The Global Currency Initiative is an idea to establish a new, elegant, and comprehensive model of a shared and democratic global currency and monetary in the world. It is called elegant because it is highly compatible with most of basic laws and building-block theories in an open economy. Even this new model can go further and deeper than the current global or regional monetary architecture. The Global Currency Initiative is fully open in all matters and to all parties around the globe.
The United States Dollar and the Euro are actually not international currencies, but certain country currency and certain regions which are 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 tyrannical nature, which is to suck up the wealth of the countries that use it, and drain it into the country or regions that own the currency. The use of adopted international currencies causes all countries in the world to buy paper with gold (global financial asymmetry); excessive and pleonastic accumulation of foreign exchange reserves; depreciation costs that borne by all countries in the world; unbalanced international trade and even trade wars; continuous global imbalances; middle income trap; heavy-dependence on foreign debt; exchange rates fluctuations throughout the world; and potential monetary crises that haunt all countries in the world at any time. All of those enormous costs are borne by the entire world economy.
ORGANIC GLOBAL CURRENCY (OGC)
The Global Currency Initiative introduces organic global currency (OGC) to solve the problems posed by the global monetary system above. Organic Global Currency is an international currency system that is democratic, created, used and managed together, and distributed to all member countries in the world, FOR FREE.
Organic global currency (OGC) is a global currency or monetary system that is developed by all countries globally and becomes part of the national currency system of each country. Organic global currency (OGC) is only used for international transactions between member countries. While domestic transactions use the national currency of each country. The relationship between organic global currency (OGC) and the national currency of each member is an organic (part or organ) or hybrid (interchangeable) relationship. This causes the joining countries not to lose the national currency, monetary sovereignty, and fiscal policy. The OGC model uses an auto-balancing exchange rate model that follows the economic fundamentals of each member country so it does not require economic integration and uniformity (OCA properties).
Organic global currency (OGC) is an elegant and very comprehensive international currency model that can stop trade wars, remove foreign exchange reserves, eliminate dependence on foreign debt, release countries from the middle income trap, reduce international imbalances, erase fluctuations in exchange rates, and root out the potential of a monetary crisis of every country.
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 the national currency system, not independent, nor stand alone, and not foreign currency (foreign element) as the current global monetary. Organic global currency is 100% backed up and guaranteed by the national currency. The national currency can be 100% converted into the organic global currency.
Organic global currency is an active system, not just issuing currency and then giving everything up to the market. Because market forces without an active balancing system are mob-law. Organic global currency has an auto-balancing model that is very active in maintaining the balance of all monetary systems in the world.
ORGANIC GLOBAL CURRENCY
Difference with US Dollars:
The US dollar is a national (certain country) currency that is used as an international currency, while organic global currency is really made to be a real global currency. The US dollar is only managed and controlled by the United States, while organic global currency is managed and controlled by all countries in the world.
Difference with the Euro (regional currency):
Euro is a regional currency that is used (adopted) globally. Whereas organic global currency is indeed made for global currency. The Euro is only managed by the European Union, while organic global currency is managed by all countries in the world. The Euro is a single currency (no other national currency in the European Union). Whereas organic global currency is an organic international currency, does not replace or eliminate national currencies, but coexists, side by side, with national currencies. Organic global currency is only used for international transactions. Local transactions still use national currency. So organic global currency becomes part of the local monetary system.
Difference with single world currency (SWC):
Single world currency is just like Euro in the global level. There is no national currency in the SWC system. Whereas organic global currency is an international currency only, does not replace the national currency. The national currency of each country still exists as it is now.
Difference with the IMF’s Special Drawing Right (SDR) and other half currencies:
SDR is a non-currency model that provide foreign exchange reserves, or semi currency or half currency. SDR only becomes a currency when other countries buy it. SDR is closer to debt than currency. The same is true for other non-currency payment systems such as Terra (TCR), cryptocurrency, and half currency or other semi-currencies. Organic global currency is 100% currency or fully currency that has the function of a whole currency, just like any other currency (fiat money) in the world today.
At present, various efforts have been made by various parties around the world, to overcome the problems posed by the global monetary system that cannot be solved within the current system itself. These various efforts include:
Supercurrency is a combination of the strongest currencies in the world (USD, Euro, Yen, Yuan) into one super currency.
Strengths: Stronger, more stable.
Disadvantages: Cannot eliminate the 8 costs of the global monetary system as described in Global Monetary Problems. Because the supercurrency remains tyrannical, only bigger.
Prospect: Super power countries do not reach an agreement because they do not want to share interests.
Regional Currency is a shared-single-currency system in one region. Example: Euro.
Strengths: 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 (but not at global level).
Disadvantages: Heavy requirements because there must be economy integration and uniformity (OCA properties). Member countries lose the freedom of monetary and fiscal policies. When used outside the area, it turns into a tyrannical currency.
Prospect: Only a small part of the region in the world can meet OCA requirements (economy integration).
Single World Currency
Single world currency is a shared-single-currency system worldwide.
Strengths: able to overcome 8 monetary costs comprehensively. Can eliminate exchange rates and global fluctuations.
Disadvantages: Heavy requirements because all countries in the world must be integrated and uniform economically, to meet OCA requirement. All countries will lose the national currency and lose the freedom of monetary and fiscal policy.
Prospect: Currently impractical.
Organic Global Currency (OGC)
Organic global currency (OGC) is an international currency system that is a (organic) part of the national currency system of all countries in the world.
Strengths: able to overcome 8 monetary costs comprehensively. Does not require integration and uniformity requirements (OCA properties). Each country still has national currency. Every country still has the freedom to regulate its monetary and fiscal policy.
Disadvantages: Exchange rates still exist. Even though, in theory, volatility and spread can be completely eliminated.
Prospect: OGC can eliminate exchange rate fluctuations. OGC does not require integration requirements (OCA properties), does not depend on the approval of the super power countries. Countries do not lose the national currency, do not lose monetary and fiscal freedom. Can be implemented anytime on a global scale. It can also be started on a regional scale with a system that is open globally.
REMOVE THE PROBLEM IN A CURRENT GLOBAL MONETARY SYSTEM
Organic global currency is a democratic currency system (from members, by members, to members), can eliminate 8 costs in the global monetary system comprehensively:
Free money. Organic global currency is free money for all member countries, as much as their international trade and investment needs.
Free of foreign exchange reserves. With organic global currency, all member countries do not need foreign exchange reserves for transactions with other member countries.
Free of depreciation. Organic global currency is pegged to the global price index so that it doesn’t experience depreciation at all times.
Free of trade war. Normal balance of each member country’s trade is zero deficit and zero surplus, thus it does not need to pursue surplus, and does not need trade war. All forms of market intervention by member countries on exports or imports will be neutralized by the auto-balancing system.
Removing international imbalances. In the organic global currency, international trade of each country will always be in near-to-perfect balance. Global imbalances will be reduced and eliminated.
Removing the potential of the monetary crisis. With organic global currency, fluctuations, international imbalances can be eliminated. Thus, the monetary crisis can also be eliminated.
Monetary and fiscal freedom. In organic global currency, all countries still use their national currency, and as such, have control of monetary and fiscal policies.
Can be implemented now. Organic global currency does not require integration and uniformity requirements (OCA properties) so that it can be implemented on a global scale with the conditions of all countries in the world as they are right now. No overhaul needed.