Foreign Exchange Market (Is it just the world's biggest casino?)
Here is a question that I have and I thought I'd ask some of the most civilized and mature people on t'internet.
(I just took up straight razor shaving btw.)
Where does the profit involved in the exchange of currencies come from?
I understand that these individuals do work hard to work on their statistical models and such to make good choices as when buying/selling currency. So you could say they earn a fee for maintaining the large market the allows the rarity and value of the different curencies to be accurately determined.
But where does the profit come from, is it not just like a casino where the money that leaves with the winners comes straight from the pockets of the players that made badly timed or thought out decisions?
Would the world not be a better place if we all used the same currency and just worked towards adding effort (value) to the system rather than some very large companies existing soley to edit long lists of numbers and say that they are trading (what exactly are they doing for humanity?).
At the end of the day the shifting currency exchanges mean that one unit of my work/effort will buy a different amount of foriegn goods one day to the next.
Why do we use many seperate currencies exactly? (Apart from the fact that the wordls economies developed seperately to begin with.)
What about the Euro, one currency for many countries, will we/should we all end up doing this?
I guess I could go and read books on the subject (If I had more time), but I thought I'd just see what others think, for the fun of it you know.
I have alot more of this nonsense but I will save it for another time, I hope I can learn stuff including other peoples viewpoints.
I might talk about razors (and my crazy home made sharpening solutions) some other time too.
