Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
NVIDIA THE KING OF THE METAVERSE! - 10th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
MATTERPORT (MTTR) - DIGITIZING THE REAL WORLD - METAVERSE INVESTING 2022 - 7th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
METAVERSE - NEW LIFE FOR SONY AGEING GAMING GIANT? - 6th Jan 2022
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

What Currency Has the Highest Purchasing Power?

Currencies / Fiat Currency Mar 30, 2016 - 07:54 AM GMT

By: BATR

Currencies

Establishment economists are the first vindicators that having a weak currency is essential to foster international trade. The utter absurdity that a nation can prosper when their coin of the realm buys less is inherently illogical. Yet, for the globalists, maintaining the myth that promoting exports in a system that is designed around transporting our domestic manufacturing capacity overseas is intellectually incongruent. So what is the essential argument for having a strong currency?


If you are an economic nationalist, you will agree with Stephan Smith, when he acknowledges in How a Strong Currency Affects an Economy.

“There is really only one advantage to having a strong currency and that advantage isn’t usually felt buying goods and services where parts and components are obtained, manufactured and sold all in one country. It takes international trade and the use of different currencies to be able to feel the benefit. The primary benefit of a strong currency is to be able to get foreign goods and services at lower prices. That’s it.”

Now if you disagree that this objective is the rational objective, you are in need of serious reflection if you have lost your mind. At the outset, all fiat currencies are based upon the power of implemented confidence or imposed exchange limits. Floating rates have little to do with free markets. Currencies are a measure of national policy and globalist objectives. So when the U.S. Dollar is favored with reserve currency status, it is based upon the Bretton Woods dictates that America was the World War II victor.

Much has changed since that era. The world economy has become a petroleum based environment. Reflecting this reality has the 10 Most Expensive Currencies in 2016 disproportionately represented by several oil rich minor countries.

“As of January 19, 2016, the most expensive currency in 2016 is not the U.S. dollar, the British pound, or the euro. Surprisingly, the most valuable currencies in the world don’t always belong to the wealthiest economies.

The following list of currencies gives the U.S. dollar a run for its money when it comes to the most expensive currency in the world. All exchange rates are as of January 19, 2016.”

1. Kuwaiti Dinar (KWD) One Kuwaiti dinar buys US$3.28

2. Bahraini Dinar (BHD) One Bahraini dinar buys US$2.65

3. Omani Rial (OMR) One Omani rial buys US$2.60

4. British Pound (GBP) One British pound buys US$1.42

5. Euro (EUR) One euro buys US$1.09

6. Swiss Franc (CHF) One Swiss franc buys US$0.99

7. Libyan Dinar (LYD) One Libyan dinar buys US$0.74

8. Bruneian Dollar (BND) One Bruneian dollar buys US$0.70

9. Singapore Dollar (SGD) One Singapore dollar buys US$0.70

10. Australian Dollar (AUD) One Australian dollar buys US$0.69

Half of the currencies on this list may be a surprise to most. Without the reliance upon oil, what exactly would these Arab notes be worth? However, just having a favorable exchange rate does not necessarily guarantee access to all the goods and services that would normally be associated with affluence.

While, many Arab states have developed the most modern infrastructures on the planet, their oil assets do not ensure that their wealth is secured going forward. As the American war machine deploys into the region, so goes the risk and downfall for regimes that no long provide a favorable advantage against the latest villain that is targeted for removal.

Erik Townsend is quoted in Prepare for the Death of the Petrodollar, “The petrodollar system breaking down, where oil is no longer paid for in dollars internationally, essentially would be the death knell to the U.S. dollar as the reserve currency. It means the U.S. can’t borrow with ‘exorbitant privilege’ anymore, and it means the U.S. Treasury market is set for an out-of-control interest rate spiral.”

The elimination of Saddam Hussein and Muammar Gaddafi had much to do with their intentions and plans to dump the dollar as payment for their black gold. While both failed to produce a lasting alternative, the economics of the depressed price of oil, in dollars; has created other alliances.

Most notably, Russia and China: The Dawning of a New Monetary System?, ask if the major powers can precipitate the final demise of American hegemony.

“The US is able to maintain pressure on other currencies, currently the ruble, only as long as the petro dollar remains the major world reserve currency. This is the main reason why Washington gets away with a seven-fold indebted dollar (i.e. total outstanding and uncovered commitments are currently more than 7 times higher than the US GDP (US$ 17.6 trillion, 2014 est. – vs. US$ 128 trillion of unmet obligations); making the US worldwide the most indebted country – by far.”

While the fall of the U.S. Dollar does not seem imminent, the empirical reality of paper debt obligations is inescapable. Yet, the important point is that recent history has indicated that these insurmountable financial obligations just do not matter very much when it comes to a soaring dollar.

Melissa Parietti contends in The 6 Strongest Currencies Vs. The U.S. Dollar in 2016 that, “The Fed's recent federal funds rate increase to 0.25% is an indicator of future strength for the U.S. dollar. As it stands, U.S. currency has one of the strongest exchange rates in the world. After the fall of euro over the past two to three years, the dollar has made additional gains over the yuan and the yen. This may position the dollar for more future gains against these currencies.”

What kind of upside down world exists in exchange rate trading pits? For that answer, examine the methods and schemes used by the central banksters for controlling the financial wealth of the major geopolitical players.

For in the end, the settlement on all currencies has more to do with power politics than fundamental economics. Bretton Woods did not establish a market based floating rate monetary system, but did create a New World Order central banking manipulation cartel. Odds are this plot will only mutate into a newer version of the age old money changers exchange.

Source: http://www.batr.org/corporatocracy/033016.html

Discuss or comment about this essay on the BATR Forum

http://www.batr.org

"Many seek to become a Syndicated Columnist, while the few strive to be a Vindicated Publisher"

© 2016 Copyright BATR - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors

BATR Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in