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<p>[QUOTE=&quot;imrich, post: 1435099, member: 22331&quot;]<b>Idyllic World Exchanges</b></p><p><br /></p><p><br /></p><p><br /></p><p><b>Doug: In an idyllic world where commerce is determined at the behest of sovereign nations, I would agree. However, my understanding is that in reality, world fiat currency values aren&#039;t&nbsp; generally allowed to be established by issuing countries. The &quot;soft currencies&quot; must be converted to &quot;hard currencies&quot;, often controlled by colonializing nations through waring actions, threats, sanctions, or financial confiscation. Currently, the most prosperous/populous nation in the world has a dictated soft &quot;non-convertible&quot; currency.</b></p><p><b><br /></b></p><p><b>I could dissertate, but believe that this internet synopsis is apropos.</b></p><p><b><br /></b></p><p>&quot;Varying theories of monetary policy, and the ever-present risk of unexpected geopolitical and policy events, preclude any claim of a currency&#039;s <i>hardness</i> from being called definitive. <a href="http://en.wikipedia.org/wiki/Precious_metals" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Precious_metals" rel="nofollow">Precious metals</a> have been the most resilient currencies, with <i>physical</i> <a href="http://en.wikipedia.org/wiki/Gold_as_an_investment" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Gold_as_an_investment" rel="nofollow">gold</a> historically outlasting all forms of paper <a href="http://en.wikipedia.org/wiki/Fiat_money" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Fiat_money" rel="nofollow">fiat money</a> and <a href="http://en.wikipedia.org/wiki/Gold_certificate" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Gold_certificate" rel="nofollow">gold certificates</a>.</p><p><br /></p><p>&nbsp;<a href="http://en.wikipedia.org/wiki/Quantitative_easing" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Quantitative_easing" rel="nofollow">Quantitative easing</a>, <a href="http://en.wikipedia.org/wiki/Credit_rating_agency" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Credit_rating_agency" rel="nofollow">credit downgrades</a>, and other events of the <a href="http://en.wikipedia.org/wiki/Late-2000s_financial_crisis" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Late-2000s_financial_crisis" rel="nofollow">late-2000s financial crisis</a> have generally eroded the security of most <a href="http://en.wikipedia.org/wiki/Fiat_money" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://en.wikipedia.org/wiki/Fiat_money" rel="nofollow">fiat money</a>, making it difficult to define any as a <i>hard currency</i>.&quot;</p><p><br /></p><p><b>Just my humble understandings of &quot;world order&quot; currency value establishment.</b></p><p><b></b>:thumb:[/QUOTE]</p><p><br /></p>

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