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When people lose faith in their currency

Posted: Thu Jan 31, 2008 3:58 pm
by onepence
Remarks by Deputy Secretary Robert M. Kimmitt at the Virginia Military Institute ... 175771bfa7


{ dh note : chummy chummy intro ... }


Consider how important a stable currency is to daily life – we need to know that the currency we hold will maintain its value. When people lose faith in their currency, as happened, for example, in Weimar Germany in the 1920s, the result is economic chaos. Moreover, they may try to replace their currency with more reliable substitutes, such as gold or foreign currencies, which only exacerbates the problem.

In 2004, Treasury helped the Government of Iraq develop a new currency. The introduction of the new Iraqi dinar required the printing of 2,300 tons of currency at facilities around the world, the shipment of this currency to Iraq via Boeing 747s, the circulation of this currency to 250 distribution points around the country, and the hand-to-hand exchange of the currency. About 2 billion banknotes have been successfully swapped, and the result has been a stable Iraqi dinar that is widely used by Iraqis.



dh note :

only Faith has value within any relationship