With its commitment to explore the "vulnerabilities" in the global
financial system, the G20 conference in Washington in November was a first
step toward part of the long range solution to the world's global
financial instability, which is a Single Global Currency, managed by a
Global Central Bank within a Global Monetary Union. What is needed now is
international recognition of those goals, and research and planning toward
We are so conditioned to the fluctuations of the values of currencies,
and the frequent need to assist currencies in trouble, that we fail to
adequately recognize the contribution of such currency risks to the
current global financial turmoil. We also fail to recognize how easy it
will be to eliminate those problems. For every currency in the world
today, we cannot predict a value for next year, next month, or even the
next day or next hour. How can a stable globalized financial system be
built upon such instability and unpredictability?
The success of the euro shows that monetary union is the best way to
ensure monetary stability. It is now commonly recognized that Iceland,
Hungary and Poland and other European countries would have had far less of
a currency problem this year if those countries have been part of the
eurozone. The primary problem with the euro and currencies of other
monetary unions is that they still must co-exist within the international
multi-currency system itself where the value of those common currencies
must still fluctuate in value against each other. If 16 countries can use
the same currency, why not 192?
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, eliminate current account imbalances, eliminate the
need for foreign exchange reserves (now totaling more than $3 trillion);
and bring other benefits worth trillions.
The Single Global Currency Assn., www.singleglobalcurrency.org, promotes the implementation of a Single Global Currency by 2024, the 80th anniversary of the 1944
conference. That's only 15 years away. For perspective, consider that
15 years before the 2002 implementation of the euro in the pockets of
Europeans, there was a Berlin Wall, a Soviet Union and a Yugoslavia.
The world is moving toward a Single Global Currency through the
expansion of monetary unions in the Caribbean, Europe and West Africa,
and the creation of monetary unions in Africa, Asia, the Middle East, and
North and South America. The challenge now is to reach that goal
deliberately, as soon as possible, with as little cost and as few crises as
Single Global Currency Assn.
Newcastle, Maine, United States