National governments endeavor to influence their local currency through a number of tactics. The tactics leveraged include but are not limited to, creating more currency, altering the federal lending interest rate, and issuing attractive bonds (debt). Real trends in currency values are based on market forces which are beyond efficient government control. Governments have heavy influence over a variety of financial activities, but their ability to predict and dictate future productivity is nonexistent. I propose that government effort to control currency value is based on a fallacy. (more…)