- Other Issues
- February 2, 2010
- 8 minutes read
The Currency Issue
Globalization require in its simplest practice that there is a currency to cater to market needs without the complexity of the “internal value barrier” of currencies of different states. It is a fundamental of this need that no one state’s currency should take over other state currencies that are major partners in globalization. Because this will inevitably – as it already has – transform globalization into a space with new elements of conflict. This should have been in the vision of big economies, at the time it was easy to undertake whatever it required and would have been regarded as a natural process alongside the natural proceedings of Globalization. Yet, despite this need, major currency authorities did not take any measure which expresses their vision of their role in the globalization sphere. It is astonishing to see that this lack of vision is still hovering over the heads that we think of as brilliant “heads” when we hear them talking on currency issues, we are even left open mouthed in exclamation over how much they know and we are ignorant. After we calm down we ask ourselves are they smart or ignorant, because we realise that the one who talks brilliantly but who does little is a failure, and he that talks and acts contrary to his talk is a crook and he who acts without knowledge is the ignorant. Amongst all these categories can be found the authorities over the major economies’ currencies.
One would have thought that the money drain is still in Britain where it started with capitalism, it is as dry of cash as Dubai! One would have thought it is with EU authorities the youngest amongst all generations with the brightest brains on finance from Switzerland, Germany, France, and many others, their brain in absentia as that of Russia thanks to the predecessor of Putin! Also one would have thought that the genius behind China’s growth should be able to branch out in his economic vision to be integrated with that of their currency, it is as fragmented a vision as that of Brazil. All what they told us they know and can do, but do they?
The present currency crisis provides a natural environment for a new formula to conduct financial transactions that could deal with the status of globalisation without subjecting this globalisation to one country’s economic or currency status. Allowing one currency to dominate global transactions means subjecting world economies to the status of that currency. Officially, or theoretically, the US does not want to subject world economies to the status of its dollar, but why it insists on that is a different matter. Most probably America feels that introducing a new formula for world financial activities means it has failed in its role as a world leader. The international brains should be frank with America and tell her: no, you have not failed as a leader, but your currency has failed you before it failed us. We need you to not fail, because if you fail we can’t up-lift you, we want to make sure that you know that you could be on your own. America would reply: I promise you not to fail. I, or the world brain should tell America: this is a lie Mr Obama, this is the biggest lie any president could bring to the face of Trichet the Banker! If not a lie; it is the greatest bluff to the brains of all; from Sarkozy to Suzuki! But of course this only happens in a fictional movie that a man like Bernanke could produce.
The act, or the formula should not be against the dollar, in the sense of replacing it, it should treat the dollar as the currency of America the same as the Euro is treated as the currency of Europe and the Yuan the one for Wen Jiabao the brain of China. A formula is required to conduct transactions with a minimum dependency on any other currency, which preserves boundaries between economies so if one currency failed other economies are not affected. This deprives any currency printer or holder there-off from the power of conspiring against any individual economy or group of economies as America did in the 90s to the Asian economies. This will also prevent the possibility of global electrical shocks if any economy should sneeze from its nose, and not to speak of economic diarrhea.
We do not call for a new international currency to replace the dollars role, this is impossible and it is like creating a new monster to replace the existant one. We propose that authorities reflect upon their populations as humans, and on economic relations as an integral human issue. Societies of capitalism should be regarded as human societies and not what capitalism practices or America wants you to think of yourselves as a bunch of degraded animals or monsters in which the richest loots the food from the stomach of others. If the authorities of each respective state regards itself an authority over humans and not over communists or capitalists then this state authority should treat the currency of its society as a worthy bank note for itself and for others. If all transactions with China are conducted in Yuan then the Yuan will become an international currency with the ability to buy any other commodity or currency with it. Yuan authorities do not have the need then to pile up reserves in other than their own currency (US$) which helps America to promote its adversary policies against China. Of course this is a hypothetical reference, I am sure nobody believes this is true, not even President Obama or the President of china. This applies to Russia or Lebanon or even Ethiopia if its president still believes it is a sovereign state, or worthy of being so after its invasion of Somalia. This is a formula of integrating a procedure of international transactions and preserving the human dignity of relative authorities.
Around the globe we find experts with outstanding talent that could suggest a formula for global financial transaction systems whereby the dollar could not control currency liquidity, the pricing of goods, the value of currencies, credit, leverage, interest rates and many other factors. Even university teachers and reporters are doing this, but why is everyone failing to produce a formula accepted by any important brain like Thichet’s or the Chinese central bank boss (Zhou Xiaochuan), or the Governor of the Bank of England (Mervyn King). For a simple reason; none is thinking outside the cause of the mess! They all like this mess now and then; it provides breathing space for any authority to ask the public to forget its sins and support her programs for new sins. The proposed procedures and laws Obama and others are introducing are not related to forbidding another crisis to occur, present procedures do not allow this crisis to occur, not a single authority claimed that the system allowed that. They agreed to blame the lack of enforcement of the laws which allowed this crisis to occur; this is the biggest and ugliest of all lies to cover the political will behind it, to cover its purpose that a world currency crisis should be forced on all economies. The purpose being that all economies should be re-sized to the dollars ability to dominate. The proposed procedures and laws are for two fundamental purposes in the post crisis era: 1 – To limit the potential growth of economies outside America. 2 – To minimize the capacity for reluctance against applying any new measures tailored for any country or region that America may need to introduce under the pretext of protecting global financial interests.
The World’s reality today is that there is no longer any single prevailing human value amongst two people. The culture of human values has been erased from all brains thanks to the American culture of democracy, freedom of the organ, capitalism is a religion, and many other colourful combinations of letters to form multipurpose words or phrases that could easily ‘hormonize’ instincts to the level required to take over the brain. The mess is caused and will be caused again and again because all the countries think they need to buy and sell by the dollar which is a make believe reality. In the absence of personal and social humanity, is there a national authority with human sense?
For how long must we wait for the return of the gold/silver standard?