by iiivix

Created on: December 03, 2007

A unified currency would help save America's failing economy. Many U.S. based coporations are international and thier domestic divisions are being out-sourced to cheaper workers to provide cheaper American goods. The problem arises because these companies resources are spread across multiple countries, but they keep their upper levels in the U.S. Trillions of american dollars are lost yearly due to volatile currency exchange rates.

Many factors contribute these loses such as paying for foreign wages and resources. When money is exchanged internationally there are financial costs to converting it. There are the fees involved in converting between currencies, cost of time lost making sure that the right amount of money was used, and loss of value in our remaining money. When a dollar is converted to a Yen, Euro, or other currency that foreign economy is strethened whereas our american economy is weakened.
It's a matter of the trade deficit. Since we buy more resources then we sell a unified global currency is the only immediate solution to stabalizing our economy. When we buy foreign goods our economy is weakened, because our dollar isn't worth as much as before. When we sell domestic resources our economy is strenthened, and our dollar is worth more. If we all used a single currency globally the value of our money would remain static across all countries, no matter where the money was.
To the naysayers I give reference to the Euro that strethened the European ecconomy and continues to do so today. Technically the dollar is the same as the Euro in theory. When America was in its infancy there was no dollar. There was differing money between cities and state because it was regulated by individual banks and state treasuries. Often times these banks and states didn't recognize the other currencies, or couldn't keep track of values between them. Much confusion pursued until a federal dollar was created. After so the American economy became what it is today.
Now we aren't spending money just domestically, so we need an accepted international currency. Otherwise we can just burn away cash in confusion and hope the problem will take care of itself.

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