Response to Universal Currencey

In this post I am writing in response to Unique's post on Universal Currency. I agree completely with Unique's negative point of view of adopting a universal currency system. I have found several further evidence that dates back over a century that outlines some of the essential problems of using a universal currency system.

From a New York Times article published on January 28, 1858, the editor of the NY Times wrote an article suggesting the "ignorance" and foolishness of economists to try and adopt a universal currency system. The editor suggests that gold and silver had been used for centuries for "a half civilized and Barbaric" world and that no advancement had been made to currency valuable enough to replace gold and silver. Even when all the countries in the world have their own currencies now, I still believe that we are still ultimately "a half civilized and barbaric" world. Just look at all the investors buying gold as soon as the value of the dollar dropped. Look at the U.S. and their huge stockpile of gold at Fort Knox. According to the World Gold Council, in September 2008, the US still had 8,133.5 tonnes of gold reserve. When the state of one's currency is in doubt, we as the human race tend to resort back to our ancestor's currency in the form of gold and silver.

The next valid and the most crucial point the the editor of the NY Times make, is that you would have to find someone powerful enough to force your currency or the newly proposed currency on all the nations of the world. The editor proposes this person to be of equal fame as "Alexander or Julius Caesar". For the proposed currency to take affect, the world would need a world leader who would be able to convince the rest of the world that it would be in their best interest to partake in this option, which could be very unlikely.

So for now, in my opinion, a universal currency sounds like an ideal, yet unpractical idea. Through much research and many negotiations, I believe that it can be achieved and this is proven by the most of the countries in Europe taking part in the Euro, but I do not see it being a success in the near future.