Tim Ferriss Quotes
Fun things happen when you earn dollars, live on pesos, and compensate in rupees.
Ferriss, Timothy. The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich. Crown Publishers, 2007, p. 129.
He was out of office when he made this statement.
De Gaulle is commenting on the role of the dollar in American dominance.
This objective finally reached its peak in the Nixon administration when the U. S. went off the gold standard. 75 Years after FDR tried to make the U. S. dollar more resilient, America had been so successful that many foreign governments having the same problem of little or no control over their currency, have pegged their currency to the U. S. dollar, thus gaining our stability.
The military had made a mess of the Argentine economy and inflation was rampant. Some Argentines turned their Argentine pesos into dollars betting that the Argentine economic situation would get worse, This run from the peso would make it worse. If Argentina stabilized the peso, speculators in dollars would lose money. The Minister trying to discourage a run from the peso, warned Argentinians against the dollar investment. A days later the dollar went up over 30%. Those who had listened to the minister lost much of their money, He was soon forced to resign by the military dictators who controlled the government.
Roosevelt saw to it that the contents of the telegram was shown to the press. Then this statement was seen by the foreign delegates who viewed themselves as ‘international bankers”. They were outraged and the conference blew up with no significant action taken. Roosevelt was desperately trying to lead America out of the Great Depression which Herbert Hoover had left him with. The dollar had been falling in value since the 1929 crash and one of the likely outcomes of the conference was European and other nations putting a plan together to stop the fall of the dollar. FDR however, wanted the dollar to continue to fall. This would make it harder for Americans by buy imported products, but easier to employ more Americans making products for export. The people hurt most by The Depression did not buy any imported products, and what they needed was food, housing, clothing, education and medical care, none of which would be affected by a weaker dollar and more expensive imports. However, he did not want a political argument with the wealthy and upper middle class who wanted cheaper imports, so some people believe that he made it seem that he had committed a diplomatic blunder and that caused the conference to collapse.
Currency Pegs are policies and commitments that countries make to sate that their currency henceforth will have a fixed relationship to another currency—usually the American Dollar, the English Pound or the Euro. If a second and even more countries also agree to peg their currency to the same, then the counties who are pegging can trust each other’s currency providing economic stability and facilitating trade.
Timothy Ferriss is an American entrepreneur, investor, author, and lifestyle guru.
