|
|
|
The dollar coin brings up something we have discussed previously. With the exception of a period of time for gold certificates, the USA has never declared its coins or currency to be devalued or to be obsolete. Britain, Australia and Canada have done so with their $1 and $2 bills and the 1-pound notes by declaring them to have no value to force the coin into acceptance.
Americans are stubborn to accept change to their money - remember the fuss over the new security features such as mylar strips? The state quarter program and the presidential dollars have loosened people up for collecting purposes, but overall the size and basic feel of our coins has not changed in 100 years (except for the dollar coin's reduction in size and the removal of silver content). Other than Switzerland (another strong intenrational currency), notother country can make that claim.
I still believe it is the reluctance to change that helps keep the dollar in demand overseas - not only is the American economy one of the strongest and most reliable (present history perhaps excluded - although are are not alone), but when you pick up a $20 bill in Korea or a $1 bill in Germany, you know it is still valid and American. It is not like the old state bank currency that lost value as it got farther from home, and it is not like Zimbabwe, Argentine, or Mexican money where you have to know the rate of exchange and the expiration date before accepting the currency. I dare say it is like American Express travelers checks used to be - accepted everywhere because they were backed up no matter what (AmEx used to automatically pay even the counterfeit and stolen checks to maintain confidence in its system).
Think of this: if someone hands you a piece of genuine foreign currency (laying aside obvious counterfeits), you ask yourself "what's it worth" (exchange) and "is it still valid" (legitimacy)? No one in the world asks that about American currency. And as long as we stubbornly refuse to change, no one will.
|
|
