Fears of a deepening of Europe's debt crisis have prompted the world's leading central banks to pump US dollars into the financial system, in a co-ordinated action designed to boost market confidence.
The Bank of England joined the US Federal Reserve, the European Central Bank, the Swiss National Bank and the Bank of Japan on Thursday to announce that they would flood money markets with dollars over the coming months.
The move, on the third anniversary of the collapse of the US investment bank Lehman Brothers, sent shares soaring in banks heavily exposed to debt default by Greece and the other struggling members of the 17-nation eurozone. The euro, which had been falling in recent days, rebounded, rising roughly 1% in European trading on Thursday.
Speaking in Washington, Christine Lagarde, the president of the International Monetary Fund, said: "They [the banks] are getting together and acting together. To me, that is the most important message."
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Comments: 16
Gold is a traditional form of money. It has the same problems as currency since it is also a physical object money (POM). We need a money which is not a physical object and which does not represent a physical object. Our money should come into existence in our individual accounts when we do something to earn it and cease to exist when we spend it. But that's just touching the surface of how it should be different.
Please read my novel "Invisible Hand" (see my profile for the TofC for the copy of the novel I have posted on Gather or visit my web site for both the text and MP3 copies of the novel. This new form of money is strikingly different from anything you have considered before. That's why I had to write the novel to present it since your mind simply will not grasp it without that context.
It's a fun read as well. :-)
If you cannot get the money that belongs to someone else in any way, how do you take advantage of them to get their money? If it's impossible to get their money, how do you get their money? It's only POM that can be taken against the will of its owner by fraud, theft, robbery, taxes, extortion, blackmail, inflation and so forth. If you had read my novel you would understand what a disaster our current form of money is and what we can do to end it's problems.