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Re: stock "market"?

Please help make the Manifesto better, or accept it, and propagate it!
"MV" <maxv@vsnl.com> wrote:

I fully agree with Mr.Srinath money is an abstract
tool for representing/quantifying the value of goods
and services.

In the current International monetrary system, this
abstract tool itself is changing every day, it is like
if the meter changes it's length every day, you can
imagine what it will do to mesuring length.

True globalisation of trade in goods/services will
come into effect only when we use a common monetary
system like we have a common measure, *meter* for


True. A system in which the caliberating meter itself keeps changing often is
necessarily unstable. 

Historically international trade was configured in a hierarchical fashion.
Commodities were exchanged by individuals inside a system using money; and
systems exchanged money using the exchange rates. 

But since globalization and opening up of markets (free flow of goods and
services, etc.), this hierarchical setup puts entire systems at a higher or
lower level to other systems. In addition, success breeds success. Once a
currency enjoys a greater buying power w.r.t. another; there is more
motivation (in a globalized setup) to meet the demands of this system so as to
earn in denominations of the stronger currency. As a result the currency
becomes even stronger and the weaker one becomes even weaker. This prompts
calls for protectionism and government intervention in the weaker system;
which scares away foreign investors and brings down the currency further. 

It is difficult to see how this would evolve in the coming years. But whatever
it is, there are going to be a lot of conflicts and struggle and
victimizations of people who have unwittingly strayed into some losing vicious


Ideas for India: Building the future -- together 

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