I haven't posted in awhile, the back injury kinda killed the groove. But I was back at work last week and I've had a thought festering that I want to write. So here goes...
Resolved:
The world should (and in many ways has) adopt a single currency for any and all international trade
I'll act like I'm debating you, and if you want, please post rebuttals in the comments section.
First of all, in order to fairly exchange goods, you and I must have a standard by which we value those goods. Many things affect that standard, such as the difficulty it was to create or harvest, the distance it had to travel to the exchange, the scarcity of it or its parts and the desire or need it satisfies. In other words, an economic system must exist. In the case of America, the dollar's value is determined by its borrowing power, spending power, and in what I believe is an increasingly mythical sense, gold.
When I trade with someone across national lines, the values needs a standard. Currently its determined by the exchange rates. International currency trading, a truly magical thing, compares the various value determiners and sets a comparison, i.e. $1.38 for € 1 (Euro). I believe this is stupid.
I believe a single currency, backed by 6 major production categories and derived from the 5 strongest economies across those categories, would make life much simpler. It would be reevaluated every year by a committee of bankers and businessmen at the UN. Every 4 years, alternating the seats, half of this 20-25 individual committee would be elected from the top 100 economies in the UN, determined by the committee itself. The first committee would be selected by a special convention of economists and world leaders but I'm wondering off my original trail of thought.
The 6 major categories would be: Energy, Agriculture, Raw Materials, Defense, Technology, Non-Consumables (Textiles, Infrastructure, Construction, Etc.)
Each nation would be compared both on a gross evaluation and a per capita evaluation per category; and a formula, which I would be unqualified to write but probably would enjoy trying, would determine that nation's TCV (Total Currency Value). The top 5 in composite TCV score, across all the categories, would be the economies that would back the currency.
Over the course of 10 years, each UN member nation would begin printing the new currency and supplying it to their banks. The various nation's current currencies would be rated against the new composite currency much like the dollar and euro are compared today. As the old currency is spent, slowly but surely all of it would be absorbed into the banking system and exchanged into the World Bank for the new stuff, at whatever rate that particular country's currency was valued at. The World Bank exists, look it up.
After that, all international transactions, and if a country is particularly excited about the idea, even domestic transactions, would be carried out using the new universal coin. I think a good name would be Terra. That way you could have a Centerra (hundred Terra bill), Militerra (million Terra bill), Decaterra (10) etc. All coinage, or fractions of a Terra, would be eliminated. Rounding to the nearest 1 Terra would be mandatory. Imagine the simplicity!
Along with the simplicity a universal currency provides, it also allows the UN to level meaningful sanctions and penalties on non-participatory governments. What is currently a laughable slap on the wrist would become an economical nightmare. Truly self-sustaining economies can no longer exist, but with a universal coin, they'd be illegal.
I see you Isolationist, squirming and fuming at my ideas. I've got a simile for ya.
Isolationism is a like a man choosing to live on a secluded island. He may like it at first, but eventually he'll either go crazy, starve, die from exposure, or get eaten by a wild animal.
Nations can do those things too. A nation going crazy, is when the culture develops fanaticism, much like the Japanese pre-WWII. With no global-sense, they had been bred to believe they were the center of the universe and their emperor was divinity. Eventually that lead to rampant imperialism and sneak attacking the largest 2 countries in the world (China and the USA) (make it 3 and include the Ruso-Japanese war). Sounds like insanity to me.
A nation can also starve or die from exposure. More obvious here, but not having the necessary things, whether they be food or energy or guns, is eventually disastrous. Lack of something important is the primary cause for a large majority of international conflicts, which are more commonly known as wars.
Finally, nations can get eaten. When you choose to not be apart of the group, eventually the group will come take your stuff. Not saying its right, just saying that's how it is.
So, rebut away if you dare, but in the meantime vote for me for UN Secretary General so I can get the ball rolling on this thing.
