1. ALAN T DIXON ~DECA~
Currencies like the SDRs or special drawing rights currencies of which there are five of them in
the global market fluctuate & as currencies rise and fall their purchasing power changes. To
exemplify this fluctuation we see when a currency is stronger the host nation-states purchasing
power increases as does imports increase due to the stronger currency. & when a currency is
weak against global markets, the currency has less purchasing power. & therefore a nation states
exports increase because the citizens are able to sell their products of which when bought on the
global market are less expensive, due to the fact that when purchasing say Australian goods a
foreign nation state would have to exchange their monetary currency for Australian currencies to
in turn purchase the Australian goods or products. Thus as the currency fluctuates so too does the
cost of goods & services in small margins rise & fall when a nation states currencies strengthen
or weaken. Thus when a currency strengthens and its import opportunity increases so too does
the cost of domestic goods & services & contrastingly; so to does manufactured and production
goods and resources decrease when a currency weakens in regards to the nation state of matter.
Thus decreased Purchasing Power deflates an economy and variably increased purchasing power
leads to inflation, however if interest rates are low, inflation is mitigated, tho leads to rapid
private sector bond trading, of which can lead to asset bubbles and market crashes. Tho in
relation to general goods and services traded, inflation is staved via the engineering of monetary
policy. & when interest rates rise, the yield on treasury bills bonds increases, thus gradually in
turn increasing the nations states monetary supply; however when increasing monetary supply
the outcome decreases private sector bond trading, due to systemically higher interests charged
per bond traded. Thus systemic monetary policy significantly effects the fluctuation of currencies
and private bonds & the wise key decision is to moderately graduate interest rates in tandem with
stimulus packages of monetary easing to private sector banking enterprises that in turn can under
quota mandates loan percentages of stimuluses to the general public and & manufactures &
hedge funds - investment banks to generate demand for the bonds and stocks traded on the equity
markets including using social services to cycle wealth to the general public of which will enable
wealth to flow from the consumer sector to the producer sector to the finance sector of society.