No. I they're all fiat currencies... at least the ones I know of... the problem is that after WWII most other currencies got fixed to the USD, so most of them are even riskier than the USD, since a meltdown in the USD will propiciate a Meltdown in those currencies as well and people will run away from these currencies even faster as they smell trouble. Most people in these countries are used to running for safety to the USD... Looking for safety in another fiat currency is just jumping into another paper boat and hoping this one wont sink, eventhought they're all tied together... The best thing to do, if you ask me... is buying commodities... cause when the currencies sink, commodities float.
One of the big problems for the dollar is the deficit. As it grows larger, fewer countries will be willing to buy US treasuries for fear of not getting paid back. If China was not buying them now, we would have much larger interest rates. If they stop buying them, and oil starts to be traded in euros, we are in trouble. I doubt they will devalue the dollar, it will just become worth far less through the normal exchange ratios.
Having a deficit is not the problem, the problem is what do you do with all that money you're borrowing... Just like when you're looking at a company's balance sheet... if they took a huge loan to develop an innovative product line... then it's a good thing. If they took the loan to pay for the CEO's new summer house... then it's a bad thing.
What you do is promise the money to african and latin countries by way of infrastructure expansion in return for long term commodity supply. This way, if there is a problem it is simply passed down the line and the commodities continue to flow unabated. Everything remains relative.
I hate to say it but you are in trouble and there is no way out. Smart US tech and capital is moving offshore.
I don't know the percentage, although I am sure you could find out, but the Swiss franc is the one currency that still is backed by a percentage of gold on reserve. That is why it is so stable. Along with the fact that the Swiss just make money, not political waves.
Excellent Commentary All... ................................................................................................ The real argument here pertains to the income stream attached to the currency.... It is the income attached to the currency...or whatever the business is...that decides the attractiveness of the momentary value.... Businesses...stocks...bonds...certificates...have continual fleeting shelf lives...and in order for you to enjoy the returns...you need to buy it at the right time... In 1980, 90day TBills paid over 18%.....and just over twenty years later went to 1%.... The Brazilian Real...short term instruments paid over 20%...and the currency doubled in value relative to the dollar in the last 4 years... Money follows performance...and it really does not matter if it is money...a business....real estate.....it does not matter... Most countries...in order to retain ownership in their currencies...have to play continual bait and switch with interest rates... Thus it is not about the currency....it is the performance of the vehicles that it buys...and thus the wealth of the world will follow performance.... Thus attractiveness will always pertain to money and its counterpart....
You have just described the "carry trade". Look to the NZD as a perfect example. And so is the PPT going to offer The Indices to China as the USD wallows. Maybe this was what Hank Paulson was offering on his last trip, in which case the PPT has already sprung into action. No matter how clever the deal, someone has to suffer. Look towards mid America. The bankruptcy laws were not changed just because someone was bored.
Anyway you cut it, the military spending is a hell of a lot cheaper than another 48 million dead in another WWII style war.
The greatest country in the world can send a man to the moon and win any war with a vast array of technology... but 50 thousand children die everyday because they don't have 2 cents worth of sugared water How about putting some of that fucking genius to a real problem???