Originally posted by walesa:
Granted, SGD is not pegged [b]exclusively to the USD. As
you've alluded, the USD is the "most common currency" and the USD
plays as integral a role (if not more so than any others) as any
other currency in the "basket of currencies" in influencing the
worth of the SGD in the FX market. So if your argument that the US
could print as much money as it wants were sound, why can't the SGD
print as much as it likes too?
I've never seen more drivel than points 1 and 3 (especially point
3) of yours - try telling me you've actually done any course in
economics. As a matter of fact, the USD is pegged to gold. Just
what on earth are you on about when you say the US is the "only
nation that can print money for free"? If they could, they'd have
cleared their national debt!
Seriously, have you got any idea how gold is traded as a commodity
(or even how commodity markets work)? Or is that something not
covered in your textbooks and you're resorting to conjuring up the
missing bits from your textbooks in your mind to
assume that's how things work?[/b]
a) If USD is still peg to gold and not
traded in the open market, then why is the value of USD not moving
in tandem with gold price?
b) In 1995, there are US$380 billions note in circulation with
around 2/3 outside USA. In 2005, this number double to US$760
billions. Who is printing it?
c) Economist Paul Samuelson and others maintain that the overseas
demand for dollars allows the United States to maintain persistent trade
deficits without causing the value of the currency to
depreciate and the flow of trade to readjust
I suggest that you just keep you discussion to currency, because
that is already overwhelming for you.
