Re:Global Currency System

["MV" <maxv@vsnl.com>]

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> From: Srinath S <srinaths@usa.net
>
>
> I would not call the present globalization a "scam" because, even though
it is
> unfair, the present configuration is simply a result of historical
decisions
> made in isolation. It is not a wanton effort towards "a second round of
> imperialism" as some would put it.
>
> True globalization can occur only when there is a global currency.

That is all i am also saying......

>But
> implementing a global currency isn't that simple. It is very difficult for
any
> single entity to globally caliberate products and services. And if
anything, a
> body assigned to do such a job holds such tremendous power that it becomes
a
> hotbed of corruption.
>

Defining global currency relative to energy is not
that difficult, all we need is a definition

X money/currency = value of Y calories of energy produced
                   using a certain standard process.

The international consensus required for making this
definition is  the same as that needed for defining,
standards like length, weight, time.

Once this standard definition for currency is made the
valuation of every product, service will become relative
to the global standard of currency/money, the market
forces will work as it is now, it will only remove the
anomaly in global trade that has come due to the arbitrary
valuation of fiat currencies of various countries.

>
> And besides, there are qualitative differences among value addition of the
> same sort. For example, unskilled labour as it is performed in India vs as
it
> is performed in the US are very different. The US relies on machines and
> automation much more than India -- and machine usage is so ubiquitous that
> they can be considered "unskilled."

This is exactly why we need a global currency, when
someone uses lot of machines/energy to manufacture a product
the cost of the product should reflect the energy deployed
to produce it.

When a global energy based currency comes to effect, the
products made using optimum use of machines / manual labour
will become the cheapest, this optimum usage will be the
most environment friendly also.  This will automatically
*evolve* the most efficiant use of machines and labour.

Golbal currency will create a self regulatory environment
friendly industrial/economic system.


> Also the distribution of natural resources
> varies so widely that it affects performance. The same unkilled labour (of
say
> laying roads) requires far less resources when performed in say south
India as
> against say north Sweden.
>
> If anything this global economy has to *evolve* itself into the best
> configuration. And rather than taking on a oppressed vs oppressor
> worldview,




The necessity of a *global currency* with the evolution
of *global trade* is part of the evolution process.....

All i am saying is if the global currency does not evolve
with globalisation of trade then it will become economic
colonisation situation......




> IMO, it is better to think in terms of how we can facilitate the evolution
> into an optimal configuration.
>
> For example, present day globalization creates what are called "economic
> holes" in weaker economies of the world. Economic holes are caused by a
dearth
> of transactions that meet demand with supply, even though both exist. What
it
> means is: I have what you want, you have what he wants and he has what I
want;
> but all of us are "poor" and "third world"; none of us have any "money";
so we
> don't transact among ourselves and instead concentrate on "wealth
generation."
>
>

Necessity of *global currency* comes because we cannot
measure wealth uniformly if different countries uses
different currencies all of them being fiat currencies
that does not have a base..... This is against the
basic principle that all trade from the time of barter
system is based on energy mobilisation.


>
> However preposterous it may sound, this is in effect what is happening in
the
> weaker economies. We need to identify such holes and "fill" them if we are
to
> prevent major breakdowns.
>
> Srinath
>
>
> Ideas for India: Building the future -- together
> http://www.ideasforindia.net/
>
>




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