Summary:

The value of a country’s currency should be dependent on the value of the real assets it represents, and the effort and resources invested in the products or services being traded, measured in an equitable way, and the premium, if any, payable thereon based on the demand and supply situation. There has to be Trust in the Value of the assets backing each country’s currency measurable in a transparent manner, especially today when the currency is only printed paper which has no inherent value by itself and can be printed by unscrupulous countries to gain an unfair advantage for themselves. Such trust is even more essential when arriving at the Interse valuation of currency between two or more countries.

Highlights

Currency value is today based on the exchange value against the US Dollar.- The US Dollar after 1971 has no clear asset backing and is in demand because the USA has used its military and economic dominance after World War -II, to ensure that it is the only currency one can buy Oil with. – Such valuation is distorted as the USA itself may not need to buy equivalent value products from all those countries that are compelled to buy its Dollars. Other realizable assets of Countries, such as Oil, Minerals and Metal Ores Reserves, can also be generally valued and monetized appropriately.

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