The Global Common Currency, to avoid another Financial Crisis

An excellent presentation.

I think over all a good idea but I am concerned about world wide control of anything.

This is a very bad idea. There is, or was, a global currency called the US dollar but as it turns out it is backed by nothing and Japan and China are now sitting on bags of air.  Luckily, Japan has it's own strong currency that can be used to import the raw materials needed without suffering the possible upcoming crash of the US dollar which brings the prospect of hyperinflation.

Every country needs it's own currency to remain sovereign.   Not all countires are in as dire straights as Iceland, I would hate to be in the same boat they are in, the rest of us need to be free of the poor choices Iceland made and we need our own currencies to do it.

Thanks for your thoughts on this important issue. I do think that having one currency will create great economic differences from country to country. The local currency usually takes in the specific economic situation of the area. The euro has made Eastern Europe so expensive for the local population that doesn't have the income to support this regional currency. Also, I  rarely agree with Moonwolf, but I must say aside from the conspiracy theory there is some validity of allowing too few people to much power and influence to manipulate economic conditions. The IMF is bad enough. The euro and the European Union also wields far to much power and has created an exercise in power grabbing and manipulation of policy depending on who is in charge for today.

Just a downright very bad idea just like all ideas of globalization, one market, one government, one currency all controlled by the big money men exclusive club. Currency are only IOU notes based on false values and no-longer on the value of gold.

It would be better to abolish money, capitalism, free market etc. Your post is naive!

I wonder what we would choose for our currency? That might be a huge fight between some nations!

Moonwolf is absolutely right, beware of a global currency!  Very nice and timely piece Uwe!

Well, anyway, I am glad I have Yen in my pocket and not an international currency. Every time I buy gas, I'm glad we use the Yen here. Japanese exporters are having trouble because demand for their products have dropped. Japanese importers, on the other hand are doing very well. It is good that Japan is moving from consistent trade surpluses to more balanced trade. The effects of currency fluctuations have been overblown. The cost of importing material for Japan to build exports drops as the yen rises, so Toyota can export their cars at lower prices and still make a buck if there is any demand. If exports drop, good because Japanese workers have been exporting their labour overseas in exchange for bags of "useless" US dollars for far too long.

An international currency would mean that this year when the US will have a $2 trillion dollar deficit we would all pay the price. Governments have different electorates and different fiscal situations that require "local" control on things like interest rates and money expansion. The largest economies would dominate the international currency and export their monetary policies to everyone else.

The British Virgin Islands, East Timor, Ecuador, El Salvador, Marshall Islands, Micronesia, Panama, Palau, all use the US dollar as their official currency and it is the de facto currency in many other places. And it is not as important for trade as it is as a reserve currency.

And besides there is an international currency that has been around for centuries and is recognized the world over; gold.

We may be at the end of the rope for fiat currencies so I cannot see why there is a need to introduce another fiat currency.

I don't want to sound anti-American but if a new international currency is introduced it will be manipulated by the US to meet it's own ends. I don't think the world can trust the US to stick to any sort of international agreement when it starts to go against them and they are punished in the market for their bailouts.

Money or Your Life: http://www.monetaryreform.org/money/pg3.htm....

Actually we already have a Global Currency. It is called debt. Everyone understands that in a nutshell. We also realize that the Global Currency in use today is also called Global Exchange Rates. One Nations currency is worth more or less than another. Whether they base it on US rates or a basket average of all currency values....it is clear money speculations are held in check to nominal values at those rates.

One must also consider what gives value to any currency? Some will base it upon the Military Establishments ability to defend or aggressively go after its perceived interests. I would like to suggest that another factor plays a roll and that is resources. How much oil does the country have, how much coal, and how much brain powered technology supports such a nation. There we have brute force against resources and procurement that establish Global Authority.

No wonder the US is in the Middle East to control the resources, because they do have a Brutus to push their way around in the world.. The Arabs are still scrambling for their own Atomic Brutus, and then its hands off our Oil US. Yet we have the Russian Bear with untold amounts of Oil resources, and China who plays the Peacekeeper Harmonious Society, despite their claim to being Communisitic and anti-Religious in nature.

Getting agreement to have a Global Currency is in my opinion futile and senseless, that is where do we go when the Global Currency if realized collapses?

I highly doubt there will be such maneuvering because the US can't seem to get its own house in order in concern to who has the right to regulate the money...in concern to The Federal Reserve Fraud.

http://my.nowpublic.com/world/obama-will-become-liar-his-inauguration...

http://www.monetaryreform.org/2005/using_debt_as_global_currency.htm...

Another name for money: http://www.monetaryreform.org/money/pg8.htm...

Monetary Reform: http://www.monetaryreform.org/money/index.htm...

Rev. Jermano

Great story.  It is amazes to me that all things I learned in Sunday School is coming true.  One world government, single currency mark of the beast.  Wow.

The good thing about Japan is they made the mistake last time of not being ruthless enough with failing banks, and letting them go to the wall.  It cost dearly with a painfully slow recovery.  So Im hoping thast Japan will set some good examples, by telling over-extended banks:  sorry - none for you!  I hear Taiwan (a country I do NOT support!) is giving out shop vouchers fior $100 to each family.  That strikesa me like a good idea.  Tax breaks are of doubtful value since too many families lack the confidence to spend!  And saving at present is not the way to create demand! I'm doing what I can to help:  I'm still hoping someone will dish up $40,000 for me to spend wisely - sports cars, a few handguns maybe, some fine wines and a yaught (cant spellit): the thing with sails that goes with wind power on the water.  You know what I mean: to store in the MED somewhere.

Sensible Gerry!

Really interesting analysis and comments.  Although the globalizing economy has been a bit scary so far.  It would be interesting to see, if such a currency were hypothetically created, how it could be governed.

   The current global financial turmoil did not begin with a currency crisis, but currency risk is part of the resulting instability and the <?xml:namespace prefix = st1 />Iceland krona may not be the only currency to fail.
    The success of the euro shows that monetary union is the best way to ensure monetary stability. If 16 countries can use the same currency, why not 192? The only problem with the euro's stability is that it exists in a multicurrency world.
   The world should begin planning now for a Single Global Currency. In addition to eliminating currency risk, the use of a Single Global Currency would eliminate the current foreign exchange trading expense of $400 billion annually and eliminate the need for foreign exchange reserves and eliminate currency crises aznd bring other benefits worth trillions.
The Single Global Currency Assn. promotes the implementation of a Single Global Currency by 2024, the 80th anniversary of the 1944 conference. That's only 15 years away. The Assn's website is www.singleglobalcurrency.org. See, also, the book, "The Single Global Currency - Common Cents for the World."

Morrison Bonpasse
Single Global Currency Assn.
Newcastle, Maine, USA

Good point.

I have been against the sale of currencies on the stock market for a very long time.

That is one of the problems, in my opinion.

There is talk of a common currency on the table for North America, just like the Euro...

There is no doubt that the reason the euro works is because Europe wants a United States type of Union....and instead of using States to hold their common interest together they simply left in tack their own individual National Country Status. They are countries who came together for a stronger Europe. I would think this is developing in the Middle East, once the politics shifts away from needing US military security.  But as far as a Global Currency is concerned it will never happen.  Russia , China, Venezuela, Iran, N. Korea, Middle Eastern Countries, Pakistan, India are not about to allow a common currency. It would put limits on Military spending and their security. Who would be in control, of the rein of values? No matter how you look at it, people will always argue about worth to commodities from their countries, and that is why they have different currency values. By eliminating currency values...you are eliminating commodity values...that are intimately linked. Since this is linked they have gone further to have currency value sale in the Stock Market which puts the real value toward commodities. It is ridiculous to think people are going to accept a Global Currency. They fight now vehemently over farm subsidies, a good indication that the poor countries will get the major screw driver up their annual budgets.

Rev.

Having a one world currency might be an end goal but it wont and cannot happen anytime soon.

Contrary to the common belief in the comments above, the Euro hasn't benefited all the countries who have adopted it. There have been many painful adjustments in the poorer performing countries and there are even loud whispers pushing for an exit right now.

For example in Greece we have seen huge inflationary numbers and rising debt levels after the adoption of the Euro and prevasively getting worse. The Maastricht crieteria has provided an unrealistic straitjacket within which countries must keep their debt levels. Currrent account surplus countries will always have to finance current account deficit countries. You don't see Germans jumping in glee when their tax money will go to fund the Greek deficit, especially when they need money injected into their own economy in times of crisis. And the Greeks are not alone, we are seeing Italy, Spain, Ireland and even France now facing the same dilemma. no wonder there is so much pressure on the Germans to throw in the money bag.

Although the Euro is a political success story, it has not brought the economic benefits so espoused by its proponents..... yet.

Mundel put forth an economic theory called the Optimal Currency Area. The size of one could be a country, could be a continent or could even be just a city. The theory is used often to argue whether or not a certain region is ready to become a monetary union, one of the final stages in economic integration. As we have seen, even the Euro area is still not ready. When can the world be?

Until we have huge divergence in wealth, in resource endowements, in production site concentrations, an international currency is just not feasible. Regional currencies are much closer to becoming reality, but not without painful adjustments and even larger currency wars.

However if you ask me, we need to evolve past the need for even a monetary system. Although it is hard to imagine an alternative, it will become a necessity.

http://www.zeitgeistmovie.com/

Although I do not believe in a World Currency....I do believe that there could be an agreement for Common World Debt....that is people take the idea that Debt is held in common by all countries...no matter their governments cultural differences.

They would get money accordingly for infrastructure development, which means for roads, bridges, trains, housing, and for food distributive travel. Countries would pay back accordingly to their currency values. The money would be used for a strong Agricultural Basis so to feed and provide water for the worlds population....

http://my.nowpublic.com/world/raise-stimulus-ceiling-911-trillion-usd-yes-do-it...

Rev.

The globalists would love this.... hello world government! Goodbye freedom... microchips next.