Wednesday, April 25, 2007

The New World Currency

Do you ever consider the possibility that the money you work so hard for could be gone from your pocketbook in the next few years? Quicker then you might think, currency as we know it, is changing. Necessity for efficiency is transforming the flow of cash into a digital form. The use of e-currency is quickly spreading throughout the world. Everyday, more and more people are making purchases online. These purchases are being facilitated by companies like Paypal, E-Bullion, E-Gold and Net Pay. The digital age is definitely upon us, and with the new forms of commerce, comes new forms of opportunity. With the advent of these E-currency companies, trade between different countries is suddenly becoming easier and more profitable. New products and services are quickly filling the need for the flow of money. The one constant still remaining is the ever present, currency exchange rates. To avoid these fluctuations and exchange fees, companies have facilitated their transactions with the global currency of gold. Some online e-currency companies now tout that their holdings are 100% backed by gold. This no longer is true for any of the national currencies now in existence. The United States for example, has not had 100% of their currency backed by gold, since the end of the gold standard in 1914. The value of the U.S dollar continues to decline, as the value of gold rises steadily. Due to national inflation, the cash you hold in your hand will continue to lose value. Unfortunately, there is not nearly enough gold to cover all of the paper money holdings. That money you hold in your hand is basically a loan from the government. The tenet of many governments, when they fall on hard times, is to print more money. This fact has led to the desire for more worldwide corporations to embrace the idea of a worldwide currency.

By Matthew Sherborne

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