Thursday, December 2, 2010

Again, Case for a Global Currency

In the end humanity must win, of course here one is looking into the long term, one can not respect those whose existence is determined by the ethos of in the long term we are all dead, that means they will ruin the present for their own immediate gains, all that led to Lehman brothers eventually declaring bankruptcy and everybody knows what happened after wards.

When humanity wins unfortunately there can only be one currency, a return to ancient times when currencies where transnational except this time on a global scale. Currencies only became national when governments desired to control currencies, this works fine when there are three or four strong economies, but in a world of strong economies, control will be rested away from governments, from the likes of Federal Reserves, Peoples Bank of China and the European Central Bank, these are the central banks that matter right now in the global arena.

Why will there be a push for one currency? This will occur because nobody will agree that somebody else’s currency is more important than theirs, and this is a good thing for humanity, it will bring honesty to the game. No matter what you like, what your believes are, how passionate you are, the reality is people have seen the dangers of one currency dominating the globe, though indeed the Chinese and Europeans wish they would replace the USA currency, a currency under strain because of dishonesty. You can not just print money, US currency was saved by the single act that after world war two America found itself in a favorable position, with all its infrastructure intact and the world needed a currency. But in the long run corruption sipped into the mind of the Central bankers and the government, billions printed for booms and billions printed for war, billions have disappeared in Iraq and Afghanistan, this money must be banked somewhere, this money is not backed by production, the chickens must come home to roost.

Unfortunately knowing human beings and how they are corrupted by power who is to say the Europeans or Chinese will be better managers if ever they are in a favorable position. Hence by logic a single currency must be born governments will have to agree or the people will take it into their own hands and governments will have to enact legislation to prevent this single currency, if governments do not agree, the single currency will be gold and silver, a choice of the free peoples of the world. Gold is having its day though the likes of Roosevelt who confiscated gold by legislation, when it comes to the crunch, peoples rights will always come secondary, and the idiot will say you can bug my phone because I have nothing to hide, no, you have no right to listen to me make private proposals over a phone. Roosevelt a man who leaves by the ethos in the long run we are all dead introduced short cuts, luck for America most of the world is not developed, if it was, US dollar would have seen strains long time ago, maybe why some policy makers desire to continue propaganda that only some can have knowledge.

A single global currency makes sense, however one must be careful of those who want a global central bank, they want to impose a global control of the world, that is not freedom, because the dishonesty at national levels will be taken to dishonesty at a global level. At this point one can not agree with those for example of the Single Global Currency Association, they want a single Central Bank, though one must admire Morrison Bonpasse for starting the association. Why are humans so hell bent on controlling other human beings yet shouting the words freedom at the same time. An anonymous writer from the Washington Times states what the problems of a global central bank are, “Any currency, including a single world currency, can be debased.” (anonymous, Washington Times).

There are several advantages to a single currency as pointed out by David R. Francis of the Christian Science Monitor, to quote, “For starters, the world trades about $1.2 trillion worth of currencies a day. If that market disappeared, it would save companies and individuals hundreds of billions of dollars a year in foreign-exchange and hedging costs.” Quoting david R. Francis further comes to the main benefit of a single currency, “The end of currency fluctuations would also stabilize international business,” this means once and for all it will be about the quality and price of the good not just the price.

A single currency makes sense, let us go back to the days when the known world in each area used a single currency across boundaries, of course now the known world is the whole world.

Bhekuzulu Khumalo

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Bhekuzulu Khumalo

I write about knowledge economics, information, liberty, and freedom