Burning One World Currency ; Monetary Competition Is Safer Than Centralization

Summary

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The Group of 20 gave a nod to the idea of a single world currency last week, and other countries such as China are pushing it because they no longer trust the United States to restrain itself from printing too much cash and debasing the dollar. While we share China's concerns about the danger of Washington over-printing money, there are numerous reasons to avoid a global currency.

Any currency, including a single world currency, can be debased. But more importantly, if too many dollars are being pumped out, people can start holding other currencies such as the Euro. If businesses and people don't trust the government issuing a particular currency, they can write contracts in whatever they want. With a single world currency, there is nowhere else to go. As a general rule, competition is good - and money is no exception.

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Burning One World Currency ; Monetary Competition Is Safer Than Centralization

Even more competition in currency wou...

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