Global Currency Initiative is an idea to initiate a shared and democratic global currency. Global Currency Initiative is fully open idea for all parties throughout the world in all matters.
The US Dollars and Euro are actually not international (global) currencies, but local currency and region currency which were adopted into international currencies (Adopted Global Currency – AGC). US Dollars and Euros, when used outside their territory, will become tyrannical currencies. It is called tyranny because of its nature, which is to suck up the wealth of the countries that use it, and drain it into the country issuing the currency. The use of adopted global currencies (AGC) has caused enormous costs to be borne by the entire world economy.
Global Currency Initiative introduces Organic Global Currency (OGC) to resolve problems posed by current global monetary system. Organic Global Currency is a democratic international currency system, created, used, managed, and distributed to all member countries, for FREE.
Organic Global Currency is a very comprehensive global monetary system, can end trade wars, erase the need of foreign exchange reserves, eliminate states dependence on foreign debt, release countries from middle income trap, reduce global imbalances, and eliminate any potentials of monetary crises.
The book explains in a comprehensive manner how the Organic Global Currency works.
Organic Global Currency is built by and for all countries in the world. All countries are involved in building, managing, and using a common currency. All countries have equal voting rights, have equal and proportional control. Organic Global Currency provides free global currencies to all member countries.
Organic Global Currency is a part of local currency systems, not independent system, nor foreign currency system as the current global monetary system. Organic Global Currency 100% backed up by the local currency system. The local currency system can be 100% transferred in to Organic Global Currency system.
Organic Global Currency is an active system, not just issuing currencies and has everything determined by market. Because market without active balancing system are lawless, disorder, and broken. Organic Global Currency has an active auto balancing system maintaining the balance of all monetary systems in the world.
ORGANIC GLOBAL CURRENCY
Organic Global Currency (OGC) is a joint international currency system that is built, managed, and used by all member countries. Organic Global Currency is part of local currency system, not stand alone system, 100% back up with the local currency. Organic Global Currency is an active system that maintains the balance of the entire global and local monetary system.
Difference with US Dollars:
US Dollar is a local currency used (adopted) as an international currency, while Organic Global Currency is really made to be a global currency. US Dollar is managed and controlled only by the United States, while Organic Global Currency is managed and controlled by all countries in the world.
The difference with the regional currency (Euro):
Euro is a regional currency used (adopted) as global currency. Whereas Organic Global Currency is indeed made for global currencies. Euro is managed by the European Union, while Organic Global Currency is managed by all countries in the world. Euro is a single currency (there is no other state currency in the European Union). Whereas Organic Global Currency is an international currency, only used for international transactions. Local transactions still use local currency. So Organic Global Currency does not eliminate local currency. But it becomes part of the local currency system.
Difference with single world currency (SWC):
Single world currency is the single (hypothetical) currency of the world. There is no local currency in the SWC system. Whereas Organic Global Currency is an international currency only, does not replace any local currency. Local currencies of all states still exist as it is now.
The difference with the IMF’s Special Drawing Right (SDR) and other half currencies:
SDR is non-currency foreign exchange reserves system or semi currency or half currency. SDR only becomes a currency when there are any buyer countries. SDR is closer to debt than currency. And so are other non-currency payment systems such as Terra, Cryptocurrency, and other half or semi-currencies. Organic Global Currency is true or fully currency, has full function of currency, just like any other currency (fiat money) in the world today.
Various efforts have been made by many parties around the world, to overcome the problems posed by current global monetary system that cannot be solved within the system itself. These various efforts are:
Supercurrency is a merger of the strongest currencies (USD, Euro, Yen, Yuan) into one super currency.
Advantages: Stronger, more stable.
Disadvantages: Cannot overcome 8 costs of the global monetary system as explained in Global Monetary Problems. Because supercurrency remains tyrannical, only bigger.
Prospect: Super power countries do not reach an agreement because they do not share interests.
Regional Currency is a single shared currency system in one region (union). i.e.: Euro.
Advantages: Can overcome most of the 8 global monetary costs as explained in the Global Monetary Problems at the regional level. Can eliminate exchange rate costs and regional fluctuations.
Disadvantages: High requirements, requires high integration and uniformity in region. Member states lose the monetary and fiscal freedom. When used outside the area, it turns into a tyrannical currency.
Prospect: Only a small portion of the region in the world may meet OCR (Optimal Currency Region) requirements.
Single World Currency
Single World Currency is a single currency system worldwide, no local currency coexists with it.
Advantages: Comprehensively overcome 8 monetary costs and eliminate exchange rate costs and fluctuations globally.
Disadvantages: Extremely high requirements, requires integration and uniformity (OCR) worldwide. All countries will lose their monetary and fiscal freedom.
Prospect: Currently impractical.
Organic Global Currency (OGC)
Organic Global Currency (OGC) is an international currency system that is a part (organic/hybrid) of local currency system.
Advantages: capable to overcome 8 monetary costs comprehensively. Does not require integration and uniformity (OCR). Every country still has monetary and fiscal freedom.
Disadvantages: Exchange rate costs and fluctuations can only be reduced but cannot be eliminated. (The option of eliminating the local currency system is open at the cost of loss of freedom. It is not recommended).
Prospect: OGC does not require OCR, does not depend on the approval of the superpower country, can be applied anytime on a global scale. It can be started on a regional scale and open globally.
REMOVE THE PROBLEM IN A GLOBAL MONETARY SYSTEM
Organic Global Currency is a democratic global currency system (from members, by members, to members), capable of eliminating 8 costs posed by the current global monetary system as mentioned on Global Monetary Problems, comprehensively i.e:
Free Money. Organic Global Currency is free money for all member countries, as needed by international trade and investment.
Free Of Foreign Exchange Reserves. With Organic Global Currency, all member countries do not need foreign exchange reserves.
Free of Global Depreciation Cost. Organic Global Currency is pegged to the global price index, so never shrink all the time (zero depreciation).
Free of Trade War. Trade normal balance of each member country is zero deficit and zero surplus, thus it does not need to pursue surplus, nor trade war. All forms of market intervention by member countries on international trade will be neutralized by the auto balancing system.
Removing International imbalances. In the Organic Global Currency system, all member countries will always be in the position of an export and import balanced power and balanced trade balance. All cumulative imbalances automatically will be returned to the balance position.
Removing the Potential of the Monetary Crisis. With Organic Global Currency system, fluctuations and international imbalances can be eliminated. Thus, the monetary crisis can be eliminated.
Monetary and Fiscal Freedom. In Organic Global Currency system, all countries can still use their local currency and have control of monetary and fiscal policies.
Applicable Right Now. Organic Global Currency does not require OCR conditions (integration and uniformity) so that it can be applied on a global scale with the conditions of all countries as they are today.