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Global Currency System Broadcast Review

13 April 2009, 11:31

 

When you start delving into the world of currency one thing becomes clear – and that's the fact that it can be very confusing!  That is especially the case when it comes to trading on the foreign exchange markets – more commonly known and recognised as Forex.

While you need to be careful of which videos you choose from YouTube to enlighten yourself a little, there are some which are well worth watching and that shed some light on various aspects of currency and how it affects our lives.

A good example of this is the Global Currency System video, uploaded to YouTube by nataliru and watched by nearly sixteen thousand people at the time of writing. 

The man who presents this short video – which is incidentally only a little less than two minutes in length – starts by telling us that in order to have some success when getting involved in Forex trading we need to understand how currency works in the world as a whole.

The video then shows us a clip from World War II, and tells us something about the state the world was in after the war ended – particularly in Japan and Europe, which had both been bombed heavily.

Now this might not seem to have any relevance at all to the subject of currency, but in fact it does and it is this connection that plays a huge role in the global currency system that we know today.

While some countries had undoubtedly been affected by the war more profoundly than others, there were few who were completely unaffected by it in terms of the global currency situation.  It was because of this that people in a position to do something about it met in the US to figure out how they could bolster the global economy and get the world back on its feet again.

You may have heard of the IMF – the International Monetary Fund – but you may not have realised that it was founded as a direct result of the consequences of the Second World War, and of that meeting which took place in the US.

America then adopted the Gold Standard, and in doing so displaced the British pound – which up until the Second World War had been the reserve currency of choice all over the world.

The video then flashes forward a few years to the 1970s, when the Gold Standard disappeared and the global economy was doing much better than it had been immediately after the war had ended. 

As we said this is a short video, but it is quite amazing the amount that is fitted into the short running time.  It is much like a short two minute history lesson, and yet after you have watched it you will understand how the world's economy has developed from the end of the Second World War right up to the current day.

So while the word Forex may indeed have been mentioned at the beginning of this video, it isn't actually about that at all.  The video will no doubt be of interest to anyone who likes to learn more about the world of currency and how it affects our lives, and as such it is definitely worth watching.

Probably the best thing about this video is that it is simple and straightforward without being demeaning.  You'll certainly learn something from watching this, and unlike a lot of videos which have been made about the same subject you won't come away from it feeling as if you've missed something vital.

We don't tend to think about the Second World War as having an effect on the world when it comes to money and the global economy; we tend to think first and foremost of the human cost in other, more obvious ways.

But this video shows us how the world has moved on since then and why the Gold Standard was taken up by America, before being dropped again several decades later.  You will also see how we got from that stage to the present day, where the dollar is still the number one reserve currency – although for how much longer, no one can say.

This is an outstanding short video with good sound and picture quality, and over time it should reach an even wider audience.  It deserves to, because it explains a lot in a very short time.  You can view the video at http://youtube.com/watch?v=x80cdl2ahks – and it should definitely be near the top of your playlist.

 

Comment

  1. This video has been watched by nearly 28,000 people now! It is not surprising either because there is a lot here worth watching it for. I enjoyed it because it didn’t run for ages and it made for easy viewing – and that is no mean feat considering the subject matter.

    I never really understood what the Gold Standard was before I saw this video, but I get more about it now than I did before. It is very watchable and very enjoyable as well. I would recommend it to anyone wanting to know a bit more about the global currency system without wading knee deep in dull texts and boring economic information. This is what makes it interesting for me. Try it and see what you think.

    — JamieK · Mar 31, 12:10 PM · #