Currency is an instrument designed to make economic exchanges easier, to value goods, commodities and services. It is a tool to ease the economic flows.

Now, money has been transformed into a tool for domination and power, accumulation of assets, unbridled speculation. It is part of the “competition between all” ideology, which is dominated naturally by the strongest and the result is the terrible economic and environmental situation we face nowadays.

We are now reaching a point-of-no-return in the destruction of environment and human societies.

The present world economy is completely entropic and is bound to collapse (laws of life).  It is very urgent to change our modes of living and create a sustainable world with a sustainable economy, with justice at the core of the new economic dispensation.

The currency system must be able to help create balance, justice and harmony in the economic relations. Its basis, therefore, must reflect multilateralism.

It means that it must be a tool that will help to put an end to competition between nations, it is not just a tool to reduce the risk of major crisis in the present market-forces-dominated global economy.

Multilateralism means the UN have to be at the center of the system, very unlike the present system where IMF and World bank are actually ‘independent’ from the UN control. So a new currency system has to be designed by the community of nations and the management has to be delegated to the UN system, under the supervision of the General Assembly.

That is the first condition to create a fair and democratic international currency system. If there is no democracy, there will be domination by one or a few nations and we will not solve the problem.

The new currency system has to reflect the search for stability, unlike the present system of floating currencies. It will also serve as an instrument to grant loans to developing nations at a low interest rate for (today they can hardly afford to borrow from the financial markets), but without the current Conditionalities involved in the Structural Adjustment Programs.

There has be devised a new development contract with the developing nations (and which is now being forced upon the European nations members of the EU).

 

Which model(s) of a new reference currency should be promoted?

We can immediately think of the Special Drawing Rights as a possible instrument. But the SDRs are defined according to 4 currencies (US $, €, £, Yen). If we extend the SDRs to 4-5 more currencies, it is like shifting from G7 to G8 or G20. This is not the solution.

Furthermore, if, for example, the USD collapses tomorrow, then automatically does the SDRs plunge likewise.  And last, SDRs are under the control of the IMF which is not a democratic institution.

Above all, the central point to consider is to have a currency which serves as the pivotal value for all world currencies, at fixed rates with a limited spectrum of variations.

Such currency might be weighted and periodically revised by an index value based on a basket of commodities (Global Commons).

This currency has to reflect the fact that we live in a finite world with finite resources. So why have an unlimited creation of money when this money is used to promoting a model of development which is based on an excessive consumption of goods and of the planetary resources.

That means that nations have to define in parallel a basket of Global Commons, the management of which (including the pricing issue , of course) will be devoted to the nations altogether, via the UN system, and not, as off today, left in the hands of the market forces, speculation, financial conglomerates.

Staple foods, metals, oil and others should fall within that category. We must shift from an economy of private owners only to an economy where the most important resources for human basic needs and global balance are managed by the stakeholder nations altogether.

That is a quantic revolution of consciousness that we must achieve.

We should insist on the fact that we have to shift from a system where the creation AND CONTROL of money is granted to private banks (in Europe, the vast majority of monetary aggregates are the creation of banks) to a system where public interest gets that control back, otherwise, democracy is an illusion. (we all know this example where the US Fed would have granted USD 1200 billions in loans to Wall Street banks at 0,01% interest rates, and then these banks accept that nations states borrow that same money at 6-7..10%…

In 2012, I had the chance to attend the XIIIth Conference of Unctad (United Nations Conference on Trade and Development) in Doha, Qatar. There was a putsch attempt by a pool of developed nations (US, EU, Japan, New Zealand, Canada…) to withdraw any consideration about finance from the scope of work of Unctad.

The financial powers in the world are desperately trying to hold their grip upon the economies of the world at all costs for the civil societies and for the nations.

It is a war which is going on, we have to make known to the public to a large extent the roots of the financial and monetary crisis and how to get out of it.

Conclusion : Building up peace

 

The present economic war is driving us to chaos. Only cooperation can lead us out of the present turmoil. Cooperation is natural to humankind because it reflects our divine nature.

We are divine souls in incarnation. Our purpose is to evolve and express the qualities of our souls, be as souls, behave as souls.

The first spiritual act that humanity has to accomplish is to understand its spiritual nature and understand that it is one, as a unit, a family.Economy therefore should reflect the equal right of all to have access to the world resources.

It also means a responsible management of our planetary life and resources. It took billions of human years for all the kingdoms of nature to reach their present stage of development. We have no right to put all this evolution in jeopardy because of our greed, selfishness and materialistic oriented mind.

Cooperation and equitable sharing of the world resources will create economic justice, which will build up trust and that trust will result in peace. The purpose of life is not to accumulate fortune and wealth and material products, it is an ongoing process of growth of consciousness, understanding of the purpose of life, enrichment of social life. We cannot continue to deny this right to half the world population. We have to create decent conditions of life and release people from the struggle for life and give them opportunities. Then only the totality of humanity may enjoy life and its gifts, then only may people be able to express their own talents and creativity. The key note of the future is: unity in diversity.