Contextualizing the Risks of Money Markets

in Currency Market

Over the years, money market funds have been the safest means of investing some cash for a long term portfolio entry or for those who want a safe place to hold their money. But recent global developments, with the world economy sagging on its knees, experts have started to point out that there are risks in money markets too. This has shed the previous thoughtline that money markets are a risk-free investment avenue. You can no longer hold it for granted that your investment is safe, just because you are in the money markets. In fact, the US Securities and Exchange Commission (SEC) decrees that while investor losses entrusted to money market funds are rare, they are very possible. However, just as they have become risky to an extent, they have also gained on the rate of interests and profits over the last one decade. Contemporary money markets can triple your initial capital within a...

Prospects of a One World Currency

in Hot Currency Exchange

The current monetary system has been blamed for the frequent episodes of turmoil that shock the world in the form of financial crises. Many economists argue in support of a new global financial order whereby only one currency will be in use. This, they argue, would remove the control of currencies from the hands of a few people. The current financial order where each country controls its own currency was started by the elite and the influential. Many economists are today concerned that the issue of instituting a single world currency should be considered as an emergency. The quest for an economically harmonized world traces its roots to the drafting and signing by various countries of the Bretton-Woods Agreement as early as 1944. The Bretton-Woods Agreement was spurred by the economic depression that was witnessed in the 1930s and during the Second World War. The current global...