We all talking about the money all the day, work for it and spend it but do anyone think that from where the value of this currency is maintained, why the Dollars are having more value than someother currency. Just think and give your thoughts.
chankya 0 Newbie Poster
Recommended Answers
Jump to Post— EnderX 352No, it comes from the imagination. It's like Tinkerbell(sp?) in the old Peter Pan plays...
"I do believe in the (yen|dollar|euro|rupee)! I do believe in the (yen|dollar|euro|rupee)!"
We ever stop believing, and there's going to be an interesting run on usable goods and precious metals.
Jump to Post— sneekula 969Money comes from working hard enough not to get fired, and getting paid enough not to quit!
Jump to Post— EnderX 352No, that's 'value', not 'money'. Money is the mythical stuff used to tally value.
Jump to Post— ericstenson 5The US dollar comes, in part, from North Korean printing presses.
Jump to Post— ZZucker 342because then inflation will go mad. Thats what lead to hyperinflation in germany, which contribited to the wall street crash and the rise of naziism
The hyperinflation in Germany was caused by the accumulated cost (mostly debt) of WW1, and the huge reparations they had to pay when they lost. …
All 42 Replies
nav33n 472 Purple hazed! Team Colleague Featured Poster
Welcome to Daniweb!
why the Dollars are having more value than someother currency.
What about pounds and dinars ?
Infarction 503 Posting Virtuoso
Vastly oversimplified answer: GDP.
technogeek_42 -20 Posting Whiz in Training
how about the peso?
zandiago 115 Nearly a Posting Maven Featured Poster
Lots of countries put themselves in unnecessary debt...therefore there will be devaluation of the currency.
Ancient Dragon 5,243 Achieved Level 70 Team Colleague Featured Poster
>> From were Money Comes???
Many people think it comes off a money tree. And the plastic cards everyone in USA seems to have today have made paper money less useful. I assume many other countries such as UK also has simpliar experience with plastic.
EnderX 352 Posting Shark
>> From were Money Comes???
Many people think it comes off a money tree.
It's not a tree, it's a small plant.
scru 909 Posting Virtuoso Featured Poster
It's not a tree, it's a small plant.
Indeed. Hasn't anyone else played the Sims?
nav33n 472 Purple hazed! Team Colleague Featured Poster
Indeed. Hasn't anyone else played the Sims?
Nope. I haven't. How's it ?
sneekula 969 Nearly a Posting Maven
Some coins are worth more in the metal used then they have purchase power. For instance the US 1 cent coin (made from zinc and copper).
MidiMagic 579 Nearly a Senior Poster
The value of a country's currency is generally the value of the total productive work done in the county, divided by the number of units of the currency (e.g. dollars) in circulation.
Productive work is work that produces a product to be sold on the open market.
Ancient Dragon 5,243 Achieved Level 70 Team Colleague Featured Poster
The value of a country's currency is generally the value of the total productive work done in the county, divided by the number of units of the currency (e.g. dollars) in circulation.
Productive work is work that produces a product to be sold on the open market.
I suppose that is only part of the equation and doesn't explain the day-to-day fluxuation in the world money market. Like many other things the value of one country's currency is what other countries are willing to pay for it on the various stock exchanges around the world.
RJFoertsch 0 Newbie Poster
A good way to think about the value of a currency is by looking at it as any other good. The value of a good is determined by supply and demand. Just as the value of a bushel of wheat is determined by how much wheat is available, the value of a currency is determined by how much is available on the market (in which the value is represented by either the interest rate or the exchange rate, depending on which model you're looking at).
From the interest rate perspective, it comes down to investment and saving. If businesses sense that the economy is going to slow down, they will demand less loans (they will not want to invest in new capital projects), resulting in the interest rate falling.
From the exchange rate perspective (world market), it comes down to the demand for a nation's goods. I need to convert my currency into the Euro if I want to buy a European good. Therefore I will "buy" European currency, resulting in less Euros on the market and increasing the supply of dollars. Therefore the Euro would gain strength against the dollar.
In the end: it comes down to supply and demand, just like any other good.
vegaseat 1,735 DaniWeb's Hypocrite Team Colleague
What currency are you using to buy oil from Saudi Arabia or manufactured goods from China?
RJFoertsch 0 Newbie Poster
Generally, oil is traded in US Dollars. With a globally important resource like oil, it is easier to trade with a large, stable currency. (The US has about 1/4th of the world's GDP, and even though we've had some problems combating inflation/recession these past few quarters, we are still stable when you look at the last 30 some years).
As for the other part of the question, the Chinese currency is the Yuan.
Dave Sinkula 2,398 long time no c Team Colleague
Ancient Dragon 5,243 Achieved Level 70 Team Colleague Featured Poster
MidiMagic 579 Nearly a Senior Poster
I suppose that is only part of the equation and doesn't explain the day-to-day fluctuation in the world money market. Like many other things the value of one country's currency is what other countries are willing to pay for it on the various stock exchanges around the world.
My equation was long term.
Short term variations are caused by interest variations, government changing the interest rate, hirings and firings, and world markets. But those cause blips, not long-term changes.
ericstenson 5 Posting Whiz in Training Team Colleague
i don't know... but does anyone else feel like the new colorful $20 bill should be worth more than the old $20 bill... or is it just me? (it could very well just be me... :) )
Ancient Dragon 5,243 Achieved Level 70 Team Colleague Featured Poster
>>but does anyone else feel like the new colorful $20 bill should be worth more than the old $20 bill.
I think all new USD looks like monolopy game money. They just don't look right.
>>My equation was long term.
Yes, you are right then.
ericstenson 5 Posting Whiz in Training Team Colleague
negative. i love the new money. should be worth more. qed.
jbennet 1,618 Most Valuable Poster Team Colleague Featured Poster
i think pounds look ncie especially the new £20
vegaseat 1,735 DaniWeb's Hypocrite Team Colleague
Where does money come from?
In developed countries it comes from a place called "the mint". In some countries it comes from a place called "the dictator's garage".
EnderX 352 Posting Shark
No, it comes from the imagination. It's like Tinkerbell(sp?) in the old Peter Pan plays...
"I do believe in the (yen|dollar|euro|rupee)! I do believe in the (yen|dollar|euro|rupee)!"
We ever stop believing, and there's going to be an interesting run on usable goods and precious metals.
sneekula 969 Nearly a Posting Maven
Money comes from working hard enough not to get fired, and getting paid enough not to quit!
EnderX 352 Posting Shark
No, that's 'value', not 'money'. Money is the mythical stuff used to tally value.
ericstenson 5 Posting Whiz in Training Team Colleague
The US dollar comes, in part, from North Korean printing presses.
MidiMagic 579 Nearly a Senior Poster
Have you noticed that the new money is the same color as the monopoly money of the same denomination?
sneekula 969 Nearly a Posting Maven
The US dollar comes, in part, from North Korean printing presses.
To bail out the realestate speculators and flippers, the government is printing money in overtime. They may thave asked the North Koreans to help out.
DiskTek 0 Newbie Poster
Money comes from hard work and smart financial decisions. If you fail at either, you'll be asking Where Does Money Go? :D
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