Who pays the price? - PART 4 Isokratia Global
American stocks have suffered major profit declines over the twelve months of August 1999 to August 2000. (Even worse up to end of 2002). For example, despite aggressive international expansion, McDonalds has slipped 24% over the same period of August 1999 to August 2000. The same is true for a host of other multi-nationals, from Colgate-Palmolive to Gillette.
Again, again and again, the Euro currency punctured value has cost America’s biggest companies billions, as they exchange their Euro profits back into dollars. Even in the lucrative IT industry, which is dominated by American multi-nationals, they head for the same. An example here is the microchip giant, Intel.
I will ask the chief executives and the finance directors of these multinationals caught in the trap of losing their profits only because they have to convert such profits from one currency to another; “ Would you not rather have a single global currency? Would you not rather have kept these earned profits? Would you not rather show these profits to your shareholders?”
I will ask the same question to the shareholders of these companies; “ Would you not rather have these wasteful currency conversion cost as cash in your pockets in the form of higher dividends and higher share value?” It doesn’t take a genius to see the answer to these questions.
These attempted market interventions, as we see are totally based on either combine political motives, or narrow-minded national interest. Who is bearing the cost of these massive interventions? Who will pay the final price? The global citizens. Who profits from this unnecessary waste? No one.
All these brief questions and examples, indicate the necessity for a single global currency. Such examples point to the urgency with which we must address the global single currency issue. If we are to stabilise our markets and avoid bust and gloom periods in regions across the globe, an essential ingredient is the introduction of a single global currency.