What is a Floating Exchange Rate System? | IB International Economics | The Global Economy

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[@charlesbrightman4237]

"Floating Exchange Rates": This goes back to a previous comment I made on a previous video for this series. A nation's currencies' value is determined by what backs up that currency versus how much currency is in existence. Just because there may be more or less of a demand for a certain nation's currency, doesn't automatically mean the value of that nation's currency changes. It is what it is. People who implemented this system of supply and demand as it affects nation's currencies are possibly manipulating nation's currency values for their own benefit, financial or otherwise.

[@charlesbrightman4237]

Currently, the USA's reputation backs the value of the USA's currency. What backs the value of the euro? Each individual nation's reputation as part of the EU? EU gold, silver, what????? If one nation in the EU gets a bad reputation, or loses some of it's backing for the euro, what happens to the other nations that utilize the euro as well as how does the euros change in value affect their own nation's currencies value being that they are in the EU? Seems like just one nation in the EU could screw life up for others in the EU too.

[@charlesbrightman4237]

When he referenced this chart just before about 3:59 in the video relating to corn, just because there is more of a demand for corn does not automatically mean that the price of corn should go up. Sure, it might go up, but it doesn't have to automatically go up. Here again, it seems that people who implemented this system of supply and demand curves are possibly out to manipulate the market, possibly for their own benefit. Or possibly even just driven by plain greed. I can charge more, so I will automatically charge more (even though it cost me the same amount of money to grow the corn and bring it to market).