Currency and Coins will be replaced by Electronic system-What do you think?
Eventually currency in the form of coins and paper wil be completely replaced by the electronic systems of transferring money”. To hwat extnet is this true and what will be the advanctages and disadvantages?
I need to give a presentation in one of the prestigious institution for my MBA entry. what is your opinion in this issue. please help me out in this issue?
I always give long answers, so get ready. First, before looking at coins, look at the evolution of money over time. First there was the barter system, in which we traded goods for other goods. After some time passed people realized that it was more efficient to trade with a common coin. By giving something a standard of value against which all good could be measured, we could have more efficient trade. No longer would a man trying to trade his goat have to find another man willing to buy the goat for the sugar the man with the goat wanted. Each man could trade their goods for a coin and then give that coin to someone else in return for what they needed. But this coin system was not completely based on faith, that is people thought that if a standard were to be used, then the coin that was given as value had to actually be worth something in and of itself. Hence coins were usually made of gold or silver and often continued to circulate only in the upper levels of society that could afford to trade in coin. However over time people and lenders figured out that the coins did not need to have inherent value, that as long as people generally agreed on a coins value as a currency it did not matter what the coin was made of. This breakthrough in monetary policy allowed governments to borrow, for lenders to give loans that were larger then its holdings, and a great manyo ther things. Today the switch to electronic money represents a further evolution of monetary policy. Just like all past evolutions, the acceptance of the system of trade will be based on acceptance (faith) in the mode of trade as well as in its effiency.
The faith in electronic systems is already well established. Credi card companies have been providing electronic money to us as consumers for two decades now, and the system of credit-lending has only gotten more powerful. What a pure electronic system would do is further the efficiency of the system. Think of it this way. If you hold a dollar in your wallet, it is not earning interest, it is not working for you. Nor is it safe in the way money in a bank is safe. A person may steal your wallet or you may lose it. Electronic money makes these probems less likely. First of all, by having all currency stored as electronic date, every dollar in the account will be earning interest until the very moment that it is used to buy something. What this means is that people/businesses can maximize the value of their money. Secondly, by not having to carry the money the risk of losing it is eliminated. So electronic money both increases efficiency as well as eliminates the risks associated with any physical object of value (primarily the risk of its loss or destruction).
Electronic money however creates new risks as well. Computer errors may cause money to “disapear” since it has no physical existence. Also hackers may gain access to accounts which may lead to losses. However such problems are likely to decrease with time is biometric protections and other safeguards are integrated in trade. So for example in the near future a retna scan might be used to identify the holder of the account, and therefore the only one who would be able to gain access to the funds would be the original account holder.
The bottom line is that electronic systems increase efficiency and decrease risk in trade. They also create new issues of privacy and security. Whether such systems develop or not is not likely an issue of contention, they already exist, the only question is how long it will be before all paper currency is comepletely eliminated.
Are you concerned about the present debt the US owes to China?
What do you think the result of owing so much and not having the gold to back it up will cost us? Do you see a one world economy in our future? How long do you think before it hits?
As a Chinese, I am more concern with the US default on their debts or (which is more likely) inflate their way out of the debts, which seems more and more inevitable.
When you borrow a million dollars from a bank, the debt is your problem. When you borrow a hundred million, a billion or a hundred billion dollars from the bank, the debt becomes the bank’s problem.
What’s worst for Chinese (and all other US debt holding nations) is that US debts are basically unsecured loans with no collateral. When the US defaults or inflates, what can China possibly do? China can’t foreclose or repossess America.
Dollars are just prints on papers. Papers are actually near worthless. Americans have been using papers — backed by basically nothing — to trade for REAL goods and products from China (and the rest of the world.)
Unfortunately, the US has set up world trade and oil trade to rely on the US dollar — it’s a legacy of World War II. That is how the US can continue to recklessly run up deficits and export papers to trade for real goods and services from other countries, because other countries need to use dollars for international trade and buying the essential oil and energy.
The petrodollar system is a corrupted pyramid scheme in which the US sits at the top of the multilevel triangle, sucking up resources from all other countries below, with the dollars flowing downward to those other countries that sit at the bottom.
(The flip side is, the US has to run trade deficits in order to supply the rest of the world with enough dollar currency to sustain international trade.)
Chinese know the system is rigged, but there is very little we can do about it. The best we can hope for is to hurry up and build up a strong economic foundation and infrastructure ASAP, so that when the sh!t hits the fan, when the US dollar collapses and the world economy is finally forced to change and realign itself, China will have a strong foundation and infrastructure to endure through the chaos and tough time — while the US and the West burn.
can i start an international commodity auction site online?
hi i wanted to ask what are the requirements of starting an auction site for international commodity market? any legal papers needed?
Not to belittle your question, but it seems a bit naive and too broad to answer without guessing your circumstances. Maybe you are not based in the US so something is lost in translation. Any legal papers needed? Yes most definitely.
Is your expertise in e-commerce, commodities and futures, other financial markets? That would help to give a better answer on the requirements. Have you passed your Series 3 exams?
I am not sure if you have access to contacts in international markets and you wish to act as a broker to clients here or what. If you are brand new to trading, speak to a representative at your local university to get started on the career path, speak to some professionals in the field. There are a lot of websites that deal in this already, maybe you can begin by seeking work with them.
Most importantly, speak to an attorney before you do anything as it is more complex than opening a lemonade stand. You won’t find the in depth advice you need here if in fact you need in depth advice. Too hard to tell, but the ‘legal papers’ reference makes me think you do.
Is no one else concerned that we hit a trillion dollar deficit yesterday for the 1st time in our history?
Is no even more concerned that it may top two trillion dollars by the end of the year if Tax and Trade and Health Care get out of the Senate alive? God save these bankrupted and divided states of America!
If not, we should be. $1,000,000,000,000+, or over $3,000,000,000 ($3 billion) per day of gov’t spending IN EXCESS of cash inflow. It boggles the mind. And that’s just our one year budget deficit. Take a look at the $11,000,000,000,000 and climbing national debt. Our interest payment on this debt is about $26,000,000,000 ($26 billion). Per month. That’s $300 billion a year that we’re paying our creditors (ie.China). Where will the money come from to make these interest payments? Gov’t says tax the “rich” and the “greedy corporations”. Did you know if we taxed General Electric AND Walmart AND Exxon Mobil AND IBM at 100%!! Of their entire 2008 profit, all together it wouldn’t add up to enough to cover even 4 months of our interest payment on the national debt? If the $11 trillion doesn’t scare you, how about $100 trillion?? $100,000,000,000,000? That’s the estimate of our unfunded liabilities relating to Social Security and Medicare. Under 30 and think you’ll see a social security check someday? Think again. And now we’re talking about gov’t run healthcare?? You should be terrified! If we really wanted to effectively stimulate the economy, try a 100% tax break (inc tax, sales tax, etc) for one year! Can you imagine how the economy would be stimulated?? Instead, gov’t presumes it knows how to spend your money better that you do…and so we get xx hundred million spent to build a turtle crossing or research a marsh mouse. All that’s behind this is a pure power play. Gov’t agents are securing their jobs/their role/their future by growing gov’t and expanding their powers…that’s it! It’s not about stimulating the economy! Gov’t does not have the ability to “create” wealth. What it gives to one person or group, it has to first take away from another. Someone else mentioned inflation, that by flooding the market w/ new paper currency we can make our debts and deficits seemingly go away. Sounds nice, but what does this mean for the buying power of your dollar? Inflation is no different than a tax. It reduces your ability to attain goods and services … It reduces your relative purchasing power. If you printed some paper money and sent it to your credit card providers to pay down your debts, what would they think? Do you think they’ll really accept this? We should not ask or hope for serious inflation or hyper inflation anymore than we’d ask or hope to see a tax increase. We are facing some very serious issues, and everyday Americans like you and me, we need to let go the bi-partisan politics, educate ourselves on what’s really going on, and unite to stand up against this destruction of our future and our childrens’ future. This insane spending must stop. Please, educate yourself. And speak up against it. I know it feels like there’s nothing you can do about it. I feel that way too. But, the thing is, we’re not alone. And the more we can realize that and unite, the more we WILL be able to do about it.
Which is the best investment scheme in India?
I am a student and i am also working part time, but I do earn only a little money so that I can bear my monthly expenses. I am looking to invest upto 1000 INR per month so that I can earn some extra money from this investment in near future. Please give suggestions if you have any. Thanks in advance.
Learn extensively before you invest any real money.
An introductory book like _Stock Markets for Dummies_ is a good place to start. This will give you a basic explanation of most things there are to know about the mechanics of stock investing.
Investors Business Daily (IBD) is a solid daily resource (and its complement, www.investors.com ). It’s a better newspaper than the Wall Street Journal and it is built around a particular approach to trading. You could read _How to Make Money in Stocks_ by William O’Neil too–he’s the founder of IBD.
Search your local library for other books on stock investing. Try to absorb as much knowledge and understanding as you can.
After you have extensively researched and gained a solid foundation/education then look to open a brokerage account and paper trade–this is trading with play money before you put real capital at risk. You should do extensively before you eventually place your first trade live. Your early live trades should be with a very small position size. Only increase position size when you have done well to limit losses when the market has turned against you.
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