I just wanted to post a thought that I have had cross my mind from time to time. It’s just a thought and a point of interest I thought would be good to bring to the forum to hopefully get some other opinions. I am not a big financial guru so any opinions and general discussion on the matter would be great.
We all know that there is a Euro sovereign debt crisis going on atm. Portugal is looking sketchy and Spain, Italy and Greece are ticking time bombs. If these countries defaulted and the Euro crumbled what do you think would happen to forex? The deutschemark would most probably take over as the Euro currency that would be traded and paired up with other currencies you would think? Do you think this would have a massive impact on FX trading or would the DM simply slot in place of the Euro?
On another note just say down the track (this is just for a point of discussion) the American dollar lost it’s status as the reserve currency of the world and just say paper money like the dollar suffered heavily from massive inflation and people were hinting at a return to the gold standard as the fiat money experiment eventually folded how do you think this would impact forex trading and do you think this could happen?
I am making my way as a forex trader and would one day like to turn fulltime and earn a living from it. These matters I just mentioned have crossed my mind if only vaguely but I am always interested in other peoples thoughts on this topic of currency’s over time eventually folding and how it would impact Forex trading….