of a universal currency will outweigh the benefits IMHO.
Anthropologists and archaeologists are still looking for the fabled "Land of Barter".
Unfortunately the myth persists.
Ever heard of Rupert's Land?
My thoughts exactly.
I heard they used some sort of debt in trading, which means that debt was invented before money. Is it true or just another bit shrouded in myths and legends?
What do you mean?
Those are the street shops in Kathmandu, Nepal where he was talking about bartering.
We have a currency called Nepalese Rupee though in which we trade!! 😉😉
For political systems the question of control is always the most important issue. Thinking otherwise is just naive.
But it isn't necessarily malice tho. How can you trust your monetary policy to some entity that for all you know could be more corrupt than your institutions
@@roboticrebel4092 Depends on how you look at it. At the level of the individuals in the organization or the whole organization as a single entity? Every organization perpetuates itself. The individuals might be well intended and believe in their work, but the whole might have negative results for the rest of the world. In a similar matter Is a kid playing with a gun and shooting someone malice?
So my answer would be, no one should be trusted with such amounts of power. Just go back to a gold standard or an other form of backing and make fractional reserve banking illegal. It was fraudulent from the beginning and it still is.
"190- 257 nations , depends on who you ask?"
🤣🤣🤣🤣🤣🤣
@Rajeev Vij It's a joke on world politics. For example Taiwan isn't considered a country because China considers it a part of its territory. Same goes for plenty of other countries in the world which are disputed by other countries... world politics is a mess...
Fake news, Not for me
There are only two countries in the world mine anf americo-antarco-oceanico-afro-eurasia
@@appleslover Ah a true Intellectual
@@appleslover Yes...
The rest of us, and gunland. ;p
258, according to the Principality of Sealand.
Engines from Germany, which are worse than engines from italy.
A Sentence that no italian car owner would ever say in their entire live.
Very diplomatic; neither the Italians nor the Germans can be offended by this example. Italians because it makes them feel fine - and they do have very nice cars. Germans because it is so laughable that they realize it is simply diplomacy.
Engine from FINLAND= Lada
Correct. And the second one: "The German mark gets devaluated in comparison to the Italian Lira" ;)))
The problem with having one currency worldwide is that it would be controlled by one group of decision-makers, and if those decision-makers make disastrous decisions, it affects the whole world. not just their country. Decentralization of control (meaning competing currencies) is better at ensuring that we don't have a worldwide collapse of the economy, especially if you allow people to hold more than one currency easily, which diversifies their holdings and wealth.
I think if the US economy collapses that it will drag Europe and China with it, who in turn will drag the entire world into an economic collapse.
If anything I think a global currency would be a lot more stable.
@@CoderDBF How? It would be the same scenario, except worse since there is only one world currency.
Congratz, 500.000 subs! Strangely youtube stopped recommending your videos 2 weeks ago, even though i watched all new ones immediately. Super strange, anyone else experienced that?
It seems like they don't want people to educate yourself about the economic system. 😎👍
As a Retail forex trader , that's a no no!
haha yes that would be bad news.
Indeed this will end cheap labour in Southern Asia. On the other hand though, will this decrease global Gini coefficient and thus increase global wealth? It's a hard thing to determine the distribution of wealth across the globe. Especially if all the Gini coefficient data is only measured in countries and not in regions/continents. However, if everyone is getting the same currency and also minimum wage, I can imagine this could be a big boost to the poorest regions in this world.
@Teringventje I agree that is a big fallacy unsupported by any respected peer reviewed research. The most clear cut research seems to indicate wages would slowly rise but goods and services would skyrocket decimating the weaker economies. A very grim picture indeed
@@hendrikdependrik1891 how would that stop low wages. If some countries want to charge less or more for the money then that would basically make a cred less valuable in a place while another will give it more value.
@@OopsFailedArt I'm very interested in seeing that research if you have any recommendations on where to read it.
Hey EE! Love your channel!
Can you talk about the economy of Algeria, my country?
It's a serious case of the Dutch disease.
I will eventually do every country, but this is definitely something I will look at for sure :)
What resources are there?
(Viruses)
Dutch disease, Dutch Elm disease...how many diseases come from Netherlands?
@@appleslover Lots of oil & gas, plus gold and uranium
@@mirzaahmed6589 It was the richest country on earth at some point, and probably the first to deal with wealth issues. Also, the term is coined in the English language, and the UK was a rival of the Netherlands. There isn't a similar term for it in Dutch.
Hooray well-done on the 500subs m8
10:35 I too surround my tv with hundreds of brown folders and box files! The storage in your storage look is so hot right now
"If all the economists were laid end to end, they’d never reach a conclusion."
--George Bernard Shaw
I wish I would get laid end to end
Well you know, that's the way it used to be. Do you know what a "dollar" actually refers to? It refers to a certain amount of silver. So for instance the original mexican peso was "a dollar currency" meaning it was backed up by the same amount of silver as the US dollar was, and the same amount of silver as the Australian dollar was, and the same amount of dollar as the Canadian dollar. There wouldn't have been any fluctuating exchange rate between these countries, because they'd all be "dollar currencies" and they would all stand for the same amount of silver.
Article 1 section 8 subsection 6 says confess will coin money(gold and silver )and gov business will be done in gold.In 1913
.80 Troy ounce of 90% pure silver (i.e. 0.72 Troy ounces actual silver) Always happy to do business in specie.
Meanwhile China and other nations are so long tired of USA over their printing out an estimated five hundred billion dollars, ($500 BILLIONS) worth of FREE DOLLAR BILLS, and circulating them into global currency & banking market EVERY YEAR.
Since U.S dollar being a global currency, good old USA is taking advantage as much it can.
Web link with 4 million views explains it all at, blog.chinadaily.com.cn/forum.php?mod=viewthread&tid=1795128
@@olefella7561 Nobody can print the Trillions out of thin air if we have WORLD CURRENCY!
By the way, blog.chinadaily.com.cn/forum.php?mod=viewthread&tid=1795128 is so very informative link. Thanks man.
As all world wealth KPIs such GDP nominal or GDP per capita are counted in the USD as well as all the debts hence the cheaper the USD the wealthier the world will be.
For example
1. GDP per capita
In Iraq before Saddam was hung 1 dinar = USD 3.2. Meaning if Iraq GDP is 11K dinar, in Saddam era it was USD 35.2K. But after Saddam was hung 1 USD = 1100 dinar. It means Iraqi GDP per capita will only be 11K/1100 = USD 10. Where is the remaining of USD 35,190?
2. Debt
Let say Iraq has foreign debt of USD 1 million. In Saddam era it was only 300K dinar. But after Saddam was hung it went to 1,1 billion dinar. What a spam!
David Graeber's book Debt: The First 5000 Years, argues that the idea barter came before money and credit is a common myth and isn't supported by the historical evidence. It made a pretty convincing case imo
Of course barter was around before money, but you seem to have missed the point that SOME physical method of denoting the exchange of value is an eternal feature of human societies.
Thank you for answer my question (I've been asking this question long time ago).
Great video as always, keep up the good work! Quick Question: are you a CFA or a certified economist? just curious
Alexander Jenkins u know for some reason whenever there’s a financial crisis all of u Austrian economist become Keynesian...... wonder why😗
I know both the Austrian school and Chicago school are laissez-faire, but are there differences between them?
@@rsiraistlin2473 At an Austrian school you fight in the playground. In a Chicago school you shoot up the playground.
I know this wasn't meant as self promotion, but consider me your 9th subscriber
"You can't divide a goat into 30 pieces. It just does not work!"
Butcher: Allow me to introduce myself.
Ground beef and pig: 98 cens
czcams.com/video/2Vo1oZ6r3uY/video.html
a live goat is worth more than 30 pieces of goat meat if said goat is capable of producing milk and baby goats.
@@Julia-rm2vw What about a live goat with 3 legs?
..but refrigeration probably wasn't available then, and depending upon the location and time of year, ice probably wasn't available, either.
@@bobjacobson858 In early times people used salt to preserve food without refrigeration. Lots of it, so much that it would be way too salty even for bacteria.
Thank you I had this question for months 👍♥️♥️
To answer the begged question right at the start;
"Give me control of a nations currency and I care not who writes the laws"
- Nathan Rothchild, Govenor Bank of England.
Setting up a global currency monopoly would be the most stupid thing imaginable.
Amen!
Oy vey
This comes under the very silly assumption that a single person or group would be allowed to dictate production and distribution of that currency, and would also be allowed to dictate the trade of that currency. Even hypothetically, neither of those things would happen. No single nation will ever be so universally trusted as to be given that kind of power, and no alliance of nations has ever been powerful enough to seize such power by force or diplomacy. While you're technically correct that the impossible scenario you've concocted would be stupid, there's not even a precedence to suggest such a situation can happen. The power displayed by the UN should be more than enough to quell any fears a person has on that matter.
@@dontmisunderstand6041 EU anyone? a pan-national body with the right to create and distribute a single monopolistic currency, via the ECB, across the whole of Europe.
Just think EU, but bigger, theres plenty of push in international diplomacy circles for just such a thing.
I think you need to look a bit harder at the world., the EU is exactply the precidence you think doesnt exist.
@@elLooto No, it's very much not. It's not a monopoly in any sense of the word. The euro has quite a bit of competition, and holds no market power.
Closing statement : "No country in the world is going to give up their sovereign power that managing their own currency gives them", except all the ones you mention earlier in the video who did?
Spiralling, exponential inflation and an utter incapability to run their own finances did for a few of them.
@MrLolmaster101 The real growth is no doubt china now
Master long because China understands how currency works and they don’t worry about deficits.
@@uhohhotdog Their bill will come due and they will pay the price, one way or the other. The Chinese import a lot of their food and fuel so when their *external* income starts to fail .... you do the math.
Mark Gast LoL. There is no bill. They control their currency. They owe no one.
If their exports fall then so will their imports.
A Bitcoin/cryto standard would just be like a return to the gold standard, except the money (Bitcoin/crypto) would be easier to secure, transport, verify, etc.
Bitcoin has fundamentals. HEX has pumpamentals.
Nope. Not even close. 😂
At-least your stash in gold is safe, and it has value as a resource if nothing else. Bitcoin's title of king could be replaced by another, no one knows what will happen. Until some crypto becomes the obvious winner and is adopted in shops everywhere, I think it would be safer to store value in gold.
It wont be Bitcoin that wins either, unless somehow they manage to make its transactions instantaneous. I think Bitcoins argument as a store in value is moot too, as when a crypto is eventually adopted everywhere for transactions, its value would zoom past Bitcoin's, and because its widely adopted it would be a more stable store of value.
Simply no. Bitcoin is set up in a way that it needs to use more and more resources just to keep running.
Also, as long as you use gold as cash, you don´t need veryfication at all.
@@antyspi4466 I don't agree with either statement.
(1) Bitcoin mining difficulty fluctuates and doesn't just go up. New mining hardware comes out often, which causes a decrease in required electricity to mine Bitcoin.
(2) There's plenty of fake gold, so if you accept it as cash and you don't verify it, there's a risk what you receive won't be gold.
This is actually an interesting thought if you think about how in an a sci-fi intergalactic sense Earth would would need to become essentially one nation in a way as a planet. Or how in Scifi settings there's intergalactic currencies such as credits in Star Wars
13:08 I imiately jump up when I saw that castle. I have some fond memories of that place.
Past life
i live in Iran and during last 2 years sanctions and varies economic problems has shrank our currency value to the extend that price of a USD or euro has grown over 300 percent. yesterday it grown by a 10 percent in one day if this trend keeps going then we will son become another Venezuela
Just don't mess with US-Saudi interest in the golf
Imagine if America didn't interfere with Iran and fanatical religionism didn't ruin it. Iran would be a very vibrant and dynamic country today
US sanctions ruins people's lives. The US has probably indirectly killed more people than any recent war because they want to police the world and impose their ideology on everyone else. People are starving in Venezuela because of US sanctions. Cuba and Iran are suffering because of US sanctions. The innocent people are the ones that suffer the most.
@@brianmerkosky9243 altho government and society don't make it easier either
in a hard time like this people tend to take care of themselves first regardless of its impact
i would love to be able to just blame a government wether its
US or Iran but the fact is its just our nature
people as individuals and as a society are nice and cooperative to each other as long as its convenient
then every man is for himself
@Rick K dude during last 3 years we began a revolution every year
sometime multiple a year
they all ended with a lot of dead body and people in jail
then people made some joke about how miserable we are and then we move on
It would be amazing if you would do a video explaining the Central African Franc, especially how it works between France and the African countries that use it. I am an American living in Cameroon and hear many opinions on this and am curious to hear your take on it.
Thank for info
Good video and interesting implications re global currency.
It would be good to address the issue of barter. It's an interesting counter-point in explaining the role of currency but is not necessarily the historical prerequisite to currency. I think there's more evidence of barter systems in societies were currency fails or where it is otherwise not available.
Also the role of French and German banks in bond purchasing would be good to highlight too. Where your roommate keeps giving you money at an irresistible interest rate hoping for long term returns.
I loved the explanation about Greece and Germany being forced to share the same apartment when they don't have the means to support the same standard of living. That metaphor finally made the challenges European countries are having with the Euro click for me - thank you!
Greece is recovering though, it's in a hard time now but is o n its way up.
The explanation straight up fails at three key points:
1. Greece didn't just happen to lose their job. They had been living above their means for decades, which then all came crashing down when they lost their job.
2. Greece didn't spend most of their money on communal expenses with Germany. They spent it on internal expenses in Greece(bloated public sector, extremely generous pensions, etc) in order for successive governments to get reelected.
3. When Germany(through the Troika) did force Greece to adjust their spending to their earning and sell the TV(publicly owned ports, etc), the opposition to this from Greece was massive enough to propel previously unheard of Syriza into government by promising an end to austerity.
4:52 why is he typing for watching EE video😂
talkin smack in the comments.
Suggestive thinking 😂
Make more videoes about the "bancor" that Keynes suggested at Bretton Woods! Thanks
Congrats on 500k subscribers
A one world currency would be one based on what human truly cannot live without: oxygen.
I was thinking Credits
Or TIME.
So you wanna trade trees then
Drinking water...
Please explain?
I can already see the central bankers getting a hard on thinking about this
The Rothschilds wet dream.
Your talking about it now but THEY all ready have the solution.
@@kennyg1358 The Vatican/jesuits own the Rothschilds.
@@growlerthunder5171 The Bogdanoffs own the Vatican and the Rothschilds
@@kavky Not the Vatican/jesuits sorry.
As long as it meets the beneficial conditions...then i'm good with..especially if there's a backup system also in place.
Wow nice channel...but how do you pass the Murray Rothbard purity test? :-P
Hi, Economics Explained. Want to say a big thank you! You are doing a great job and I am happy to see such good quality on CZcams. Let me try to give ya some feedback. Seems like you are using the covid situation and trying to get a new audience but creating lots of new videos (can't really complain about that). However, I know that most of the topics you are presenting, need a great time to research, to analyse, reflect, and explain. And it seems to me that you are compromising on something. I am new to this channel and might be wrong, or maybe I saw some really cool videos and expect others to be the same "level", in any case, I believe you can and should do better. While I watch the video, I carefully listen to the introduction and your arguments, but "just touch the surface". I, and o lot of your viewers, would like to hear something in more depth, would like to learn new terms, and understand such topics more profoundly. Again, your team is doing a GREAT JOB! and this is why I believe you can make it even greater!
You missed the fact that you can cryptographically prove your bitcoin reserves.
This guy has a lack of bitcoin knowledge, and it shows everytime he brings it up.
Bitcoin has fundamentals. HEX has pumpamentals.
Oh, you need to look into Elastic Finance. Dynamically expanding and contracting supply. I work in Elastic Finance and would love to talk with you about it.
Super Mario Odyssey does a nice job at this, like there is still a unique currency for each kingdom but you can also use a global coin currency :)
you know nothing about economics if you compare that to that
@@v.k5417 Odyssey isn't the real world brother
@@NightMourningDove thats what Im saying
So, basically the US dollar as it is today. As a Canadian, I bring US dollars everywhere I travel, since only a few people want my country's currency but everyone accepts US dollars almost anywhere I go.
Bob: Money is evil just use direct trade
Seamus: imma end this man's career
How bout a nice fat pound of flesh...
I love be those animations on the channel foundation of economic knowledge
Since you're an Australian I think it would be interesting to see your take on the New Zealand economy vs Australia
You could expand on this topic by making a video on how the global economy would/could function in a hypothetical world united under a world government of various forms.
4:48 why is he tiping on his keyboard 😂
You should make a video on the economy of Hong Kong
yeah, that would be an interesting video
he did, look it up
"Power tends to corrupt, and absolute power corrupts absolutely." - someone sometime
I heard Milton Friedman say that once, not sure whether he quoted it, though.
It’s a quote from Machiavelli
I believe this quote is backwards in its ideas. Being corrupt makes it easier to accumulate power, not the other way around.
@@daegan_ftw But having more power makes it easier to do things that you would otherwise not do, which leads a person to do more. And absolute power would tend to corrupt to the most extreme levels (as stated). Imagine random people being given the authority of a king. Some might do well, most probably would not. And most assuredly, over time, most would probably end up being more corrupt individuals than they ever would have been if that was not bestowed on them, unless they were extremely diligent not to take such powers to heart.
Government corrupts. Each and every organization, business, movement, ect.. that comes into contact with government begins to become corrupted. The longer and deeper the government gets into that business or industry, the more corrupt it inevitably becomes.
❤️ this video and liked the new term of financial friction. I like the fiat currency because it shows supply and demand for prices for goods and services around the world.
Well I mean while using one currency would be catastrophic we could try to group countries together by economic stability / prosperity and their relations (so for exampe west europe, east europe, north america, etc.) this would reduce the number of availalbe currencys and would stabilize the remaining currencys but the drawbacks would be easier to handle
2:50 - Bettering was never a popular medium of exchange, it was only done between tribes or participants who did not new each other very well. Most transactions in pre-mordern world were actually done by the system of "credit", you give presents and "favours" in exchange of presents and favours of the other party in future.
Your analysis about Cryptocurrencies like bitcoin is absolutely correct. A capped currency doesn’t solve any problem. When you also take in consideration, that with any transaction the blockchain becomes larger and therefore the mining costs go up, bitcoin is just a big bubble.
Of course the mining costs are more influenced by the miners competition at the moment, so you expect many small minors pushed out of the market and only the miners survive, who have the lowest cost of electricity. This consolidation makes the blockchain susceptible for manipulation. This is what ultimately destroys Cryptocurrencies like bitcoin.
But still I see very big potential in the technology of Cryptocurrencies. There are some critical aspects which need to get fixed. Some people point out Etherium as a better Crypto. An authentication via proof of steak rather than proof of work has many advantages. But there are more essential feature our perfect Crypto must have. Hedera Hashgraph claims to provide an instant authentication process and the data is constantly hashed/computed, so that there is no big data agglomeration as with the blogchaintechnologie, whilst providing the same amount of security. I am no mathematician, so I cannot really confirm these statements. But an improved technical Standard where old data is shortened and authentication times are lowered significantly is also essential. The last point is of course the control of money supply in the system. As you pointed out in the beginning a fractional reserve system is not viable. Like libra, the Crypto from facebook, the amount of currency can be attached to financial assets. But libra is centralized, which is reluctant to our initial idea of Cryptocurrencies as decentralized currencies. So the solution to this dilemma are policies which are programmed into the system. We could keep track of the amount of goods and assets in the system and therefore keep track of inflation or deflation. We can control these parameters by giving out helicopter money or detroying money of the accounts. We could build in marketplaces and smartcontracts in this Cryptocurrency like in Etherium and it would make taxation easier for governments because we could build that in too. It would be a Fiat currency with such transparency, that it could last very long. Of course there a still some problems with my proposal, because in all of history there was no lasting fiat currency, but this could be a step in the right direction.
Underrated comment.
@@isayahdurst9330 Thank you. Because it is such a long comment it is difficult to get traction. I hope the team of EE will still see it. If you have anything to add or find any ambiguities, please point them out. (I am not a native English speaker, so there might some unclear phrases I have used) Plus every subcommand will improve the ranking of this comment under the video.
The mining cost is *intended to* go up. That is by design and no that doesn't make it a "bubble". The purpose is to prevent devaluing the currency in the long term by restricting the supply of currency.
Agreed with most of what you said. It will be a bumpy road in transitioning. But a required one nonetheless, for a truly globalized world (not funny business-colonialism). I think the biggest barriers are not technological or theoretical. Those are already being solved or have been solved in a way by different concepts and ongoing projects. The real barrier is an older one: greed. The way our financial systems work at the moment are neither transparent not balanced. These two will always tried to be manipulated as long as they are within the reach of a group of people or a few individuals. I guess we will settle with new and 'better' based on competition. But here i see the boundaries of Countries & Businesses getting blurred even more (as historical trends show).
As all world wealth KPIs such GDP nominal or GDP per capita are counted in the USD as well as all the debts hence the cheaper the USD the wealthier the world will be.
For example
1. GDP per capita
In Iraq before Saddam was hung 1 dinar = USD 3.2. Meaning if Iraq GDP is 11K dinar, in Saddam era it was USD 35.2K. But after Saddam was hung 1 USD = 1100 dinar. It means Iraqi GDP per capita will only be 11K/1100 = USD 10. Where is the remaining of USD 35,190?
2. Debt
Let say Iraq has foreign debt of USD 1 million. In Saddam era it was only 300K dinar. But after Saddam was hung it went to 1,1 billion dinar. What a spam!
What if the world adopted a universal currency alongside their national currencies? That way people could choose which currency to use for a given purchase. That might take away some of the issues that Greece faces with the Euro (if they’d also reinstitute a national currency in this case). Idk what problems would arise from such a system but would be interesting to analyze?
Hey could you share a link to the timetable by which countries have to adopt the Euro? Thanks!
If you say "1 German Deutsche Mark", you are basically saying "1 German German Mark" 😂😂.
Awesome video as always man ! Thank you for your work 🙏🏼
ATM machine is my favorite. BNC connector is a close second.
According to one game, the world used to have a unified currency, called Ducats for some reason...
Gimme them ducats!
@@FreedInPieces Buckets of Ducats!
ducats were precious metal coins used in europe of HRE times primarily for the purposes of international trade, so they aren't "international currency" per se, they're just the same gold/silver in the form of a coin..
9:10 is that the civil war building where Winter soldier crushed a heli
do the federal reserve next! how it works, how its privately owned etc
The way you described the World Central Bank reminded me about the Banking Clan from star wars that became corrupt during the clone wars
Absolutely not. That would put complete power into the hands of the tiny group of psychopaths who seize control
Governments are same thing with that "psychopaths who seize control
" you claimed, so nothing particular changed except some id0otic "layer".
@Fllamber No single group can seize control of gold... since it needs to be physically mined in multiple locations and the amount in circulation vastly outstrips annual supply. Plus, you can't print it into oblivion like what's happening right now.
The gold standard was used for centuries, and abandoned. I don't see why crypto would be any different.
@Hoyt Volker Because giving a tiny group of people a monopoly on the medium of exchange would give them the ability to decide who gets credit and at what rate.
@Hoyt Volker "Those who own oil essentially own the world at this point."
Iran & Venezuela: Allow us to introduce ourselves...
Hm?
I'd like to know where the equilibrium is. If the Euro causes problems, how local do you go before the overhead of a currency outweighs the benefits?
When is the ICO of the Economics Explained Coin?
Before watching this, I will say that if the EU is having problems with a single currency, how would the planet full of drastically different economies and stages of economic development be able to use a single currency?
Simple, that currency would never fluctuate and would always be reliable simply because there is no alternative
@@dumitrache12 Im hoping that is sarcasm. The alternative is, after all, monumental stupidity.
the fraudsters are paying for propaganda. to push their infinite $$ scheme
It is simple. The problems of having a single currency are different from, and in most cases, smaller from, having separate currencies. Greece may have it tough because of fiscal irresponsibility. Check what how other irresponsible countries with their own currency are doing. Argentina, Venezuela, Zimbabwe (remember that 100 Trillion dollar bill?).
Responsible governments will do fine with or without a single currency. Irresponsible ones will suffer. With a single currency, they will suffer a bit less.
The problems largely stem from using a single currency over multiple sovereign political entities, and the political problems that arise from fiscal transfers, real or perceived. All countries have more and less productive/efficient regions, and fiscal transfers within a given country rarely cause the controversy of relatively frugal N European states being expected to subsidise more profligate S European ones (Spain with the the relatively richer Catalonian region increasing being unhappy about paying for the Castilian regions being a good counter-example here). Obviously, the long term solution is to get rid of the political borders, forming a single larger state, so no longer will Germans be unwilling to bail out spendthrift Greeks, but instead some Europeans will be pretty OK with a larger share of the national pie going to less developed regions of their own country, if only so they can get on with paying a larger share of taxes, helping everyone. Of course, there are a few wrinkles in that notion, starting with persuading all (or enough) Greeks AND Germans that they all actually want to be "Europeans". The same applies to the world as a whole, eventually, one day, it needs to be unified as a single planetary state. Both will take some time though...
Great video overall, however I would assert that economies never operated on barter, and that economists rewrote history to suit their narrative. The case is made more completely by a book called "Debt: the first 5000 years".
The short version is that ancient economies were either gift economies or operated based on a record of debts rather than a barter transaction which closed immediately. If you think about it that's common sense too, even this video points out how unworkable barter is as a way for an economy to operate.
AWESOME channel can you do a video on honduras economy
@Economics Explained ok i have got to correct you here at one point. I ones worked as an Intern for a German Officesupplies manufacturer/seller. As i was rather articulate, meticulse and knowledgeable enough in the relevant German laws i was the Guy how wrote up the relevant Information for a possible Lawsuite against customers that made an initial Order and than didnt follow though to inform the Boss and if given the ok transmit all info with all Complaints to the Lawyer for evaluation and possible Lawsuits. The Company that i interned for had about 500 Employees by the way and i do not know whether the several dozen interns/apprentices are included. Anyway a favourite "trick" of mine was to tell he country of origin of the customer. If it was anywhere outside of Germany (mostly Switzerland and Austria) the answer came within a couple of minutes, No, let it drop. Those within Germany were mostly sued of course. So even within common Currency Regions there are still substantial Tradebarierrs.
Have you looked into stable coins and DeFi? Price stable decentralised tokens and publicly auditable reserves administered by smart contracts on-chain solve the problems you mentioned in the crypto part.
Yes. One world currency is coming, but I think it will be DOGE. Hahaha!
SCAM
@@1greenMitsi please educate yourself before making stupid comments. Nearly 2 billion dollars (as of July 2020) within an ecosystem of fully transparent, automated and auditable financial mechanisms. See defipulse.com/ - posting this just to educate.
Great video! you should make a video on the implications of cryptocurrencies to the world economy
Bitcoin miners push down its price by selling to pay mining hardware/electricity/facility bills. HEX stakers don't. Staking HEX is like getting free mining hardware and electricity.
I'm wondering if perhaps you have read "Debt: The First 5,000 Years" ? he had some very interesting and dare I say far better alternatives to bartering proposed in the book. And it helps to explain the issues you outlied with bartering.
Great video my man. I just shouted after watching your video "this was a great video". My mum just stared at me like im crazy
"You can buy one-millionth of a bitcoin."
100 millionth actually 😁👍
Or a centigram of gold. Bitcoin and precious metals are equally convenient in terms of fungibility and divisibility, but when the lights go out, bitcoins evaporate while the metals remain.
@@genegreigh8782 conversely you can't 'email' any amount of gold, but 'emailing' bitcoin is easy whether $1 or $1m
@@genegreigh8782 maybe if they went out world wide. If not I’ll go to the mall and charge my phone to get at my Bitcoin. I’m not preparing for the apocalypse I’m preparing for the future and betting they aren’t the same thing.
As of today, Mar 2, 2021, 1 usd = 2,052 satoshis (1 satoshi is 1/100,000,00th of a bitcoin).
Wow, I am actually first. Unfortunately, I can't think of anything good to say...
And in the time it took you to think, other people already commented first.
@@EconomicsExplained ahahhhahahah
REMINDER THAT ADAM AND EVE DIDN'T SAY "I'M FIRST" WHEN THEY TOOK THEIR FEET ON EARTH
@@EconomicsExplained I think I was one of at most the first 2 or 3 people to press on the video. However, I took one second to many too be the first commenter.
@@buenaventuralosgrandes9266 Yeah "they" didn't because only Adam could have.
You shuld do a video discussing central bank digtal currencys and their potential effects.
Amidst the pandemic, its nice to see that stock footage marketplaces are still booming.
"This probably won't change banking..."
And then came along DeFi!
i was just thinking this, but he is still right about the import cap thing, to keep money in the country
The issue with a world currency that breaks the usual fractional reserve system: "OH NO THE RICHER PEOPLE HAVE TO ACTUALLY BE RESPONSIBLE NOW AND NOT AVOID TAX BY TAKING LOANS!"
But yes fro this kind of thing to work, you need a international government first above all federal governments. THEN we can consider more global unifications.
Great videos as always! Can you make a video of what if Africa used one currency similar to the Euro and the EU, in this case a AU (Africa United)