What would happen if the world stopped using money?
The world without money - what would happen by stopping using money?An extreme question, very hypothetical - nothing happens and everything at the same time. What an idea almost hypnotic.It comes down to an attempt. Refuel your car with no money, got something to eat, let the physician supply, etc...Mundi sine pecunia! Die Welt ohne Geld!In German there is a manner of speaking: What rhymes that's good!Who asks this question, it will have meant something. Maybe he is an idealist and hangs on reconciliation fantasies or he has a plan and knows the solution.What would be the replacement for the money? There was a time before the money and it will be a time after money. As the first money was introduced (2000 BC), it was the replacement for the bartering, everyone knows it! What will come after the money, what will be the replacement, again the barter system or the same under a different name?Who wants to think about the world without money, must find an equivalent for the value, because not everything is equal by value. But maybe that's the idea behind this question. Everything has the same value, nothing is more valuable.If you need gasoline, then you go to the gas station and if you want to have 20 liters, the pump attendant then will ask you for your "obolus". What will you offer him, what he needs or what he does not need?You could bake bread for him, but how many do you have to bake for 20 liter petrol and he needs ever so much bread?So I'm looking forward to the following answers. A world without money would mean everything would be the same are applicable and nothing.People would argue until they have recovered the money back, so that they something imply. Or we run a culture of renouncing, then we are at the idealists and dreamers, of which I am undoubtedly belong to ... hand me the dreams only, they need not be true.The question have to be. Who would you get your 20 liters gasoline from the pump attendant without money or what do you spent for teaching your children at school?Finally by the way Elians do not go to an ABM, they do not need money for their activity of daily life. I think living without money will be as living as an Elian.
What would happen if the whole world had the same currency?
A lot of things would become easier - sending money overseas, travel, online shopping too.And a major part of the financial services industry would be put out of business.But.When a country has its own currency, it enables that country to control its own money supply.It can raise interest rates when inflation gets too high (and when prices rise too quickly) in order to make borrowing more expensive and make saving more appealing, and in doing so slow the economy down.It can also lower interest rates in order to make borrowing cheaper and encourage more investment, and discourage saving money, and in doing so speed the economy up. It can take steps to deflate its currency, making it cheaper, and therefore make its exports more appealing to other countries.With only one global currency, no one country could take these steps, and therefore all countries lose these vital tools in controlling their own economies.A case in point is the Greek Euro crisis a few years ago. Greece got into severe financial difficulties, but as a member of the Euro (having given up the Drachma many years ago) it could not deflate its own currency and was therefore hamstrung in its attempts to solve its own economic problems - the interest rates and money supply of the Euro being set by the European Central Bank in accordance with their view of what was best for the Eurozone overall (which tends to favour the strongest economies such as Germany), not one particular country.A single global currency would give us this problem, but on a completely global scale.Without this ability to control currencies, the only levers left for individual countries to control their economies would be things like taxes and capital controls (attempting to prevent the movement of money in and out).And it wouldn't be long before at least one country decided that they wanted to reestablish their own currency to give them back the controls they'd lost.
What would happen if the United States stopped the importation of all goods and services from China tomorrow?
You're probably thinking that removing China from the equation will "help" the US economy by bringing more jobs back to the US. People who have this kind of logic are missing half of the picture. Yes, such a move will bring manufacturing jobs back to the US, but what about everyone who don't work in manufacturing? American factory workers will no doubt be happy, because their earnings and job prospects are now better. But for everyone else, their everyday goods (clothes, appliances, electronics, furniture, tools, etc) will be much more expensive, possibly many times more expensive. So in effect, such a policy would increase the income of manufacturers while reducing the disposal income for everyone else.As a matter of fact, US businesses will start to suffer as well, because China manufactures a lot of intermediate goods too, like steel, construction material, building modules, etc. If these all become much more expensive, it'll significantly raise the costs of producing goods, maintaining equipment, and constructing infrastructure. All of this means that hiring of US workers will stagnate and economic growth will slow.Finally, from China's point of view, without the US market as an export location means that Chinese workers will be making far less. This means that they'll also have less disposal income, and will respond by purchasing less goods, especially those imported from the US since US-manufactured goods are more expensive. In other words, stopping trade with China is a double-edged-sword; the US will stop importing Chinese goods, but also reduce much of its own export potential.See, it's always tricky when making economic policy, because there's simply no policy that's 100% good for everyone. It's always a tradeoff. Are you willing to reduce the quality of life for most American people just to help American manufacturers? If so, then go for it.
What Happens if China And Russia Drop The Dollar?
What would it mean for them to "drop the dollar"? Is China going to sell its $900 bilion worth of U.S. Treasuries? Is it going to stop paying for oil and other imports in dollars? Is it going to stop pegging its currency to the dollar? What would it mean for Russia to drop the dollar? If China were to let its currency go free on the foreign exchange markets, everyone in the world would be ecstatic: U.S. trade deficit would shrink; other underdeveloped countries would be able to sell more; Chinese inflation would go down; etc. If China were to change its peg from the dollar to the euro, the U.S. would be ecstatic, the Europeans in a panic, and nothing much would change. http://krugman.blogs.nytimes.com/2009/12... If China were to stop using the dollar to buy things, it would have to stop buying things. China has currency controls which make the yuan almost useless. If China were to do away with the currency controls, then it couldn't keep the yuan pegged to the dollar. If it did float the yuan, then, as above, everyone would be happy and China could pay in whatever currency it wanted. It wouldn't change the fact that the prices were marked in dollars. If China were to stop buying U.S. Treasuries, it would raise U.S. interest rates a bit which would lower the value of the U.S. Treasuries China now holds, but have very little other effect. If China were to sell all its U.S. Treasuries: the dollar would go down in value, which would be good for the U.S.; China would lose a lot of money on the sale, which would be bad for China; U.S. interest rates would go up a bit; etc. In short a major loss for China, a mixed gain/loss for the U.S. http://www.nytimes.com/2010/01/01/opinio... As for Russia, it has far less clout on the world economic stage than does China. It would be a big loser and the U.S. would hardly notice.
What would happen if everyone used bitcoin instead of their local currency?
The value would certainly increase, the supply would get used faster, and everyone would know about BTC. The altcoins might also get major attention and expand. Also international trades would be much easier because every nation would be using the same currency, duh.
What would happen if oil suddenly stopped being priced in US dollars?
A fundamental strength of the USD, in terms of its purchasing power of goods and services around the world, is the demand of people who furnish those goods and services for these bits of paper. The agreement among a significant number of national oil companies (“NOCs”) around the world to only sell oil in exchange for USD forces the consumers of oil around the world to keep sufficient reserves of these bits of paper on hand so as to purchase the oil they need.The net effect is that, in addition to domestic demand within the US for USD, there is extra demand for them from foreigners who intend to purchase oil from those NOCs who only sell in USD. If the NOCs around the world were to offer to sell oil in exchange for things others than USD, global demand for USD would be reduced (not eliminated, but reduced).Under those conditions, there would be fewer buyers of USD at US Federal government auctions of debt and the final sale price of new US Federal debt would drop, translating to higher yields on that debt for the other purchasers. This means that the yields for Treasury debt would increase, translating to higher interest rates (cost of capital) across the entire US economy.Federal Reserve Board (the US equivalent of the Central Bank for USD) actions aside, the current interest rates paid by US domestic people for everything from automobile loans, to real estate loans to business development loans to accounts receivable loans, to student loans would go up. By how much is any economist’s best guess. However, the increase would be significant, when measured against the current 1%-2% which Treasury notes current yield in the secondary markets.This, in turn, would generate downward pricing pressure on everything from cars to real-estate to business assets such as production facilities.That would be the net effect of a decoupling of global oil sales in USD. Currently, European, South American, African and Middle Eastern NOCs participate in this agreement. The significant producers who do not are Iran and Russia. Iran and Russia represent about 12 million barrels per day (mmb/d) of production out of a current global 97 mmb/d as of this writing. Effectively, the producers of roughly 14% of global oil supplies accept something besides USD in payment for their crude oil.If that 14% ratio were to increase, interest rates for everything would increase within the US economy… by a lot.