[cryptica]

> This isn't true. Otherwise, exchange rates wouldn't be changing every second.

Prices fluctuate because people trade currencies on forex markets but those traders are not a significant force in the long run... Government reserve banks are the ones which keep exchange rates relatively stable by printing money. Traders just respond to and anticipate changes in the money supply caused by central banks.

If US Fed prints a lot of money (which puts downward pressure on the value of USD), all other central banks in the world will also start printing money to also devalue their currencies so that the exchange rate for their currency remains stable relative to USD (and therefore relative to all other currencies).

There is no major country in the world right now which has a free floating currency. Reserve banks are manipulating the global currency supply and enslaving the working population due to Cantillon effects.

The leader of any country which has tried to move out of this global monetary scheme has been overthrown and murdered by US military action (under some false pretext). For example, the real reason for the war in Libya is said to be that Gaddafi was trying to push Africa towards a gold based currency. Research the 'Libyan Gold Dinar'.