Morrison Bonpasse

Wednesday FX View: Currency Direction Up in the Air

Andrew Wilkinson's phrase, "One has to wonder what the impact would be if the Chinese decided to side with a currency... " shows the risks of the current multicurrency system. The value of people's money should not depend upon decisions by one country regarding the currency of another. It should not depend upon buying and selling of currencies in a marketplace.
Instead, we should be moving to a Single Global Currency, managed by a Global Central Bank within a Global Monetary Union.
If 16 countries can use the same currency, why not 192? The euro is definitely a harbinger of the future, and soon all 25 EU members will be part of the EMU. The IMF has even urged several EU members to "euroize" even before completing the standard accession process.
In addition to eliminating currency fluctuations, the use of a Single
Global Currency would eliminate the current foreign exchange trading expense of $400 billion annually, eliminate currency risk, eliminate current account imbalances, eliminate the need for foreign exchange reserves (now totaling more than $4 trillion); and bring other benefits worth trillions, such as reducing the impact of global financial turmoil such as we are now experiencing.
The Single Global Currency Assn.(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.
The world is moving toward a Single Global Currency through the
creation, expansion and merger of regional monetary unions. Another route is through international monetary conferences proposals and agreements, such as were seen at Bretton Woods.
The challenge now is to reach that goal deliberately, as soon as
possible, with as little cost and as few crises as possible. If the
eurozone were to merge with the U.S. dollar of the yen, or if the yen
and the U.S. dollar were to form a monetary union, the road to a Single Global Currency would be clear.
The only remaining questions about implementaiton of a Single Global Currency are: when? and how much cost and turmoil will the world endure before that implementation.
See the book, "The Single Global Currency - Common Cents for the World."
Morrison Bonpasse
Single Global Currency Assn.
Newcastle, Maine, United States

Currency Fluctuation and Manipulation

China is correctly concerned about monetary stability, and its call for a new global reserve currency is excellent. Everyone who uses money is concerned about monetary stability, and currency fluctuations are no longer inevitable. However, instead of an SDR-based currency, which would be difficult to initiate and maintain and which would be incomprehensible to the people of the world, we should move to a Single Global Currency to be managed by a Global Central Bank within a Global Monetary Union. This next global currency will not be the responsibility of just one country. Such a global currency would be used by all the world's 6.6 billion people. What is needed now is international recognition of those goals, and research and planning to achieve them.
The success of the euro shows that monetary union is the best way to ensure monetary stability. 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 totalling more than $3 trillion); and bring other benefits worth trillions.
The Single Global Currency Assn. (singleglobalcurrency.... promotes the implementation of a Single Global Currency by 2024, the 80th anniversary of the 1944 conference. That’s only 15 years away.
The world is moving toward a Single Global Currency through the creation and expansion and merger of regional monetary unions. Another route is through international monetary conferences proposals and agreements, such as were seen at Bretton Woods.
The challenge now is to reach that goal planfully, as soon as possible with as little cost and as few crises as possible.
See the book, "The Single Global Currency - Common Cents for the World."
Morrison Bonpasse
Single Global Currency Assn.
Newcastle, Maine, United States