Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19
Stocks Market Investors Worried About the Fed? Don't Be -- Here's Why - 13th July 19
Could Gold Launch Into A Parabolic Upside Rally? - 13th July 19
Stock Market SPX and Dow in BREAKOUT but this is the worrying part - 13th July 19
Key Stage 2 SATS Tests Results Grades and Scores GDS, EXS, WTS Explained - 13th July 19
INTEL Stock Investing in Qubits and AI Neural Network Processors - Video - 12th July 19
Gold Price Selloff Risk High - 12th July 19
State of the US Economy as Laffer Gets Laughable - 12th July 19
Dow Stock Market Trend Forecast Current State - 12th July 19
Stock Market Major Index Top In 3 to 5 Weeks? - 11th July 19
Platinum Price vs Gold Price - 11th July 19
What This Centi-Billionaire Fashion Magnate Can Teach You About Investing - 11th July 19
Stock Market Fundamentals are Weakening: 3000 on SPX Means Nothing - 11th July 19
This Tobacco Stock Is a Big Winner from E-Cigarette Bans - 11th July 19
Investing in Life Extending Pharma Stocks - 11th July 19
How to Pay for It All: An Option the Presidential Candidates Missed - 11th July 19
Mining Stocks Flash Powerful Signal for Gold and Silver Markets - 11th July 19
5 Surefire Ways to Get More Viewers for Your Video Series - 11th July 19
Gold Price Gann Angle Update - 10th July 19
Crude Oil Prices and the 2019 Hurricane Season - 10th July 19
Can Gold Recover from Friday’s Strong Payrolls Hit? - 10th July 19
Netflix’s Worst Nightmare Has Come True - 10th July 19
LIMITLESS - Improving Cognitive Function and Fighting Brain Ageing Right Now! - 10th July 19
US Dollar Strength Will Drive Markets Higher - 10th July 19
Government-Pumped Student Loan Bubble Sets Up Next Financial Crisis - 10th July 19
Stock Market SPX 3000 Dream is Pushed Away: Pullback of 5-10% is Coming - 10th July 19
July 2019 GBPUSD Market Update and Outlook - 10th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

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

6 Critical Money Making Rules