News Letter

Problems with paper as money

Due to the ease of production, paper money may lose value through  inflation and, in today's electronic era; vast quantities of money can be created with a few key strokes. Perhaps the biggest criticism of paper money relates to the fact that its stability is generally subject to the whim of government regulation rather than the disciplines of market phenomena. Paper money can be

easily damaged or destroyed by everyday hazards: from fire, water, termites, and simple wear and tear. Money in the form of minted coins is sometimes destroyed by children placing it on railroad tracks or in amusement park machines that restamp it. Mexico has changed its twenty and fifty pesos notes, Singapore its $20 and $10 bills, and Australia and New Zealand their $5, $10, $20, $50 and $100 to plastic for the increased durability. Paper money is also subject to  counterfeiting .

The Future of Money

In recent years, the  Euro was introduced to many nations in Europe, which now almost all use one currency. (The United Kingdom and Sweden are notable exceptions.)

West Africa is proposing to introduce the  Eco, a new currency for 5 or 6 nations, by 2009.

It is speculated that a North American currency, such as the  Amero might come next, or perhaps a unified currency under the  CSN . An Asian Currency Unit  is also proposed.

In the Middle East, many nations use the dinar. An  Islamic gold dinar is also proposed.

In Mexico, there is a movement to return to using silver as money. 

One difficulty with currency blocks unifying paper currencies is that it may eliminate the ability of trillions worth of dollars to be exchanged on currency markets. If this kind of trading were to move into the gold and silver markets, the prices for gold and silver could soar.

Today, gold and paper money can be traded electronically via online systems.