HappySqurriel on 23 September 2011
There is no problem with a international/global currency, there is a lot of problems with all fiat currencies ...
If you had an international central bank where each dollar represented 1/100th of an ounce of gold, and every dollar in circulation had to be backed by 10% of its value in gold held in reserves, it wouldn’t matter how many countries were involved in this currency union the value of the currency would remain sound. Without rampant inflation governments would be (more or less) forced to be fiscally sound, saving money and sound investments would be rewarded rather than credit driven spending and speculation, and a healthy economy would emerge.
