Friday, November 16, 2012
Have Fiat, Will Not Use It
They have their dinar, but don't know how to use it?
Can someone tell them that there is, however, a free lunch available at the dinar table?
It's apparently pegged to the $US. If they removed the peg, maybe they could get lunch for everyone.
Another classic case of class warfare, between a 1% fond of maintaining $US price stabililty for things they want, and a 99% interested in efficient access to more basic items such as food, housing & education. Does anyone know the details of why they cling to a pegged currency instead of agile sovereignty? Currency peg and sovereignty constitute an oxymoron.
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2 comments:
" Does anyone know the details of why they cling to a pegged currency instead of agile sovereignty? Currency peg and sovereignty constitute an oxymoron."
It's a form of modern day 'voluntary tribute' Roger. This goes back a long ways where you see these eastern nations paying tribute to the premiere western nations.
This from "The Deeds of Divine Augustus" (c. 15 AD):
" To me were sent supplications by kings: of the Parthians, Tiridates and later Phrates son of king Phrates, of the Medes, Artavasdes, of the Adiabeni, Artaxares, of the Britons, Dumnobellaunus and Tincommius, of the Sugambri, Maelo, of the Marcomanian Suebi (...) (-)rus. King Phrates of the Parthians, son of Orodes, sent all his sons and grandsons into Italy to me, though defeated in no war, but seeking our friendship through the pledges of his children. And in my principate many other peoples experienced the faith of the Roman people, of whom nothing had previously existed of embassies or interchange of friendship with the Roman people. "
Non-western nations just cant seem to help themselves... something keeps drawing their eyes westward...
http://classics.mit.edu/Augustus/deeds.html
rsp,
I once had an email from someone from Jordan whose biggest concern with moving to fiat was how a country that is a very big net importer can keep prices at a manageable level, since the weak currency would create imported inflation?
As well as whether geo-political forces will allow Jordan to gain economic sovereignty, hence shedding the U.S. carrot and stick policies of USAID and other direct funding.
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