IsoCurrency - Global Currency - PART 4 Isokratia Global
Perhaps the initial steps required will be through the introduction of a world-wide body or institution, like the IMF (International Monetary Fund); A global currency bank, which can serve national economies. Instead of serving profit making, to serve the stability and gain of the general global economy. I do not see this as a permanent solution although if successful it could be adopted permanently. I see it as a temporary solution, creating a bridge to the optimal solution of the introduction of a single global currency.
I believe the integration of all national currencies to one global currency will eventually, in years to come, be the optimum stabilising solution. It could be that we will first see such integration by small groups of countries abandoning their national currency for a territorial group or regional currency. An example here is the one being formed now in the EEC, with the introduction of the ECU which has become the currency of all the member countries of the European Economic Union. Even those temporarily left out such as the UK, are trading in the Euro. UK stores and companies trade in Euro already.
African countries, the Arab world and other regional groups could already be talking behind the scenes of similar moves, as they watch and learn from the European experience. Despite the vehement, sometimes fanatic rhetoric based purely on nationalistic, fascist reasoning against the ECU, I believe the ECU will eventually overcome the many obstacles, which lay on it’s path and become a success story. ( we are already witnessing it’s success).
Once the world economy reaches the state of one global single currency, then we will have an Isokratic currency situation. This will become one of the strong foundations for a truly global economy, which will provide stability to all trades. It will also provide protection to individuals whose savings could no longer wiped out overnight by real, nor artificial for that matter, currency speculations, which can result in forced, or voluntary devaluation in national currencies.
In final analysis, I believe a currency is neither a commodity, nor an asset of any value to be traded. A currency is no longer based on gold reserves nor any other commodity reserve. None of the scarce economic resources are involved for the production, nor for the trade of a currency value. A currency is neither a consumable nor a dwelling and it provides no service. A currency has no use and no benefit, other than a means of accounting exchange for trading goods and services.
Therefore, it can be argued that it cannot be classified as a trade able product or service. All valuations of currencies are based on speculation and expectation. It only takes the president of a country to engage in a flirtatious act outside his marriage, and we see the value of that currency tumble with dramatic effects on both the business community and in final effect, on the public at large; thus affecting both the national and the international economic arena.
Let’s not forget, that economic upheavals, were the caused of many wars, including the second world war. Lets not forget that even today, the world suffers heavy and painful blows, due to economic instability. Such painful blows can push a nation back in negative development, which result in lower standards of living, instead of forward development with increased standards of living. Don’t think for a moment that this does not happens in our current times. Great examples here, are Russia and the ex Soviet Union Republics; Even neighbouring countries which were under the communist system such as Bulgaria, Rumania and others. Millions of intelligent people live below the poverty level even within their low cost economies.
Therefore one can easily argue that economic stability and prevention of economic waste is part of the formula for the development of the socio governing and development of our globe. As such I believe a single global currency is a necessity, not a luxury. A necessity long delayed.