Do we act now or never? - PART 4 Isokratia Global
The question now is when and how do we reach the global authorisation needed for a global economy to work in a stable manner? Do we leave it? Do we strengthen the present international financial authorities? Or do we scrap them and introduce, truly globalise authorities, policies and means such as the single global currency ?
Capital controls result in closed economies. A closed economy is a threat to liberty. Yet as experience teach us, like in some Asiatic countries, capital controls and capital export restrictions, were the savers of the collapse of the financial market and economies in such countries. Capital controls would be unnecessary if when, and only when, we reach a single global currency. Then, it could be possible for us to experience a stable financial market across the globe.
The drive for the establishment of a single currency in Europe, is giving the Euro-wide consolidation a tremendous push. If you like, we can use the examples of the EEC as a case of mini globalisation, in both the political and the economic fronts. By now the Euro has become a reality since January 2002 and is gaining in strength despite the weakness of some of it’s major economies such as Germany and France.
Despite threats and warnings of catastrophes the introduction of Euro went smoothly. Despite inevitable teething problems, is gaining momentum. Europe is ready to do away with the vast waist of currency charges on it’s internal trading. Soon another fifteen or so countries are joining the EEC and the Euro in 2004. Who will be next? As much as Russia is mouth watering with the idea as the EEC comes closer to her borders, the EEC mouth waters Russia with it’s vast resources in both raw and technological advancements.
Despites the titanic task the Euro has come to live. Despite fierce political fighting and referendums the Euro is alive. Contrary to the warnings of catastrophe by some of the financial wizards of our world, the Euro is thriving. Contrary to the predictions of the superpowers the likes of USA the Euro is gaining strength. Despite the many forecast that the Euro will not last for six months the Euro is gaining strength over both the other two major currencies the US dollar and UK Sterling. Irrespective of the centuries old UK sterling and US dollar the Euro is gaining ground much earlier than predicted by even the most pessimists. Yet the Euro is still on it’s infancy stages. Imagine it’s strength as starts to walk and when it will start being a front runner.
Yes I accept that such a task of introducing a single currency, will not be an easy one. Nonetheless, I believe it is possible. Further more, I believe it is a vital requirement of today’s global economy and even more important the global society. The USA is a multiple of self-governed states. The most powerful economy in today’s world is like a mini globalisation being made up by individual states belonging to a central organisation. Yet it operates on one single currency, governed by a single federal bank.
Why should it matter if a country is bordering or not. In Europe we have witnessed the abandonment of national currencies with thousands of years national currency history, for a common currency. The most powerful currency of the world the US dollar is a single currency of a multiple of states. The most widely used internationally currency is the USA dollar which is the single currency of a group of states under a central umbrella.
The beneficiaries will be all concern including the big players such as the American economy. At presently American multinationals importing their profits from the world wide operations loose billions on mare currency conversions. These profits could go to the share holders as dividends. These conversion charges could be the difference between being profitable or not some times.
The same can be achieved in a global dimension. I don’t see why the global community can not manage to lay this large founding stone for the building of our global economy. Perhaps this is the pill needed, to eliminate the make and brake periods in the free market economy. To some extent we have a currency with global trading values; A currency which is actually traded world wide and that is the US dollar. Whether it is called a dollar or IsoDollartm or Euro currency it’s immaterial. What matters is to adopt such a single currency, not what it will be called.
12 September 2004 23.00