{"id":57426,"date":"2021-04-07T06:45:40","date_gmt":"2021-04-07T11:45:40","guid":{"rendered":"https:\/\/olduvai.ca\/?p=57426"},"modified":"2021-04-07T06:45:40","modified_gmt":"2021-04-07T11:45:40","slug":"what-gives-value-to-a-currency","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=57426","title":{"rendered":"What Gives Value to a Currency?"},"content":{"rendered":"
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What Gives Value to a Currency?<\/a><\/h3>\n<\/div>\n
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QUESTION:<\/strong>\u00a0Hello Martin, can you explain to me how a currency would sustain value for international trade if a country, like Canada (where I live), did what you suggested and stopped issuing debt and just printed money to level that was 5% \u2013 10% of national GDP? would it depend on the attractiveness of what a country exports eg: Canada exports oil, lumber, crops like wheat\/soy\/canola, minerals \u2013 both precious and functional? What would happen to a country that didn\u2019t have exports as a significant portion of it\u2019s GDP? I am curious about how currencies would react to your restructuring plan that eliminated the need for a country to issue debt. Thanks for all your insights and theories. Very helpful.<\/p>\n

Trapped in Canada with an egoistic misguided Prime Minister who doesn\u2019t appear to like Canada (he keeps telling us how awful we are) or Canadians, he prefers spending time with global elites and is following their plan even though it damages Canada pretty significantly.
\nMB<\/p>\n

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ANSWER:<\/strong>\u00a0Right now, every country spends more than it takes in. The deficits are funded by selling debt, which then competes against the private sector. The interest rates rise and fall on sovereign debt based upon the confidence from one week to the next. If they stopped borrowing, then the capital investment would turn to the private sector, creating more economic growth. If income taxes were eliminated, the economy would grow based upon innovation which is what it should be driven by.<\/p>\n

The confidence in the currency would simply depend upon the strength of the economy, as was the case for Athens and Rome in ancient times. Their coinage was imitated because they were the dominant economies of their time. The value of a currency is the strength of its economy…<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n

currency, currency value, money, martin armstrong, armstrong economics, money printing, debt,<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

What Gives Value to a Currency? QUESTION:\u00a0Hello Martin, can you explain to me how a currency would sustain value for international trade if a country, like Canada (where I live), did what you suggested and stopped issuing debt and just printed money to level that was 5% \u2013 10% of national GDP? would it depend […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5496,951,31122,195,5479,536,538],"class_list":["post-57426","post","type-post","status-publish","format-standard","hentry","category-economics","tag-armstrong-economics","tag-currency","tag-currency-value","tag-debt","tag-martin-armstrong","tag-money","tag-money-printing"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/57426","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=57426"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/57426\/revisions"}],"predecessor-version":[{"id":57427,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/57426\/revisions\/57427"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=57426"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=57426"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=57426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}