Global Currency a tool to reorganize the society in a new way and save the planet earth.

While on one hand we need an economic system for mankind to progress, on the other hand we need to not allow any individual or entity to control it. This is the paradox for which we need to find a balance, throughout human intellectual history that is one of the main issues thinkers have been trying to solve. Human labor and endeavor is most effective when in a ‘team’ and yet it is the ‘team’ as a whole who needs direction from an individual.

We as a species need to figure out a way to efficiently allocate our resources to meet the final end of progress (as we call it: the betterment of mankind). In the early history it was through the direct control of the assets by individuals (Kings or Chiefs); who through this control have imposed their will and understanding of progress, in the process turning the ‘team’ of human labor towards their perception of the world ( ex: society in which Pharaohs ruled in Egypt) .

Later societies (modern 20^th Century), produced collective thoughts (as opposed to Kings/Chiefs) on what should be the understanding of human progress, they thus needed to push human endeavor in different direction. Since the producer of collective thought was no individual so the control of the assets need not be direct (or individualized), rather indirect, through an intermediary, what we know as money.  Usage of money, also helped, to the extent, that it opened up opportunity for a larger pool of individuals to strive for controlling power and also brought in a new player ‘the organization’ (as opposed to an individual) in the competitive mix.

Over the years, these ideas evolved into today, what we see in a modern economic system. However, the concept of money, the bedrock of modern economic system, turned out to be very addictive. It violated the fundamental principle of economics that applies to food, clothing and other material objects: the more of them we have, the less we value them, for money more we have them , more valuable it becomes to us.

This is the nature of money: “By possessing the property of buying everything, by possessing the property of appropriating all objects, money is thus the object of eminent possession. The universality of its property is the omnipotence of its being. It is therefore regarded as an omnipotent being. Money is the procurer between man’s need and the object, between his life and his means of life. But that which mediates my life for me, also mediates the existence of other people for me. For me it is the other person.”  Karl Marx, Economic and Philosophic Manuscripts of 1844. Money enhances the indirect ability of an individual. That which I am unable to do as a man, and of which therefore all my individual essential powers are incapable, I am able to do by means of money. Over the years, the money became such a powerful idea that it became the definition of our individual’s worth; it gave us the freedom to make our life what we want it to be and also the most valuable thing, that is freedom from having to worry about money itself. From the tool of helping mankind to efficiently allocate our resource, it became the very definition of our free will.

This I think is one of the reasons for rise of current political chaos. At one hand we reverted back to the original order of exploiter-exploited model (did we ever leave it at all? we always dreamt of equality for all but it remained as a dream only.) and on the other hand, more importantly, we are driving environmental collapse. The third parties, whether it is the banks or countries that, regulate how we use our money not only drove vast majority of people into economic desperation, political corruption, and financial instability but also, for the first time in the history of mankind are on the brink of destroying the very planet we live in. They serve mainly the interests of a global financial oligarchy by throttling, controlling the financial system. They have money; they want more and value them even more. Whereas as a society, we confront one simple truth: an economic system based on the false idea that money is wealth—and the false promise that maximizing financial returns to the holders of financial assets will maximize the well-being of all. In actuality, it inevitably does exactly what it is designed to do:

1. Those who have financial assets and benefit from financial games get steadily richer and more powerful.

2. The winners use the power of their financial assets to buy political favor and to hold government hostage by threatening to move jobs and tax revenue to friendlier states and countries.

3. The winners then use this political power to extract public subsidies, avoid taxes, and externalize environmental, labor, health, and safety costs to further increase their financial returns and buy more political power.

This results in a vicious cycle of an ever greater concentration of wealth and power in the hands of those who demonstrate the least regard for the health and well-being of others and the living Earth, on which we all depend. Fewer and fewer people have more and more power and society pays the price. Historically this was always true, we thought that in 20^th century,  ‘for the progress of mankind’ we figured out a better system but it seems that, long hand of greed and human nature to control and dominate, figured out a way to bend our modern financial system.

The next avatar/idea is the global currency, which I think we should try for the same objective: progress of mankind. Something that will help in universal valuation of goods and services (i.e. the same haircut should cost same in UK and China) and decentralized, shared book keeping for all monetary transactions (this will take away the throttling power of the 3^rd party financial institutions). Thus, a traditional currency system that depends on the involvement of a third party (bank and central bank) as the settlement body can be replaced. However, the conventional currency system revolved around the central bank and is not designed only for trading and transaction, but is also held responsible for monetary policies such as credit expansion, price stability and flexible money supply – all duties that the new currency system need to fulfill. But How?

Through a decentralized organization, without any national credit endorsement and national monetary policy adjustment power but having global powers with global reach. In fact, studies including commons governance, open source theory and internet socialism have proven that a social group without a powerful management body at its core will not necessarily degenerate into chaos. A seemingly loose organization can still be effectively governed through healthy interactions among its members. This organization, managing global currency, will be composed of countries or if the world is one country, (for all humanity with universal valuation for all labor and products) then of rotating policy making bodies.

Transparency in dealings and distributed book keeping will cut settlement/transaction costs. Global valuation of currency will not need any individual institution for currency issuance and settlement, and will also cut the lurking “moral risks” that is borne by today’s National Central Banks.

Global currency can be deemed (to some extent) as a type of common resource and we can devise new ways to enable credit expansion though novel ideas like smart contract or other transactional innovation. Currency after all is a token, representing valuation and I think should not be anything else. We should devise a 100 % provision system that forbade commercial banks from making profit from cash. Fresh money should not come into existence because of financial profit. Issuance of currency should be directly related to mother earth, real economy, which it was during the gold standard days. Human ingenuity is unlimited but not the resources of mother earth.

I believe that to further human progress and save the earth, along with other things, we need to rethink our global financial system as it is the primary tool for efficient allocation of resources for all humanity. This thinking should at the least include

a)      Global Currency focused on universal valuation only. (same product/service should cost same everywhere on the planet)

b)      Global Currency managed by decentralized global organization.

c)       Efficient, transparent, decentralized and shared book keeping.

d)      Credit expansion through innovation in the transaction system and not by expansion of Money.

e)      No new money issuance due to financial profit.

f)       All currency issuance tied to natural resources of mother earth (directly). Ex: Gold Standard or Bitcoins (which use a large amount of energy to generate a new bitcoin).