The US Dollar and the Euro are not real international currencies, but the currencies of certain countries (US) and region (Eurozone) that are “adopted” to become international currencies. This causes our global monetary and financial system to be asymmetrical. Some countries print money while others buy them. Consequently, the US and the Euro Area can buy anything from all countries in the world just by printing money from paper. They buy gold with paper. While all other countries are the opposite; they sell anything to get “paper money”. They buy paper with gold.
This asymmetrical global monetary and financial system creates a very expensive cost to the world economy; exchange rate costs and fluctuations that reach hundreds of billions of dollars every year; cumulative foreign exchange reserves worth a dozen of trillions of dollars; two-thirds of countries in the world are trapped in foreign debt that cannot be paid; mass-and-cold trade wars involving all countries in the world and lasting for decades gave birth to the phenomenon of “race to the bottom” and made most developing countries trapped in the middle income (MIT); persistent global imbalances that continue to grow and become a fertile ground for monetary crisis that occurs periodically throughout the world.
The Global Currency Initiative pioneered a global monetary model that is fully symmetrical and at the same time democratic. The model name is “organic global monetary” (OGM). OGM is an international currency system developed jointly by all countries in the world, or member countries and is part of their respective national currencies.
Organic currency is only used for international transactions between member countries; while domestic transactions continue to use the national currency. The relationship between international currency and nationals is organic (part of) and hybrid (interconvertible). The exchange rate between organic and national currencies uses an auto-balancing so that it follows the true economic fundamentals.
The organic model is an international monetary system that is natural, elegant, and very comprehensive, provides international currencies “free of charge” to all member countries, does not require foreign exchange reserves, eliminates exchange rate cost and fluctuations, makes “zero-depreciated” international currencies, eliminates foreign debt dependence, abolishing trade wars at all levels, releases countries from the middle-income trap (MIT); eliminates global imbalances, and completely roots out currency crisis around the world. The organic model uses a fully flexible exchange rate system; therefore, it doesn’t require economic integration. Thus, all countries in the world may join, without overhauling the monetary system, without losing the national currency and monetary-economic sovereignty. The organic model can also start on a small scale like the ASEAN region, South Asian, East Asian, Middle East, Latin America, East Africa, West, and Central, and many others. It may also start in several connected-regions or multi-regions. Once formed, the organic union may open to all countries in the world regardless of regional differences, income levels, economic systems, and others. All countries may join without exception. The organic union will grow bit by bit.
1. Current global monetary problems
1. Buy paper with gold
From the broadest point of view, our current global monetary and financial system is not symmetrical nor democratic. There are countries that print international currencies, while others buy them. Countries that print currencies can buy anything from all corners of the world with only sheets of paper written with numbers. They buy gold with paper. While other countries sell all resources to get international currencies. They buy paper with gold.
From IMF data, at the end of the third quarter of 2019, the total foreign currencies held by all countries in the world reached 11 trillion USD equivalent. This means that the total real wealth and all real resources used to “buy papers” by all countries in the world and sent to the owners of international currencies reaches 11 trillion USD. That is a very large number even for the size of the large country.
This has created enormous inequality globally where all countries in the world, most of which are developing countries, hand over trillions of US dollars of resources and wealth to the world’s richest countries for free.
2. Wasteful foreign exchange reserves
Foreign exchange reserves are international assets (most of them are international currencies) collected by all countries in the world for international transaction. Foreign exchange reserves are needed for two things, first for international transactions and second for the “fortress” of monetary security. The more vulnerable a country’s monetary system is, the greater foreign exchange reserves are needed for such fortress.
From 1990 to 2008, the foreign exchange reserves of developing countries in Asia rose from 202 billion USD to 3,371 billion USD. The biggest increase occurred after the 1997 monetary crisis. Countries in the world need huge foreign exchange reserves for monetary fortress.
Foreign exchange reserves are unproductive and wasteful assets because they cannot be used domestically. Countries that have the largest foreign exchange reserves in the world such as China, Japan, Saudi Arabia, Korea, Germany, and others reinvest their foreign exchange reserves into the United States with negative real interest rates. The greater the foreign exchange reserves, the greater the wasteful assets. Most of the 11 trillion USD reserves in the world, is wasteful. But they cannot eliminate those wasteful assets because they need “fortress of monetary security”. The cost of accumulating foreign exchange reserves in developing countries reaches an average of 1% of national income per year. This is a huge cost that burdens all countries in the world.
3. International money depreciation: the “donation of the poor to the rich”
All international currencies depreciate, on average 2% per year. This is due to the host country that make a budget deficit policy, which is “spending more than income”. The deficit is then “closed” by printing money. As a result the currency depreciates or its value falls; or we call it “inflation”.
Half of the US dollar is circulating outside the United States soil. That is, half the US government deficit is “funded” by all countries in the world. One-fifth of the Euro circulates outside the Euro land. That is, one fifth of the Euro area government deficit is “funded” by all countries in the world.
The total international reserves of 11 trillion USD equivalent means that the “donations” of all countries in the world for the international currencies owners reach more than 200 billion dollars per year; 60% flows to the United States, 20% to the Eurozone, and the rest to Japan, the UK, etc. All countries in the world, most of which are developing countries, and some poor countries where some of their people are still starving, work together to make a “charity” to cover the budget deficit of the richest countries in the world worth 200 billion dollars per year. That is far greater than the total grants of rich countries to poor countries.
4. Exchange rate fees and fluctuations
The current global monetary system which is made up of many currencies and several international currencies causes a significant exchange rate fee. Every time we make a foreign transaction and make a currency exchange, we bear the fee.
The current exchange rate system also causes exchange rates between currencies to fluctuate one to each other or unstable. This fluctuating exchange rate increases the risk, thereby increasing the exchange rate spreads and increasing investment risk between countries. All transactions and investments between countries in the world experience “fluctuation risk costs”.
The total cost of exchange rates in the world reaches 400 billion dollars per year. While the costs of fluctuation risks no one has calculated.
5. Global-scale trade war
The nature of trading is “perfect reciprocity”; if someone sells, someone must buy; if there is a surplus there must be a deficit. It is not possible for all countries to be surplus or deficit all together. Meanwhile, all countries in the world that use international currencies and involve in the global trade definitely want a surplus. Because only that way they can get foreign exchange reserves organically. Here is the source of the problem. If all countries pursue a surplus and avoid a deficit, then naturally it will give birth to a “mass trade war”.
The trade war between the US and China is only “the tip of the iceberg” of the mass phenomenon of a real mass trade war involving all countries in the world. The mass-scale and global trade war made countries in the world do anything to catch up to the surplus, avoid deficits, ignore efficiency, and give birth to the phenomenon of “race to the bottom” or trapped in the bottom”. This is detrimental to all countries in the world, without exception.
6. Foreign debt trap
Naturally, international trade is growing; and the average growth is higher than economic growth, especially in developing countries. Therefore, the need for foreign exchange reserves is always rising. Since the organic source of foreign exchange reserves is a trade surplus, all countries pursue surpluses and avoid deficits. However, as mentioned above, it is not possible for all countries to be surplus. Because for every surplus country there is always another country with a deficit. And in fact, not all countries are lucky being a surplus; even most of them are deficit; 2/3 countries in the world deficit; only 1/3 surplus.
The deficit countries then seek foreign debt to the surplus ones or to countries that have international currencies. Debt has interest costs that must be paid in the future. Interest costs will reduce future foreign exchange reserves; thus forces them look for another debt in the future. This way, these countries end up stuck with foreign debt that “actually can never be paid” and is “not planned to be paid”.
7. The middle income trap
The middle income trap (MIT) is a condition in which a middle income country is difficult to move up to a high income country (rich country) level. According to experts, the main cause of MIT is the slow of transforming technology, upgrading human resources, and transforming economic structure. All of these factors are internal. Apart from internal factors, there are other factors that significantly influence, namely external factors; in the form of “mass trade wars”, “unfair competition”, and “race to the bottom” or “trapped in the bottom” as mentioned above.
In current international trade, productive countries can exploit the domestic markets of other less productive countries and become rich countries in this way. While countries whose domestic markets are exploited, lose economic value added and growth energy; and finally their growth slowed. The current global monetary system does not allow all countries in the world to become wealthy quickly or on time; because there must be some countries that are slow to provide “space” for the faster states. There must be some countries that are “left on the runway” to make room for others to “take off”.
8. Global imbalances
Every condition that cannot sustain in the economy is called “imbalance”. If there are companies whose costs are greater than the income so that they operate by relying on debt, then this cannot sustain. One day the companies will definitely stop operating, or “corrected”, so they are considered to be in an “unbalanced position”.
Asymmetry in the global monetary system causes permanent imbalances between countries; we call it global imbalances. Countries that own international currencies (we call it centers) inevitably experience large and ongoing trade deficits while user (international currencies) countries experience a surplus. Imbalances also occur among countries that use international currencies (we call it peripherals). Some countries have large surpluses and the rest are deficits. This is caused by the exchange rate system which is inaccurate or does not reflect the actual conditions. Global imbalances are accumulative; getting bigger and bigger over time; and there is no way out.
Global imbalance is fertile ground for the growth of monetary and financial crises that have occurred throughout the world for decades, which until now “there is no cure”.
9. Monetary crisis
All monetary and financial crises that occur in the world, began with imbalances, both internal and external. Internal imbalances breed financial crises while external imbalances breed monetary (exchange rates) crises. Center countries that own international currencies are relatively immune to external imbalances, but not immune to internal imbalances. In principle, no country is immune to crises, including center countries such as the United States and the Euro Area.
Whereas countries that use international currencies (peripherals) are vulnerable to both. For peripherals, internal and external imbalances usually trigger monetary and financial crises at the same time. Peripheral countries that have a deficit cumulative trade balance are more vulnerable to crises, both financial and monetary. They are 2/3 of all countries in the world.
Crisis is a repeated phenomenon that occurs throughout the world and is always started by an imbalance. Post crisis, imbalance usually decreases. That is, the crisis is a “natural correction” when the imbalance is too large and the economic structure is unable to sustain.
Until now both the financial and monetary crises have no “cure” and have always been a latent threat to all countries in the world, especially peripheral countries whose trade balance is deficit.
2. Organic Global Monetary
1. Simple definition
Organic global monetary is an international currency system developed jointly by all countries in the world, or member countries, and becomes part of their respective national currencies. Organic currency is only used for international transactions between member countries; while domestic transactions still use the national currency. Organic currency cannot be used outside member countries. The relationship between international (organic) currency and national is “organic” (part of) and “hybrid” (interconvertible). The exchange rate between the organic currency and the national uses auto-balancing model that fully follows the economic fundamentals of each country.
Difference with US Dollars
US Dollars are made and controlled by the United States. The world only buys but cannot control. While organic currencies are created and controlled by all member countries. The world does not buy, but get free allocations.
Difference with Euros
The euro is a single currency; there is only one currency in the entire Euro area; no national currency. Whereas organic currency does not eliminate the national currencies of all member countries, but coexists side by side.
The Euro is created and controlled by the Euro Area. The world only buys but cannot control. While organic currencies are created and controlled by all member countries. The world does not buy, but get free allocations.
The euro can circulate outside the Euro Area and is used by other countries as an international currency. While organic currency only circulates within the organic union area, it does not circulate outside member countries.
2. Monetary democracy and symmetry
Organic monetary is fully democratic, created, controlled, and used by all member states. Organic monetary is also fully symmetrical, all countries participate in creating and using the currency at the same time. No more countries create it, while others buy.
Organic currency is distributed to all member countries based on the need for free international transactions.
Proportional voting rights are based on the amount organic currency in each country.
Membership is open to all countries in the world without the need for economic integration. The joining countries also do not lose national currencies and monetary and economic sovereignty.
3. Organic and hybrid
Organic currency does not stand alone and is not a foreign currency, but becomes part of the national currency of each member country.
Each unit of organic currency is guaranteed with the national currency of each member country; so it does not require gold collateral and other international assets.
Organic and national currencies have hybrid relationship, which can be converted from one to another without affecting prices (exchange rates).
Why doesn’t organic currency need gold collateral and other international assets?
First, organic currency only circulates in member countries, never leaves outside. Second, with an “auto-balancing” exchange rate system, the amount of organic currency issued in each member country tends not to change in the middle of international transactions. If a country gets an allocation of organic currency worth 100 billion dollars for example, then that amount tends not to change even though the country has made huge international trade, investments and other transfers. This is due to the organic system using an auto-balancing exchange rate system that will make all international transactions among member countries both trade, investment and other transfers always in a balanced position (no surplus nor deficit). Further explanation is in the “exchange rate system”.
Thus, organic currencies do not require gold collateral and other international assets.
4. The global central bank
Countries that join the organic system establish a union called “organic union”. The organic union then forms an international body affiliated with the United Nations, for example UNIM (United Nations of International Monetary). UNIM then establishes a global central bank that issues organic currencies and runs the entire monetary system.
In accordance with the “decentralization principle” (as will be explained below) the global central bank has offices in each member country. All global central bank representative offices in each country are connected in a “decentralized manner”.
All global central banks in each member country work together with each country’s national central bank. The global central bank regulates international (organic) monetary while the national central bank regulates national monetary.
5. Distribution to national central banks
The global central bank distributes organic currencies to all national central banks of each member country with the following stages:
- The global central bank calculates the needs of member countries’ organic currencies based on the number of their international transactions with fellow member countries. These international transactions include trade, investment and other transfers. This amount is then called the “ideal number”.
- The global central bank sends organic currency to the national central bank based on the amount above.
- In return, the national central bank sends the national currency to the global central bank in the same amount. The national currency is used as collateral for the organic currency they receive.
- The guaranteed amount is always the same as the organic currency they receive. If the national currency depreciates against the organic currency, the national central bank will send the shortfall to the global central bank so that the amount of collateral is the same again. Vice versa if the national currency appreciates.
- The amount of collateral that is always the same is called the “one floating value” guarantee system.
The guarantee of the national currency is kept by the global central bank, never circulated, and only in the form of electronic records. Thus there are no costs both economically and monetarily.
6. Distribution to the public (direct control system)
The distribution of organic currency to the public is carried out by national central banks.
- People who need international currency for transactions between member countries can buy it directly from the national central bank using the national currency.
- Revenue from sales by the national central bank (seigniorage) become government revenue.
- People who have made transactions and do not need organic currency can directly sell them to the national central bank.
- The cost of purchases by the national central bank (negative seigniorage) becomes the cost of the government.
When the amount of organic currency in circulation in the country is in the “ideal number” range or below, control is left entirely to the market. The government or the central bank does not intervene at all.
When the amount of organic currency in circulation in the country is above the “ideal number”, the government can use additional control systems such as “imposition of holding or saving organic currency tax”. Excessive use of organic currency for domestic transaction will be detrimental to the country itself because it will reduce the use of the national currency. Meanwhile, excessive use of organic currency for importing or transfers out is not possible or prohibited by the exchange rate system as explained in the section on exchange rates.
7. Digital and decentralized
To maximize functionality, organic currencies are entirely digital. The advantage of digital currencies compared to paper currencies is that they are all recorded, fully controlled, and the speed and efficiency of transactions are thousands of times that of paper currencies.
To maximize function, the organic model also uses a decentralized system. Decentralized system is a system that is made without a certain center, so that every part becomes a core.
The advantage of a decentralized system is that the system will remain fully functional even if some cores suffer from interference.
In a decentralized system, all member countries are core.
With a decentralized and digital system, each member country will have a super computer that is operated by the global central bank and the national central bank. Every country has at least 2 (or more) super computers that work in a decentralized way.
Core: is a super computer run by the global central bank and national central bank of each member country. One country runs a minimum of two units or more.
Backbone: is the main network connecting between cores and run by global central banks.
Client: is general public, commercial bank, financial institution, company, and all equipment connected to the main network to get organic system services.
The value of organic currency is pegged on the global price index so that its value does not change, does not decrease nor increase; or zero depreciation and zero appreciation.
Thus the value of organic currencies will be “super stable”, unchanged both in short and long term, more stable than any currencies that have ever existed in history, including gold.
9. Exchange rate system: auto-balancing
Currently there are two exchange rate systems in the world, namely fixed and floating exchange rates. Each has advantages and disadvantages. The fixed exchange rate is stable but inflexible. Meanwhile, the floating exchange rate is flexible but unstable. The organic model does neither. The organic model uses its own exchange rate which is called “auto-balancing”.
The main strength of the organic model in achieving equilibrium, convergence and efficiency comes from the accuracy of the exchange rate. To achieve a true exchange rate we use the parameters of price or purchasing power parity and neutral or equilibrium external balance.
The exchange rate between the national and organic currencies is determined when, first, the national price index (tradable) equals the global price index (tradable), and second, the external balance is neutral or equilibrium.
The equation is as follows:
E : Exchange rate
MGlobal : The value of global (organic) currency
MLocal : The value of national currency
PIGlobal : The global price index
PILocal : The local (national) price index
GDP : Gross domestic product
With fully accurate auto-balancing exchange rate:
1. The trade and investment competitiveness of all countries is fully balanced.
2. The trade of all countries is fully balanced, not excessively surplus or deficit.
3. The external balance of all countries becomes completely neutral or equilibrium, not deficit and not surplus.
4. External imbalances between countries can be completely eliminated.
5. The convergence and efficiency of the international economy takes shape naturally.
6. Exchange rate fluctuations and friction between monetary systems can be completely eliminated.
10. Flexibility and Stability
By pegging on the price index, auto-balancing makes the exchange rate fully follow the economic fundamentals of each member country. This makes the exchange rate fully flexible, more flexible than the current floating exchange rate which is still influenced by impurity factors and transactions.
With a perfectly flexible exchange rate, the organic model does not require economic integration.
Then in terms of stability, by pegging on the price index, auto-balancing makes the exchange rate fully follow the economic fundamentals of each member country. This eliminates the influence of impurities (volatile) and variants on the exchange rate, so that the exchange rate becomes fully follows fundamentals, fully stable, zero volatility and zero fluctuation.
The auto-balancing exchange rate is able to bring together the two poles which have always been opposite, namely “flexibility and stability”. The auto-balancing exchange rate can achieve both, be flexible and stable at once.
3. Solving the Problem
Organic monetary is a natural and elegant international monetary system; works by eliminating incoherency and increasing efficiency, so it can eliminate almost all problems and costs of current global monetary as mentioned above comprehensively.
1. Free international currencies for all countries
In a democratic system, everything that can be made without cost in principle can be shared to all members for free. Likewise, international currencies. In an organic system, international currencies can be made very efficiently, without requiring guarantees of international assets such as gold or other foreign currencies, so that they can be made almost at no cost.
Thus, international currencies can be distributed to all member countries for free. International currency allocations are based on the needs of international transactions. Each member country no longer needs to buy international currencies from others as it is now. The system can provide international currency to all member countries for international transactions among member countries whatever they need free of charge.
2. No need to pile up foreign exchange reserves
Since international currencies are provided free of charge as needed, member countries do not need to compete in accumulating foreign exchange reserves from trade; no need to fight over a surplus.
Since the exchange rate is fully stable, the system is fully convergent, there is no threat of monetary security; foreign exchange reserves are only needed for international transactions; no “monetary fortress” is needed.
The use of foreign exchange reserves globally is becoming far more efficient. Foreign exchange reserves are only needed for international transaction needs, not more. That is entirely provided by the system “free of charge”.
3. Zero depreciation
All currencies in the world are depreciating. This is because currencies stick to the state budget of all countries. While governments creates a budget deficit to increase economic growth. Consequently the currency they issue consistently depreciates.
Whereas the organic currency is managed independently by a global central bank which is completely unrelated to the national state budget. Thus the organic currency is not affected by certain state budget policies so that it does not experience depreciation. Organic currency is also pegged to the global price index so that its value is fully stable, both in the short and long term. Organic currency value will remain the same in the next 10 years or even 100 years so that it is more stable than all currencies that have ever existed on earth, including gold.
Thus, there is no longer a “donation of the poor” to “the rich” in the form of international currency depreciation as it is now.
4. Eliminating exchange rate fees, fluctuations, and risks.
The organic monetary uses an auto-balancing exchange rate system that is able to eliminate fluctuations and spreads. Organic international currencies and national currencies can be directly converted in the backbone operated by the central bank at no cost and without affecting prices (exchange rates).
With the loss of fluctuation, the opportunity for currency speculation is gone. No opportunity, no speculation. In the organic model, currency speculation will naturally disappear. With the elimination of fluctuations and spreads, the organic model can completely eliminate the cost of exchange rates, fluctuations, and risk.
5. Eradicate trade war
Organic international currencies are provided based on needs. All member countries no longer need to pursue a trade surplus, no need to be afraid of deficits, and no need to compete to collect foreign exchange reserves. With an auto-balancing exchange rate, international trade of all member countries also becomes fully balanced, not surplus nor deficit.
This completely eliminates the mass trade war that has been involving all countries in the world for decades. With the trade that is fully balanced, without the pressure of surpluses and deficits, all countries can concentrate on pursuing the efficiency of international trade. Countries in the world no longer need to be trapped in unhealthy competition in the form of “race to the bottom” and “trapped in the bottom”. International trade will become far freer and livelier because no country can exploit the domestic market of others. They only conduct international trade if it is profitable or increases efficiency; otherwise, they don’t. The convergence of international trade takes shape naturally.
6. Release all member countries from the foreign debt trap
Since international currencies are provided on a free basis and international trade is fully balanced, no country needs to owe others to build a “monetary fortress” nor to fund deficit.
Foreign debt between companies or individuals is still possible. While government foreign debt is not necessary at all. No more countries are trapped in foreign debt that can never be paid. All member countries can be completely free of foreign debt trap (FDT).
7. Eliminating the external factors of the middle income trap
With an international currency that is provided free of charge and an “auto-balancing” exchange rate system, member countries no longer need to engage in mass trade wars. Global trade is fully balanced. No country can export far more than imports. Exports and imports of all member countries will be fully balanced naturally. Thus, no country can exploit other countries’ markets. And vice versa there are no countries whose domestic markets are exploited by others. All countries can control their domestic market.
With a balanced market, the flow of investment will also be balanced. Competition between very productive and less productive countries will be fully balanced, both in terms of trade and investment. Then no country can exploit others. The external factors that cause the middle income trap (MIT) can be completely eliminated.
8. Eliminating global imbalances
With international currencies distributed to all member countries and an auto-balancing exchange rate system, organic monetary is fully symmetrical. A symmetrical monetary system eliminates the imbalance between center countries (owners of international currencies) and peripherals (users of international currencies). While the auto-balancing exchange rate system eliminates imbalances among peripherals.
Global imbalances stemming from global trade as well as capital flows and other transfers can all be eliminated comprehensively. The external balance of all member countries will be fully balanced.
9. Eradicate the potential of the monetary crisis at its roots
By eliminating all factors that cause monetary crisis, namely external (global) imbalances and exchange rate fluctuations, the organic model can eliminate the monetary crisis comprehensively. The monetary crisis that has been happening periodically throughout the world for decades and has no cure, can be completely eliminated. In the organic model, there are no more currency crises in all countries the world.
4. It can start anywhere and be initiated by anyone
There are two most difficult factors that have always stopped all initiatives to build a global currency in the world, namely the requirements of economic integration and “will of the summit”.
First, economic integration
A common currency such as the Euro can only start if member countries are economically integrated. If forced while the economy is not yet integrated, then those countries will experience an imbalance or “asymmetric shock”. As a result, the costs of combining a monetary system can be more expensive than the benefits obtained. Meanwhile, to reach the stage of comprehensive economic integration requires intensive and very long economic-political cooperation. Only a very small portion of the region in the world has been truly integrated economically and qualified to build or join a currency system such as the Euro model. This makes establishing a shared currency like the Euro model very difficult to do in various regions of the world.
While the organic system does not require economic integration at all because it uses a fully flexible exchange rate. Without the requirements of economic integration, the organic model can initiate anywhere in the world and any country may join. All countries in the world today may join at the conditions as they are, without overhauling monetary policy, without waiting for economic integration.
Second, “will of the summit”
The idea of global currency has been around for decades, even since the Bretton Woods conference took place, proposed by John Maynard Keynes. After Keynes, there were dozens of other ideas that came up later. All ideas of global currencies stopped because they did not get the approval from the United States, as the country that owns the most dominant international currencies. The problem is that the whole idea of a global currency can only be carried out if approved and supported by the “main players”, namely the owner of international currencies (the United States and the Euro Area) and the countries with the biggest trade surplus (China and Japan). The idea of a global currency can only be carried out if all the major player countries or “the summit” will and sit at one table and share a very basic of interests. And we all know that that it is impossible; at least in the near future.
Whereas the organic monetary system works in a different way. Organic monetary systems can start on a small or large scale; and can function normally regardless of the number of members. Thus the organic model can initiate anywhere and in any number of member countries without the approval nor agreement of the “tip of the pyramid”.
With such flexible characteristics, which do not require economic integration and do not require the cooperation of all countries, but only countries that support it, the organic monetary system can escape from “global monetary cartels”. Organic monetary can initiate anywhere and can be spearheaded by any country or region throughout the world. Even with a small membership, for example ASEAN countries, East Asia, South Asia, Middle East, West Africa, East Africa, Central Africa, Latin America and so on, the organic monetary system can function normally. Furthermore, the organic union can open to all countries in the world. Without the requirements of economic integration, without eliminating the national currency, the organic union will easily develop naturally, bit by bit.
5. Road Map
1. Global currency initiative
The earliest stage of developing an organic model is the global currency initiative (GCI), which is a body or anything that specifically conducts research, education, and publication. The main tasks are:
- Research and development of models, theories, and technologies in monetary, economic, information technology, and other fields as needed
- Inviting the local government to get involved
GCI also uses the “principle of decentralization”; meaning that every “body” established in each country is independent.
2. United Nations of International Monetary (UNIM)
After taking over, the government can establish an international body, for example, the United Nations of International Monetary (UNIM) which is official body and is under the auspices of the United Nations (UN).
The nature of UNIM membership is voluntary and open. The voting rights of each country are based on the size of international transactions. The main task of UNIM is to establish the global central bank and prepare all necessary regulations.
Actually, the IMF is more than qualified to become such international body. It’s just that, given the IMF has its own decision-making system that is different from organic model, is likely to be difficult to accommodate. In addition, not all IMF member countries will be members of UNIM in the initial stages.
3. The global central bank
The global central bank is a central bank that issues organic currencies and runs the entire system. The global central bank is responsible to UNIM. The global central bank has representative offices in each member country and is run in a decentralized way.