RE AN INTERNATIONAL ECONOMY AND CURRENCY

RE AN INTERNATIONAL CURRENCY

As long as the elenents of our monetary system rest upon foundations governed by national political interests; and as long as there are disagreements among the major economic powers; the chances for the emergence of a stable and sensible international economic system are not very likely of accomplishment.  Disagreements among the economists entrusted with the tasks concerning the determination of exchange rates; coupled with the enormous degree of pure speculation indulged in by the private holders of vast amounts of financial assets; combine to create an illogical world economy that is creating wealth for a few, and spinning out of control for the rest of us.

Recent years have witnessed extreme fluctuations in currency values, together with giant imbalances between surplus and deficit countries.  Furthermore, we are told that currencies have at times been intentionally manipulated by national governments in order to give certain industries within that nation an advantage over their foreign competitors.  During these years, erratic swings have frequently occurred among the world's three major currencies:  the Dollar, the Euro, and the Yen.  Their comparative values have at times varied by as much as forty percent.  The consequent opportunities for profit that such unnatural conditions as these can create have caused ordinary building of income via simple industry, or earning of traditional interest income in traditional manners, to be viewed as too unrewarding, too slow, or just plain "boring."  These dangerous fluctuations and imbalances have consequently convinced a number of economics professionals to recommend the merging of our banking systems into a single world central bank, and the simultaneous establishment of a single world currency.

                                                                    * * * * *

Another consideration lies in the fact that the right of a nation-state to coin its own currency is a fundamental element of sovereignty.  It was, for example, set forth as an original precept in the United States' national constitution, as one of the basic rights of our federal government.  This traditional privilege leads to further reluctance on the part of national governments to cede control over the valuation of their currency to other entities or authorities; and contributes further to the economic hodgepodge that we see about us today.  Nevertheless, mankind must one day confront this confounded heap of monetary chaos, and take steps to restore order to our world's economy.

In a world without borders, there would be no "deficit countries" or "surplus countries."  Economies would not be contained within, nor defined by, geographic areas having separate national identities.  True, individuals persons, families, businesses, corporations, and other entities could and would continue to function below, within, or beyond their respective means; but this would not impinge upon the economic interests of their respective neighbors--nor of those who live many miles away, but who yet happen to live within the same nation-state. 

Distresses associated with devaluations or appreciations of currencies in regard to other currencies would no longer occur, because there would be but a single currency for all people in all places.  And, likely, the only complaints that would be heard would come from those former aforedescribed traders and speculators in currency, whose attempts to reap profit from these very defects of which I have been heretofore speaking will be no longer possible, and therefore but a scourge of the past.

How would conversion to a single world currency be executed?  It seems to require but a setting of a particular date (in the very recent past, as opposed to a future date--so as to avoid last-minute maneuvering by holders of different denominations in efforts to maximize the comparative values of their particulat currencies) as the date upon which whe values of all currencies would (have) become fixed and immutable.  (Perhaps said date would need to be somehow kept in secrecy--or unknown to all, via selection by a random instrumentality.)  Any "innocent" changes between said date and the said effective date would hopefully be insignificant.  Subsequently, all would be expected and required to exchange their respective currency holdings for the equivalent in new money.  Of course, as regards sums not actually held in physical possession--being most of the world's wealth anyway--the conversion would constitute a simple recalculation of the sums of all accounts from their respective former figures into the new universal denomination.  All forms of fluctuating value (.e.g., of stocks, bonds, interest, commodities, real estate values, etc.) could and would continue to so fluctuate as they had in the past; for these would be functions of ordinary non-political market conditions, and not a result of the aforedescribed political, economic, and/or currency-related divisions of our world.

(In regard to the above, it is respectfully suggested that:
1.  The aforesaid suggestions do not constitute a change in values of these various currencies from what they were on the day before the "changeover" date.  "Changeover" would simply amount to a conversion from what said value was on the day before--to its (same) value on said day of conversion, in the new universal currency.
2.  It would be hoped that skilled professionals in the fields of economics and currency management might come together and agree regarding a method for this--basically mechanical [significant though it be]--conversion procedure.

                                                              * * * * *