I've been meaning to start a thread to track and discuss currency debasement, as it is somewhat likely that inflation could be a global issue. In America, we're working on Steel Pennies now. Damn sad state of affairs. http://www.lewrockwell.com/paul/paul440.html
High and/or unpredictable Inflation is a financial evil. It will result in a cycle of periodically rising prices out of sync with the rises in purchasing power and economic standards of people. Inflation is especially bad news for those who just have enough income to make both ends meet.Not to mention people who live off pre-earned/fixed income like retirees.
They have a real problem with people buying pennies and melting them for copper. They are worth 4 times or more than the price.
Don't quote me on this, but I believe Americans can do as they please with Canadian pennies, and likewise Canadians with American pennies. A great and interesting site is coinflation. http://www.coinflation.com/ .
Argentina, Brazil to drop U.S. dollar in bilateral commercial transactions http://news.xinhuanet.com/english/2008-03/16/content_7800121.htm If anyone sees articles like this, where the US dollar is being replaced with local currencies or the Euro, by all means post it. We have exported a lot of inflation, when and how those dollars come back will basically be our economic story...
First and foremost would be our dear Good Friend, Iran, I think they replaced their crude oil trading from USD to Euros. For the rest, most are done on an ad hoc basis when the USD was strong, but nowadays when you travel, paying via USD is no longer much favored. Vendors tend to insist on their own currency or Euros and other more stable currency. It would be sad if we were to see a once great US Dollar turned into a third world banana currency. This is something I would never expected a few years back.
FOX Business: Time to Listen to Ron Paul? http://emac.blogs.foxbusiness.com/2008/03/26/time-to-listen-to-ron-paul/ Choice excerpts... Really good article from someone who "gets it". Recommended reading if you are wondering why inflation is kicking your @ss daily.
Nice piece, illustrates the way that currency debasement is a result of government policy, but in simple and clear terms. Two Cents on the Penny http://www.mises.org/story/2938 Excerpt
I've been thinking about the currency debasement issue and recently I've come to the conclusion that the entire global market is experiencing a sort of confidence crisis in fiat. A falling dollar only explains part of the currency story, and increased global consumption tells only another part that still isn't adding up to the full sum. Commodities is the new money. Funny thing, its the "old money" too (gold standard) Doesn't matter what governments do, because the market is going back to hard assets.