Unity in Diversity
July 10th, 2009Russian President Dmitry Medvedev pulled his ‘new world currency’ from his pocket at the G8:
There is a website for this currency. Lets see what its manifesto says:
Manifesto
ART. 1
"Unity in diversity" is the foundation that drives this initiative, which started up in 1996. Its aim is to bring people together and go beyond national stereotypes. Its historical importance is even greater than its economic one; it is a goal built on faith, common hope, and the unification of cultural and spiritual roots.ART. 2
The relationship between Europe and America, and between the United States and many Countries from the five continents, is based on common cultural traditions and sustained by a parallel vision of the world. It is driven by the highest concepts of brotherhood and peace. These relations are cultivated through global dynamics whose purpose is to fulfill social, political and economic objectives, in full respect of the values and national identities that found countries' respective constitutions.ART. 3
It is therefore our wish to bring to life the project for a common currency, which has been given the provisional names, "Eurodollar/Dollaeur" (initially), "United Money", then "United Future World Currency". It would symbolize not only the economic, but also the human, social, political, and spiritual bonds between the Nations of different Continents that hold similar ideals.ART. 4
The common currency project is a highly important step towards bringing people together. It is a means of understanding, provides reference and reinforces different identities that share principle objectives. Competition in respective markets remains free, and the basic principles of participating countries' national identities will be safeguarded.ART. 5
We are determined to raise awareness of this project among as many people as possible in all Continents. We are focused particularly on the active involvement of young people, especially from schools. Indeed, young people represent the strongest, most concrete vehicle for spreading this initiative. They are also the potential future beneficiaries of this large step forward towards unification and the creation of a world that responds better to the requirements of the new Millennium, as it gradually breaks down social and ideological barriers.ART. 6
Renewed cultural interest in the Economy comes as a result of shifting perceptions of currency as a whole. This follows on from the debate opened by the introduction of the Euro. Through this Project, students, including from a very young age, can become familiar with basic economic issues. The latter are increasingly important in a new society of widespread wellbeing.ART. 7
A joint Committee will be selected. It will include experts from a wide variety of disciplines. Everyone will be free to offer their own contribution to the project. This committee will also form the Jury that selects the most interesting ideas, proposals and projects demanded by different initiatives underway.ART. 8
There will be an information and support campaign to coordinate working groups, committees and clubs, implemented through organizations, bodies and associations. There will be a consideration period for all contributions regarding the expansion, comparison and development of: issues and technical problems; optimizing legislative instruments and procedures; and fulfilling the obligations of the new Currency.ART. 9
Trials will be carried out at important international events, aimed at awareness, education and promotion. "United Money" currency (banknotes and coins) trials will be entrusted to the best international professionals and experts in the appropriate fields.Time will be set aside to explore technologically-advanced security and counterfeiting issues, which a future Currency will have to keep in check. This will involve the most prestigious and trustworthy public and private bodies, including universities and companies.
ART. 10
It will be the responsibility of the world's future citizens and the governments they put in place to make our Project a reality. This project is driven by a firm belief in the unification and co-existence of different peoples. It aims to promote an increasingly equal distribution of the planet's resources and human intellect.Rome and Brussels, March 21st 1996
New York, January 12th 2000.
Milan, February 17th 2009[…]
FAIL.
Notice the words and phrases that are missing from this manifesto:
Inflation.
Fiat Currency.
Control of Money Supply.
Hyperinflation
Economics.
and the most glaring omission…
What is this money backed by?
What is it made of?
Unless this new currency is made out of Gold that will be distributed directly to the people who are going to use it, i.e. the public, it will be no better than any of the other Fiat Currencies that are currently circulating. All of them are flawed, all of them rob the people who ‘own’ them by inflation.
They have some interesting crypto enhanced banknote ideas:
but it is meaningless when we are talking about the nature of the money itself. The fact of the matter is that counterfeiting of banknotes is not what causes instability of currencies; it is the printing of banknotes by governments that causes inflation and currency instability. Of course, the government will have the private keys to sign every banknote – an infinite number of them if it wanted to. These notes will have no more intrinsic value than the now totally discredited dollar.
That image is from a page called ‘The Tests’. If this currency is made of 999.9 gold, there is no reason to test anything. I will accept it myself. Why? Because GOLD IS MONEY. Once it is in my hands, it cannot be devalued by inflation. It retains its value. It is, in fact, the perfect store of value. A commenter on a Grauniad article about the ‘financial crisis’ said that, “we need to have a standard of money that we understand in the same way that we understand what a meter is”. DUH Grauniad socialist, that thing is GOLD.
Sadly old ‘Dimi’ and his cohorts didn’t have the balls to simply declare a Gold Ruble and have done with it. The silly name of this currency and all the fluff surrounding it, like that absurd manifesto makes this thing reek of unseriousness. I could be wrong, and this could be the beginning of the restoration of real money. I might have missed the part where it says this is a money made entirely of gold, and where the notes are backed by gold. Lets see.
One thing is for sure though, if it does not conform to the laws of Economics, then it is doomed to fail.