By Hem Raj Jain,
This refers to wide coverage in media of the news that in the backdrop of on-going global financial / economical problems, Russia & China are demanding Global Currency (GC) whereas USA is insisting on keeping Dollar as ‘de-facto global currency.
But before opposing the GC, Obama ought to keep in view the following and also which I mentioned in my earlier letters of dated January 28, 2008, February 9, 2009 and March 1, 2009 :-
(1)- An economist who does not respect the sanctity of currency is not worth the name, but most of the economists do not respect this.
(2)- Therefore most of the economist world over claim to know the xyz of the economics without knowing its abcd. (Hence a situation where economists world over are clueless about the solution of on-going global financial / economical problems).
(3)- The head of federal / reserve / central banks of most of the countries and their finance ministers who are legally responsible for the control / functioning of these banks should have been behind the bars for the crime of criminal breach of trust (because they print currency notes without equal asset back up) but on the contrary most of them are in / advisors to / on the panel of economical advisory
boards of, the governments of various countries.
(4)- Though present on-going global financial / economical crises was triggered by sub-prime crises of USA, but monetary indiscipline (currency without asset back-up) is the main reason that it acquired such an immense international proportion which has put the entire mankind to such widespread hardships & difficulties.
(5)- Whatever the economists all over the world may say under the influence of various schools of economics (most of which are nothing but merely a justification for misappropriation of people’s financial & economical space by State) but – “Unless the holder of money has its stated value under his physical or constructive possession through money issuing authority – it is not money”.
(6)- Though all the countries have dispensed (and rightly so) with gold (and other precious metals) ackup of their currencies M0 but in this process they have made all the High Power Money M0 not worth the paper these are written on (as these countries have not replaced gold etc. with other assets) with devastating implications for world economy (due to immense amount of baseless unpredictable money doing rapid rounds across the world, especially in this age of globalization)
(7)- Like other countries of the world, India (despite Article 292 & 293 of its Constitution) also has been undisciplined monetarily where, in the past it generated huge amount of money illegally by printing currency without proper asset back. USA is also producing Currency M0 without having proper asset backups. As per last balance sheet of Federal Reserve the Net Federal Reserve Notes are $791,691 Millions whereas tangible asset backup of this currency is merely Gold plus Coin $(11,037 + 1,179) Millions.
(8)- This monetary farce could easily have been avoided by understanding an important difference between physical possession (as in case of metallic back up) and constructive possession under legal system (which can also be real estates – land and houses) with their titles under recoverable pledge with Currency Issuing Authority.
(9)- Because constructive possession basis of currency M0 requires efficient judiciary which mankind does not have therefore various governments of the world, instead of improving their judicial system resorted to said monetary farce. Bu now this monetary farce needs to be stopped immediately if globalization has to succeed and on-going global financial / economical problems are to be solved.
(10)- For this a “Global Currency Issuing Authority” (GCIA) should be constituted with United Nations which will work under the supervision of extended Security Council “The Currency Security Council of United Nations” (CSCUN).
(11)- This CSCUN and GCIA should have no connection with ‘World Bank’ or ‘International Monetary Fund’.
(12)- This GCIA should have its branch offices (numbers as per need) in all the member countries of UN where GCIA (i)- will issue GC (above minimum prescribed amount) to its any citizen / government (federal or provincial) who brings gold or any other recognized (by GCIA) precious metal for physical possession of this GCIA or who brings recognized (by GCIA) real estate for constructive possession of GCIA and (ii)- will return asset back-up (metallic or real estate) to any citizen / government in lieu of returned GC to GCIA.
(13)- All the government securities against which currency M0 have so far been issued by federal / reserve / central banks of various countries should be returned back to respective governments and in its place these governments should be asked to furnish either equal value of recognized precious metal or its recognized properties (real estates etc) to be kept under physical or constructive possession respectively, of this GCIA.
(14)- Though GC is bound to create tremendous dislocation initially in all the economies of the world for the simple reason that it will eradicate the fake (without asset back-up) currencies which are huge in amount and are presently running the economies of various countries of the world but ultimately within (say) 3-4 months stabilization will set in and genuine money holders will recoup their original financial position and strength (except very few who have amassed huge wealth unjustly out of said on-going monetary farce).
(15)- The above mentioned system of GC, GCIA and CSCUN will automatically take care of the problem of high fiscal deficits (which is nothing but open loot, with devastating effects) indulged by various governments of the world.
Therefore, the people world over though understand that Americans have elected President Obama primarily for their own sake and not for safeguarding the interests of remaining mankind but Americans will be committing a great folly if they think that after initiating the process of economical globalization with unprecedented FII / FDI across the world (which has brought about current global economical crises due to mainly the monetary anarchy world over) USA can dump globalization and ditch other countries and that too by unnecessarily pampering very few number of those Americans who, as mentioned, have huge unjustified money under their possession, command and control.
Further, it will be the irony and big joke of history if “Global Currency’ being demanded by communist countries (Russia & China) will be opposed by a leading capitalist country (USA).
Moreover, this is the first opportunity (since he entered White House) for Obama to become the ‘Man of History’ by introducing “Global Currency” through “Global Currency Issuing Authority” under “The Currency Security Council of United Nations”. And the mankind (which has great hopes from Obama who, as per his Feb 24 address to joint session of US Congress, has aspirations for USA to lead the world) expects Obama to rise to this occasion.