[ExI] The silent PV revolution

[Mirco Romanato]

Il 06/04/2012 00:58, The Avantguardian ha scritto:

> But last I heard, the Chinese government sets the value of its
> currency so the U.S. money is fiat and the Chinese money is something
> else.

The Renmimbi is pegged to the US$ so China try to devaluate as much as
the US devaluate the $ printing more Fed. Notes.


>> If they stop printing, there would be some equilibrium in the 
>> import/export. They would only bankrupt the government, the banks
>> (Am I repeating myself?) and many others indebted people.

> The system we have allows the market to set the relative prices of
> the world's currencies except for China, North Korea, etc. So make up
> your mind, is the market good or bad?

The market is good when people are not forced to use legal tender in
form of fiat money. If I'm forced (as in "I shot you") to use US$ or €
to be paid and pay and someone else is able to print them from thin air,
there is not a real free market. Because there is a player able to
obtain a mean of exchange free in whatever quantities he like to have.
So we have the ECB printing one trillion € to loan at 1% at the banks at
no cost (not even the need to print paper). But I (and  all others) must
work my ass off for hours for few € and compete with them in the market.

> How would switching to a
> currency backed by a rare commodity change that except by inflating
> the price of the commodity and deflating the currency in question?
> Imagine that China switched to using gold coins tomorrow, how would
> that affect Italy, Brazil, or the U.S.?

I already wrote this.
This would force a balanced budget for the government, a balanced
import/export account, more prudence in investments.
This would force higher interest rates and support accumulation of
capital for all and not speculations.
In the not long run it would reduce unemployment.
It would force government to revise their absurd legislations and
abrogate large chunks of them.

Mirco