Charles,
Australia might be an altogether different country from this one but we've
had at least 200 or 300 local currencies over the past few years and
they've all collapsed.
They didn't collapse for lack of trust but because the skills and goods
that were available to the possessors of their currencies are too
restricted. Plenty of organic vegetables and reflexologists or
baby-sitters, but no electricians or plumbers.
Keith
At 22:56 09/10/2008 +1100, you wrote:
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Arthur
You seem to consider that only global trust can be trusted. In fact,
people trust those close to them more than they trust those they dont
know. Hence, the push by many (including me) for a system of local
currencies backing up a global currency.
A local currency relies only on the trust of those who use it, and hence
it hardly ever collapses. Provided the participants in such a network of
local currencies could exchange them with each other as people move around
(just as we now do with national currencies at every airport in the world)
such a system would be much more stable than a system based on a global
currency (which as we have seen is subject to abuse by the powerful)
regards
Charles Brass
Chair
futures foundation
www.futuresfoundation.org.au
phone: 03 9459 0244
fax: 03 9459 0344
From: [EMAIL PROTECTED]
[mailto:[EMAIL PROTECTED] On Behalf Of
[EMAIL PROTECTED]
Sent: Thursday, 9 October 2008 10:35 PM
To: [EMAIL PROTECTED]; [EMAIL PROTECTED]
Subject: Re: [Futurework] Will Justin Yifu Lin be the person?
I don't see the advantage of having flexible McDollars. Either there is a
universal currency with fixed terms, interest rates, etc. or there is an
array of national currencies. Flexible McDollars means that the value
inherent in the brand can't be trusted: the trust that adheres or is
associated with a strong reserve currency as the pound or dollar (at least
that is the way it used to be)
Constructing a new universal currency seems an interesting idea, but
allowing local changes to suit local conditions seems to rob the brand of
its strength which in the end is : Trust and confidence.
It is as though McDonald's around the world could make changes at will to
suit local conditions: What then is a McDonald's? (I realize that
McDonald's does make changes locally but these are well thought out and
((I would imagine)) are made in ways that don't threaten the brand.)
arthur
----------
From: [EMAIL PROTECTED] on behalf of Keith Hudson
Sent: Thu 10/9/2008 3:20 AM
To: futurework
Subject: Re: [Futurework] Will Justin Yifu Lin be the person?
Arthur,
At 11:59 08/10/2008 -0400, you wrote:
Subject: RE: [Futurework] Will Justin Yifu Lin be the person?
Keith,
How have things worked with the Euro? My understanding is that it takes
away from individual countries the power to set interest rates appropriate
to economic conditions. National currencies at least offered the power to
devalue, revalue, raise or lower interest rates, etc. A universal
currency means that nations have to move in concert no matter conditions
locally.
Arthur
Very true, concerning the Euro. But I'm envisaging that a future world
currency would be issued by a retail universal bank, not the World Bank as
presently constituted (that is, as a consortium of central banks). Let me
call it a Universal Bank. It could be franchised to any retail bank,
business, pension fund or individuals which/who would initially pay for
the franchise in their own national currencies but then operate
individually with their new currency, and setting their own interest rates
according to local, regional, national circumstances. Each franchisee
would sink or swim according to the skill and competence of their own
organisations and the world currency would operate in the market place
side by side with national currencies in a similar sort of way that the
world population is becoming bilingual -- English and Another.
I believe that something like a new world currency will be forced into
existence because the retail banks and central banks are losing their
original primacy in the scheme of things. Retail banks are no longer the
main source of capital for new economically-important ideas (which need
relatively large amounts of investment) and are increasingly confined to
lending to individuals and existing types of local and middle-sized
businesses. (Large businesses now increasingly issue bonds when they want
capital.) Central banks are reaching the limits of the amount of cash they
can print because (developed) governments are reaching the end of their
borrowing ability -- that is, taxation powers (of both their own
population and of sizeable commercial operations, legal and illegal, that
operate in and out of their national boundaries).
There will always be a role for retail banks and central banks (using
national currencies) as we know them because of the mass of circular
financial activities and economic transactions going on within a
population. But there is now an increasing need for international payments
systems both for individual customers (catered for at present by credit
cards) on the one hand, and on the other for very large businesses which
would welcome a stable currency for their international transactions
without having to hedge their contracts against currency speculators.
Keith
Keith Hudson,
6 Upper Camden Place, Bath BA1 5HX
(044 1225 311636 or 312622)
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Keith Hudson,
6 Upper Camden Place, Bath BA1 5HX
(044 1225 311636 or 312622)
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