The planet Earth has seen its share of crises, from natural disasters to full out war. But among the most frightening are the disasters of the financial sort.
Back in 1994, the Tequila Crisis in Mexico brought the peso up from 4 to 7.2 to $1 in just one week, and later in the decade Thailand reached its lowest point of 56 Bahts to $1. So what happens when things like this strike? Exhange rates suffer and the value of local currency goes way down virtually shunting millions of people into poverty in a matter of hours. Even just a few years ago in 2008, Zimbabwe suffered the worst inflation crisis in history. By the end of the year, it took 66 billion Zimbabwe dollars to buy just one US dollar. Things got so bad that the people of Zimbabwe abandoned their currency and now use that of other countries to this day.
As if that wasn’t bad enough, there is a growing concern of WWIII breaking out: over currency. Government superpowers from Germany to Brazil have expressed worry that the world isn’t far from a currency war. Naturally there has been talk of how to possibly avoid that possibility and while it is a simple solution, it isn’t easy.
Is switching to a universal global currency an option? Let’s look that the facts. A global currency will offer developing countries a good start in their growth to catch up and an “even playing field” for fair trade and manufacturing. Take a look at the infographic below to learn more about the future of money.
The Euro hasn’t exactly been a success, hence why the UK hasn’t opted in so the notion of a world currency is just pie in the sky. Unless there’s some sort of apocolyptic event just around the corner….