What would happen if the world operated under one form of currency?

What economic impacts (good %26amp; bad) would the world encounter if the entire planet operated under one form of currency?





Several (long-shot) assumptions have to be considered... so PLEASE READ before answering:





1. All countries are allies/neutral amongst each other. So no rogue nations or crazy-dictators who oppose the world currency. In other words, all nations have stable governments (doesn't just have to be a democracy - just STABLE).





2. Anti-counterfeiting methods are optimal. This form of currency is 100% counterfeit-proof.





3. The currency is NOT backed by gold any other type of precious metal.





4. All forms of existing currency, such as the dollar, pound, yen, etc are obsolete. Of course persons who owned such had them converted to the new currency fairly.





5. A multi-international "Federal Reserve" monitors the production of the new currency where 12-nation-districts print the currency. This organization operates similar to the Fed in the US.|||Since stabilization was already a premise to this question...not a whole lot would change. Counterfeiting is not the only form of foul play so I would imagine we would see plenty of cheating and unfair manipulations. America would still largely control the world interest rate, but international relationships would become very strained due to disagreements over inflation and unemployment. A move away from capitalism would be necessary because as we already know, capitalism only works when there are many different players acting alone, not all trying to act as one.


...I could go on forever.|||total mayhem|||"3. The currency is NOT backed by gold any other type of precious metal."





Either I will have tons of currency notes / gold|||Lots of country would lose their markets for they wouldn't be competitive anymore. That would create lots of instability. The Hegemonic nation would have a huge say-in about the monetary mass, other countries would have to live with the consequences of it. There would be less flexibility in economic policy.





Countries would loose lots of their sovereignty.|||This is already planned. The fiat money system would/will eventually collapse causing worldwide loss of property, starvation, and serfdom. There will be no governments. A few wealthy people will run the world. Every time the privately owned international banking cartel, known as the Federal Reserve Bank and the Crown, prints money, inflation rises and the value of your money drops.





Take the time to look at the following if you want to wake up:





http://www.modernhistoryproject.org/mhp/鈥?/a>





http://www.mecfilms.com/universe/article鈥?/a>





http://www.the7thfire.com/Politics%20and鈥?/a>





http://video.google.com/videoplay?docid=鈥?/a>





http://www.freedomdomain.com/banking/the鈥?/a>|||If the currency is not backed by gold or any other real thing, inflation will eat savers alive. That's happening now, of course. So nothing would change.





The ability of Governments to print money out of nothing, backed by nothing, gives rise to the irresistible temptation to print more and more money.





No fiat currency has ever lasted for long. They've all gone down in a hyper-inflationary spiral that ended with suffering and rioting in the streets. Gold, on the other hand, has stood as a relatively stable store of value for millennia.





A global fiat currency would be bad news, just as national fiat currencies are bad news.